Background
On July 2nd, 2026, Prime Minister Mark Carney made two announcements: (1) a west coast pipeline project proposal with Alberta; and (2) a co-operative prosperity agreement with British Columbia. The pipeline proposal and the prosperity agreement could have significant implications for First Nations in BC.
The Proposed Pipeline
The pipeline proposal announcement confirmed that Canada will refer Alberta’s proposal for a west coast pipeline project to the Major Projects Office (“MPO”), which Canada established in August 2025 under the Building Canada Act. The proposed pipeline would transport one million barrels of oil per day. For the most part, the proposed route would follow the existing Trans Mountain Pipeline corridor between Edmonton, Alberta and Burnaby, BC.
Canada, through the MPO, says they will begin consultation with Indigenous groups, provinces, and territories immediately in relation to the pipeline proposal. The MPO may list the proposed pipeline as a national interest project under the Building Canada Act. It is unclear when the assessment process would begin, but if the MPO lists the proposed pipeline under the Building Canada Act, it will undergo a streamlined review and permitting process. If the MPO approves the pipeline, it will be subject to conditions set by the MPO.
A northern route for the proposed pipeline is off the table as Canada has committed to respecting the Oil Tanker Moratorium Act which prohibits tankers carrying more than 12,500 tonnes of crude oil and certain other types of oil from docking, loading or unloading in parts of BC’s north coast. According to Canada, the proposed pipeline would provide significant economic opportunities for Indigenous communities.
If the proposed pipeline undergoes a streamlined permitting process, there are likely to be shorter timelines for First Nations to be consulted or to otherwise participate in negotiations related to the proposed pipeline.
The Prosperity Agreement
British Columbia and Canada have signed a prosperity agreement. In this agreement they commit to working together on a variety of economic priorities; notably the Red Chris Mine Extension, deep water ports in Prince Rupert and the Port of Stewart, and British Columbia’s LNG sector.
The agreement also contains language regarding British Columbia’s recognition of its constitutional obligations to act in good faith to engage in the necessary routing and permitting discussions for the new proposed pipeline and includes commitments from Canada to act in a manner consistent with section 35 of the Constitution and Treaty rights.
The main implementation mechanism for the prosperity agreement will be an Implementation Committee, which Canada and BC will appoint. It is not yet clear whether the Implementation Committee will include representatives from First Nations. The Implementation Committee will be responsible for delivering agreed-upon outcomes and will advance work in the following areas under the following timelines:
- Immediate commitments:
- Financial support for the Red Chris Mine Extension;
- Financial commitments related to the George Massey Tunnel Replacement Project;
- Financial support for the North Coast Transmission Line, Phases 1 and 2;
- Determination of mechanisms for Canada to participate in and contribute to the Tahltan Foundation Agreement, currently under negotiation between British Columbia and the Tahltan Nation.
- On or before December 1, 2026:
- Softwood Lumber;
- Steel Manufacturing;
- A compensation arrangement related to the updated industrial carbon pricing benchmark;
- Renegotiation of existing revenue sharing related to the existing Trans Mountain Expansion;
- Coastal Protection;
- Financial commitments related to a potential new pipeline to Asian markets;
- Renewed childcare commitments;
- Northwest Protected Areas;
- Detailed arrangements for the financial commitments related to the George Massey Tunnel Replacement Project;
- Detailed arrangements for the financial commitments related to the North Coast Transmission Line, Phases 1 and 2;
- Supporting B.C.’s LNG Exports;
- Flood Mitigation.
- On or before June 1, 2027:
- Deep Water Ports;
- Phase 3 of the North Coast Transmission Line;
- Clean Electricity and Watershed Protection;
- Shipbuilding and Recycling.
First Nations who have an interest in or concerns relating to any of these initiatives may wish to consider reaching out to BC and Canada to request consultation regarding the implementation of the prosperity agreement, including participation in the work of the Implementation Committee.
