Presented By Ultimarii
Enserva’s Provincial Spotlight Series provides an overview of the latest policy updates, regulatory changes, and industry-specific developments in our members’ operating areas. In this edition, we revisit British Columbia to explore topics pertinent to the energy services, supply, and manufacturing sector.
ICYMI: The previous issue, published on February 5, highlighted Ontario.
Political Insights
BC’s tariff response is on hold following President Trump’s February 4 announcement of a 30-day pause on planned tariffs. However, Premier David Eby has announced immediate countermeasures to defend BC workers and businesses against the anticipated economic fallout of the US’s proposed 25% tariffs on Canadian goods and 10% tariffs on energy.
As part of this response, the province is fast-tracking 18 critical mineral and energy projects worth approximately $20 billion, including four major mines, three energy security projects, and 11 BC Hydro clean energy ventures, primarily focused on wind power. These projects are expected to generate around 6,000 jobs, particularly in remote and rural communities.
Premier Eby’s stance marks a shift in the NDP’s approach to energy after years of opposition. His government is now accelerating project approvals and issuing permits faster in an effort to strengthen economic resilience and reduce reliance on US markets.
While these measures aim to protect BC’s economy, some mining projects—such as Eskay Creek, Highland Valley, and Red Chris—continue to face opposition from BC and Alaskan First Nations groups. Eby has framed these moves as a necessity in the face of what he calls an “economic war” against Canada. However, with the tariff pause in effect, the full scope of BC’s long-term response remains uncertain.
Regulatory & Policy Updates
- Renewable Energy Legislation: On February 6, 2025, the province announced plans to introduce legislation to accelerate renewable energy projects. The proposed legislation aims to streamline the permitting process by granting the BC Energy Regulator (BCER) authority over renewable energy projects, such as wind and solar. This move is expected to expedite the expansion of BC’s electricity grid and support the province’s clean energy goals. There are nine clean energy projects in BC that will likely be subject to the new framework.
- Corporate Governance Regulations: In March, the provincial government will introduce updates that aim to modernize corporate governance regulations and simplify business reporting requirements. Key changes include streamlining annual report filings, digitizing business registration processes, and updating ESG disclosure requirements to align with evolving regulatory standards. According to the BC government’s announcement, these updates are intended to ensure consistency with broader regulatory trends.
- Liquified Natural Gas Expansion: BC’s LNG industry is entering a transformative phase, as its first shipments from Kitimat to Asia solidify Canada’s entry into the global LNG market. Gas for LNG Canada is transported via the Coastal GasLink pipeline, which was completed in late 2023 after facing years of opposition. The first phase of LNG Canada’s operations will produce approximately 14 million tonnes of LNG annually, with a potential second phase powered by hydroelectricity doubling production.
Indigenous Relations
- The Saulteau First Nations and EDF Renewables North America have signed a 30-year Electricity Purchase Agreement (EPA) with BC Hydro for the 200 MW Taylor Wind Project. This partnership, in which the Saulteau First Nations hold a 51% economic interest, will supply clean electricity to meet BC’s growing energy demand and drive economic reconciliation.
Challenges & Risks
- US-Canada Trade Tensions: Ongoing trade tensions between the US and Canada pose significant risks to BC’s economy, particularly in the energy and critical minerals sectors. The US remains BC’s largest export market, accounting for 54% of total exports in 2023, with key sectors such as wood, pulp and paper, metallic minerals, and energy making up approximately 67% of total goods exports. The proposed 25% tariffs on Canadian mineral exports alone are expected to have a profound effect, with estimates suggesting they could cost American companies over US$11 billion while also impacting BC’s economy.
- With the US currently pausing the implementation of these tariffs, uncertainty remains high. Premier David Eby’s government is actively working with federal authorities to mitigate the potential fallout, while also launching countermeasures such as prioritizing Canadian goods in government procurement and halting public liquor store purchases from US “red states.” However, if tariffs are ultimately implemented, BC could see a cumulative economic loss of $69 billion between 2025 and 2028, with over 120,000 jobs at risk.
- US-Driven Market Volatility: Beyond direct trade measures, recent US economic policy shifts have introduced significant volatility affecting BC’s energy and mineral exports. Abrupt US policy change has led to immediate market fluctuations, with Canadian investors increasingly turning to gold and uranium stocks as a hedge against the rising threat of a trade war. The energy sector, particularly LNG exports, faces heightened uncertainty as these tariffs could disrupt existing supply chains and diminish competitiveness in the US market. Additionally, the approval of new US LNG export licenses, such as the Commonwealth LNG project in Louisiana, signals increased competition, potentially challenging BC’s position in the global energy market.
- Fiscal Pressures and Economic Uncertainty: BC’s economy is also grappling with a significant projected deficit. Energy and critical mineral projects are a means of stimulating economic activity. While Premier Eby has historically faced opposition from within his party regarding resource development, the current fiscal landscape has led to a policy shift—accelerating project approvals and providing economic incentives to shore up growth. However, the long-term economic impact of these projects remains uncertain, particularly if the US proceeds with its tariff plan, further constraining BC’s trade and revenue potential.
The Bottom Line:
As BC – along with the rest of Canada – navigates a contentious trade dispute with the United States, the province is taking decisive steps to strengthen its energy and resource sectors. Investments in LNG exports, renewable energy projects, and critical mineral development signal a commitment to economic resilience. However, regulatory uncertainty, climate risks, and ongoing US-Canada trade tensions pose challenges.
