Both sides claim victory after Obama’s Keystone comments

Both sides of the Keystone XL pipeline debate are claiming victory after U.S. President Barack Obama said the proposed project will only go forward if it doesn’t “significantly” add to carbon emissions.

Environmentalists believe there’s no way the 1,800-kilometre pipeline that plans to carry Alberta oil sands crude to the U.S. Gulf Coast won’t be deemed harmful to the environment, while proponents claim President Obama’s comments support their view that the project meets environmental standards.

After delaying its decision in 2012, ahead of the U.S presidential election, the U.S. government is expected to make its decision later this year on whether to approve Keystone. President Obama addressed the issue for the first time since his re-election during a speech Tuesday on climate change and America's future energy policy.

"Our national interest will be served only if this project does not significantly exacerbate the problem of carbon pollution,” President Obama said of Keystone - a mention that came as a surprise to many who thought he wouldn't touch the issue as he launched a new drive to combat climate change. “The net effects of the pipeline's impact on our climate will be absolutely critical to determining whether this project is allowed to go forward, he added.

Experts warn on Keystone's impact

Environmentalists argue Keystone would not only increase emissions but carries a risk of oil spills that could damage the environment. Proponents say the pipeline will create jobs that will help spur economic growth, and help to advance America's energy independence.

Natural Resources Minister Joe Oliver wasted no time on Tuesday to position President Obama's comments as favourable towards the project. "If you look at the facts and the science we’re comfortable the project will be approved," he told reporters in Toronto. He pointed to a U.S. State Department draft study released this spring that suggests Keystone can meet environmental standards.

However, that same report has been criticized by the U.S. Environmental Protection Agency (EPA) as having not adequately considered Keystone’s climate change impacts, among other issues. That was what environmentalists pointed to when they determined President Obama was readying to reject the project.

“The reference to the Keystone XL pipeline doesn’t bode well for pipeline proponents,” said John Bennett, executive director of Sierra Club Canada. “Stating approval could ONLY happen IF it didn’t lead to an increase in greenhouse gas emissions is clearly a death sentence for Keystone - it’s an impossible task.”

Bill McKibben, an environmental activist and founder of 350.org, called President Obama “a logical man."

“Today's announcement also makes me think it's more likely the White House will reject the Keystone Pipeline, which is the biggest environmental battle in a generation,” said McKibben.

Still, 350.org -- and international environmental organization headed by McKibben -- recognized it was much too soon to celebrate. “The president did leave himself some wiggle room to approve Keystone,” 350.org said in a blog post, which called on environmentalists to keep up their fight against Keystone.

Both sides are expected to pull out their best political weaponry in the months ahead as the decision on Keystone draws near. The Keystone decision is also expected to have an impact on the outcome of the proposed Enbridge Northern Gateway pipeline from Alberta to B.C., and other proposed projects across Canada.