Environment Committee on May 28th, 2026

[The Chair, Liberal, Shannon Miedema]

Good morning, everyone.

Today is meeting 40 of the Standing Committee on Environment and Sustainable Development. This is a hybrid meeting, and it's public.

If you're here in person, please keep earpieces away from the microphones to reduce the risk of injury from feedback incidents for our interpreters.

Today the committee is studying the main estimates for 2026-27. The House has referred to the committee the votes from the Canada Water Agency, Environment and Climate Change Canada, and the Impact Assessment Agency of Canada. Having previously agreed to follow up with the Minister of Environment, Climate Change and Nature regarding our study of industrial carbon pricing, the committee has this occasion today as well. I will interrupt the meeting a few minutes before adjournment so that the committee can vote on these estimates.

Today it's our honour to have with us the Honourable Julie Dabrusin, the Minister of Environment, Climate Change and Nature. She is accompanied by the following witnesses: Mark Fisher, president of the Canada Water Agency; Mollie Johnson, deputy minister of the environment; Terence Hubbard, president of the Impact Assessment Agency of Canada; and Andrew Campbell, interim president and CEO of Parks Canada.

Welcome, everyone.

Am I missing someone?

Go ahead.

[Judy Meltzer, Associate Assistant Deputy Minister, Environmental Protection Branch, Department of the Environment]

I'm Judy Meltzer, an associate ADM at Environment and Climate Change Canada.

[The Chair, Liberal, Shannon Miedema]

Thank you.

Welcome to all.

As usual, we will begin with a five-minute opening statement from our minister.

The floor is yours.

[Julie Dabrusin, Liberal, Minister of the Environment]

Thank you so much, Madam Chair. It's great to see you here.

I'd like to begin by acknowledging that we are meeting on the traditional territory of the Algonquin Anishinabe nation.

I’m happy to be back at committee again, this time to discuss the 2026-27 main estimates for Environment and Climate Change Canada and my portfolio of Parks Canada, the Impact Assessment Agency of Canada and the Canada Water Agency. These main estimates are designed to protect what matters today and prepare for what comes next. That means continuing to take ambitious, inclusive and achievable action against climate change and delivering on “A Force of Nature: Canada's Strategy to Protect Nature”, which was announced earlier this spring, to protect biodiversity and ecosystems, safeguarding the environment for Canadians across the country while making Canada stronger, safer and more competitive.

In today’s world, climate action, careful stewardship, clean power and competitive industries are not separate goals. They’re interconnected. In my role, I remain firmly focused on building on practical and durable progress. Already we’ve achieved an economy that’s 34% less carbon-intensive than it was in 2005. The most recent national inventory report shows that emissions are continuing to decline.

We’re continuing to move forward. We finalized methane regulations that will reduce emissions by 400 megatonnes. We have secured an agreement to strengthen industrial carbon pricing with a clear price trajectory, ensuring that, under the Canada-Alberta agreement, the credit market in Alberta functions effectively to provide the certainty needed to accelerate investments in decarbonization.

The clean fuel regulations are significantly reducing greenhouse gas emissions across the country, driving tens of billions of dollars in investments across Canada. The national electricity strategy will double the capacity of our grid by 2050 and supply clean, reliable and affordable power across the country for decades to come. It also includes a key commitment to retrofitting up to one million homes. As energy costs rise, helping Canadians switch from oil and propane to cleaner and less costly forms of energy helps improve affordability.

We're also making investments in renewable energy, low‑carbon fuels and carbon capture and storage.

Let's turn to the 2026-27 main estimates before us. Starting with Environment and Climate Change Canada, its 2026-27 main estimates total about $1.71 billion—which is around $1.41 billion or 45.3% less than the 2025-26 main estimates.

This significant year-over-year decrease appears larger as certain sunsetter decisions will appear in supplementary estimates to follow. The department's focus remains firm—within a more disciplined fiscal framework.

In addition to what I've already mentioned, weather and environmental prediction services continue to improve in service of Canadians.

Pollution prevention and regulatory enforcement remain active across the country, and working with indigenous communities remains a significant priority.

For Parks Canada Agency, its 2026-27 main estimates total $1.29 billion. That represents a net increase of $25.5 million compared to the 2025-26 main estimates. With this funding, Parks Canada will continue protecting, presenting and managing Canada's existing national historic sites, national parks, heritage canals, national marine conservation areas and one national urban park for the benefit and enjoyment of Canadians. It will also support Parks Canada's collaborative work to advance new national urban parks, national parks and national marine conservation areas while strengthening ecological corridors and protecting cultural landscapes.

For the Impact Assessment Agency, its 2026-27 main estimates total $109.5 million. With this funding, the agency will continue supporting timely impact assessments and decisions on major projects. It will advance “one project, one review”, in collaboration with provinces and territories. It will ensure meaningful partnership and engagement with indigenous peoples, and protect the environment by mitigating or preventing adverse effects in federal jurisdiction.

Finally, for the Canada Water Agency, its 2026-27 main estimates total $81 million. This represents a decrease of $3.8 million, or 4.5%, compared to the 2025-26 main estimates, which totalled $84.8 million. With this funding, the agency will advance the development of Canada's first national water security strategy, as well as the restoration and protection of nationally significant watersheds, and continue to build a high-performing and regionally responsive organization, headquartering in Winnipeg.

I'm going to stop there, Madam Chair.

I'm happy to take questions from members of the committee.

Thank you.

