Sierra Club Canada is urging the federal government not to include the controversial Bay du Nord offshore oil project as a “project of national interest,” warning that it threatens Indigenous rights, undermines Canada’s climate goals, and is economically unviable.

The environmental organisation argues that subsidising Bay du Nord would mean pouring public funds into a project with poor long-term prospects. Calling Bay du Nord as “national interest” sets up local economies for failure and opens the door to spending taxpayer money on economic dead ends.

Bay du Nord is an enormous offshore oil field outside Newfoundland and Labrador in Canada. The project is led by Equinor and even though Equinor has paused the project, it has no intention of stopping the search for oil and gas reserves in the area. Bay du Nord will be a disaster not only for the climate, but also for marine ecosystems, local fisheries and other coastal communities.

Indigenous Rights Overlooked

Indigenous communities in Newfoundland and Labrador have not been properly consulted about the government's recent decision. Jude Benoit, Indigenous Knowledge Coordinator at the Mixed Coast Collective warns that the project endangers culturally significant species, including whales (sipu), and threatens fisheries that are central to Indigenous rights and traditions.

“If this project goes ahead it endangers fisheries that are core to these rights and species of cultural significance like sipu (whales). Canada's priority of centring the Bay du Nord project instead of the health and rights of Indigenous peoples goes directly against UNDRIP. A 16% chance of a serious oil spill from Bay du Nord is not a risk we should be willing to take,” Benoit said.

Economic and Environmental Red Flags

Sierra Club Canada highlights recent financial assessments casting doubt on Bay du Nord’s economic viability. In March 2024, Equinor’s continued investment in the project contributed to a downgrade of its stock. A subsequent report from the Australasian Centre for Corporate Responsibility questioned the cost competitiveness of Equinor’s unapproved international oil and gas projects, including Bay du Nord. The report helps demonstrate the pointlessness in subsidising the project.

“A decision to include Bay du Nord in the list of projects of national significance would be deeply disappointing. Bay du Nord is not in the economic interest of NL, not in the interest of skill transference for workers, and not in the interest of national unity. We will continue to urge Equinor to scrap this project and support projects that do not threaten oceans and support our economy going into the future,” said Kassie Drodge, a Sierra Club Canada Community Campaigner.

Canadians Want Clean Energy, Not Oil Subsidies

Recent national polling supports the organisation's stance. A March 2025 survey by Léger found that 65% of Canadians favor investments in renewable energy over oil and gas. Further polling in April revealed that most Canadians oppose oil and gas subsidies and want polluters held accountable.

Legal Challenge Underway

Sierra Club Canada, alongside Mi’gmawe’l Tplu’taqnn Inc. (representing Mi’kmaw communities in New Brunswick), is currently challenging the federal approval of Bay du Nord in court, citing failures in environmental risk assessment and consultation.

“Meanwhile Atlantic Canada has huge potential for clean energy that respects communities and will create jobs and wealth for Atlantic Canadians,” said Gretchen Fitzgerald, Executive Director with Sierra Club Canada.