Resilient LLP (formerly DeMarco Allan LLP)
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DT Vollmer

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Canada and Alberta Sign Energy Collaboration MOU

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Prime Minister Mark Carney and Alberta Premier Danielle Smith on Thursday announced the signing of a Memorandum of Understanding (the MOU) intended to lower emissions, support natural resource development, and strengthen economic competitiveness. The MOU sets out a framework for enhanced federal-provincial collaboration in the energy sector with the stated goal of achieving net-zero emissions by 2050 while advancing Alberta’s energy-resource potential. The announcement also prompted debate, including references to the potential development of at least one new bitumen pipeline to the B.C. coast. It also prompted the resignation from Cabinet of Steven Guilbeault, Minister of Canadian Identity and Culture and former Minister of Environment and Climate Change. This bulletin summarizes the MOU’s key objectives, priority projects, and federal and provincial commitments, including actions related to Alberta’s Technology Innovation and Emissions Reduction (TIER) system. Objectives. The MOU outlines the following objectives: Increase production of Alberta oil and gas to contribute to export and national security goals, while reducing the emissions intensity of Canadian heavy oil production to reach net-zero by 2050. Expand electricity generation capacity in Alberta for consumer and industrial use, including demand from AI data centres, while achieving net-zero GHG emissions in the electricity sector by 2050. Establish electricity and energy policies that advance affordability, grid stability, competitiveness, and long-term investment certainty, and that attract domestic and foreign private-sector capital. Reduce regulatory overlap and simplify permitting processes to achieve a maximum two-year approvals timeline. Provide opportunities for Indigenous rightsholders to participate in consultation processes and economic activities, including through ownership and partnership arrangements. Priority projects. The MOU identifies the following priority projects: Development of one or more privately financed pipelines, in addition to the Trans Mountain expansion, with Indigenous co-ownership and economic participation. At least 1 million barrels per day of lower-emission Alberta bitumen with access to Asian markets is identified as a priority. An application to the…

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Budget 2025: Key Climate, Energy, and Indigenous Highlights

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On November 4, 2025, Canada released a prudent, investment focussed Canada Strong Budget 2025 (“Budget 2025”) that is in line with the global energy transition in all major global economies other than the U.S. In doing so, it has: (i) accepted and embraced the country’s innate nature as a climate-forward, responsible energy, mineral, and nature resource producer with strong Indigenous rightsholders; and (ii) put in place the investment structures and tax incentives to go beyond resource production and lead in the knowledge economy. As with all government announcements, the success of the Budget 2025 strategy will rest on implementation, particularly the speed with which the government, Indigenous rightsholders, and cooperative provincial and territorial governments can manifest the changes outlined in the 2025 Budget. The thrust of the new approach has tell-tale signs of a good investment finance strategy with new infrastructure and resource development funds, tax incentives, and necessary regulatory backstops. It is focussed on economic, infrastructure, and climate outcomes rather than aspirational targets (which Canada has repeatedly missed). Fiscal discipline is reflected in a downsizing (10%) of the public service largely through attrition, AI, and elimination of open positions that can be filled by same. Key climate, energy, and Indigenous elements of Budget 2025 include: Climate Action. Budget 2025 introduces new and proposed funding to support climate action, alongside the formal elimination of federal consumer carbon pricing (see our earlier bulletin here) and other program adjustments and reallocations, including: Direct Delivery Stream for Adaptation and Infrastructure. $6B over ten years, beginning in 2026–27, for a Direct Delivery Stream under Housing, Infrastructure and Communities Canada, to support regionally significant projects related to climate adaptation, retrofits, and community infrastructure. Biofuels Production Incentive. $372M over two years for a Biofeuls Production Incentive to Natural Resources Canada to establish a production incentive for biodiesel and renewable diesel producers (starting in 2026). Elimination of…

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Canadian Youth File Climate Risk Lawsuit Against CPP Investments

