Mr. Speaker, I thank the member for Brandon—Souris for his question and allowing me to respond.
His comments remind us that there are still those who see resource development as an either/or proposition, a choice between either growing the economy or protecting the environment.
His remarks also remind us that some people do not understand that climate action can be a competitive advantage, or that when a business makes a decision it is called a “business decision” for a reason. It was a business decision when the TransCanada Corporation decided not to proceed with the energy east project.
However, since the project was initiated in 2014, there has been a fundamental shift in global markets resulting from the shale oil revolution, including a 60% decline in oil and gas prices, and a 50% drop in capital investment. Were both the revival of the Keystone XL pipeline earlier this year and our government's approval of the Trans Mountain expansion and Line 3 replacement pipelines last November also contributing factors? None of these projects were certainties at the time the energy east project was proposed.
Finally, we do not know if the C.D. Howe Institute is onto something regarding the changing economics behind energy east after TransCanada received regulatory approval to slash the price it charges to move western natural gas to Ontario. All we know is that according to the institute, natural gas producers have been signing up in droves with TransCanada ever since. Therefore, to suggest that a $15.7 billion investment hinged on the National Energy Board's decision to review the downstream emissions from the energy east pipeline suggests a profound ignorance of the myriad of factors that go into a business decision. It also ignores our government's very clear response to the NEB's decision to expand the scope of its review.
First, we offered to conduct the upstream and downstream GHG assessments within the legislated timeline to avoid added costs and delays to the proponent.
Second, we made it clear that our government would ultimately use the same criteria, our January 2016 interim principles, that we applied to our reviews of other major energy projects, including the Trans Mountain expansion and Line 3 pipelines. As the Minister of Natural Resources has said repeatedly, nothing has changed from our perspective.
Our approval of the Trans Mountain expansion and Line 3 pipelines was based on solid science, meaningful consultations, and the best interests of Canada. Our approach to the energy east proposal would have been the same—nothing more and nothing less.