B.C. government fast-tracks energy and resource projects amid concerns over Indigenous rights

Trump's tariff threat provides convenient cover to accelerate the expansion of fossil fuels and raises alarm bells about First Nations rights tied to mining, say critics.

The B.C. government announced it is fast-tracking an "initial" mix of 18 energy, mining and fossil fuel projects, valued at $20 billion, that have business cases still needing government permits or approval.

It's a bid to diversify trade markets so B.C. is never again exposed "to the whims of one person in the White House," Premier David Eby said this week.

A trade war with the province's largest trading partner would cause real harm to the economy, said Marc Lee, senior economist with the Canadian Centre of Policy Alternatives. But so will scrapping climate progress by doubling down on the liquified natural gas (LNG) export industry, he added.

The province was already pushing to expand and clean up the oil and gas industry before the trade threat materialized, he noted.

"There are longstanding interests that wanted to expand oil and gas projects even before the Trump tariffs, but they are a convenient excuse to ramp those [operations] up," Lee said.

Cedar LNG, B.C.'s first majority Indigenous-owned project, already under construction, is one oil and gas project on the province's list.

Two others are natural gas pipeline projects in the northeastern corner of the province. NorthRiver Midstream's NEBC Connector Pipeline, which the province approved on Jan. 17, will ship B.C. natural gas liquids and condensate across the border to Alberta's Gordondale area, primarily for use in the nearby oil sands industry or for export to the U.S. or eastern Canada.

Westcoast Energy's T-North Aspen Point involves the build-out of 18 kilometres of new gas pipeline segments, electrification of the three compressor stations to replace diesel generators and construction of associated power lines.

Eby's recent vow to speed energy and resource projects includes previous plans to exempt 10 Indigenous-led wind projects from environmental assessments and streamline the permits for BC Hydro's North Coast Transmission Line (NCTL).

On Thursday, Eby took another step, announcing legislative changes will be made in spring to allow the BC Energy Regulator to assume responsibility as the one-stop -shop for permits for both renewable energy projects and the North Coast Transmission Line.

The project involves $4.7 billion for new transmission lines between Prince George and Terrace to meet rising electrical demand for critical mineral mines and other resource industries, such as natural gas.

"If the NCTL is not built, and built quickly, major critical minerals, future port expansions, and LNG, hydrogen and other important resource projects may not proceed," said Adrian Dix, minister of Energy and Climate Solutions, in the Jan.13 press statement.

"We need to move this vital project forward to realize B.C.'s resource-development potential and create jobs and investment opportunities, while achieving provincial climate targets."

While LNG export projects may provide a new market for gas exports, it's misguided to lock in infrastructure to serve an industry the province should be phasing out, while using B.C.'s limited clean electricity to meet emissions targets, Lee said.

The province wants to ramp up hydro or renewable electricity so coastal LNG export projects starting to come online this year can eliminate the huge emissions generated by burning natural gas during the energy intensive liquefaction process, which sees natural gas chilled into a fluid for easy transport by ship to overseas markets.

Pipelines, like the T-North Aspen Point project, are also looking to wean compressor stations off diesel to electricity to move fossil fuel products through pipelines and lower emissions.

The provincial focus on driving down the oil and gas sector's emissions at home only to export them overseas is an "uncomfortable contradiction" between climate action and fossil fuel expansion, Lee said.

"Looking at the big picture, it's like preventing workers at the cigarette factory from smoking, but we're still producing cigarettes."

There's also a contradiction in speeding up permits of critical mineral or mining projects that may jeopardize the environment and the province's duty to properly consult First Nations, said Jessica Clogg, executive director and senior counsel for West Coast Environmental Law.

The province is fast-tracking four mining projects: the Mount Milligan Copper and Gold project, as well as proposals, such as the Eskay Creek, Highland Valley and Red Chris mines, facing concerns from some B.C. First Nations and Alaska Native groups.

The government should show equal eagerness to speed its promise to reform the Mineral Tenure Act to align with the U.N. Declaration on the Rights of Indigenous Peoples (UNDRIP), Clogg said.

"If B.C. wants nations to take them seriously, it should sit down ... in good faith to develop what we hope will be a consent-based regime," she said.

"Yet, in the same breath, they may be exempting mining companies from certain types of approvals or permits. Those two things feel completely at odds with each other."

Failing to respect First Nations rights around mineral exploration claims in their territory has already been sanctioned by the courts, Clogg observed.

In September 2023, the Gitxaała and Ehattesaht Nations won a B.C. Supreme Court case reaffirming that First Nations must be consulted before any mineral claims are made in their territories.

However, the nations saw the ruling as a partial victory because the court did not affirm UNDRIP, which demands Indigenous free, prior and informed consent for projects on their lands.

On Jan. 20, the Gitxaała and Ehattesaht appealed that aspect of the former ruling in hopes the court will rule favourably about the legal enforceability of B.C.'s Declaration on the Rights of Indigenous Peoples Act (DRIPA).

The Gitxaała Nation has made clear to the province and project proponents the best way to achieve certainty is to respect the U.N. Declaration's requirements, said The Lou Ga Gwelks (Linda Innes), elected chief councillor, in an email on Wednesday.

Consent for a project isn't a long-drawn-out process but is about working with nations to determine what is needed under Indigenous laws, she added.

"Providing proponents with clear direction that certainty and efficiencies begin with respecting Indigenous ownership and consent is the best guidance any government can provide in order to get the buy-in needed to avoid timely delays," she said.

Not everyone was critical of Eby's plan. Various groups are backing B.C.'s commitment to hurry energy and resource projects through the regulatory process.

"This project list is a thoughtful balance of efforts to electrify projects that would otherwise be powered by fossil fuels and getting new mines and mine expansions off of the ground," said Mark Zacharias, executive director of Clean Energy Canada in a statement.

The United Steelworkers Union also supported the rapid deployment of the projects, particularly for the mining sector, as a sign of the province's commitment to growing employment and the economy.

"This initiative not only secures jobs for our members, but also strengthens the province's economy, making it more resilient against external challenges, including those from U.S. President Donald Trump," said Scott Lunny, USW Director for Western Canada.

USW will work with the province and industry to ensure the projects meet high standards for engagement with First Nations and communities and for safety and environmental concerns, he said.