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Four young Canadians have launched a legal claim against the Canada Pension Plan (CPP) Investment Board (CPP Investments), Canada’s largest pension fund manager, alleging that it is mismanaging and has underestimated climate-related financial risks to the $732B in assets under management of the CPP. The claim alleges that by underestimating and failing to disclose climate-related financial risks, CPP Investments could expose Canadians to dramatically reduced retirement benefits, the need for substantially higher contribution rates, or both. This bulletin briefly summarizes key information regarding the claim. Overview. The claim notes that CPP Investments has publicly recognized climate change as a significant investment risk, but “backtracked” on its net-zero commitment earlier this year. The applicants allege that this reversal, combined with ongoing fossil fuel investments, demonstrates an absence of sufficient measures to manage climate-related financial risks in the best interests of younger contributors. The youth applicants, which are all anticipated to receive pension benefits after 2050, argue that by severely underestimating and failing to disclose climate-related financial risks, CPP Investments is failing to: properly manage climate-related financial risks, thereby jeopardizing the long-term value of the portfolio and the security of contributors’ benefits; and adequately identify and assess climate-related financial risks to CPP funds, including in its use and reporting of the MSCI Climate Value-at-Risk model without describing how it applies judgement to the results despite the alleged uncertainty regarding the model’s ability to adequately capture systemic risks from higher degrees of warming. The claim relies on the latest research on the severe impacts of climate change (including the triggering of tipping points and cascading risks) on society and financial systems beyond 1.5°C of warming. According to Ecojustice, the claim is the first climate case against a pension fund investment manager “anchored in the duty of impartiality and even-handedness in a multi-generational context” and is also…

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Ontario’s Minister of Energy Outlines Key Priorities

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Ontario’s Minister of Energy and Mines (the Minister) yesterday delivered a keynote speech at the Ontario Energy Conference setting out Ontario’s energy priorities, linking new supply and infrastructure directly to the province’s industrial strategy and economic growth. This bulletin briefly summarizes the key takeaways of the Minister’s speech. Integrated Energy Plan as roadmap. The Integrated Energy Plan (IEP) was described as Ontario’s “gold star” roadmap for generation, transmission, distribution, and storage. The Minister noted that the backdrop of rising unemployment in Ontario is new generation development, with the IEP underpinning jobs, competitiveness, and industrial growth. Nuclear as a nation-building project. Ontario is proceeding with the first of four small modular reactors (SMRs) at Darlington, which has been identified as a “nation-building” initiative by the federal government. The SMR program is projected to create 18,000 construction jobs, with 80 cents of every dollar spent remaining in Canada. The Minister highlighted the economic scale of large nuclear, with a potential 10,000 MW of new capacity at Port Hope, estimated at adding $235B to Canada’s GDP along with new job creation. The Minister emphasized that there is no economic growth without net new nuclear, supporting Canada as a leading clean energy economy and positioning Ontario as leading the world on SMR. Hydro, Transmission and Storage. The Minister noted that new hydro, transmission, and storage projects are being advanced, with First Nations leadership central to future baseload supply. Four new transmission lines have been announced and were described as the largest one-time investment in a generation and essential to moving new generation to load centres. The Minister also emphasized that storage will be critical alongside nuclear and hydro. LT2 procurement and competition. The IESO’s Long-Term 2 (LT2) procurement was highlighted as good for customers, as competition is expected to reduce prices by up to 30%. The Minister emphasized the IESO’s role as forward-looking and central to procurement and system planning. IEP Natural gas policy statement. The Minister noted that for the first time,…

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Alberta Announces Significant Updates to TIER Regulation

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The Government of Alberta yesterday announced that it will introduce significant amendments to the Technology Innovation and Emissions Reduction (TIER) regulation this fall. The proposed changes will (1) add on-site emission reductions investments as a compliance pathway and (2) provide flexibility for small emitters to opt out of the TIER system in 2025. Premier Danielle Smith and Minister of Environment and Protected Areas Rebecca Schulz announced the changes in an afternoon news conference. This bulletin briefly summarizes the expected amendments and the government’s next steps. Regulatory amendments. The proposed updates to the TIER system include:  Compliance through direct investment in on-site emission reductions. Recognizing on-site emissions reduction investments as a new pathway for facilities to comply with the TIER system, in addition to the current suite of available compliance options. The government anticipates that a new standard will be developed to support the new compliance pathway, which is expected to be structured around project investments over an eight-year period (five years forward, three years back) and could include investments in projects such as the Pathways CCS project. A facility would be allowed to use this compliance pathway to fulfill up to 90% of its TIER compliance obligation. Under the current TIER regulation, a facility can meet its compliance obligation by (a) reducing on-site emissions, including by applying capture recognition tonnes (CRTs) to lower the facility’s total regulated emissions (TRE); (b) submitting emission offset credits (EOs); (c) submitting emissions performance credits (EPCs); and/or (d) purchasing fund credits by paying into the TIER Fund at the prescribed TIER Fund Price (currently frozen at $95 per tonne CO2e).  Opt-out for small facilities. Allowing smaller facilities that currently participate in the TIER system to leave or opt out. TIER applies to large facilities that emit more than 100,000 tonnes of CO2e per year, while smaller facilities have been able to opt-in to the TIER system under…

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