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Constraining Canada: The costs of environmental idealism

Far from fighting back, the federal government has often accommodated the extreme interests of environmental groups through regulatory, legislative, and financial support.

October 8, 2025
in Environment, Energy Policy, Latest News, Papers, Social Issues, Heather Exner-Pirot
Reading Time: 6 mins read
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Constraining Canada: The costs of environmental idealism

By Heather Exner-Pirot

October 8, 2025

PDF of paper

Executive Summary | Sommaire (le français suit)

Under the Trudeau government, Canada embraced a green agenda that prioritized environmental ideology over economic pragmatism.

Through a combination of restrictive laws, aggressive regulation, and general funding of activist “green” groups, the federal government empowered a legal and bureaucratic apparatus designed to obstruct natural resource development. These environmental non-governmental organizations (ENGOs) – often subsidized by taxpayers – deployed tactics ranging from lawfare to procedural sabotage, creating a hostile environment for investment and infrastructure growth.

These tactics reflect the gravitation of progressive policies in the US and Canada over the past several decades toward an “ideology of scarcity” that elevated procedural caution and regulation over building and growth. A particular strain of organized environmentalism has advanced much of the anti-development ideology, creeping into our legal, political, and academic institutions and contributing to decades of lower GDP growth and declining productivity.

Beginning in the 1970s, environmental advocacy groups began suing project developers and pushing governments and courts to strengthen government permits and oversight to thwart development projects. The environmental movement began supporting private litigants using “lawfare” or “busybody” strategies. This approach has become, intentionally, very expensive and time-consuming for developers. It is relatively easy for environmental non-governmental organizations (ENGOs) to initiate such challenges, and their objectives are achieved as much by challenging approvals and permits as by winning those cases.

Far from fighting back, the federal government has accommodated their often extreme interests through regulatory, legislative, and financial support. This accommodation has not only produced poor policy outcomes; it has led, predictably, to spending abuses, waste, and a dearth of accountability.

The federal government has shown an almost unlimited appetite for directing public dollars towards environmental initiatives, growing spending in that category by 381 per cent between 2015 and 2023, and increasing environmental grants and contributions funding to third parties by an order of magnitude. A number of non-partisan public audits have found significant shortcomings in the allocation of federal environmental funding.

Canada is facing many political and economic headwinds. In response there is growing public and political commitment to build more infrastructure to bolster economic growth and diversify trade. A majority of Canadians support the development of every type of infrastructure, from highways to ports to oil and gas to nuclear.

Organized environmentalism poses a challenge to these goals when it uses the regulatory process to block development. The federal government must endeavour to retract the funding and influence it has granted such groups and stop being a party to efforts that actively undermine Canadian interests and projects. In addition to rationalizing Canada’s environmental assessment frameworks, it should:

• Pare down “environmental protection” and ENGO spending to reasonable levels following its decade of unprecedented growth.

• Ensure higher levels of transparency and accountability for the grants and contributions ENGOs receive.

• Limit the instances in which independent organizations are financed wholly or substantially by the federal government.

• Ensure those organizations are subject to financial transparency measures equivalent to those faced by the public sector.

It is no longer acceptable for the ideological preferences of the few to use our liberal democratic values and processes to stymie the economic aspirations of the many.

If Canada doesn’t reverse course, it risks locking in economic stagnation and regulatory paralysis. Investors will walk, projects will stall, and the country will fall further behind in global competitiveness. The cost of inaction isn’t just lost growth – it’s a diminished future for all Canadians.


Sous le gouvernement Trudeau, le Canada a instauré un programme environnemental fondé sur des considérations idéologiques plutôt que sur des impératifs économiques pragmatiques.

Le gouvernement fédéral a établi un cadre juridique et bureaucratique conçu pour faire obstacle à la mise en valeur des ressources naturelles, à travers un ensemble de lois restrictives, de réglementations strictes et de fonds substantiels pour les groupes d’activistes écologiques. Pour créer un climat défavorable aux projets d’investissement et d’infrastructures, ces organisations non gouvernementales de l’environnement (ONG-E) – fréquemment financées par les contribuables – ont mis en œuvre une série d’actions allant des poursuites judiciaires au sabotage procédural.

