British Columbia’s fall legislative session ended December 4th with Premier David Eby’s NDP focusing on economic growth and job creation amid fiscal pressures. The session’s marquee achievement was the Energy Statutes Amendment Act, which fast-tracks a $6 billion transmission line to deliver renewable power for LNG, mining, and port expansion in northern BC.
But the session’s close was overshadowed by the BC Conservatives’ dramatic move to oust leader John Rustad, citing “professional incapacitation”. After 20 MLAs signed statements indicating a loss of confidence in the leader, the party invoked constitutional provisions to justify removal and appointed Trevor Halford as Interim Leader. After initially refusing to step down, Rustad accepted his fate a day later. His resignation caps a tumultuous fall legislative session for the Official Opposition Conservatives that saw two more MLAs leaving the caucus, for a total of five over the past year.
Meanwhile, the BC Green Party elected Emily Lowan, a ‘Gen Z’ climate-justice organizer, as their new leader in September. Her sharper criticism of the NDP signals a more fragile cooperation arrangement between the two parties; whereas previously the Greens had given the NDP more room to carry an effective majority, now every major vote in the legislature carries more weight.
An ill-prepared opposition and the NDP’s desire for a stronger majority have fuelled speculation of a snap election in 2026.
BUDGET WOES AND RESOURCE BETS
BC faces mounting fiscal pressures—a record $11.2 billion deficit projection for the current fiscal year. Despite the government signaling they must recalibrate spending, a recent labour settlement with the BCGEU (3% annually over 4 years) and “financial pressures that…have not abated” will limit their flexibility.
In response, the Eby government is aggressively pursuing large-scale natural resource development to grow their way out of fiscal challenges, seizing on the US-related narrative of the importance of Canadian economic independence and diversification.
Significant political capital is being bet on LNG, mining, and renewable energy—backed by electricity infrastructure investment, regulatory ‘fast track’ reforms, and big expansions to funding for training in the trades. However, this political pivot risks alienating core supporters focused on traditional NDP identity elements: environmental caution, Indigenous rights, and social priorities.
PIPELINE POLITICS HEAT UP
Premier Eby has doubled down against Alberta’s renewed push to route oil for export from BC’s north coast, warning it will threaten existing Indigenous support for other advanced major projects.
Importantly, however, public opinion is shifting:
• 59% of Canadians support Alberta’s pipeline proposal
• 78% of Albertans and 56% of British Columbians back the project
While B.C. has signaled openness to expanding the Trans Mountain Pipeline to Vancouver, the northern route and lifting the oil tanker ban remains a looming flashpoint.
NEW CHALLENGES ON THE HORIZON
Forest industry woes have continued to persist amid mill closures across the province, driven by US tariffs, market downturns and provincial policy issues. As these tensions continue to rise, local economic crises in smaller forestry-dependent communities around the province will add to the political strain for the provincial NDP government.
To further complicate things, the BC Supreme Court’s ‘Cowichan Decision’, affirming Indigenous land title is “senior and prior” to private (fee-simple) land title, has sparked unease and uncertainty for homeowners and investors. While the ruling is under appeal by both the BC and Canadian governments, the questions surrounding long-held assumptions of private property may be a long-term challenge to balancing new investment and Indigenous reconciliation in non-treaty parts of the province.
Meanwhile, municipalities and chambers of commerce increasingly cite crime, homelessness, and mental health as interconnected challenges impacting local resources, businesses, and public safety. Once concentrated in major cities, these issues now affect many smaller communities across BC, prompting growing calls for tougher offender consequences and more provincial action.
BOTTOM LINE
BC is clearly a province at a complex crossroads of industrial economic activity and legal, environmental, and indigenous-rights constraints. As 2026 approaches, strategic agility will be a critical test for governments, businesses, and communities alike.
We’re Here to Help
For more information and insights about what these developments mean for Alberta’s and BC’s political landscape, please contact:
Ken Veldman – Senior Strategy Advisor
ken@prairieskystrategy.ca
250.600.0670
To learn more about Prairie Sky Strategy, please visit our website.