[The Chair, Liberal, Shannon Miedema]

Thank you very much, Minister.

We'll now go to the question period. We will begin with the Conservative Party.

Mr. Bexte, you have the floor for six minutes.

[David Bexte, Conservative, Bow River, AB]

Thank you, Chair.

Welcome, colleagues.

Welcome, Minister and witnesses. I appreciate your time and attendance today. I look forward to your responses.

Minister Dabrusin, you were elected in Toronto—Danforth, on an arguably very environmental platform. Were you one of the 14 Liberal MPs who signed the letter to the Prime Minister?

[Julie Dabrusin, Liberal, Toronto—Danforth, ON]

Thank you, Mr. Bexte, for that question and for recognizing the fact that my community does care deeply about the environment and climate change, as I believe communities right across the country do.

I work with all of my colleagues and the Prime Minister.

[David Bexte, Conservative, Bow River, AB]

Even though it's six minutes, my time is short. I'd appreciate it if you could be direct.

[Julie Dabrusin, Liberal, Toronto—Danforth, ON]

I'm repeating that I get to speak regularly with the Prime Minister directly about the environment and climate change policy, and I work on it directly with him. I know he cares. I care. We're working very hard to continue the fight against climate change.

[David Bexte, Conservative, Bow River, AB]

You didn't sign the letter that is concerned about the direction that the government is going in.

[Julie Dabrusin, Liberal, Toronto—Danforth, ON]

Sir, I'm the Minister of Environment and Climate Change. I meet directly with the Prime Minister to work on environment and climate change matters. I don't believe I need to write him a letter. I speak with him directly.

[David Bexte, Conservative, Bow River, AB]

Thank you very much.

Canadians are watching as a former Liberal minister resigns and caucus members fight publicly over energy policy. Why should workers in Alberta, Saskatchewan and Atlantic Canada trust a government that cannot agree, even within itself, on whether Canada's resource sector should exist?

[Julie Dabrusin, Liberal, Toronto—Danforth, ON]

I'll be frank. I'm not even sure I fully understood that question, but if I pulled out what I thought I understood from it, let me be clear. Our government recognizes the importance of our natural resource sector for our country and all the opportunities that it has right across our country.

I—

[David Bexte, Conservative, Bow River, AB]

You very actively, over the last decade or more, have stymied any development or work in this sector. The “keep it in the ground” narrative is an absolutely common theme within the Liberal background.

How can you assure industry, citizens and the electorate in the parts of the country that depend on the energy industry and other extractive industries, including agriculture and fisheries, that their livelihoods—which directly contribute to, feed and support the thriving of our economy—will remain viable and thrive?

[Julie Dabrusin, Liberal, Toronto—Danforth, ON]

Our government has been very clear, in fact, that we are working with Canadians, for Canadians, to make sure that we're building a strong country for the future. That includes all types of projects, to be clear. It can be in the form of renewable energy. When you look at the projects that are being referred to the Major Projects Office, they would include things like a graphite mine—the Nouveau Monde Graphite—

[David Bexte, Conservative, Bow River, AB]

I'm sorry, Minister, but you're rehashing stuff that was announced more than half a decade ago. A couple of weeks ago, the Prime Minister signed an MOU appearing to support a new pipeline to the west coast. At the same time, increasing the industrial carbon tax is projected to cost my province alone, Alberta, tens of thousands of jobs over the next few years.

When your own caucus is confused about the government's contradictory directions, how can Albertans have confidence that you will act in their interest?

[Julie Dabrusin, Liberal, Toronto—Danforth, ON]

That's a really important question, so I want to be very clear. We are working collaboratively with all the provinces, and we are working collaboratively to make sure that we are building a strong country together, because that's what Canadians want. They want to see that we have a strong, sovereign, secure country. That happens only if we work collaboratively with the provinces and territories, which is exactly what we're doing.

[David Bexte, Conservative, Bow River, AB]

Pardon me, Minister, but without a strong, thriving economy with a growing GDP that will support the aspirations of all the other programs, you're going to have none of it.

What do you make of Cenovus CEO Jon McKenzie's comments, “Capital has left Canada to find more competitive jurisdictions. Canada has ceded high-paying jobs, taxes, and royalties to countries like Russia, Iran, Iraq, and the U.S.”? This is all based and predicated on Liberal policies over the last decade or more that continue to this day.

[Julie Dabrusin, Liberal, Toronto—Danforth, ON]

I find it interesting that we're going back to where we've been at previous committees, which is that the Conservative Party seems to be suggesting we should be taking investment notes from Russia, which is a country against which we have sanctions. I find that fascinating.

[David Bexte, Conservative, Bow River, AB]

That's not at all what I said, Minister.

[Julie Dabrusin, Liberal, Toronto—Danforth, ON]

That's what it sounded like.

[David Bexte, Conservative, Bow River, AB]

I said, Minister, that people and investment money are finding such places as Russia, Iran and Iraq more attractive than Canada because of Liberal policies.

How do you square that circle?

[Julie Dabrusin, Liberal, Toronto—Danforth, ON]

I will go back to this: It sure sounds to me as though the Conservative Party is suggesting that the best investment policies are with—

[David Bexte, Conservative, Bow River, AB]

Liberal policies over the last decade plus have caused the capital to flee.

[Julie Dabrusin, Liberal, Toronto—Danforth, ON]

Foreign direct investment in Canada is up. We are doing very well. When you look at some of the most recent contracts, for example, in the construction of planes, you are seeing investment in our country that is going up.