Internal tensions within Prime Minister Justin Trudeau’s cabinet have escalated this week, as Environment Minister Steven Guilbeault publicly defended the government’s climate policy timelines against growing pressure from colleagues who want to slow implementation.
“We’ve spent years developing these frameworks with industry, with provinces and territories,” Guilbeault told reporters Tuesday outside a climate resilience conference in Ottawa. “To simply throw all that away would be irresponsible governance.”
The environment minister’s comments come after three separate Liberal cabinet ministers have privately expressed concerns about the pace of climate regulations, according to sources familiar with recent cabinet discussions. These ministers reportedly argue that economic pressures on Canadian households demand a recalibration of climate priorities.
This internal debate erupts as the federal Liberals face declining poll numbers and growing public frustration over affordability issues. A recent Abacus Data poll shows 62% of Canadians now rank cost of living as their top concern, while climate action has slipped to fifth place at 34%.
“What we’re seeing is the predictable tension between long-term climate commitments and short-term political pressures,” said Dr. Catherine McKenna, former environment minister and now chair of the UN’s High-Level Expert Group on Net-Zero Commitments. “But backing away from climate targets would be shortsighted both environmentally and economically.”
The cabinet division reportedly centers on three key climate policies: the Clean Fuel Regulations, which took effect in July; the planned cap on oil and gas emissions; and the timetable for the federal carbon price increase, currently set to reach $170 per tonne by 2030.
Finance Minister Chrystia Freeland has reportedly voiced concerns about these policies’ cumulative economic impact, particularly as Canadians continue struggling with housing costs and persistent inflation. However, when approached by reporters Wednesday, Freeland sidestepped direct questions about cabinet disagreements.
“Our government has always balanced strong climate action with economic considerations,” Freeland said. “These discussions are normal and healthy within any cabinet making difficult decisions.”
The split comes at a pivotal moment for Canada’s climate strategy. Environment Canada’s latest emissions projections show Canada needs to cut an additional 140 megatonnes of greenhouse gases to meet its 2030 reduction target. Meanwhile, Conservative Leader Pierre Poilievre has gained traction with voters by promising to “axe the carbon tax” if elected.
Alberta Premier Danielle Smith has added fuel to the federal Liberal divide, writing to Trudeau last month demanding a “full pause” on federal climate initiatives affecting her province’s oil and gas sector. Two Liberal MPs from Alberta ridings reportedly shared Smith’s letter during a recent caucus meeting, urging colleagues to consider a modified timeline.
“The cabinet is facing classic election-cycle pressure,” explained Mark Winfield, environmental policy professor at York University. “With polling numbers down and an election likely within 18 months, the temptation to retreat from ambitious climate policies becomes strong, even if those same policies were central to their last platform.”
Behind closed doors, sources say Rural Economic Development Minister Gudie Hutchings and Labour Minister Seamus O’Regan have advocated for a more gradual approach to implementing emissions caps on oil and gas producers. Both ministers represent Newfoundland and Labrador ridings where offshore oil development remains economically significant.
Minister Guilbeault, however, appears unwilling to yield ground. On Tuesday, he announced $72 million in new funding for climate resilience projects while emphasizing the economic costs of inaction.
“Every dollar invested in climate adaptation saves up to $15 in future disaster costs,” Guilbeault said. “Canadians are already paying the price of climate change through increased insurance costs, property damage, and infrastructure failures.”
The public disagreement reflects deeper challenges within the Liberal government as it attempts to balance its climate promises with immediate economic pressures. Internal polling shared with cabinet ministers shows declining public support for carbon pricing, despite rebates designed to offset costs for most households.
Climate policy experts watching the debate unfold see potential compromises emerging. The government could maintain its emissions targets while adjusting implementation timelines or enhancing support programs for affected industries and workers.
“What we’re likely to see is a cabinet compromise that preserves the architecture of climate policy while providing more breathing room on timelines,” suggested Sarah Petrevan, policy director at Clean Prosperity. “That’s not necessarily bad policy, but it does risk undermining investor confidence in Canada’s clean energy transition.”
For now, Trudeau has publicly backed Guilbeault’s position, stating last Friday that “climate action remains non-negotiable” for his government. However, the prime minister has also directed ministers to review all policies affecting affordability, leaving room for potential adjustments to climate implementation schedules.
As winter approaches with Canadians facing high heating costs, this cabinet split signals a challenging political balance for the Liberals – maintaining climate credibility while addressing immediate economic anxieties that threaten their re-election prospects.
