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EU and Canada’s 6-month test of commitment

MONTREAL, Canada — The European Union and Canada have agreed to build the closest possible relationship. Over the next six months, they will have to define what that means — and whether Canada can become the EU’s first, and perhaps only, associate member.

A summit in Montreal last week highlighted the urgency behind the budding relationship. Both sides say their partnership is positive and not directed against any country. But it is also driven by mutual need: to shore up supply chains, pool expertise and reduce reliance on the United States and China.

Mark Carney told POLITICO in an interview straight after the summit that the two sides should not be tailoring their partnership to cope with the potential reactions of other powers. “We’re not adjusting [based on] what the U.S. might think, what China might think, what … Russia might think,” he said. The goal, the Canadian prime minister explained, is to help both sides “withstand shocks” and prevent rivals from exploiting critical dependencies.

The test of that plan comes in six months, when the European Commission will meet with the Canadian government to see what progress has been made. One diplomat involved in the talks, granted anonymity to speak freely, said the meeting, which will be held in March before next year’s EU-Canada summit in Brussels, should make clear how far the relationship can develop and whether Ottawa is really on track for associate membership.

In the months ahead, there will be plenty of issues that could distract EU leaders. Governments must negotiate the bloc’s next seven-year budget, amid deep divisions over its size and spending priorities. Plus, a series of elections in some of the EU’s biggest countries, including Spain, France, Italy and Poland, will make concentrating on Canada a tall order.

Deal first, definition later

The joint declaration signed in Montreal commits both sides to defining the concept of “associate membership” by their 2027 summit. In the meantime, they have a slate of agreements and work plans to put into practice.

Carney speaks during an interview with POLITICO at the Port of Montreal Tower in Montreal, Canada on Oct. 30, 2026. | Adil Boukind for POLITICO (@adilboukind on IG)

That includes a digital trade agreement and a competition deal signed in Montreal, plus Canada’s participation in the EU’s high-performance computing partnership. They also agreed on a new framework for cooperation between EU border force Frontex and the Canada Border Services Agency. Ottawa said it intends to join the EU’s Ukraine Support Loan facility.

The declaration sets out further work on critical raw materials and energy, including a feasibility study into long-term liquefied natural gas exports to Europe and exploring ways to jointly stockpile strategic resources. It also calls for cooperation on subsea cables, artificial intelligence and research, closer financial links, Arctic security, and disaster response. Canada and the EU will begin talks on deeper Canadian participation in Erasmus+, the EU’s education and youth program.

The summit also saw the launch of the Alliance for the Future, a broader partnership plan that could eventually include Japan, South Korea and Australia. It aims to build resilient supply chains and coordinate on economic security, so partner nations do not inadvertently harm one another with trade measures as they respond to Chinese overcapacity and U.S. tariffs.

But that could be easier said than done, with both Europe and Canada keen to avoid breaching World Trade Organization rules with their arrangements.

That concern is already visible in the debate over “Buy Canadian” and the EU’s proposed “Made in Europe” rules, both of which seek to favor homegrown suppliers. Commission President Ursula von der Leyen said in Montreal that Brussels intends to ensure Canada is not disadvantaged by the EU’s Industrial Accelerator Act — proposed legislation encouraging European businesses to go greener through subsidies and payment schemes. The ball is now in Carney’s court to offer similar assurances to European businesses under Buy Canadian.

Semantics breakdown

The summit’s biggest political snag came down to two words.

Von der Leyen opened the door to Canada becoming the EU’s first “associate member” in her State of the Union speech in September. But Germany blocked the term from being included in the joint declaration, saying the concept is vague and undefined. Other EU capitals said they also wanted to know what the arrangement would entail before fully committing to it.

The wrangle over the label overshadowed the substance of the summit and visibly frustrated both Carney and the European contingent. Asked about Germany’s objections, Carney told POLITICO it was “a very internal European issue.”

