Continuing the Suspension of New Exploration and Hydrocarbon Development in the Arctic

0 Comments

Continuing the Suspension of New Exploration and Hydrocarbon Development in the Arctic

The Order Amending the Order Prohibiting Certain Activities in Arctic Offshore Waters, 2022 (SOR/2023-268) extends the existing prohibition on offshore oil and gas activities in Canada’s Arctic waters until December 31, 2028. This decision is based on the Canadian government’s commitment to protect the Arctic environment while recognizing the complex interplay of Indigenous rights, environmental concerns, and economic development.

Initially implemented on July 30, 2019, the original Order aimed to freeze existing oil and gas licenses in Arctic offshore waters, effectively halting any new exploration or development. This moratorium was part of a broader strategy following the United States-Canada Joint Arctic Leaders’ Statement in December 2016, emphasizing the importance of balancing economic interests with the traditional and ecological values of the Arctic region. The moratorium acknowledges Indigenous Peoples’ rights while promoting sustainable economic growth through science-based resource management.

The Order arises from the Canada Petroleum Resources Act, which grants the Minister of Northern Affairs the authority to manage and regulate natural resources in Arctic frontier lands. With the current prohibition set to expire on December 31, 2023, the amendment ensures the continued suspension of oil and gas activities while the government collaborates with Northern partners on a climate and marine science-based review of the moratorium. The primary objectives of the amended Order include suspending all oil and gas activities in Arctic waters to protect the fragile ecosystem, freezing the terms of the 11 existing exploration licenses in the Beaufort Sea to prevent their expiration, addressing future oil and gas interests of territorial governments and Indigenous communities, and supporting the economic development goals outlined in the Arctic and Northern Policy Framework.

The Government of Canada has conducted extensive consultations with Indigenous groups and territorial governments to address their concerns regarding Arctic oil and gas exploration. These consultations, which began in 2017, involved the Yukon Government, the Northwest Territories, Nunavut, and various Indigenous organizations, culminating in a commitment to undertake a five-year science-based review of the moratorium that integrates traditional knowledge and socio-economic assessments. In 2023, the Government signed the Western Arctic – Tariuq (Offshore) Accord, establishing a collaborative framework for managing oil and gas exploration in the western Arctic, which emphasizes Indigenous involvement in decision-making processes related to resource management.

By continuing to freeze existing licenses and suspending new activities, the government seeks to address the challenges posed by climate change while promoting responsible resource management in the Arctic. This collaborative approach, which incorporates scientific and Indigenous knowledge, aims to create a balanced framework for future resource development that aligns with the interests of all stakeholders.

Canada (SOR/2023-268) December 20, 2023