U.S. President Barack Obama announced Friday he has rejected the application from TransCanada to build the Keystone XL pipeline.
Flanked by Vice-President Joe Biden and Secretary of State John Kerry, Obama says the project would ”not serve the national interests” of the U.S., adding the pipeline had an overly inflated role in the political discourse between both countries.
Republican leaders in Congress are outraged.
Obama says he spoke with Prime Minister Justin Trudeau and that they both agree to co-operate closely on a range of issues, including energy and climate change.
The prime minister issued a statement saying he’s disappointed but understands Obama has the right to make the decision.
TransCanada’s issued a statement suggesting it may apply for another presidential permit.
There’s an election in the U.S. next year and the Obama administration will be gone.
Environmentalists say the decision will change how pipelines are reviewed in Canada as well.