The dispute highlights Ottawa’s challenge: even if the Canadian government and the Commission agree on a plan, any formal arrangement must navigate 27 EU governments with their own concerns, pet industries and foibles.

The real reason for Berlin’s opposition remains unclear, with one EU diplomat describing the kerfuffle as an “embarrassment.”

One theory among senior EU officials and diplomats is that Germany was smarting because it wanted the term to be used for Ukraine earlier this year — only for other EU countries and Ukrainian President Volodymyr Zelenskyy himself to reject the idea.

The Le Pen test

The EU-Canada partnership is meant to rest on shared, centrist values. But what happens if political shifts in the EU’s two largest countries change what underpins the friendship?

The French presidential election in April could bring Marine Le Pen to power, while the Alternative for Germany has made gains in successive regional elections.

Carney told POLITICO he would work with whichever leaders voters choose, while drawing a line between cooperation and agreement. “My responsibility is to work with, whether it’s provincial premiers or leaders of other countries, in the best interest of Canada,” he said. But he added that “working with and having agreement on are two different things.”

Carney said democratic outcomes could change Europe’s priorities, but argued that cooperation could still deepen.

The six-month stocktake will show whether that confidence holds.

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EU and Canada reach agreement on critical minerals and LNG

BRUSSELS — The European Union and Canada have agreed a framework to invest more European money in Canadian critical minerals, as part of a broader agreement to boost raw material and energy trade between the two jurisdictions.

The EU confirmed Friday it had concluded negotiations that would “facilitate European investments in critical Canadian resources, in particular in critical raw materials,” following talks between senior EU officials and the Canadian government in Montreal. The investments would be made through the European Investment Bank, the EU’s lending arm.

The two jurisdictions will also carry out a “long-term feasibility study” on exporting Canadian liquified natural gas to Europe. Canada is rich in gas but currently doesn’t have infrastructure to liquefy and export it from its east coast.

The commitments are part of a much broader effort to deepen the relationship between the EU and Canada, who see themselves as likeminded democracies in a world that is increasingly pulling away from the international rules-based order that has dominated since World War II.

“[W]e will accelerate collaboration to support investment in critical raw materials projects, both in Canada and in the EU, along the value chain, including extraction, processing, refining, manufacturing and recycling activities,” the EU and Canada said in a joint statement.

They also said they would “explore cooperation opportunities on raw materials projects in third countries identified as projects of common interest.”

The joint statement, which aims to build “an even closer association between Canada and the EU,” also covered security, trade, tech and artificial intelligence, competition policy, financial services and cultural exchange.

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8 things we learned at the EU-Canada summit

MONTREAL — Prime Minister Mark Carney wanted the landmark EU-Canada summit to be about much more than “nomenclature.” He got what he craved. 

Over a whirlwind 48 hours in Montreal, top officials from Brussels and Ottawa huddled to pursue agreements on critical minerals, super computers and defense cooperation.

European Commission President Ursula von der Leyen, European Council President António Costa and Carney gathered as U.S. President Donald Trump continues to upend the global order and Chinese dominance of critical markets squeezes middle powers. 

Those challenges have pushed the EU and Canada into a rapidly developing partnership that eclipses anything attempted by Brussels with a non-member country since the bloc was formed. 

Here are all the key things POLITICO learned during the EU-Canada meetings. 

Carney finally embraced ‘associate membership’

Initially reluctant, the Canadian prime minister came around by the end of the summit to endorse von der Leyen’s controversial label for the global alliance the EU and Canada are building. 

Carney set a six-month deadline to firm up the ground rules of what “associate membership” is, trialing an induction process that could be a model for other non-European countries.

“With Canada becoming the European Union’s first associate member, in the coming months we will determine the full substance, scale and scope of this new form of membership,” he said Friday. 

Carney added he will meet periodically with von der Leyen to track progress, including a return trip for the College of European Commissioners to meet with their Canadian counterparts in March.

