MADRID — Spain’s center-right People’s Party has pledged to “put a stop to the imposition of unrealistic timelines” for climate goals if it wins the national elections on Nov. 29, a significant pivot from the Sánchez government’s pro-green policies.

The PP, the favorite to win the vote, said decarbonization is an “essential goal for Europe,” but promised to push for an “orderly, realistic, and fair transition,” according to the energy chapter of the party’s manifesto obtained by POLITICO’s Madrid Playbook.

The manifesto said it’s time “to reassess the pace of progress” in the clean energy transition “without dogmatism,” while conceding there are “environmental, geostrategic and economic reasons” behind the decarbonization strategy.

Spain under Socialist Prime Minister Pedro Sánchez has been one of the bloc’s most influential cheerleaders for ambitious climate goals, advocating to protect key EU policies like the Emissions Trading System, pollution reduction targets and the phase-out of gasoline cars.

But the PP’s manifesto shows that would change if the EU’s fourth-largest economy votes for a conservative government led by PP leader Alberto Núñez Feijóo.

Polls point to a clear majority for a coalition between the PP and Vox, a far-right party which is highly hostile to climate policies and is rising in the polls — potentially giving it significant weight in the next cabinet.

Feijóo’s team advocates assessing and relaxing Spain’s climate policy sector by sector, considering three factors: “What is happening in the rest of the world, the technology that is available at the moment, and changes in demand.”

“We will not impose unnecessary obligations and will remove those that harm competitiveness, industry, or employment,” the document adds.

The PP has taken a more skeptical approach to EU climate policy than many of its fellow conservatives in other countries. In November 2025, for example, it voted against the 2040 climate goal in the European Parliament, breaking ranks with most of the EU’s center-right umbrella group, the European People’s Party.

Alberto Nadal, a former secretary of state for energy and for budget under the previous PP government, is the key figure on energy in Feijóo’s team and the mind behind the manifesto’s energy chapter. According to a PP official, he also considered external contributions to the manifesto from experts.  

In a March interview with public broadcaster RNE, Nadal criticized the EU’s “almost Taliban-like or radical” decarbonization strategy. In a recent interview with ElEconomista, Nadal, seen as a possible minister in a future conservative government, shifted his attention to energy prices and industry, without discussing climate or decarbonization.

Nuclear and data centers

The manifesto also proposes extending the operating lifespans of five nuclear plants “with the approval of the Nuclear Safety Council.”

It also points to a change of direction on data centers if there’s a PP-led government, pledging to resolve issues that “are hindering the grid connection” of data centers within 18 months.

The Socialist government has drafted a decree, expected to be approved before the Nov. 29 snap election, that would tie data centers’ access to the electricity grid to sustainability and digital sovereignty requirements. Nadal has already stated that a conservative government will repeal the decree, which he said represents “the end of Spain’s technological future”.

The document also touched on the thorny issue of the 2025 national blackout and commits to updating the operating rules for the electricity system in the first six months in office. In light of what the PP considers a lack of transparency regarding the nationwide blackout, the party has pledged that “every serious incident” will be the subject of its own report.

On the circular economy, the conservative party signals that it won’t “impose additional obligations, accelerate timelines, or squander the investments, infrastructure, and capabilities that Spain already possesses.” That wording casts doubt over the implementation of the country’s deposit return scheme.

European Council President António Costa suggested narrowing a controversial business tax to only apply to large firms with a turnover exceeding €750 million per year, two EU diplomats briefed on the discussions told POLITICO.

Costa hopes these concessions will facilitate an overall agreement on new EU-wide levies, known as own resources, which have emerged as a major stumbling bloc in the ongoing negotiations.

The idea was mentioned in meetings, known as “confessionals,” between Costa’s head of cabinet Pedro Lourtie and EU governments Thursday, to test the waters on the most sensitive aspects in the negotiations.

Lourtie overhauled an unpopular corporate tax known as CORE — which charges a lump sum on companies’ revenues exceeding €100 million — that the European Commission proposed last year.

According to his proposal, the EU would charge a 0.05% levy, as opposed to a lump sum. It would also only apply to firms with an annual turnover of more than €750 million.

These changes are expected to soften opposition among a group of countries led by Germany that challenged CORE on the grounds that it undermines competitiveness and takes a toll on medium-sized enterprises.

