Thu. Apr 30th, 2026

Elizabeth May Says Budget Vote Was a ‘Mistake’ After Ottawa’s Oil Credit Reversal

Green Party Leader Elizabeth May says she made a mistake when she voted in favour of the Carney government’s federal budget — and she insists it will not happen again.

In an interview with The Canadian Press, May said she felt misled after Prime Minister Mark Carney signed a memorandum of understanding with Alberta Premier Danielle Smith committing Ottawa to extend federal tax credits to enhanced oil recovery — a move she calls a “significant betrayal and a reversal” of assurances she had been given.

“I don’t know if the prime minister lied, but I think he needs to consider what his word means when his word was given,” May said, adding that Carney appeared to believe “getting a deal with Danielle Smith was more important than his word.”

Enhanced oil recovery, a process that injects captured carbon dioxide underground to extract more oil, has long been opposed by environmentalists who view subsidies for the practice as effectively subsidizing oil production. Among those critics was former cabinet minister Steven Guilbeault, who resigned last week in part over the government’s apparent reversal.

May said she had heard rumours the government was planning to make enhanced oil recovery eligible for federal tax credits under its carbon capture, utilization and storage (CCUS) program. She refused to support the budget unless reassured the credits would not be included. Guilbeault personally intervened on behalf of the prime minister’s office, telling her the measure was off the table and would not be added later.

But 10 days after May voted for the budget, the federal government and Alberta signed a deal explicitly committing Ottawa to extend tax credits to CCUS projects, including enhanced oil recovery. That reversal, May said, has shaken her confidence in Carney’s commitments.

She maintains she voted for the budget in good faith, citing Carney’s written confirmation that Canada remains committed to meeting its Paris climate targets. And while her support wasn’t decisive — the NDP and Conservatives each had two abstentions — she says she acted on principle.

“I don’t regret doing what I thought was right,” May said. “I kept my word and I voted confidence in this government. I will not make that mistake again.”

Energy and Natural Resources Minister Tim Hodgson defended the inclusion of enhanced oil recovery in the Alberta deal, saying it was important to the province and that permanently storing carbon underground is a “productive” climate measure. He also argued the move would generate demand for Canadian steel through increased drilling activity.

May, however, says the government’s credibility has been damaged — and her trust has been exhausted.

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