Question Period Note: Oil Tanker Moratorium Act

Oil Tanker Moratorium Act

• The Government of Canada has committed to work with all levels of government and Indigenous Peoples to advance projects that drive Canadian productivity, energy security and economic competitiveness while also ensuring the protection of Canada’s marine ecosystems.

• The Oil Tanker Moratorium Act, which prohibits vessels carrying large amounts of crude or persistent oil products from loading or unloading at ports in the moratorium area surrounding the northern British Columbia coast, has been in place since 2019.

• Transport Canada’s role is to implement and enforce the existing legislation.

• Amending or repealing the Act, like any federal legislation, would require a decision from Parliament.

• The Act does not restrict the movement of many other products essential to northern communities, including gasoline, naphtha, jet fuel, propane and liquefied natural gas.

• The Act is supported by a robust enforcement regime, with penalties proportionate to the scale of violations and fines of up to $5 million. There have been no violations of the Act to date.

The Oil Tanker Moratorium Act received Royal Assent on June 21, 2019. It prohibits vessels carrying more than 12,500 metric tons of crude oil or persistent oil products as cargo from stopping, loading or unloading at ports or marine installations in the moratorium area. The Act is grounded in a precautionary approach that targets crude oil and a range of persistent oil products that are likely to remain longest in the environment if spilled. The moratorium covers the area from the Canada/United States border in the north, down to the point on British Columbia’s mainland across from the northern tip of Vancouver Island. It also includes Haida Gwaii. It includes the waters of Dixon Entrance, Hecate Strait and Queen Charlotte Sound. This measure complements the existing voluntary Tanker Exclusion Zone, which has been in place since 1985.

Shipments of less than 12,500 metric tonnes are allowed, and north coast communities and industries can receive critical shipments of heating oils and other petroleum products. Crude oil is defined in the Act and is based on the International Convention for the Prevention of Pollution from Ships, and International Maritime Organization convention. Persistent oil products that are subject to the moratorium are identified in a schedule to the Act that uses the International Oil Pollution Compensation Funds’ internationally recognized definition of persistent oils. These oils are heavier and, when spilled, tend to break up and dissipate slowly, staying longer in the environment.

Extensive consultations were conducted with Indigenous groups and coastal communities on the Act, including all Indigenous groups along the north and central coast of British Columbia that expressed an interest in the moratorium. During the development of the Act, Indigenous groups and provinces were divided on the issue of the moratorium. The Act received widespread media attention in November 2025, following the announcement of a Memorandum of Understanding between Canada and Alberta. Under the agreement, if an Alberta bitumen pipeline is ultimately approved under the Building Canada Act and provides opportunities for Indigenous co-ownership and shared economic benefits, Canada confirms that it will enable the export of bitumen from a strategic deep-water port to Asian markets, including, if necessary, through an appropriate adjustment to the Oil Tanker Moratorium Act. To date, no project has yet been proposed, and no legislative changes have been made.

In January 2026, Prime Minister Mark Carney met with leaders of Coastal Indigenous Nations in Prince Rupert, where they reiterated their strong opposition to lifting the moratorium. Later that month, he met with Alberta Premier Danielle Smith and B.C. Premier David Eby in Ottawa where they discussed expanding the Trans Mountain Pipeline, among other projects.

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