Going further

But two diplomats fear these concessions will not be enough to muster support for the new levy. “I don’t think this is going to solve the problem on CORE,” one told POLITICO. They, like others in this story, were granted anonymity to discuss the sensitive negotiations.

France is pushing to introduce new taxes to reduce contributions to the EU budget.

In a concession to Paris, Costa’s team indicated that they won’t cut down on the total revenue projections from the Commission’s tax proposal from last year, which was expected to generate €65 billion annually. 

To generate additional resources for the budget, Costa’s team also suggested increasing two largely uncontroversial taxes on non-collected plastic and electronic waste that flows directly to the bloc’s budget by levying an additional 25 cents on each kilo.

The diplomats also proposed raising the share of a carbon imports’ tax that flows to the EU cash pot to 100% from the current 75%, and exploring levies on crypto firms and national spectrum auctions.

In a further concession, Lourtie suggested phasing in two taxes on tobacco products and polluting firms, known as the Emissions Trading System, for countries that are overwhelmingly affected.

Confessional diplomacy

The bilaterals, which started Thursday and will continue until next Monday, are expected to pave the way for a budget deal by the end of 2026 — before next year’s elections in Poland, France and Italy threaten to derail the negotiations.

Costa will put forward a new budget negotiating document on Nov. 21 ahead of a special summit the following week, said the two diplomats.

During Thursday’s meetings, Costa’s team signaled that the budget would be cut further, and reductions might affect regional funding known as cohesion policy.

That would be a major setback for an alliance of Southern and Eastern European countries, known as the Friends of Cohesion.

Cuts to farmers’ subsidies were deemed less likely, said the two diplomats.

YEREVAN, Armenia — Scorching wildfires, disastrous floods and the looming mass extinction of species weren’t enough to convince wealthy nations to unlock crucial funds needed to halt biodiversity loss at a global nature summit this week.  

As countries around the world race against the clock to protect what’s left of the Earth’s collapsing ecosystems, global talks aimed at speeding up nature protection efforts yielded underwhelming results.  

The United Nations COP17 on biodiversity ended on Saturday with a renewed promise from countries to speed up global efforts to protect nature and restore depleted ecosystems by 2030.   

But behind that grand gesture, governments are still struggling to unlock the hundreds of billions needed to meet global biodiversity protection targets. The reason? A profound and unresolved disagreement over where that money should come from. 

“If we’re mutually unhappy that’s probably the closest we can get to on these very delicate compromises,” said a member of the Swiss delegation just before the text was adopted.

After two weeks of negotiations over how to speed up efforts to protect ecosystems, nearly 200 countries secured a hard-fought agreement to “accelerate the implementation” of the global biodiversity framework  “including by increased ambition in addressing the gaps, challenges and barriers related to implementation,” according to a draft of the text, the final version of which was not immediately available.

Armenian Environment Minister Hambardzum Matevosyan, who presided over the summit, said negotiators had “achieved more than we could have expected.”

But in the end, governments could not agree on how to increase the number of countries currently contributing to biodiversity finance, instead only stating the obvious: that more funds would be better.

The summit exposed a growing chasm between nations over who should be held financially responsible for funding conservation measures worldwide: historically wealthy countries whose economies have caused immense damage to the environment, or newly rich states whose economies have grown exponentially in the last three decades. 

“This COP was always going to be difficult,” said Steven Guilbeault, former environment minister for Canada, adding that “COP17’s real legacy will be decided far beyond these walls, when words need to translate to action.”

Negotiators are leaving Yerevan with many issues left to resolve between now and the next COP in 2028 in Ecuador, including on how to attract more companies that benefit from nature to fund conservation projects via the Cali Fund, a landmark vehicle aimed at mobilizing private finance into nature established in 2024.

Governments know they are running out of time. At COP17, scientific experts reiterated that a million species are at risk of extinction, and the U.N. has identified an annual biodiversity financing gap of $700 billion.  

“We’re not on track to stop and reverse the biodiversity loss by 2030,” said Monique Barbut, France’s environment minister, during a COP17 plenary session on Wednesday. The world needs to “mobilize all international funding sources” to make it happen, she insisted.

