Energy NL CEO Charlene Johnson said Canada’s 2025 federal budget offers encouraging signs for the province’s energy sector, citing potential policy shifts and investment measures that could bolster offshore and renewable development. However, she emphasized the need for clarity on the federal emissions cap and its timeline for elimination.
Energy NL CEO Charlene Johnson
In a statement released Tuesday, Johnson said she was “cautiously optimistic” about the budget’s provisions, noting that signals suggesting an end to the national emissions cap would represent a significant step for industry competitiveness.
“We need a firm commitment that the emissions cap is scrapped and that we will work toward achievable solutions with real impacts,” Johnson said, referencing recent discussions with Prime Minister Mark Carney on the issue.
Johnson also welcomed federal commitments to infrastructure investment, resource project development, and a review of proposed greenwashing legislation, which she said had created confusion and could hinder emissions-reduction transparency.
Additional measures in the budget—such as tax incentives for carbon capture, low-carbon LNG, and clean electricity, along with continued contracts for difference through the Canada Growth Fund—were described as positive for Newfoundland and Labrador’s offshore and onshore energy industries.
“This budget has a focus on infrastructure and a commitment to build and grow the economy through resource projects,” Johnson added. “Working with industry, this could have a real impact on our province’s economy.”
Energy NL, which represents more than 500 member organizations across the energy supply and service sector, said it will continue to advocate for clarity on federal policy and for recognition of the region’s lower-carbon offshore oil as a key investment opportunity.
