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Questioning the 30-year energy pact with Canada – risks and costs for taxpayers

Published July 28, 2026 at 8:32 AM UTC

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Critics warn that a 30-year energy pact with Ukraine could lock Canada into high-cost commitments at a time when the global energy transition is accelerating. The deal may require massive public spending on new LNG terminals and pipeline infrastructure, ultimately burdening Canadian taxpayers. There is also uncertainty about Ukraine's ability to pay for long-term shipments given the ongoing war and weak economy. Furthermore, tying Canada's energy future to a volatile region exposes the country to geopolitical risks. Environmental groups argue that committing to fossil fuel exports for three decades contradicts Canada's climate targets. The lack of detailed cost-benefit analysis raises concerns about transparency and due diligence. Rather than a sweeping long-term deal, some experts suggest a phased approach with shorter agreements to test demand and ensure economic viability. Ottawa should carefully assess the financial and environmental consequences before signing such a binding commitment.