The talks also ran long due to disagreements over language related to the involvement of Indigenous peoples in a key decision-making body of the Convention.

The dispute 

The U.N. Convention on Biological Diversity relies on the consensus that rich countries should pay more to protect nature because of the pressure their societies and economies exert on global ecosystems. 

Since its ratification in the 1990s, a group of wealthy countries including Canada, Australia, Japan, the U.K., Switzerland, Norway and some EU members have been funding efforts to implement the Convention.

Now, those countries want other high-income nations to chip in more. “We all know that we need more resources to ensure the effective implementation of the Global Biodiversity Framework,” said Jessika Roswall, the EU’s environment commissioner.

But during the negotiations, non-donor countries — which include China, Saudi Arabia, Russia and Argentina — pushed back against any kind of income-related criteria to determine who should or shouldn’t be paying. 

The deadlock angered some nations set to benefit from a larger donor base. “Are you telling me that rich petro-states who are in many cases wealthier than some of the original list of donors and responsible for a ton of emissions and harmful practices that directly affect biodiversity shouldn’t contribute to the fund?” said Juan Carlos Navarro, Environment Minister for Panama on Wednesday, as negotiations were ongoing. 

The countries “don’t want to have the same obligations as developed countries on this issue [and] bring up the argument of ecological responsibilities,” said Juliette Landry, a senior research fellow at the think tank IDDRI. 

In the end, countries agreed simply to state that “contributions from more Parties
would improve the mobilization of biodiversity finance” and invited others to contribute voluntarily, the draft text shows.

Some successes 

Despite the divisions, many hailed the final agreement as a win for green multilateralism as governments remain committed to the overarching goal of protecting 30% of Earth’s land and sea areas and increase financing for biodiversity to $200 billion annually by 2030. 

“In Yerevan, we saw environmental multilateralism prevail once again. Countries came together, found the spirit of compromise and allowed us to agree important decisions that will support real progress for people and for planet,” said Inger Andersen, Executive Director of UN Environment Programme.

After two weeks of endless meetings, panels and plenary sessions, negotiators agreed to strengthen the role of cities and local governments in implementing biodiversity goals, and improve how biodiversity funding reaches them. They also adopted decisions to support capacity-building and scientific cooperation, and agreed that more needs to be done to protect marine ecosystems.

Countries also recognized the need to reduce subsidies funding economic activities that harm nature and create incentives for activities that protect it. “Incentive reform has moved from the margins to the mainstream of the biodiversity agenda,” said Eva zabey, CEO of the Business for Nature coalition.

Some governments including Germany, Iceland, Uzbekistan and Spain made fresh financial commitments totalling $1.8 billion to the Global Biodiversity Framework Fund and the Global Environment Facility, the funding structures set up to implement the Convention. Under the GBF, countries have pledged to mobilize $200 billion annually by 2030.  

The U.N. Environment Programme also published a report showing that nature restoration is underway at an “unprecedented scale” with over 250 million hectares of land under restoration worldwide.

Still, countries remain off track on meeting their 2030 targets.

In Yerevan, green groups welcomed the agreement but criticized its lack of ambition key issues.

“Political promises made in Yerevan set good intentions, but won’t remove major roadblocks to implementation such as insufficient finance, fiscal and debt constraints, the nearly empty coffers of the Cali Fund and urgent reform of harmful subsidies,” said An Lambrechts, a biodiversity politics expert with Greenpeace International.

Governments have struggled to stay the course since inking the Global Biodiversity Framework in 2022. Though many countries have adopted national biodiversity strategies, financial flows to conservation projects are nowhere near where they ought to be. Geopolitical shifts and economic crises have also made it harder for governments — including the 27 EU member countries — to prioritize environmental protection. 

Countries agreed to renew talks to implement the objectives of the convention in Ecuador.

BRUSSELS — The European Union and Canada have agreed a framework to invest more European money in Canadian critical minerals, as part of a broader agreement to boost raw material and energy trade between the two jurisdictions.

The EU confirmed Friday it had concluded negotiations that would “facilitate European investments in critical Canadian resources, in particular in critical raw materials,” following talks between senior EU officials and the Canadian government in Montreal. The investments would be made through the European Investment Bank, the EU’s lending arm.

