Audit of coal workers’ transition promised in 2022; audit of green recovery funds finds job retention not measured

The federal Commissioner of the Environment and Sustainable Development  tabled several reports in the House of Commons on November 25, including  Report 5—Lessons Learned from Canada’s Record on Climate Change. Well-documented and concise, it summarizes the history of climate policies and international agreements over the last 30 years, and concludes: “Repeated commitments, strategies, and action plans to reduce emissions in Canada have not yielded results…..Despite progress in some areas, such as public electricity and heat generation, Canadian emissions have actually increased by more than 20% since 1990.” The report identifies the central flaw of “policy incoherence”, highlighting the purchase of the Trans Mountain pipeline and the Onshore Emissions Reduction Fund as examples.  Eight “lessons” are discussed, with accompanying opportunities for the future, with an overarching lesson which calls  for greater leadership and coordination amongst all levels of government . Lesson 2 states that “Canada’s economy is still dependent on emission‑intensive sectors” and in a section entitled “Shielding workers and communities”,  the report highlights the findings of the Task Force on Just Transition for Canadian Coal Power Workers and Communities. Most importantly, the Commissioner promises a performance audit to Parliament in 2022,  “examining Canada’s just transition for coal workers.”  In the discussion about the need for a national energy policy, and report  poses  “Considerations for parliamentarians” which include:  “How much financial support does Canada provide to the oil and gas industry? Could this support be reallocated to workers?” and “How can the federal government identify and assist communities and workers most affected by the transition to a low‑carbon economy?”

Also of interest: The Commissioner’s Report #4:  Emissions Reductions Fund – Natural Resources Canada, which is a scathing rebuke to the department and a catalogue of poor, hasty design and inaccurate measurement of the impacts of the Onshore Emissions Reduction Fund. The Fund, launched in 2020 as part of the federal Covid-19 Economic Response Plan, offered $675 million in the form of interest-free loans and non-repayable grants with the stated goals of helping land-based oil and gas companies attract investment, retain jobs, and reduce emissions. Amongst the failings:  Natural Resources Canada failed to use recognized GHG accounting principles to measure the GHG reductions, and awarded maximum grants to all applicants without assessing value for tax-payers money.  Further,   “Natural Resources Canada indicated that one of the rationales for the Onshore Program was to help maintain jobs in the oil and gas sector. However, we found that the department did not include job retention as a feature in the program’s design. For example, it did not list job retention as an eligibility condition or an assessment criterion for funding decisions. The department also did not include job retention or creation in the oil and gas sector as a performance indicator for the Onshore Program. However, it planned to request this information from funded companies as part of the contribution agreements’ reporting requirements.”  Natural Resources Canada has accepted this criticism and promises to  “provide annual and periodic reporting on greenhouse gas emission reductions and jobs (direct and indirect) from ERF‑funded projects, as new information becomes available.”   The new Minister of Natural Resources , Jonathan Wilkinson, announced a review of the program on November 26  

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s