Canada’s Climate Policy Retreat Highlights Fossil Fuel Industry Influence

Canada’s climate policy has suffered significant setbacks in 2025, with the federal government reversing course on several key environmental initiatives. In November, Prime Minister Mark Carney’s administration signed a memorandum of understanding with Alberta to remove strict climate policies in the province and support construction of a new pipeline from Alberta to northern British Columbia.

This retreat follows the cancellation of the federal carbon tax earlier this year, alongside terminated funding for home energy-efficiency programs and delayed sales mandates for zero-emission vehicles. These decisions have pushed Canada even further from meeting its climate commitments under the Paris Climate Agreement, which were already insufficient to limit global warming to 1.5°C.

A newly published academic study reveals the driving force behind these policy reversals: a sophisticated network of fossil fuel industry influence dubbed the Climate Change Counter Movement. This global web of foundations, think tanks, and lobbyists has effectively delayed climate action in Canada for decades by systematically undermining environmental policies that threaten industry profits.

“What we’re seeing is the culmination of a 50-year effort by the fossil fuel industry to protect its financial interests at the expense of meaningful climate action,” said one of the study’s researchers, who analyzed both academic and non-academic literature to map the movement’s influence in Canada.

The study documents how the movement’s strategy has evolved over time. Initially focused on denying climate change entirely, the industry has adapted its approach as extreme weather events became increasingly difficult to ignore. Rather than outright denial, today’s tactics exploit legitimate policy debates to create confusion, foster political deadlock, and promote solutions that preserve industry profits.

Three narratives have proven particularly effective in Canada. The first is “fossil-fuel solutionism” – the false premise that fossil fuels can be part of climate solutions rather than the primary problem. The second uses “whataboutism” to deflect responsibility. The third employs appeals to economic well-being, suggesting fossil fuels are essential to Canadian prosperity.

These arguments rest on misleading claims, including the assertion that Canadian fossil fuels are less carbon-intensive than those produced elsewhere. In reality, oil from Canada’s oil sands is approximately 21 percent more polluting than conventional crude oil, according to peer-reviewed research. Similarly, the economic arguments significantly overstate transition costs while minimizing the enormous economic damage of unchecked climate change.

The Canadian oil and gas industry, which represents about 5.3 percent of Canada’s GDP according to Statistics Canada, has successfully leveraged its regional economic importance in provinces like Alberta to exert outsized national influence. This has resulted in policy shifts like those seen throughout 2025.

Market analysts note that these policy reversals come as global investors increasingly shift capital toward renewable energy. The International Energy Agency forecasts that fossil fuel demand could peak before 2030, raising questions about the long-term economic wisdom of doubling down on pipeline infrastructure.

The study outlines a six-part strategy to counter fossil fuel industry influence. First, recognizing how industry narratives have already shaped public opinion. Second, researching the movement’s members, tactics and effectiveness. Third, pursuing legal accountability, similar to the “Sue Big Oil” campaign uniting British Columbia municipalities against fossil fuel companies.

Additional recommendations include healing societal divisions caused by industry propaganda, focusing on less controversial but effective climate policies, and addressing the structural economic power of fossil fuel companies by redirecting financial flows through subsidy removal and market realignment.

Environmental advocates argue these steps are essential if Canada hopes to meet its international climate commitments and contribute meaningfully to global emissions reduction. The study concludes that while the Climate Change Counter Movement has successfully delayed action, it hasn’t permanently derailed it – provided there’s sufficient public awareness and political will to challenge industry influence.