The two jurisdictions will also carry out a “long-term feasibility study” on exporting Canadian liquified natural gas to Europe. Canada is rich in gas but currently doesn’t have infrastructure to liquefy and export it from its east coast.

The commitments are part of a much broader effort to deepen the relationship between the EU and Canada, who see themselves as likeminded democracies in a world that is increasingly pulling away from the international rules-based order that has dominated since World War II.

“[W]e will accelerate collaboration to support investment in critical raw materials projects, both in Canada and in the EU, along the value chain, including extraction, processing, refining, manufacturing and recycling activities,” the EU and Canada said in a joint statement.

They also said they would “explore cooperation opportunities on raw materials projects in third countries identified as projects of common interest.”

The joint statement, which aims to build “an even closer association between Canada and the EU,” also covered security, trade, tech and artificial intelligence, competition policy, financial services and cultural exchange.

MONTREAL — Prime Minister Mark Carney wanted the landmark EU-Canada summit to be about much more than “nomenclature.” He got what he craved. 

Over a whirlwind 48 hours in Montreal, top officials from Brussels and Ottawa huddled to pursue agreements on critical minerals, super computers and defense cooperation.

European Commission President Ursula von der Leyen, European Council President António Costa and Carney gathered as U.S. President Donald Trump continues to upend the global order and Chinese dominance of critical markets squeezes middle powers. 

Those challenges have pushed the EU and Canada into a rapidly developing partnership that eclipses anything attempted by Brussels with a non-member country since the bloc was formed. 

Here are all the key things POLITICO learned during the EU-Canada meetings. 

Carney finally embraced ‘associate membership’

Initially reluctant, the Canadian prime minister came around by the end of the summit to endorse von der Leyen’s controversial label for the global alliance the EU and Canada are building. 

Carney set a six-month deadline to firm up the ground rules of what “associate membership” is, trialing an induction process that could be a model for other non-European countries.

“With Canada becoming the European Union’s first associate member, in the coming months we will determine the full substance, scale and scope of this new form of membership,” he said Friday. 

Carney added he will meet periodically with von der Leyen to track progress, including a return trip for the College of European Commissioners to meet with their Canadian counterparts in March.

Got minerals

Both Canadian and EU officials are walking away from the summit with at least one major win: the framework agreement signed between the European Investment Bank and Canada that will open up the bloc’s lending arm to Canadian critical minerals crucial for future tech. 

That means batteries, circuit boards and semiconductors, which all require lithium, nickel, cobalt and other critical raw materials that, as of now, the EU is largely dependent on China to score.

The deal helps wean the Europeans off a politically volatile critical minerals dealer, for a more reliable Canadian supplier. 

The agreement does not immediately unlock funding for specific projects, but it supports pathways for future investments in Canadian mining and helps link the bloc’s supply chains with Canada’s.

Canada’s energy ambitions still point east

Critical minerals aren’t the only Canadian natural resource on the menu for Europeans. 

Carney has said he wants to make Canada an “energy superpower” and leverage huge stores of oil and liquefied natural gas in his country for export. The only problem: Most of it is in the western province of Alberta, far from Europe.

But the summit concluded with a commitment by both sides to a “long-term feasibility study” on exporting LNG to Europe via the east coast or Arctic ports closer to the bloc. 

“There’s also a huge opportunity in terms of bringing some of the fossils and gas from Canada to the EU,” said a Commission official, who was granted anonymity to talk about sensitive diplomatic negotiations. “The old infrastructure in Canada was built north-south for historical reasons, but now there is talk of starting to build east-west.”

Making nice with Washington? Don’t hold your breath.

As Europeans and Canadians preached deeper ties, Sen. Peter Welch (D-Vt.) was there doing damage control.

Welch, whose state is a little over an hour’s drive south of Montreal, spent Thursday reassuring business leaders that U.S. relations with Canada and beyond can, some day, get back to normal. When exactly, he couldn’t say for sure.

During his trip, Welch met with Quebec Chief Trade Negotiator Pascal Paradis, tourism industry leaders, businesses and manufacturers nailed by tariffs, and hit up a Eurasia Group lunch.

Tuesday’s U.S. midterm elections could offer a waypoint to warmer relations. But Welch loaded his optimism about Democratic Party fortunes with caveats.

