Stand.earth reacts to the 2025 Federal Budget: Scrapped cap on Canada’s largest and fastest-growing source of emissions

OTTAWA | TRADITIONAL, UNCEDED TERRITORY OF THE ALGONQUIN ANISHNAABEG PEOPLE – Within the Federal Budget announced today, and as emissions rise this year from the oil and gas sector in Canada, the Carney Liberal government has signaled steps backward in tackling runaway global warming. In response, Stand.earth experts underscore the need for a clean energy economy while recognizing this announcement is a mixed bag. Carney has abandoned the oil and gas emissions cap, and watered down greenwashing rules that limit oil and gas disinformation. The budget, as it stands, fails to articulate a credible alternative plan for the fossil fuel industry to rein in its massive climate pollution.

Stand.earth experts offered the following statements: 

Liz McDowell, Stand.earth Senior Campaigns Director:

“For the Carney government, a truly generational budget should mean prioritizing building the clean energy economy of the future, not more subsidies for foreign corporations and heavy polluters.  We’ll all benefit from investments in millions of green homes and a thriving EV manufacturing industry, and projects like a clean east-west grid, solar and wind energy, and high speed rail. Projects like these, if done right, will help Canada become truly climate competitive while making day-to-day life better for millions of people. I am disappointed to see today’s budget touting more handouts to the massively profitable oil and gas sector rather than outlining a credible plan to rein in the industry’s pollution.”

Sven Biggs, Stand.earth, Canadian Oil and Gas Campaign Director:

“Oil and gas extraction is Canada’s largest and fastest growing source of emissions, erasing all the climate progress made by other sectors of the economy. Today’s regrettable decision by the Carney government to abandon their commitment to an oil and gas emissions cap means that industrial carbon pricing must be strengthened by charging polluters a higher price than the current average of $10 a tonne while adopting a more transparent system. Heavy polluters – instead of everyday Canadians, who are already facing higher insurance premiums and rising grocery bills due to extreme weather – must pay for climate damages to ensure investments into a sustainable economy of the future.”

A recent study reveals that the vast majority of people across Canada support making polluters pay for damages caused by fossil-fuel driven climate disasters like storms, floods, droughts and wildfires. Canada’s fossil fuel sector methane emissions has also been ranked the sixth largest globally by the IEA, despite the introduction of new oil and gas methane regulations and the signing The Global Methane Pledge. This progress is under threat from the rapidly expanding LNG sector which is a major source of methane emissions.

Richard Brooks, Stand.earth Climate Finance Director:

“The race to a clean economy is on, and the world isn’t waiting. To ensure Canada isn’t left behind, banker-in-charge Mark Carney must lean into using his financial chops to mobilize and unleash our pension funds and banks to finance homegrown climate solutions and rapidly scale up clean energy across the country that will benefit all Canadians. Doubling down, putting public money into billionaire oil and gas polluters is not the way.”

Lana Goldberg, Stand.earth SAFE campaigner, focused on housing:

“While the creation of a public housing agency is praiseworthy and necessary, the lack of information about how new homes will be built is concerning. Will new homes come with antiquated fossil fuel heating systems, adding to the country’s pollution and negatively impacting public health? This taxpayer-funded program is an opportunity to set a positive standard for modern home building in Canada, using the latest clean heating technologies and spurring skills training for a clean economy. Without proper and explicit requirements for this initiative, it’s unclear if the housing built will be comfortable, efficient, safe, or in line with the government’s climate targets.”

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Contacts

For our high-level response, Solutions and implementation (including the Building Canada Act and nation-building projects)

 — Liz McDowell, Senior Campaigns Director  (liz@stand.earth)

For comment on industrial carbon pricing in BC, federal oil and gas policy, federally and provincially (including industrial carbon pricing, the emissions cap and other regulations) 

— Sven Biggs, Oil and Gas Programs Director – (sven@stand.earth)

For comment on Building homes sustainably and building electrification

— Lana Goldberg, SAFE cities campaigner (lana.goldberg@stand.earth)

For comment on market incentives, climate finance (opportunities for Canadian banks and pension funds to drive climate investment)

— Richard Brooks, Climate Finance Director – (richard@stand.earth)