February 20th was World Day of Social Justice. This year’s theme, “Strengthening a Just Transition for a Sustainable Future”, couldn’t be timelier.
Over the past month, we’ve witnessed United States President Donald Trump roll back vital federal climate and environmental and social justice policies. He has weakened institutions that protect environmental and public health1, ordered increased fossil fuel extraction2, and adopted reckless policies that harm many marginalized communities — including trans people3 and migrants.
At the same time, Trump is threatening Canadians with an unjustified trade war. The sweeping trade tariffs — set to begin with 25 per cent tariffs on aluminum4 and steel5 imports in March — could cripple our economy and exacerbate the affordability crisis for Canadians and Americans alike.
In times of crisis like this, we need political leaders to step up with courageous policy ideas that prioritize communities, workers and the planet.
Unfortunately, instead we are seeing cynical attempts by Canadian governments and industry lobbyists to advance an anti-environment deregulation agenda in the name of economic security and independence.
From zombie pipelines like Energy East and Liquified Natural Gas (LNG) terminals, to more fracking and unchecked extraction of critical minerals,6 these policy ideas fly in the face of long-term economic and environmental security. Just last week, the Nova Scotia government introduce a troubling omnibus bill that proposes to reverse a popular moratorium on fracking while simultaneously weakening a mainstay of democracy — the public’s ability to access government information.7
These types of cynical policies largely serve the interests of mega corporations desperately seeking a lifeline in a world moving away from fossil fuels.
In fact, the cynical push for more fossil fuel and destructive resource extraction only gives Trump and American oligarchs what they want.
At Ecojustice we’ve been thinking about how Canadian political leaders should respond to the tariff threats and the current economic crisis in a way that centres communities and the environment.
Pipelines are no solution for a trade war
At a time when bold and transformative action is needed, fossil fuel companies and their CEOs are resurrecting outdated, self-serving ideas.
Building an east-west oil pipeline, such as Energy East, is not going to help Canada in a trade war with the U.S. — instead it would set Canada back in meeting its climate commitments and protecting our precious freshwater.
Energy East was rejected in 2017, largely because it was not economically viable to begin with. Even if it were approved today, Canadians would bear much of the financial burden.
The TMX pipeline, which has already cost Canadians over $30 billion8, has shown these types of projects take many years — if not a decade — to complete. By the time it is operational, any trade tensions with the U.S. would likely have subsided, and Canada, along with the global economy, would have moved even further toward decarbonization.
Instead of clinging to costly and outdated fossil fuel infrastructure, Canada should invest in a national electricity grid to meet the growing need for clean electricity.9 As we shift away from fossil fuels in our transportation, building and manufacturing sectors, an interprovincial electricity project would not only support this shift but generate thousands of jobs.10
Future-proofing our economy
The cost of the climate crisis is making life increasingly unaffordable. Food prices, home insurance premiums and financial losses from extreme weather events are all skyrocketing.11,12,13
Canada’s banks and financial institutions continue to make record investment into a dying fossil fuel industry14 that fuels climate disasters like wildfires and floods, making life harder and more expensive for everyday people.
President Trump falsely claimed that U.S. banks aren’t allowed to operate in Canada, and signalled that more access for American banks in Canada could be a main issue in upcoming trade negotiations.15 While we don’t yet fully understand the agenda of this U.S. administration when it comes to Canada’s banking sector, we know that Canada has always set itself apart with stronger regulatory requirements. These measures helped us avert the worst impacts of the 2008 Great Recession, which led to an estimated 9 million job losses in the US.16
Aligning financial institutions, including banks, with Canada’s climate goals presents a win-win opportunity for Canada.
Unsustainable finance is derailing mitigation and adaptation efforts meant to keep climate costs low. Making finance part of our climate solutions will help ease the looming financial burden of climate-fuelled infrastructure damage and our financial system’s overexposure to volatile, declining fossil fuel markets.
Climate-aligned regulations could also deter U.S. banking institutions from wanting to expand their operations in Canada. In dealing with President Trump’s economic threats, a race to the bottom approach that opens opportunities for more American companies to expand their access to Canadian markets is not a smart approach to stabilize and grow Canada’s economy.
Increasing trade with non-U.S. partners
Contrary to the dominant narrative we hear from the business lobby and many politicians, improving environmental standards is good for diversifying trade opportunities.
As the U.S. continues to become an unstable trade partner, Canada must look to other partners and ensure that our trade policies provide the goods that these partners need. And no, increasing the extraction of LNG and building more export terminals is not a smart strategy to diversify our trade partners.
Not only does LNG emit a large amount of methane, which is a much more potent greenhouse gas than CO2, its demand in trade partners like the EU17 and Japan18 has peaked and is starting to decline as these countries transition away from fossil fuels.
The EU is the world’s largest trading block and is known for having some of the highest environmental standards, particularly in agriculture and chemicals. A recent Ecojustice report revealed that Canada has become the fifth-largest user of pesticides in the world,19 many of which are banned in the EU.
The agricultural sector is one of Canada’s largest employers. Currently, 60 per cent — or $99.1 billion — of our exported agriculture and food products are destined for the U.S.20
By contrast, our agri-food exports to the EU are estimated at only around $5 billion, presenting a significant opportunity for Canada to increase trade with the EU. If Canada is serious about increasing trade with the EU, we must improve our pesticide use policies.
This month, the EU published its latest Vision for Agriculture and Food,21 which signals the EU’s intent to restrict the import of agricultural products that contain banned pesticides. Canada must invest in alternative pest-management strategies and better support our farmers and the tens of thousands of agricultural migrant workers who ensure that Canadians have healthy food on their tables.
A just and sustainable future
As we reflect on the recent World Day of Social Justice, it is essential to recognize that economic transformation and environmental protection must go hand-in-hand with policies that reduce inequity and create opportunities for all.
A just and sustainable future requires moving away from outdated solutions like pipelines and fossil fuel expansion that will deepen economic and environmental instability. Instead, Canada must invest in clean energy, resilient infrastructure, and fair financial policies that benefit workers, communities, and the planet.
By prioritizing sustainable trade, green jobs, and stronger protections for marginalized groups, we can build a more equitable and prosperous economy that leaves no one behind. Now is the time for leadership that puts people and the planet at the heart of every decision.
6 https://ecologyaction.ca/fracking-uranium-statement-2025
7 https://news.novascotia.ca/en/2025/02/18/province-pursues-resource-development-legislation
11 https://www.cbc.ca/news/canada/british-columbia/how-extreme-weather-affects-food-prices-1.7292120
16 https://www.cbc.ca/news/business/trump-fact-check-us-banks-canada-1.7449233
17 https://ieefa.org/articles/european-lng-import-terminals-are-used-less-demand-drops
18 https://gasoutlook.com/analysis/japans-falling-gas-demand-creates-shift-in-global-lng-markets/
20 https://agriculture.canada.ca/en/sector/overview#s4
21 https://ec.europa.eu/commission/presscorner/detail/en/ip_25_530