“I think we’ll be successful, but you’ll still have a president who abuses his authority and acts in arbitrary ways,” he said. “It’s not like I can give any assurance that things are going to change.” 

Unspoken in the communiqué: China

Canada and the EU pledged deeper cooperation on pumping more European money into the mining, production and refining of critical minerals, a response to China’s dominance of the global market for those minerals. But the final summit communiqué steers clear of naming specific countries. 

Canadian Defense Minister David McGuinty was more candid.

“China has been vacuuming up as many critical minerals as they can throughout the world, particularly in the African continent, cutting deals, usually infrastructure for critical mineral deals. That could be a soccer stadium, for example. It could be a light rail system,” McGuinty told POLITICO at the summit Friday.

“It turns out that Canada’s got a huge amount of critical minerals, and basically all 10 of the 10 critical minerals on the short list for NATO, which the United States is also aware of. We’re going to not only exploit, but we intend to move to transform,” he said.

The common language: Sovereignty

Outside the summit, many Montrealers were oblivious to the landmark meeting taking place in the city. Inside, the vibe was existential.

The trio of leaders — Carney, von der Leyen and Costa — invoked individual and collective sovereignty as reasons to pursue a closer alliance to weather “new storms” stoked by climate change, challenges to democratic norms and the weaponization of trade. Carney has notably claimed concerns about encroachment on Canada’s sovereignty as a reason to walk away from trade talks with the Trump administration. 

“Today is about sovereignty,” Carney said. “We’re building the industries and infrastructure that underwrite our collective security.”

Quebec wanted a seat at the table

The summit came to Montreal weeks after Quebec — the French-speaking province in Canada that hosted the summit — elected a separatist government. Quebec shares powers with Ottawa and had its own seat in the CETA trade talks with the EU over a decade ago; and it had sought a similar role at this summit. 

But Ottawa refused to let new Premier Paul St-Pierre Plamondon address the summit, so he boycotted it, complaining he was being asked to “serve shrimp cocktail.” 

Carney accused him of leaving “an empty chair.” It stayed empty, even though six former Quebec premiers came to dinner.

The Europeans did not escape unscathed. The Quebec press panned von der Leyen’s English-only speech on the opening day as a faux pas in Canada’s largest francophone metropolis. Commission Executive Vice-President Teresa Ribera did little better, telling Radio-Canada in French that, for Brussels, summits like this are between national governments.

Bagel diplomacy

In a town where the original heated rivalry persists between two bagel shops, von der Leyen couldn’t resist picking a side with a photo-op at St-Viateur. 

Sorry Fairmount. 

MONTREAL — Canada embraced the European Union’s offer of “associate membership” after a two-day summit at which Brussels and Ottawa gave themselves until next June to work out what their new relationship will look like.

Prime Minister Mark Carney’s endorsement of the proposal by European Commission President Ursula von der Leyen followed weeks of hesitation, a hostile response from U.S. President Donald Trump and pushback from EU heavyweight Germany.

“In the coming months, we will determine the full substance, scale, and scope of this new form of membership,” Carney told a press conference on Friday at the end of the two-day summit at the Port of Montreal. 

“Today, we move towards associate membership for Canada,” Carney said, describing it as “the deepest possible partnership short of accession.”

The two sides have set a June 2027 deadline to determine the terms and boundaries of their intensifying relationship — an alliance that comes with a payment schedule. Carney danced around a question pressing him on how much associate membership will cost the Canadian public.

“We don’t view this as paying, personally,” Carney said, stressing the alliance as a “positive” project.

Von der Leyen and European Council President António Costa, standing either side of Carney, presented the experiment as a necessary survival strategy to thrive in an increasingly dangerous world.

“The concept of an associate member is uncharted territory but we have the ambition, trust and creativity to shape it together,” Von der Leyen told reporters. “To be crystal clear, this is not a partnership against anybody, but for our common strength.”

Canadian government officials who spoke to reporters after the press conference confirmed legislation won’t be necessary to legitimize Canada’s EU associate membership status.

“Our relationship is so special that we want to create something new — to go beyond a simple association, everything short of a full EU membership,” said Costa, pitching a new model for non-European countries to integrate more closely with the bloc. “Our association will be the closest, deepest and most unique of its kind.”