Got minerals

Both Canadian and EU officials are walking away from the summit with at least one major win: the framework agreement signed between the European Investment Bank and Canada that will open up the bloc’s lending arm to Canadian critical minerals crucial for future tech. 

That means batteries, circuit boards and semiconductors, which all require lithium, nickel, cobalt and other critical raw materials that, as of now, the EU is largely dependent on China to score.

The deal helps wean the Europeans off a politically volatile critical minerals dealer, for a more reliable Canadian supplier. 

The agreement does not immediately unlock funding for specific projects, but it supports pathways for future investments in Canadian mining and helps link the bloc’s supply chains with Canada’s.

Canada’s energy ambitions still point east

Critical minerals aren’t the only Canadian natural resource on the menu for Europeans. 

Carney has said he wants to make Canada an “energy superpower” and leverage huge stores of oil and liquefied natural gas in his country for export. The only problem: Most of it is in the western province of Alberta, far from Europe.

But the summit concluded with a commitment by both sides to a “long-term feasibility study” on exporting LNG to Europe via the east coast or Arctic ports closer to the bloc. 

“There’s also a huge opportunity in terms of bringing some of the fossils and gas from Canada to the EU,” said a Commission official, who was granted anonymity to talk about sensitive diplomatic negotiations. “The old infrastructure in Canada was built north-south for historical reasons, but now there is talk of starting to build east-west.”

Making nice with Washington? Don’t hold your breath.

As Europeans and Canadians preached deeper ties, Sen. Peter Welch (D-Vt.) was there doing damage control.

Welch, whose state is a little over an hour’s drive south of Montreal, spent Thursday reassuring business leaders that U.S. relations with Canada and beyond can, some day, get back to normal. When exactly, he couldn’t say for sure.

During his trip, Welch met with Quebec Chief Trade Negotiator Pascal Paradis, tourism industry leaders, businesses and manufacturers nailed by tariffs, and hit up a Eurasia Group lunch.

Tuesday’s U.S. midterm elections could offer a waypoint to warmer relations. But Welch loaded his optimism about Democratic Party fortunes with caveats.

“I think we’ll be successful, but you’ll still have a president who abuses his authority and acts in arbitrary ways,” he said. “It’s not like I can give any assurance that things are going to change.” 

Unspoken in the communiqué: China

Canada and the EU pledged deeper cooperation on pumping more European money into the mining, production and refining of critical minerals, a response to China’s dominance of the global market for those minerals. But the final summit communiqué steers clear of naming specific countries. 

Canadian Defense Minister David McGuinty was more candid.

“China has been vacuuming up as many critical minerals as they can throughout the world, particularly in the African continent, cutting deals, usually infrastructure for critical mineral deals. That could be a soccer stadium, for example. It could be a light rail system,” McGuinty told POLITICO at the summit Friday.

“It turns out that Canada’s got a huge amount of critical minerals, and basically all 10 of the 10 critical minerals on the short list for NATO, which the United States is also aware of. We’re going to not only exploit, but we intend to move to transform,” he said.

The common language: Sovereignty

Outside the summit, many Montrealers were oblivious to the landmark meeting taking place in the city. Inside, the vibe was existential.

The trio of leaders — Carney, von der Leyen and Costa — invoked individual and collective sovereignty as reasons to pursue a closer alliance to weather “new storms” stoked by climate change, challenges to democratic norms and the weaponization of trade. Carney has notably claimed concerns about encroachment on Canada’s sovereignty as a reason to walk away from trade talks with the Trump administration. 

“Today is about sovereignty,” Carney said. “We’re building the industries and infrastructure that underwrite our collective security.”

Quebec wanted a seat at the table

The summit came to Montreal weeks after Quebec — the French-speaking province in Canada that hosted the summit — elected a separatist government. Quebec shares powers with Ottawa and had its own seat in the CETA trade talks with the EU over a decade ago; and it had sought a similar role at this summit. 

