Sovereign Wealth Fund in Canada Must Not Funnel Public Money to Dead-end Oil Pipeline, LNG Projects

Media Statement: For Immediate Release April 27th, 2026

While awaiting more specifics on the sovereign wealth fund announced today by the Federal Government, Sierra Club Canada is deeply concerned by some of the initial information. We are available for comment.

“We’re awaiting more specifics, but we are concerned that the fund is effectively a way to misleadingly ‘re-brand’ public investment and backing for a west coast oil pipeline and new LNG projects: projects that have no business case as the world moves rapidly to renewable energy,” says Conor Curtis, Director of Communications at Sierra Club Canada. “Certainly, the public should be very weary of investing their own money or taxpayer dollars into oil and gas projects with no business case.”

Public support for subsidizing oil and LNG projects with public funds is low, with a majority of Canadians opposed.

So far a new oil pipeline to the west coast has failed to attract private sector backing – and similar challenges lay ahead for LNG expansion – for the reason that these projects do not have a viable market. That situation is due to get worse for these projects given demand destruction as a result of the Iran war which is now pushing countries to go renewable faster.

The window for a Norway-style oil fund to work has come and gone: Ember Energy now suggests global oil demand could peak before 2029 with similar impacts on gas demand, making an oil pipeline and new LNG project (which would take years to come online) even more economically impractical than they were before the Iran war.

While collecting a windfall profits tax would be a positive step in the right direction – even were that to happen, re-investing any money into further oil and gas expansion represents dangerously misguided energy and economic planning.

The news of the sovereign wealth fund comes after the Energy and Natural Resources Minister already announced a west coast oil pipeline could receive federal financing via the Indigenous loan guarantee program – which could pose significant financial risks for all involved.

It also follows a failure to consult with environmental groups on other strategies despite the possibility of large scale environmental impacts.

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