Irritants persist

Despite the upbeat rhetoric, some longstanding trade disputes remained unresolved after the summit.

Carney told reporters the two sides had reached an agreement on carveouts from a landmark EU anti-deforestation law, but Canadian government officials subsequently walked back his assertion.

The issue remains part of ongoing trade discussions, one official said, noting progress in addressing what Canada views as flaws in the legislation. The officials were granted anonymity to discuss sensitive diplomatic and trade negotiations.

Another irritant has been whether Canada would qualify for “Made in Europe” status under the EU’s Industrial Accelerator Act, a landmark measure that would seek to channel public procurement spending in sectors ranging from green energy to automotive toward locally produced goods. 

Von der Leyen said the regulation proposed earlier this year by the Commission foresaw including Canada as a free-trade partner, but added that it was now subject to review by EU lawmakers and governments.

“The Industrial Accelerator Act has been proposed by the Commission to include all countries with whom we have free-trade agreements. So automatically Canada would be in,” she said in response to a question. 

“Of course now the proposal has to go through the co-legislative process. But our proposal is very clear in including Canada.”

Despite months of preparations, the summit itself was chaotic, with agenda details confirmed at short notice and bilateral meetings split between two locations. The informal arrangements were intended to encourage more face time between EU commissioners and Canadian ministers, who are set to see much more of each other.

Canadian ministers have been invited to attend more meetings with their EU counterparts as part of a plan to deepen political alignment. Recent participation by Foreign Affairs Minister Anita Anand and International Trade Minister Maninder Sidhu in informal EU meetings has served as a trial run.

Carney himself is expected in Dublin in two weeks, having accepted Costa’s invitation to join an informal European Council meeting.

Quebec’s separatist premier says that he will boycott the EU-Canada summit that opens in Montreal on Thursday, warning European leaders that deals struck there without his government’s consent may not be applied in the country’s second-biggest province.

Paul St-Pierre Plamondon confirmed his absence late Wednesday in an open letter to the European delegation, which he posted on X. His announcement followed two days of public sparring with Canadian Prime Minister Mark Carney over Ottawa’s refusal to let him address the summit.

“This dynamic creates uncertainty as to the application of the agreements you could negotiate during the summit,” he wrote in French.

In the letter, St-Pierre Plamondon says Ottawa has “decided to sideline Quebec” from the talks. He says this leaves his government with “neither a chair at the negotiating table nor the opportunity to speak,” even though the summit is on Quebec soil.

Under Canada’s federal system, he argued, the provinces implement international agreements that fall within their powers. Without Quebec’s consent, a deal that runs against its interests “will simply not be implemented,” he wrote. He also accused Ottawa of withholding “critical information” on the negotiations.

He offered to meet European leaders “in the near future, in a more opportune context.” He will send Quebec’s chief diplomat, Pascal Paradis, to the summit in his place.

Carney said Wednesday his office had offered the premier the honor of welcoming the Commission president to Montreal, and a seat at the head table. “I hope he will reconsider,” he said. On Tuesday, the prime minister had accused St-Pierre Plamondon of choosing to “leave an empty chair again.”

The row has soured the upbeat mood around the summit, which Commission President Ursula von der Leyen and European Council President António Costa have billed as a milestone. Leaders will launch an “Alliance for the Future,” a framework for shared prosperity and economic security.

St-Pierre Plamondon’s letter says many of its topics fall under Quebec’s responsibility, including health, education and natural resources.

The premier has also pursued his own contacts with European leaders.

He spoke by phone with French President Emmanuel Macron on Monday, and said the two had agreed on a possible meeting in France in the coming weeks.

At working level, ties have held so far, and officials describe the relationship as constructive.

Hélène Drainville, Quebec’s delegate general in Brussels, told POLITICO last week that Quebec was in talks with the European Investment Bank and the Commission, and that “all the signals are green.”

Carney, Costa and von der Leyen are due to hold a joint press conference on Friday.

Ask European Union leaders what they think of Mark Carney’s climate credentials, and you’ll get a gushing response.

“We see the world with the same eyes: from AI to climate change,” European Commission President Ursula von der Leyen said in her State of the Union speech last month, where the Canadian prime minister was the guest of honor.