But Ottawa refused to let new Premier Paul St-Pierre Plamondon address the summit, so he boycotted it, complaining he was being asked to “serve shrimp cocktail.” 

Carney accused him of leaving “an empty chair.” It stayed empty, even though six former Quebec premiers came to dinner.

The Europeans did not escape unscathed. The Quebec press panned von der Leyen’s English-only speech on the opening day as a faux pas in Canada’s largest francophone metropolis. Commission Executive Vice-President Teresa Ribera did little better, telling Radio-Canada in French that, for Brussels, summits like this are between national governments.

Bagel diplomacy

In a town where the original heated rivalry persists between two bagel shops, von der Leyen couldn’t resist picking a side with a photo-op at St-Viateur. 

Sorry Fairmount. 

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EU governments helpless as energy prices soar to four-year highs

LUXEMBOURG — Europe’s energy ministers are running out of ideas to protect citizens from surging energy prices as winter approaches.

But at a summit in Luxembourg on Thursday, they were clear on one thing: Demanding voters cut back on power use is not an option.  

European gas prices soared above €100 per megawatt-hour on Wednesday for the first time since 2022, as last-minute panic-buying to fill European gas reserves added to supply pressures linked to the war in the Middle East.  

But at the Thursday summit, EU energy ministers broadly acknowledged that both Brussels and national capitals had run out of ideas to contain price pressures.

“We’ve exhausted most of our short-term options,” said one senior European energy official, granted anonymity to offer a candid perspective. “What’s left is really crisis management.”

For the past year, government attempts to cushion price rises with renewables schemes, windfall taxes and costly fuel subsidies have ultimately failed to contain anxieties that have since boiled over into widespread protests across the continent.

“The EU and member states don’t have a magic wand to make the price increases go away,” Irish Energy Minister Darragh O’Brien, whose government holds the EU’s six-month rotating presidency, told reporters. “There’s a lot of measures that have been taken already in the short term. What today is about is actually seeing how we can move to more sustainable measures.”

But even crisis management is proving politically difficult. Despite calls by EU energy chief Dan Jørgensen earlier this year to encourage consumers and businesses to cut energy use, European ministers are reluctant to make such a move official policy.

“I don’t want to see that we will limit people,” said Mika Nykänen, the state secretary to Finland’s energy ministry. Instead, he called for policy designed to “change behavior” and reduce energy consumption less painfully. “Industry does it naturally. Normal households, normal families — they sometimes need encouragement,” he said. “For instance, subsidies to invest in the energy efficiency of houses, windows.”

Demand reduction “has an impact on industry, it has an impact on business, and in a difficult situation, it could be the way to do that. But it does not … solve the long-term,” Polish Secretary of State for Energy Wojciech Wrochna told reporters.

High prices “will regulate demand by itself,” Swedish Energy Minister Ebba Busch told reporters.

Fossil fuel subsidies

Such was the opposition to demand reduction measures on Thursday, Jørgensen — who was at the summit warning of a “difficult” winter of soaring fuel prices ahead — gave up even proposing it, focusing instead on subsidies. He reluctantly accepted that such subsidies could include fossil fuels as well as clean alternatives, but urged that they be “targeted and temporary.”

Since the war started, governments have paid €18 billion for tax relief on fossil fuel products, including a controversial move by Rome earlier this month to reduce the impact of gas prices on electricity costs.

European Commission President Ursula von der Leyen warned national leaders against this tendency, urging them at a summit this month to keep policies temporary and targeted to avoid inadvertently increasing fossil fuel demand and distorting the EU single market, according to two EU diplomats familiar with her comments.

That remains a point of contention among EU leaders, with some, including Greece, calling for greater fiscal space to increase energy subsidies while others warn of the dangers of subsidizing fossil fuels.

“Our concern is to make sure that we don’t create conditions where different member states go very far in different national decision-making,” said Lithuanian Energy Minister Lukas Savickas in a separate interview.

Jørgensen did not respond to POLITICO’s question at a subsequent press conference when asked whether new fiscal flexibilities were being considered.

