Canada’s Climate Policy Reverses Course as Fossil-Fuel Industry Influence Grows

Canada’s climate policy has faced significant setbacks in 2025, with recent government actions pushing the country further from its international climate commitments. Research now shows these policy reversals may be linked to decades of strategic influence by the fossil-fuel industry’s propaganda network.

In November, the federal government 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 followed earlier decisions to cancel the federal carbon tax, end funding for home energy-efficiency programs, and delay sales mandates for zero-emission vehicles.

These policy reversals have undermined Canada’s ability to meet its climate goals, which researchers had already criticized as insufficient to limit global warming to 1.5°C as outlined in the Paris Climate Agreement.

According to a newly published study by Samuel Lloyd and Katya Rhodes from the University of Victoria, these policy retreats stem from decades of systematic efforts by what academics call the Climate Change Counter Movement—a global network of foundations, think tanks, and lobbyists funded by fossil-fuel interests.

“What’s behind these changes and why is Canadian progress on tackling climate change so slow? Put simply, it’s because climate action threatens the profits of the fossil-fuel industry, and they’ve spent the past 50 years doing everything they can to prevent it,” the researchers write.

Their study maps how this movement has evolved its tactics over time. Initially focused on denying climate science outright, the industry has shifted to more sophisticated approaches as extreme weather events made outright denial less credible.

“Rather than denying climate science, it exploited legitimate debates about how climate policy should be designed to sow confusion, cause political deadlock and suggest policies that don’t threaten their profits,” the researchers explain.

The study identifies three particularly effective narratives prevalent in Canadian discourse: “fossil-fuel solutionism” (suggesting fossil fuels can be part of climate solutions), “whataboutism” (deflecting responsibility to other countries or sectors), and appeals to economic well-being.

These arguments promote the false premise that Canadian fossil fuels are cleaner than those produced elsewhere—when in fact oil from Canadian oil sands is approximately 21 percent more polluting than conventional crude oil. They also exaggerate the economic necessity of fossil fuels while minimizing the substantial costs of unmitigated climate change.

What’s particularly concerning, the researchers note, is evidence suggesting these industry-originated narratives are now being repeated by the general public, creating a false impression that a clean energy future could include fossil fuels.

The researchers propose a six-point strategy to counter this influence. First, they suggest individuals reflect on how fossil-fuel propaganda may have affected their own perceptions. Second, they emphasize the importance of research to identify key players and narratives within the movement.

Third, they advocate for legal accountability, pointing to emerging lawsuits worldwide—including the “Sue Big Oil” campaign uniting British Columbia municipalities—that seek to hold fossil-fuel companies financially responsible for climate damage.

The remaining strategies focus on societal healing, strategic policy advancement, and challenging the structural foundations of the industry’s power. The researchers suggest strengthening climate policies that remain relatively popular because they haven’t been targeted by industry propaganda campaigns.

“The Climate Change Counter Movement is several steps ahead of us, but it hasn’t won yet,” Lloyd and Rhodes conclude. “If climate change is to be stopped, we have to stop ignoring the elephant in the room and unite against the fossil-fuel industry.”

As Canada’s climate policy continues to fluctuate under competing pressures, the study suggests that understanding and countering fossil-fuel industry influence will be crucial for any meaningful progress toward climate goals. With the costs of climate impacts rising and global temperature records repeatedly broken, the economic and social stakes of this struggle continue to escalate.