“Canada and the EU are very, very like-minded,” the bloc’s climate chief, Wopke Hoekstra, told POLITICO in an interview when asked about his hopes for climate collaboration between the two powers ahead of this week’s EU-Canada summit in Montreal.

But this rosy view sidesteps a less comfortable reality: Canada is a major fossil fuel producer whose climate ambitions fall far short of Europe’s.

And under Carney, those ambitions are weakening.

Last year, Canada produced more crude oil than any other country outside the big three producers, Russia, Saudi Arabia and the United States. Oil and gas are Canada’s biggest exports by far, and the industry lobby is an influential force in Ottawa.

In his previous life as a central banker, Carney was considered a climate champion. POLITICO even dubbed him an “eco warrior” in 2018. But since taking over as prime minister last year, he has weakened Canada’s climate policies at a rate few predicted, scrapping a national carbon tax and electric vehicle mandate and opening new oil and gas projects.

The list of climate laws Carney has watered down, repealed and canceled makes the EU’s own recent backtracking on green laws look minor. Some environmentalists argue it is comparable to U.S. President Donald Trump’s wholesale dismantling of environmental protections.

“The track the Carney government has taken on climate and environmental regulation has been a decisive move in the direction of the U.S.,” said Tim Gray, executive director of environmental non-profit Environment Defence. Carney, he said, “seems to be all in on fossil fuels.”

Keean Nembhard, a spokesperson for Canada’s Environment Minister Julie Dabrusin, told POLITICO the Carney government is “committed to fighting climate change and reaching net-zero by 2050 by taking a pragmatic and durable approach.”

“This includes building major clean energy projects across the country, driving mass electrification, and making significant investment in the low-carbon economy,” he said.

But Gray argued that Carney’s support for fossil fuels and weakening of environmental standards may complicate Canada’s attempts to forge closer ties with Europe, which has some of the world’s most stringent green laws.

Still, in Europe, Carney’s green image persists.

Last week, Belgian member of the European Parliament Saskia Bricmont gave expression to this faith in Carney’s commitment to climate issues when she called on him to lead a global push to put climate back on the agenda ahead of next month’s U.N. climate summit.

“Mr Carney … relaunch the fight against climate deregulation and for the restoration of biodiversity, and re-mobilize the international community around concrete, coordinated measures,” she said.

Carney’s green aura

Carney’s reputation as a climate champion is well earned. As governor of the Bank of England, he led a push among central bankers to take the economic risks of climate change seriously — memorably captured in his 2015 ‘Tragedy of the Horizon’ speech, in which he warned: “The catastrophic impacts of climate change will be felt beyond the traditional horizons of most actors.”

In 2021, after he’d left the Bank of England, he became a United Nations special envoy on climate action and finance and launched a net-zero financial alliance with some of the world’s biggest banks.

But things changed dramatically when Donald Trump took back the White House, and Carney replaced fellow Liberal Justin Trudeau as Canada’s prime minister in 2025. At the time, Trudeau and his Liberals had been way behind in the polls, battered by Conservative leader Pierre Poilievre’s attacks on his climate policies — in particular an unpopular consumer carbon tax.

Carney’s first act as prime minister was to scrap that tax.

Following his surprise victory in the elections that April, Carney set about promoting Canada as an “energy superpower.” To the dismay of environmental groups, he supported the “Pacific Link,” an oil pipeline costing tens of billions of dollars, designed to carry Alberta crude to Canada’s Pacific coast for export to Asia.

He then pushed for thawing relations with Beijing in January, a not-so-subtle pitch to find a new crude oil client that isn’t the U.S. Germany, rushing to replace its dependence on Russian energy, signed a long-term agreement in July to buy Canadian liquefied natural gas from a proposed port in British Columbia, despite backlash from environmental and indigenous groups.

He also scrapped laws on electric vehicle adoption, dropped plans for an emissions cap on oil and gas companies, watered down an existing industrial carbon price and introduced legislation to weaken environmental permitting rules for big infrastructure projects, which critics dubbed the “bulldoze nature bill.”

A landmark moment, according to Gray, came in November 2025, when Carney signed a memorandum of understanding with the government of Alberta, Canada’s biggest oil-producing province. That document, which promised to turn Canada into a “global energy superpower,” contained a string of promises to promote oil and gas and water down federal climate laws.