Ces manœuvres illustrent le déplacement depuis quelques décennies – aux ÉtatsUnis et au Canada – des politiques progressistes vers une « idéologie de la rareté », dont découle un courant de prudence et de réglementation qui a pris le pas sur la création et la croissance. L’environnementalisme a contribué à la consolidation de l’idéologie antidéveloppement, laquelle s’est infiltrée au sein de nos institutions juridiques, politiques et universitaires, et a contribué à des décennies de croissance économique stagnante et de déclin de la productivité.

À compter des années 1970, dans le but de contrer les projets de développement, les associations de défense de l’environnement ont entrepris d’intenter des actions en justice à l’encontre des promoteurs, tout en exerçant des pressions sur les gouvernements et les tribunaux pour qu’ils renforcent les réglementations et la surveillance. Le mouvement environnementaliste a alors commencé à soutenir les justiciables engagés dans des luttes considérées comme inutilement épuisantes et sans issue, une démarche qui s’est révélée délibérément onéreuse et chronophage pour les promoteurs. Désormais, les ONG-E parvenaient aisément à rejeter leurs requêtes d’approbation et de permis en vue d’atteindre leurs propres objectifs.

Au lieu de les écarter, le gouvernement fédéral a plutôt pris soin d’accompagner ces intérêts extrémistes en leur fournissant un soutien réglementaire, législatif et financier. Cette complaisance a non seulement, comme il fallait s’y attendre, amoindri la qualité des politiques publiques, mais a aussi entraîné des abus en matière de dépenses et d’imputabilité.

Entre 2015 et 2023, l’appétit quasi insatiable du gouvernement fédéral pour les initiatives environnementales a entraîné une augmentation de 381 % du financement public dans ce domaine, ainsi qu’une croissance exponentielle des subventions et des contributions à des tiers. Un certain nombre d’audits publics ont mis en évidence d’importantes lacunes en ce qui a trait à l’utilisation des fonds fédéraux destinés à l’environnement.

Le Canada fait face à de nombreuses difficultés politiques et économiques. C’est pourquoi l’engagement à construire de nouvelles infrastructures pour renforcer la croissance et diversifier les échanges n’a cessé d’augmenter. La majorité des Canadiens appuient le développement de tous les types d’infrastructures  : autoroutes, ports et secteurs du pétrole, du gaz et du nucléaire, notamment.

L’environnementalisme organisé freine l’atteinte de ces objectifs lorsqu’il use du processus réglementaire pour entraver le développement. Le gouvernement fédéral se doit de se désengager du financement et du soutien qu’il accorde aux groupes concernés et de se retirer des initiatives manifestement nuisibles aux intérêts et aux projets canadiens. Outre la rationalisation des cadres d’évaluation des incidences environnementales, il est impératif qu’il :

• Réajuste à des niveaux raisonnables les dépenses consacrées à la « protection de l’environnement » et aux ONG-E, à la suite d’une décennie de croissance sans précédent.

• Resserre les obligations de transparence et de reddition de compte des ONG-E en matière de subventions.

• Limite les cas dans lesquels il finance les organisations indépendantes pleinement ou substantiellement.

• Veille à ce que ces organisations adhèrent à des normes de transparence financière équivalentes à celles du secteur public.

Il n’est plus acceptable que les préférences idéologiques d’un petit nombre empiètent sur les aspirations économiques de la multitude par l’entremise de nos processus et de nos valeurs démocratiques. Si le Canada ne modifie pas sa trajectoire, il risque de devenir captif d’une stagnation économique et d’une paralysie réglementaire. Les investisseurs se retireront, les projets seront mis en suspens et le pays accusera un retard supplémentaire en matière de compétitivité internationale. Le coût de l’inaction met en péril l’avenir de toutes et tous, et non pas uniquement de la croissance.

 

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