Canada's Energy Gamble: Keystone XL or Climate Policy?
Well, here we are, folks. The Canadian banking regulator OSFI is being urged to shake things up in its climate risk guidelines by none other than the Friends of Science Society. They're taking on Guideline B-15, aiming to 'REcarbonize' Canada amidst all this noise about the potential rebirth of the Keystone XL pipeline.
Friends of Science Society Takes a Swing
These guys aren't mincing words. The Friends of Science Society, celebrating 24 years of climate insights, are sticking it to the OSFI in a letter dated August 19, 2026. They're calling the economic and scientific justifications behind Guideline B-15 outdated and irrelevant. These folks say OSFI's based its climate risk stuff on the now-dismissed RCP 8.5 scenario. Roger Pielke, Jr. and others have torn that scenario apart, and these guys want the regulator to stand up and take note.
Here's where the rubber meets the road: They see the guideline as a blockade against giving energy companies a fair shake. After all, with the world's ongoing energy mess—think Strait of Hormuz or Ukraine-Russia conflicts—Canada's gotta use what it's got.
Green Taxonomy: A Stumbling Block?
Canada's trying to nail down this green taxonomy thing, but the Friends of Science Society argue it's based on old science and keeps greenwashing on a loop. Their letter references a report titled "Sustainable Finance Taxonomy: Out-of-date Science and Unsustainable Greenwashing." They reckon the whole green movement doesn't match current geopolitical shifts or energy needs, and that mishmash? It's not helping Canadian markets.
Keystone XL: Pipeline of Dreams or Political Nightmare?
Here's where it gets a bit juicy. Donald Trump, never shy of stoking a fire, has proposed bringing back the Keystone XL pipeline in a Truth Social post. But is this a lifeline for energy-strapped nations or a powder keg for environmentalists?
"Donald Trump proposed reviving the Keystone XL pipeline. Does Canada still want it?"—Financial Times, August 20, 2026
Protestors and activists, Indigenous groups, and even those who jumped onto the Tar Sands Campaign back in the day have made this project a hot button issue. Canada's gotta reckon with its previous domestic and international relationships going south over this. But hey, who knew oil could be this dramatic?
The Economic Implication: A New Energy Superpower?
Could this be Canada's moment? The Friends of Science Society pushes for a return to assessing energy companies without the climate zealotry that's been clouding things. They urge the nation to overhaul OSFI's guidelines, aligning with scientific, economic, and energy realities. It's about getting back on top, shaking off outdated regulations, and maybe—just maybe—positioning Canada as an energy titan.
Odds and Ends: The Regulatory Burden
SEC's dialing back on climate reporting in the USA, and this might be a wake-up call for Canada. They've been hit by the financial hurdles of mandatory emission reports—Scope 1, 2, and 3 add up fast. The Friends of Science Society has vetoed past pushes for sweeping GHG cuts, pointing to the lack of a solid supply chain for 'green dreams.'
So there you have it. Canada's standing at the crossroads of becoming the next energy powerhouse or sticking with regulatory baggage. Friends of Science Society is pushing the regulatory bodies to let go and embrace what they've got: a chance to become a leader in a world caught in energy deficits.