So why the dramatic shift?

Carney, who has repeatedly positioned energy sovereignty as a bulwark against Trump’s economic aggression, offered his realpolitik response at an event in the heart of Alberta’s oil patch earlier this month.

“There’s a structural challenge of energy security and the existential challenge of climate change, and these challenges are forcing countries to think differently about where their energy comes from and on who they can rely on to supply it,” Carney said in Fort McMurray, Alberta on Oct. 1.

“Even under any plausible net zero scenario, the IEA [International Energy Agency] forecasts the world will still need tens of millions of barrels of crude a day. So the question is: who will emerge as the world’s trusted suppliers? It should be us. It must be Canada.”

Not black and white

Carney, to be sure, is no Trump. Unlike the U.S. president, he has retained his pro-climate rhetoric and promised to develop the country’s mining of critical minerals essential for the clean energy transition.

In May, he unveiled a national electricity strategy which aims to double Canada’s largely clean electricity grid by 2050 to meet soaring demand. “The path to net zero is electrification,” Carney said then.

In August, he announced C$10 billion in federal support for the Churchill Falls hydroelectric project in Newfoundland and Labrador, saying it will be the largest clean energy project in North America, capable of generating enough electricity to light up the equivalent of Canada’s three largest cities.

Nembhard, Environment Minster Dabrusin’s spokesperson, also pointed to new electricity transmission lines, electric vehicle subsidies and a C$2 billion plan to retrofit homes with heat pumps.

Canadian climate activist Alex Cool-Fergus said she does not think Carney “believes that oil and gas is the future,” but is simply being pragmatic about Canada’s economic reality.

“The electricity strategy that came out in May was incredibly important, and actually gives us a better idea of what his thinking is for the future,” she said.

Trudeau’s approach to climate change was “very much values-based, and it was about doing the right thing,” said Cool-Fergus. “I think that’s hit its limits. Carney’s approach makes more sense for the world of 2025-2026.”

The limits of the partnership

Hoekstra, the EU’s commissioner for climate, said he wants to deepen ties with Canada. “Given all the complications the world is facing, it is imperative to team up more closely with your closest partners,” he said. But he’s realistic about how far that relationship can go.

Hoekstra has ambitions of cementing the EU into a global network of economies with carbon pricing regimes. While he conceded nothing is “off the table,” he acknowledged linking the EU’s Emissions Trading System with Canada’s “quite different” version, which varies from province to province: “You’re talking about a completely different horizon, and that is not something we would attempt in the very short run.”

There are, however, other ways Hoekstra believes the EU and Canada can closely link on environmental issues.

“Doubling down, tripling down on electrification, on solar, on wind, on nuclear, on batteries,” he said, adding “that is one area that I think is potentially very fruitful for my portfolio.”

Another is critical raw materials, a key focus of this week’s summit.

Brussels is exploring ways for the European Investment Bank, the EU’s lending arm, to help finance the mining of Canadian mineral deposits that could supply the bloc with an alternative to Chinese-produced metals, with a framework agreement expected to be signed during the summit. Lithium, copper, nickel, and other key ingredients for electric vehicle batteries and clean energy technologies essential for decarbonizing Europe are abundant but often undeveloped all over Canada.

This week’s summit will also explore investing in infrastructure on Canada’s east coast to liquefy and ship Canadian gas to Europe, a move that could help the EU diversify its supply away from the U.S., which, along with Norway, has become Europe’s dominant supplier since it cut off Russian gas imports following the full-scale invasion of Ukraine.

Many EU member countries will welcome success on these goals. But Gray warns that closer ties with Canada could lead to deeper penetration by the country’s powerful fossil fuel lobby, which he described as a “major, major force.”

“They’ll be spending time trying to make sure the alignment with the EU is in a direction that favors them,” he said.

The EU’s lack of oil and gas resources — and, by extension, the absence of a powerful fossil fuel lobby — has kept climate policy relatively bipartisan in the EU. Could inviting a fossil fuel “superpower” into the fold as an “associate member” change that?

“That would depend very much on what is an ‘associate member,’” Dutch Climate Minister Stientje van Veldhoven-van der Meer said.

Recap on this years winners for the World's 50 Best Bars 2022, how France did and predictions for next year.

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