Other ideas have gone by the wayside. Von der Leyen rejected calls by countries to establish an EU-wide tax on windfall profits of oil and gas companies at this month’s summit, the diplomats cited above said even as European oil companies like Shell, TotalEnergies and Repsol rake in their biggest profits since 2022.

Member countries also questioned the value of a Commission proposal to coordinate the purchase of energy supplies. Such a scheme would work in theory but be hard to implement for “big players” with established supply chains, Wrochna said.

Neither has the EU’s commitment to hastening the release of strategic crude oil and diesel reserves earlier this month — in response to what EU officials described as U.S. “blackmail” — done much to ease fuel costs.

Even so, the EU’s commitment will now include over 40 million barrels on top of the 10 million pledged by Paris, France’s economy minister Roland Lescure told reporters on Thursday.

A parallel push to delay methane monitoring requirements — a plank of the EU’s 2024 Green Deal that industry argued was poorly designed and would disrupt supplies — also had no impact on prices.

Slow pay-off

To be sure, measures designed to lower electricity prices and encourage consumers to switch away from imported fossil fuels are starting to work, with soaring sales of heat pumps and electric vehicles in Europe this year. “There’s no silver bullet, but when you add all of these things up, it can actually matter,” said Jørgensen.

But even longer-term efforts to encourage the switch to cleaner energy are facing backlash as countries resist ceding power to Brussels.

One example is a Commission proposal to make electricity bills more affordable and speed up electrification, including by ensuring electricity is not taxed more heavily than natural gas. Member countries pushed back against the proposal’s taxation provisions on Thursday, arguing that Brussels is overstepping EU treaties requiring that tax changes be approved unanimously, risking higher costs for households and industry.

Busch, the Swedish energy minister, said the proposal’s taxation provisions went too far, warning it would face “a lot of pushback” from countries concerned about EU interference in national tax policy.

Germany and Poland also raised concerns about the proposal’s potential impact on industry and national tax systems, while Italy warned that changing tax rates could make energy more expensive rather than encourage electrification.

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Mark Carney isn’t the climate hero Europeans think

Mark Carney isn’t the climate hero Europeans think

Canada’s prime minister used to be an eco-warrior. Now, not so much.

By BEN MAKUCH
and MIKE BLANCHFIELD
in Brussels

Photo-illustration by Anthony Gerace for POLITICO

Ask European Union leaders what they think of Mark Carney’s climate credentials, and you’ll get a gushing response.

“We see the world with the same eyes: from AI to climate change,” European Commission President Ursula von der Leyen said in her State of the Union speech last month, where the Canadian prime minister was the guest of honor.

“Canada and the EU are very, very like-minded,” the bloc’s climate chief, Wopke Hoekstra, told POLITICO in an interview when asked about his hopes for climate collaboration between the two powers ahead of this week’s EU-Canada summit in Montreal.

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But this rosy view sidesteps a less comfortable reality: Canada is a major fossil fuel producer whose climate ambitions fall far short of Europe’s.

And under Carney, those ambitions are weakening.

Last year, Canada produced more crude oil than any other country outside the big three producers, Russia, Saudi Arabia and the United States. Oil and gas are Canada’s biggest exports by far, and the industry lobby is an influential force in Ottawa.

Canadian Prime Minister Mark Carney at the Liberal National Convention in Montreal on Apr. 11, 2026. | Andrej Ivanov/AFP via Getty Images

In his previous life as a central banker, Carney was considered a climate champion. POLITICO even dubbed him an “eco warrior” in 2018. But since taking over as prime minister last year, he has weakened Canada’s climate policies at a rate few predicted, scrapping a national carbon tax and electric vehicle mandate and opening new oil and gas projects.

The list of climate laws Carney has watered down, repealed and canceled makes the EU’s own recent backtracking on green laws look minor. Some environmentalists argue it is comparable to U.S. President Donald Trump’s wholesale dismantling of environmental protections.

