Ottawa won’t lift Arctic oil and gas moratorium without Inuvialuit input, Carney says

Prime Minister Mark Carney says the federal government has not made a decision on whether to lift the moratorium on oil and gas exploration in Arctic waters, adding that any such move would have to be made jointly with northern partners.

The ban was put in place by the Trudeau government a decade ago and is set to expire in 2028.

The fall budget showed a ramp up in funding for Arctic oil and gas governance, with Finance Canada confirming part of the money would be used to consider whether to lift the drilling moratorium in the Western Arctic.

Speaking at an unrelated press conference Tuesday, Mr. Carney said the funding is meant to bolster the capacity of Inuvialuit partners who are signatories to the 2023 Western Arctic-Tariuq Accord, which sets out a co-management and revenue-sharing regime for the offshore oil and gas sector should the moratorium be lifted. The Northwest Territories and Yukon are also signatories, as is Ottawa.

“It is absolutely not in any way, shape or form a decision about lifting the moratorium,” Mr. Carney said. “It is a respectful engagement with that self-government.”

Ottawa considering lifting moratorium on offshore oil and gas in Western Arctic

Mr. Carney said U.S. decisions to open up Arctic drilling are irrelevant to Canada, despite the fact that Washington was a partner in the original moratorium before reversing course under both Trump administrations.

He added that the opinions of territorial governments and Inuit leadership on this file will be central to the decision-making process on the future of the ban.

The NWT and Nunavut governments have both called on Ottawa to lift the moratorium.

“I’ve been advocating for it because I was aware that the Inuvialuit Regional Corporation was also supportive of it,” said NWT Premier R.J. Simpson in an interview.

The Inuvialuit Regional Corporation, representing Inuit communities in the Western Arctic, declined to provide additional comment when contacted by The Globe and Mail on Monday.

Mr. Simpson said the funding in the budget is a positive signal, one that gives industry time to prepare for a possible policy shift.

In a statement, Canada’s Northern and Arctic Affairs Minister Rebecca Chartrand said the budget funding “does not authorize exploration or drilling” and that the future of the moratorium in the Western Arctic continues to be discussed with northern partners.