Environmental groups were disappointed. Simon Dyer, policy director at the Pembina Institute, an environmental think tank, said Canada's reputation is being put further at risk as it keeps approving oil-sands projects in the absence of adequate rules for global warming or wetland protection.

"We are disappointed to see that the review panel is recommending approval of the Shell Jackpine mine expansion project, despite noting that the project lacks adequate mitigation and will contribute (along with other planned projects) to very significant adverse impacts to aboriginal rights and values, wildlife populations, wetlands, migratory birds and old-growth forests," Mr. Dyer said.

"The joint review panel heard Shell's own analysis that this project, when added to other planned oilsands projects, will exceed science-based environmental limits for impacts to air quality, wildlife habitat and the Athabasca River — yet the panel recommended approval of the project anyway."