“The track the Carney government has taken on climate and environmental regulation has been a decisive move in the direction of the U.S.,” said Tim Gray, executive director of environmental non-profit Environment Defence. Carney, he said, “seems to be all in on fossil fuels.”

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Keean Nembhard, a spokesperson for Canada’s Environment Minister Julie Dabrusin, told POLITICO the Carney government is “committed to fighting climate change and reaching net-zero by 2050 by taking a pragmatic and durable approach.”

“This includes building major clean energy projects across the country, driving mass electrification, and making significant investment in the low-carbon economy,” he said.

But Gray argued that Carney’s support for fossil fuels and weakening of environmental standards may complicate Canada’s attempts to forge closer ties with Europe, which has some of the world’s most stringent green laws.

Carney with European Commission President Ursula von der Leyen and European Council President António Costa. | Pool photo by Oliver Matthys via Getty Images

Still, in Europe, Carney’s green image persists.

Last week, Belgian member of the European Parliament Saskia Bricmont gave expression to this faith in Carney’s commitment to climate issues when she called on him to lead a global push to put climate back on the agenda ahead of next month’s U.N. climate summit.

“Mr Carney … relaunch the fight against climate deregulation and for the restoration of biodiversity, and re-mobilize the international community around concrete, coordinated measures,” she said.

Carney’s green aura

Carney’s reputation as a climate champion is well earned. As governor of the Bank of England, he led a push among central bankers to take the economic risks of climate change seriously — memorably captured in his 2015 ‘Tragedy of the Horizon’ speech, in which he warned: “The catastrophic impacts of climate change will be felt beyond the traditional horizons of most actors.”

In 2021, after he’d left the Bank of England, he became a United Nations special envoy on climate action and finance and launched a net-zero financial alliance with some of the world’s biggest banks.

But things changed dramatically when Donald Trump took back the White House, and Carney replaced fellow Liberal Justin Trudeau as Canada’s prime minister in 2025. At the time, Trudeau and his Liberals had been way behind in the polls, battered by Conservative leader Pierre Poilievre’s attacks on his climate policies — in particular an unpopular consumer carbon tax.

Carney’s first act as prime minister was to scrap that tax.

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Following his surprise victory in the elections that April, Carney set about promoting Canada as an “energy superpower.” To the dismay of environmental groups, he supported the “Pacific Link,” an oil pipeline costing tens of billions of dollars, designed to carry Alberta crude to Canada’s Pacific coast for export to Asia.

He then pushed for thawing relations with Beijing in January, a not-so-subtle pitch to find a new crude oil client that isn’t the U.S. Germany, rushing to replace its dependence on Russian energy, signed a long-term agreement in July to buy Canadian liquefied natural gas from a proposed port in British Columbia, despite backlash from environmental and indigenous groups.

He also scrapped laws on electric vehicle adoption, dropped plans for an emissions cap on oil and gas companies, watered down an existing industrial carbon price and introduced legislation to weaken environmental permitting rules for big infrastructure projects, which critics dubbed the “bulldoze nature bill.”

A landmark moment, according to Gray, came in November 2025, when Carney signed a memorandum of understanding with the government of Alberta, Canada’s biggest oil-producing province. That document, which promised to turn Canada into a “global energy superpower,” contained a string of promises to promote oil and gas and water down federal climate laws.

A view of the Canadian Natural Resources Limited Horizon oil sands project, north of the indigenous community of Fort McKay in Alberta on May 5, 2026. | Daphné Lemelin/AFP via Getty Images

So why the dramatic shift?

Carney, who has repeatedly positioned energy sovereignty as a bulwark against Trump’s economic aggression, offered his realpolitik response at an event in the heart of Alberta’s oil patch earlier this month.

“There’s a structural challenge of energy security and the existential challenge of climate change, and these challenges are forcing countries to think differently about where their energy comes from and on who they can rely on to supply it,” Carney said in Fort McMurray, Alberta on Oct. 1.

