Green Party Leader Elizabeth May has expressed regret over her support for the Carney government during the budget vote, labeling it a “mistake” she vows not to repeat. May criticized the memorandum of understanding signed by Prime Minister Mark Carney and Alberta Premier Danielle Smith, particularly the provision applying federal tax credits to enhanced oil recovery. She described this move as a “significant betrayal” that has raised doubts about the credibility of Carney’s promises.
May’s decision to back the budget was influenced by assurances from Carney’s office that tax credits for enhanced oil recovery would not be included in the budget or added afterward. However, a subsequent agreement with Alberta, signed after May’s vote, committed Canada to extending federal tax credits to support large-scale investments in carbon capture, utilization, and storage (CCUS), including enhanced oil recovery projects.
Enhanced oil recovery involves capturing carbon dioxide from industrial sources and injecting it underground at oilfields to increase oil extraction while trapping the carbon dioxide underground. Critics, including environmentalists like Guilbeault, view tax credits for enhanced oil recovery as a subsidy for oil production. May had initially hesitated to support the budget due to rumors of a potential reversal on this issue, until Guilbeault assured her it would not happen.
Guilbeault’s decision to resign from cabinet was partly influenced by the reversal on the tax credit issue. Despite feeling conflicted about her budget vote, May stands by her decision, citing Carney’s affirmation of Canada’s commitment to meet its climate targets under the Paris Agreement. While her vote did not sway the outcome due to abstentions from the NDP and Conservatives, it helped pass the budget and avert the threat of a winter election.
May emphasized that she acted based on her principles and for the right reasons, maintaining her integrity by fulfilling her word. However, she asserted that she will not make the same error of supporting the government again. Energy and Natural Resources Minister Tim Hodgson defended the inclusion of tax credits for enhanced oil recovery, highlighting its importance to Alberta and the potential economic benefits, including increased use of Canadian steel.
