Canada's 45th Federal Election was held on April 28, 2025, following a five-week campaign. The Liberal Party of Canada has won a fourth consecutive mandate and will form a minority government. Prime Minister Mark Carney was elected in his Ottawa-area Nepean riding by a wide margin, while both Pierre Poilievre and Jagmeet Singh did not win their seats in Carleton and Burnaby Central, respectively.
With the Conservative Party forming the official opposition, and the NDP having lost official party status, this minority government could see the Bloc Québécois holding the balance of power in the House of Commons, bringing a variety of voices to the table regarding policies related to energy sovereignty and infrastructure development, as well as the path forward on net-zero targets.
On this first day of the 45th Canadian Parliament's mandate, we highlight the energy-related campaign promises of the newly elected Liberal Party.
Liberal Party Energy Platform
The Liberal Party's platform included a plan to support Canada's role in clean energy development, economic growth, and Indigenous collaboration. It proposes strategic investments in critical minerals, clean technologies, and energy infrastructure with the goals of enhancing energy security, diversifying trade, and promoting long-term competitiveness. We discuss high-level details of the key pillars of the Liberal Party plan below.
1. Invest in Clean Energy and Critical Minerals
- Expand investments and tax credits for critical minerals development, clean energy, and manufacturing (e.g., Critical Mineral Exploration Tax Credit, Clean Technology Manufacturing Investment Tax Credit, Canadian Exploration Expense)
- Launch a First and Last Mile Fund (FLMF) to connect critical minerals to supply chains, with a goal of reducing Canada's reliance on other countries and protecting Canadian jobs
- Expand Electric Vehicle (EV) infrastructure through building thousands of charging stations by 2027, with a possible $5,000 EV purchase incentive
- Support Carbon Capture, Utilization, and Storage (CCUS) technologies by extending the CCUS tax credit to 2035 and setting national carbon removal targets for 2035 and 2040
- Strengthen carbon pricing systems (the federal Output-Based Pricing System) and markets, introduce a Carbon Border Adjustment Mechanism, and de-risk clean economy investments through Carbon Contracts for Difference
2. Fast-track Clean Energy Projects
- Identify and fast-track "Projects of National Interest" with provinces, territories, and Indigenous groups
- Maintain investment tax credits for clean energy projects and reinforce the Canada Growth Fund
- Create a Major Federal Project Office with the aim of achieving efficiency and certainty for investors. This involves offering a "One Project, One Review" scheme through a single portal, delivering project decisions within two years instead of five, and focusing the reviews on "how" to build projects, not "why"
3. Secure Canada's Energy and Electricity Sovereignty
- Invest in both clean and conventional energy to diversify supply
- Reduce Canada's reliance on the United States and build new trade partnerships
- Develop a national East-West electricity grid to ensure affordable, clean, Canadian power across the country
- Build new trade and energy corridors for transport, critical minerals, energy, and digital connectivity
4. Strengthen Indigenous Partnerships
- Double the Indigenous Loan Guarantee Program from $5 billion to $10 billion
- Increase Indigenous capacity funding to $40 million per year for better early project engagement
- Support Indigenous ownership in major energy and infrastructure projects
By investing in clean energy and critical minerals, accelerating project approvals, securing Canada's energy independence, and deepening Indigenous partnerships, the Liberal Party's energy platform sets out commitments intended to grow the economy, create jobs, and ensure Canada remains competitive in a rapidly changing global energy landscape. Following this election, we anticipate new initiatives aimed at boosting innovation in infrastructure development and advancing energy sovereignty.
At McCarthy Tétrault, our team will closely monitor developments in the evolving energy landscape, and we remain committed to supporting our clients as they navigate these changes. To discuss how these developments may affect you, please contact your trusted McCarthy Tétrault advisor or one of the authors.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