“Even under any plausible net zero scenario, the IEA [International Energy Agency] forecasts the world will still need tens of millions of barrels of crude a day. So the question is: who will emerge as the world’s trusted suppliers? It should be us. It must be Canada.”

Not black and white

Carney, to be sure, is no Trump. Unlike the U.S. president, he has retained his pro-climate rhetoric and promised to develop the country’s mining of critical minerals essential for the clean energy transition.

In May, he unveiled a national electricity strategy which aims to double Canada’s largely clean electricity grid by 2050 to meet soaring demand. “The path to net zero is electrification,” Carney said then.

In August, he announced C$10 billion in federal support for the Churchill Falls hydroelectric project in Newfoundland and Labrador, saying it will be the largest clean energy project in North America, capable of generating enough electricity to light up the equivalent of Canada’s three largest cities.

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Nembhard, Environment Minster Dabrusin’s spokesperson, also pointed to new electricity transmission lines, electric vehicle subsidies and a C$2 billion plan to retrofit homes with heat pumps.

Canadian climate activist Alex Cool-Fergus said she does not think Carney “believes that oil and gas is the future,” but is simply being pragmatic about Canada’s economic reality.

“The electricity strategy that came out in May was incredibly important, and actually gives us a better idea of what his thinking is for the future,” she said.

Trudeau’s approach to climate change was “very much values-based, and it was about doing the right thing,” said Cool-Fergus. “I think that’s hit its limits. Carney’s approach makes more sense for the world of 2025-2026.”

The limits of the partnership

Hoekstra, the EU’s commissioner for climate, said he wants to deepen ties with Canada. “Given all the complications the world is facing, it is imperative to team up more closely with your closest partners,” he said. But he’s realistic about how far that relationship can go.

Hoekstra has ambitions of cementing the EU into a global network of economies with carbon pricing regimes. While he conceded nothing is “off the table,” he acknowledged linking the EU’s Emissions Trading System with Canada’s “quite different” version, which varies from province to province: “You’re talking about a completely different horizon, and that is not something we would attempt in the very short run.”

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There are, however, other ways Hoekstra believes the EU and Canada can closely link on environmental issues.

“Doubling down, tripling down on electrification, on solar, on wind, on nuclear, on batteries,” he said, adding “that is one area that I think is potentially very fruitful for my portfolio.”

Another is critical raw materials, a key focus of this week’s summit.

Brussels is exploring ways for the European Investment Bank, the EU’s lending arm, to help finance the mining of Canadian mineral deposits that could supply the bloc with an alternative to Chinese-produced metals, with a framework agreement expected to be signed during the summit. Lithium, copper, nickel, and other key ingredients for electric vehicle batteries and clean energy technologies essential for decarbonizing Europe are abundant but often undeveloped all over Canada.

Carney at the Pomeroy Kananaskis Mountain Lodge in Kananaskis on June 17, 2025. | Geoff Robins/AFP via Getty Images

This week’s summit will also explore investing in infrastructure on Canada’s east coast to liquefy and ship Canadian gas to Europe, a move that could help the EU diversify its supply away from the U.S., which, along with Norway, has become Europe’s dominant supplier since it cut off Russian gas imports following the full-scale invasion of Ukraine.

Many EU member countries will welcome success on these goals. But Gray warns that closer ties with Canada could lead to deeper penetration by the country’s powerful fossil fuel lobby, which he described as a “major, major force.”

“They’ll be spending time trying to make sure the alignment with the EU is in a direction that favors them,” he said.

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The EU’s lack of oil and gas resources — and, by extension, the absence of a powerful fossil fuel lobby — has kept climate policy relatively bipartisan in the EU. Could inviting a fossil fuel “superpower” into the fold as an “associate member” change that?

“That would depend very much on what is an ‘associate member,’” Dutch Climate Minister Stientje van Veldhoven-van der Meer said.

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