Mark Carneys Dramatic Shift From Climate Crusader to Oil Champion as Canadian PM

In a remarkable transformation, Mark Carney, once heralded as the Bank of England’s greenest-ever governor, has executed a striking policy reversal. The former central banker who adamantly advocated leaving 80% of oil and gas reserves untouched is now championing Canada’s fossil fuel industry as the nation’s new prime minister.

During his tenure at the Bank of England from 2013 to 2020, Carney was unequivocal in his stance against fossil fuels. His influential 2015 speech at Lloyds of London declared most of the world’s known fossil fuel reserves as “unburnable”, warning of catastrophic climate impacts on future generations.

The dramatic shift in Carney’s position became evident immediately following his election victory in April 2025. His first actions included cancelling Canada’s existing carbon tax and implementing rebates for previous contributors. The new prime minister has outlined ambitious plans to expand oil and gas infrastructure, including pipeline construction and LNG export terminals, whilst relaxing emissions restrictions that had frustrated Canada’s major fossil fuel producers.

Economic imperatives appear to be driving this policy U-turn. Oil and gas contribute up to 7.5% of Canada’s GDP, with crude oil exports alone valued at $124 billion in 2023. The nation’s recoverable oil reserves, estimated at 171 billion barrels, dwarf America’s 44 billion, positioning Canada for decades of potential production.

The policy shift has significant implications for Alberta, Canada’s primary oil-producing province. Regional tensions have intensified, with Alberta’s Premier Danielle Smith introducing legislation to ease the path toward an independence referendum. Smith has presented Carney with demands to overhaul nine energy-related federal laws, viewing his response as a test of his commitment to the oil and gas sector.

This transformation from climate advocate to fossil fuel champion reflects the complex realities of Canadian politics. Despite Carney’s simultaneous pledges on green technologies, his immediate focus on expanding conventional energy production marks a stark departure from his previous environmental stance, raising questions about the balance between economic priorities and climate commitments.