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QUESTION PERIOD — Ministry of Natural Resources

Oil and Gas Pollution Cap

October 9, 2025


Minister Hodgson, it is my understanding that you have committed to Alberta Premier Danielle Smith behind closed doors that you will lift the emissions cap. Is that true? Is that your government’s plan? If so, when will you do it?

Hon. Tim Hodgson, P.C., M.P., Minister of Energy and Natural Resources [ + ]

As I have said many times, we are in discussions with the Province of Alberta. They are live, ongoing discussions. I’ve never found it helpful to debate in a public forum what those consultations are.

What I would say is that they are productive conversations, and as Premier Smith said recently, she has never been so optimistic that there is a path forward for Albertans on natural resource development.

Minister, can you at least confirm that you are not promising one thing on your emissions cap behind closed doors in Alberta and something different to other premiers?

Mr. Hodgson [ + ]

I can confirm that we do not say one thing to one premier and something different to another — yes.

Hon. Salma Ataullahjan [ + ]

Minister, across Canada, Indigenous communities are leading the way in responsible energy development, from the Nisga’a and Haisla Nations in British Columbia, who are co-owners of the major Liquefied Natural Gas, or LNG, projects, to the 36 First Nations who have invested over $700 million for a 12.5% equity stake in Enbridge’s Westcoast natural gas system. These partnerships are creating jobs, revenue and self-determination.

These are tangible examples of economic reconciliation, yet many Indigenous leaders warn that the federal oil and gas emissions cap would threaten these hard-won opportunities.

Can you tell us what your government is doing to ensure that Indigenous-owned oil and gas projects are not undermined by federal restrictions that risk discouraging investment and economic development?

Mr. Hodgson [ + ]

Thank you for the question.

I was with Chief Clayton of the Nisga’a Nation last night actually, talking about their project. I think they are quite pleased with the support they are receiving from the government. Last week I was with Chief Nyce of the Haisla Nation, which is responsible for LNG Canada Phase 1, LNG Canada Phase 2 and Cedar LNG, and I think they are quite pleased with the involvement of the government in supporting their efforts.

I was with Chief Ian Campbell a couple of weeks ago in Squamish at the Woodfibre LNG facility, where we are working with them to grow their ambitions for their First Nation. I believe Chief David Jimmie, who led the investment by the 19 First Nations in the Westcoast pipeline, is also quite happy with the support they have received in terms of the Indigenous Loan Guarantee Program so that First Nations could buy equity in the largest infrastructure system in British Columbia.

Senator Ataullahjan [ + ]

Minister, the Parliamentary Budget Officer’s analysis shows that the proposed oil and gas emissions cap could cost over 40,000 jobs and 54,000 full-time equivalents by 2032. Meanwhile, the Indigenous Resource Network warns of a looming labour shortage in the energy sector of up to 116,000 jobs by 2035, with Indigenous workers essential to meeting that demand.

If investment keeps moving south because of Canada’s regulatory barriers, it won’t be just dollars leaving. It will be a setback for energy independence and economic reconciliation.

Will your government pause or reverse the proposed cap to protect these opportunities?

Mr. Hodgson [ + ]

Well, I was just up at Kitimat where there were 12,000 workers building LNG Canada Phase 1. I was just at the Woodfibre LNG site where there are 3,000 workers building the Woodfibre facility. I was just with Chief Clayton — they just got approval, by the way, for the Ksi Lisims LNG, which will, I think, have 20,000 workers between the LNG and the pipeline that they will be building, so I think there are a lot of jobs being created in Canada if we stay on the right path.

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