Standfirst: The European Union is seeking closer ties with Canada in defence, energy, trade and critical raw materials. But Ottawa’s support for new oil and gas projects is raising questions about whether its climate policies align with Europe’s transition goals.
Canada’s climate record is becoming a central issue as the European Union considers a closer political and economic relationship with Ottawa. The proposed partnership would broaden cooperation between the two sides, but Canada’s support for fossil fuel expansion is creating tension with the EU’s climate objectives.
European Commission President Ursula von der Leyen recently suggested that Canada could become the EU’s first “associate member”. Following resistance from some member states, including Germany, the wording is being revised towards “ever closer association” in a draft declaration expected to be considered at the EU-Canada summit in Montreal.
Why Canada’s climate record matters to the EU
The EU and Canada already cooperate on trade and diplomacy, while discussions are also focused on defence, critical raw materials, energy and border security. Canada’s resources and political stability could make it an important partner as Europe seeks to reduce dependence on Russian fossil fuels and strengthen supply chains.
However, closer energy cooperation could expose differences over the pace of decarbonisation. The Canadian government has presented expanded oil and gas production as a way to improve economic resilience and attract investment. Climate organisations argue that this approach risks weakening emissions policy and delaying the shift to clean energy.
The debate is particularly relevant to Europe because new pipelines, liquefied natural gas terminals and export facilities can operate for decades. Critics warn that long-term fossil fuel infrastructure may encourage continued gas consumption and divert investment from renewable energy, electrification and energy efficiency.
Canada’s proposed Pacific Link oil pipeline
One of the clearest examples of Canada’s energy strategy is the proposed Pacific Link pipeline. The project would transport up to one million barrels of oil sands bitumen per day from Alberta towards the Pacific coast of British Columbia.
Environmental groups have raised concerns about possible impacts on marine habitats, including areas used by endangered orcas. They also say the project could increase greenhouse gas emissions by as much as 18.7 million tonnes.
The pipeline proposal illustrates the wider conflict in Canada’s policy direction: the government continues to support some clean-energy investment while also accelerating the development of major fossil fuel infrastructure.
Policies critics say have been weakened
Since taking office in 2025, Prime Minister Mark Carney’s government has changed or withdrawn several measures intended to reduce emissions, according to the climate organisations cited in the source material.
- A planned cap on oil and gas emissions was abandoned.
- Industrial carbon pricing was weakened.
- The electric vehicle mandate was scrapped.
- Anti-greenwashing requirements were relaxed.
- Funding for public transport was significantly reduced.
The government has also cancelled consumer carbon pricing. Supporters of the changes describe them as part of a broader effort to reduce costs and strengthen competitiveness, while environmental groups say they remove incentives to reduce fossil fuel use.
Faster approvals for major energy projects
Canada’s 2025 Building Canada Act created a framework for identifying projects considered to be in the national interest. The mechanism can apply to developments involving critical minerals, renewable energy, nuclear power, ports and hydropower, as well as fossil fuel infrastructure.
In September 2026, the government introduced legislation that would allow projects in designated regions of national interest to receive advance approval. The proposed changes would shorten reviews for major projects to one year and give a federal minister greater authority to remove environmental conditions attached to projects that had already been approved.
Environmental organisations say the proposal could reduce wildlife protections and public oversight. Its final legal status and implementation would depend on Canada’s domestic legislative process.
LNG exports and Europe’s energy choices
Canada is also pursuing greater liquefied natural gas export capacity from its west coast. The government has supported plans that could double the capacity of a major facility and has indicated that gas exports from New Brunswick could be considered if the province changes its approach to fracking and develops domestic production.
A feasibility study on long-term LNG exports to Europe is expected to be discussed around the EU-Canada summit. For EU member states, Canadian supplies could offer another source of gas as the bloc seeks to diversify energy imports and reduce reliance on Russia.
Yet energy security and climate policy do not always point in the same direction. Additional gas supplies might improve short-term flexibility, but new infrastructure can create long-term commercial pressure to maintain gas consumption. Climate campaigners therefore argue that Europe should prioritise renewable power, energy efficiency and electrification instead.
Can Canada meet its climate targets?
Canada’s policy changes come as independent assessments suggest the country is unlikely to achieve its emissions goals. Climate Action Tracker estimates that planned policies could deliver an emissions reduction of only 14 per cent, compared with Canada’s stated target of a 40–45 per cent reduction over the relevant period.
A September 2026 analysis by the Canadian Climate Institute also concluded that Canada was not on course to meet its 2030 target and could continue to face a shortfall towards 2050.
The figures are important for the EU because any closer energy partnership would need to reconcile commercial interests with the bloc’s climate legislation and net-zero objectives. The question is not simply whether Canada can supply oil and gas, but whether that cooperation supports or undermines Europe’s longer-term transition.
What happens next?
The EU-Canada summit is expected to examine the proposed language for a closer association and cooperation in areas including defence, trade, energy and critical raw materials. Any final declaration would express political intent, not automatically create a new EU membership category or change Canadian climate law.
For Ireland and other EU member states, the practical issues will include energy security, infrastructure investment and consistency with European climate commitments. Further detail will be needed on any LNG cooperation, environmental safeguards and the legal arrangements underpinning the proposed partnership.
The central takeaway is that Canada’s climate record will influence how credible and sustainable closer EU-Canada energy cooperation appears. Ottawa’s fossil fuel expansion may offer Europe another supply option, but it also risks locking both sides into infrastructure that could complicate the transition to a low-carbon economy.