Mark Carney has backed a major new oil pipeline project, as the former net zero champion pivots his country back towards oil and gas.
The Canadian prime minister said the 620-mile pipeline, costing up to C$44bn (£23bn), would connect the oil sands of Alberta with a West Coast port near Vancouver, allowing Canada to ramp up energy exports to Asia.
The project marks a significant departure for Mr Carney, who leads a Left-leaning government. As governor of the Bank of England from 2013 to 2020, he was a major figure in driving the financial sector towards net zero.
He used a video address this week to announce a relaxation of his predecessor Justin Trudeau’s ambitious net zero targets.
“We can’t afford to restrain the growth of an important part of our energy mix – oil and gas – to meet a short-term goal,” he said.
Mr Trudeau’s plan was to cut greenhouse gas emissions by up to 45pc below 2005 levels by 2030, and to hit net zero emissions by 2050.
Mr Carney described the plan as expensive and divisive. “It would have been too expensive for Canadians, who are already struggling with affordability,” he said.
Canada now plans to more than triple its liquefied natural gas production in the next decade, building five new terminals. Mr Carney’s government will also pump C$10bn into upgrading the Vancouver port.
He acknowledged that Canada’s greenhouse gas emissions would now rise, but said its oil and gas industry’s environmental standards would help minimise the increase.
“Addressing energy security means we are going to produce our conventional oil and gas in the most environmentally sustainable ways and export them to where they will make the biggest difference,” he said.