Canada’s Carney loses cabinet minister over easing of climate-change rules

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illuminem summarises for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:

🗞️ Driving the news: Canadian Prime Minister Mark Carney has suffered his first major political setback after cabinet minister Steven Guilbeault resigned in protest over a federal deal with Alberta that suspends key climate regulations
• The agreement pauses rules designed to limit emissions from oil-and-gas producers, ease clean-electricity requirements, and delay the national zero-emissions vehicle mandate
• Guilbeault accused Carney of undoing climate policies the former environment minister helped craft under Justin Trudeau

🔭 The context: Canada is the world’s fourth-largest oil producer, and Alberta has long resisted federal climate mandates viewed as threatening to investment and jobs
• The suspended measures formed the backbone of Canada’s 2030 climate plan and were central to the Trudeau government’s net-zero roadmap
• Carney’s move reflects an attempt to stabilise relations with Alberta, revive investor confidence, and prevent ongoing political battles from stalling national energy projects

🌍 Why it matters for the planet: Weakening oil-and-gas emissions caps and clean-power rules risks slowing Canada’s progress toward its Paris commitments, especially given the sector’s role as the country’s largest and most carbon-intensive emitter
• A pause on regulations may increase upstream emissions at a time when global decarbonisation requires accelerated reductions from major producers
• Because Canada is a major exporter, any delay in implementing stricter standards could also influence broader market expectations for low-carbon production

⏭️ What's next: Carney must now rebuild unity within his government while drafting a revised regulatory timeline that can withstand political, legal and economic scrutiny
• Environmental groups and some provinces are preparing potential court challenges, while industry leaders expect new consultations
• International partners will closely watch whether Canada maintains credibility ahead of upcoming climate negotiations

💬 One quote: “I submitted my resignation with great sadness.” — Steven Guilbeault

📈 One stat: Canada exports 98% of its oil to the United States, highlighting the climate and economic stakes of federal regulatory choices

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