The signing of the MOU with Alberta was ‘a great day for Canada’ that sets the stage for ‘an industrial transformation,’ said Prime Minister Mark Carney, pictured with Alberta Premier Danielle Smith. / SCREENSHOT

Many First Nations are opposed to a new pipeline proposed in a memorandum of understanding between Alberta and the federal government, saying “it’s going to be very difficult to get any project like this through British Columbia.”

BC Assembly of First Nations Regional Chief Terry Teegee said there are many concerns, including environmental risks.

Teegee told Vista Radio the Hecate Straight is a very precarious place that would be vulnerable to tanker traffic, and cited the ongoing effects of the Exxon Valdez, the oil tanker that ran aground in Alaska in 1989, causing one of the worst environmental disasters in history. “When it comes to the risks, it's a matter of when and where this pipeline breaches.”

“The area especially on the coast and the Interior I would say contributes to the B.C. economy and right now we are at over $21 billion dollars and 200,0000 that have jobs who would be at risk in these areas especially along the coast. I think we are very concerned about the risks.”

He added that many First Nations he’s heard from are opposed to the pipeline’s route, which includes the coastal lands where there is an ongoing tanker ban.

“This project would be imposed on British Columbia to take a lot of the risk as well as completely ignoring the fundamental obligations of the federal government and the province of B.C. to uphold the United Nations Declaration on the Rights of Indigenous Peoples,” Teegee said.

Clearing the way for approval

Prime Minister Mark Carney rocked the country as he sought further advances in his industrial strategy by opening the way to approval of a pipeline from oil-rich Alberta to an export terminal on the B.C. coast.

In addition to First Nations, the blockbuster deal with Alberta on energy development ignited a wave of conflicting reaction across Canada from business, environmentalists, the B.C. government and politicians on all sides, among others.

Ottawa’s tentative breakthrough on energy with Alberta, which labelled the proposed oil sands pipeline to a northern B.C. port a project of national interest, upended 10 years of Liberal energy and climate policy. In response, Canadian Identity and Culture Minister Steven Guilbeault, who formerly held the environmental portfolio, immediately resigned from cabinet.

“Changes in our relationship with the United States have led to profound disruptions affecting the global order, diplomatic relations and the economy. I understand and share the Prime Minister's efforts to ensure our country remains united and that all regions feel they have a voice,” Guilbeault wrote in a statement posted to social media.

“Despite this difficult economic context, I remain one of those for whom environmental issues must remain front and centre. That is why I strongly oppose the Memorandum of Understanding between the federal government and the government of Alberta.”

The answer is ‘still no’

Guilbeault said there was no consultation between Ottawa, Alberta, Indigenous nations of the West Coast or the B.C. provincial government. “Furthermore, a pipeline to the West Coast would have major environmental impacts, particularly as it could cross the Great Bear Rainforest, contribute to a significant increase in climate pollution and move Canada further away from its greenhouse gas reduction targets,” he said.

He added that the MOU gives a “competitive advantage to this industry at the expense of renewable energy and clean technologies.”

Heiltsuk Nation Chief Marilyn Slett told CBC: “We will use every tool in our toolbox to ensure that this pipeline does not go ahead.”

Similarly, Stewart Phillip, Grand Chief of the Union of British Columbia Indian Chiefs, said in a statement: “The answer is still no and always will be.”

But Carney appeared ready to ride out the political turmoil, saying major changes are necessary at a time when the U.S.-initiated trade war is undermining Canada’s economy. The signing of the MOU with Alberta was “a great day for Canada” that sets the stage for “an industrial transformation” that will make the country stronger and less dependent on the U.S. market, the prime minister said.

For her part, Alberta Premier Danielle Smith said, “This is a really great day for Albertans.”

Lisa Baiton, CEO of the Canadian Association of Petroleum Producers, welcomed the agreement. “[It] reflects an earnest commitment to collaborate and grow Canada’s oil and natural gas industry. The elimination of the emissions cap, changes to the Competition Act, and the commitment to work together on new market access are all significant steps towards unlocking Canada’s vast natural energy resources and putting us on a path to become the world’s next energy superpower,” she said.

Will it ever get built?

While the agreement was welcomed in some quarters, it remained uncertain if such a pipeline will ever be built. It would cost $30 billion-plus and currently has no private sector proponent.

Ottawa’s support for the idea raised enormous questions about federal-provincial cohesion, Indigenous rights, climate policy, private sector investment decisions and Carney’s political strategy.

Among the most controversial elements of the MOU is the federal government’s commitment not to implement its oil and gas emissions cap and, if the pipeline comes to fruition, the government would adjust the current oil tanker ban so bitumen could be exported through B.C. to Asian markets.

B.C. Premier David Eby said he wants to make sure the project does not become an “energy vampire.”

He said with so many unknowns, including “no proponent, no route, no money, no First Nations support,” he’s worried the project would “draw limited federal resources, limited Indigenous governance resources, limited provincial resources away from the real projects that will employ people.”

“We already have a publicly owned pipeline,” he said, speaking of the TMX pipeline. “It is not at capacity; it is for sale. Nobody wants to buy it. For this new pipeline proposal, it similarly has no company that has stepped up.”

Candace Laing, President and CEO of the Canadian Chamber of Commerce, said the MOU is a “welcome pivot” and shows “meaningful steps” to respond to industry’s concerns around cooperation and regulatory certainty.

In an op-ed, economist Jack Mintz wrote the project may struggle to attract an investor because of rising carbon taxes. Costly decarbonization measures erode competitiveness, with carbon-related policies potentially adding US$6.4–$10 per barrel to production costs, leaving Alberta producers at a disadvantage relative to U.S., Latin America and the Middle East rivals. These pressures — not opposition from B.C. or First Nations — pose the greatest threat to advancing a new West Coast pipeline, with failure potentially inflaming separatist sentiment in Alberta, Mintz said.

Meanwhile, the agreement drew sharp criticism from environmental advocates, who warned the province-specific concessions could “trigger a race to the bottom,” as Canadian Climate Institute president Rick Smith put it. Pembina Institute president Chris Severson-Baker also warned about the risk of “locking in an expensive, outdated, high-emitting electricity grid.” While many groups criticized the carveouts, they noted Alberta’s commitment to strengthen its industrial carbon price — though the agreement sets no timeline for the increase and leaves open whether the province will match federal targets.