OTTAWA—The federal government has put the Trans Mountain pipeline expansion back in motion after a court-ordered delay, a move that had political leaders declaring the environment and economy will be ballot questions for Canadians in the coming federal election.

Prime Minister Justin Trudeau said the multibillion dollar project would create thousands of “solid middle-class jobs” and help fund a necessary shift from fossil fuels to cleaner energy in the fight against climate change, while the government begins to explore ways to share revenues from the project with Indigenous communities along its route.

“By moving forward with (Trans Mountain), we’re creating jobs, opening new markets, accelerating our clean energy transition and generating new avenues for Indigenous economic prosperity,” Trudeau said Tuesday afternoon.

The expansion would build a second pipeline stretching some 1,000 kilometres, from just outside Edmonton to a marine terminal in Burnaby, B.C. It would almost triple the capacity of the existing pipeline, which the government bought for $4.5 billion from a Texas-based oil giant last year.

Ten months ago, the Federal Court of Appeal shot down a previous approval for the expansion project, ruling that consultations with Indigenous peoples weren’t strong enough and that a National Energy Board (NEB) review of its environmental impacts failed to consider heavier oil tanker traffic along the B.C. coast.

The expansion proposal sparked sharp resistance from environmentalists, who warned the dangers of an oil spill are too great and that construction would put Canada’s emissions reduction target out of reach.

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The Tsleil-Waututh Nation, one of the Indigenous nations involved in the challenge that quashed the 2016 approval, said Tuesday that it intends to launch another appeal.

Delays and obstacles to the expansion project have fuelled discontent in Alberta, where Premier Jason Kenney has threatened to throttle oil and gas shipments to B.C. if the province blocks the pipeline, and the provincial government has spent millions on a cross-country advertising blitz to extol the economic virtues of the project. Industry groups like the Canadian Association of Petroleum Producers say the pipeline expansion will finally allow companies in the oilsands to sell Alberta bitumen at higher prices to markets in Asia.

In deciding to approve the pipeline, the federal government consulted further with 129 Indigenous groups and responded to the court order to redo the environmental assessment.

Trudeau said the government would launch a new round of engagement to seek input from Indigenous groups on how they can share in the benefits of the project, including the potential sale of the Trans Mountain system to Indigenous groups seeking to buy it.

“It could be an equity stake, revenue sharing or something else altogether. We’re coming to the table with an open mind,” Trudeau said.

The prime minister also said Ottawa would direct the profits and tax revenues it earns from the pipeline — estimated to hit around $500 million per year once the expansion is complete — towards clean energy projects.

Trudeau conceded that some people would be “disappointed” by the decision, but claimed his government has done more for the environment over the last four years than any other government, pointing to measures such as the national plan to phase out electricity powered by coal, issuing $5,000 tax rebates for zero-emission vehicles, and instituting a minimum carbon price to deter greenhouse gas emissions across the country.

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He spoke more broadly about the job creation and investments to lift families out of poverty, previewing campaign messaging to come.

“Our record speaks for itself,” Trudeau declared. “These results didn’t happen by accident and they’re on the ballot this fall.”

He framed the approval of the pipeline expansion as a sensible step to capitalize on Canada’s oil resources by exporting more for better prices in new markets, while using revenues that result to fund the transition from fossil fuels to cleaner energy.

Conservative Leader Andrew Scheer said the government was pointedly unable to state when the expansion will get built and cast doubt on Trudeau’s commitment to see the project become a reality.

“I doubt his sincerity because he actually hasn’t done anything. Show me the pipeline,” Scheer said. “I don’t believe be actually wants it built. He doesn’t support our energy sector.”

The Conservative leader, who will unveil his own party’s climate change strategy on Wednesday, took up Trudeau’s challenge to debate climate and pipelines in the coming election.

“Mr. Trudeau wants to battle the next election on which party can build pipelines and manage our environment. I’m really eager for that choice because it’s quite clear that it’s the Conservative party that has an excellent track record on both those fronts,” Scheer said.

Meanwhile, environmental groups along with the federal New Democratic and Green parties immediately condemned the decision, and pointed out that just hours earlier, on Monday night, the Liberal government’s motion to declare a “climate emergency” was adopted the House of Commons.

Green Leader Elizabeth May called this showed “breathtaking” hypocrisy, and predicted more resistance and legal challenges will be launched now that the expansion has been approved.

NDP Leader Jagmeet Singh was adamant in his party’s opposition to the expansion, warning about the “devastation” of a spill, saying there’s no business case for the pipeline and cast doubt on the economic viability of jobs.

“This project is not a long-term sustainable project. It’s not something that creates jobs that will be long-standing. There is an uncertain business case at best,” he said.

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