Supreme Court of Canada’s ruling leaves resource companies uncertain of environmental regulations on projects

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Supreme Court of Canada’s ruling leaves resource companies uncertain of environmental regulations on projects
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its constitutional authority in how it regulates major resource projects in Canada, throwing the sector into deep uncertainty as companies wait for clarity from the federal government in its legislative response.

The decision is a win for Alberta, and other provinces such as Ontario, which had intervened in the case in support of the Western province. In the short term, however, it creates a regulatory vacuum. Federal Natural Resources Minister Jonathan Wilkinson and Environment Minister Steven Guilbeault said in a news conference Friday that the government accepted in full the opinion from the Supreme Court, and will make legislative changes accordingly.

But the ruling may put energy projects such as Suncor’s planned Base Mine expansion back into play, said Marla Orenstein, the director of energy, economy and environment at the Canada West Foundation, a think tank.

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