Politics

Trudeau’s Grand Bargain Unravels After Alberta Nixes Carbon Plan

  • Court quashes government approval of key pipeline project
  • Oil-rich province pulls out of climate strategy in protest
Justin TrudeauPhotographer: Cole Burston/Bloomberg
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Canada’s precarious relationship with its vast oil riches flared up again Thursday after a federal court struck down Prime Minister Justin Trudeau’s approval of a key pipeline, reviving fears about the country’s ability to get its resources to market.

While the government pledged to press ahead with the C$4.5 billion ($3.5 billion) Trans Mountain expansion, the leader of oil-rich Alberta pulled out of Trudeau’s marquee national climate plan in protest after the ruling. Indigenous groups and the City of Vancouver had mounted the challenge, and their success highlights the extraordinary political, legal and social battles that a divided Canada has faced for years in developing the world’s third-largest crude reserves.