Status quo B.C. Budget 2021 neglects old growth forests

The government of British Columbia tabled its 2021 Budget on April 20, including topical Backgrounders such as Preparing B.C. for a Greener Recovery, which states that “Budget 2021 investments brings the total funding for CleanBC to nearly $2.2 billion over five years.”  Also highly relevant, “Investing in B.C. Now for a Stronger  Economic Recovery”, which summarizes skills training, infrastructure, and youth employment investments. Reaction to the Budget from climate advocates could be described as general disappointment- for example, the Canadian Centre for Policy Alternatives B.C. Office reacting with “BC Budget 2021: Stay-the-course budget misses the mark on key areas of urgency outside health”; The Pembina Institute with “B.C. budget takes small steps toward clean economy goals”, and Clean Energy Canada with “B.C. budget builds on its climate and economic plan, but could do more to seize net-zero opportunity” . The Tyee provides a good summary and compiles reactions from environmental groups and labour unions here.

The greatest disappointment of all in the B.C. Budget relates to lack of action to protect Old Growth Forests, summarized by The Tyee in  “No New Money for Old Growth Protection in BC’s Budget”. The spokesperson from the Wilderness Committee is quoted as saying that the Budget “absolutely shatters” any  hopes that province is taking changes to forest industry seriously. (Budget allocation to the Ministry of Forests is actually cut). This, despite the active blockade on at Fairy Creek, Vancouver Island, recent expert reports, and a Vancouver Sun Opinion piece by co-authors Andrea Inness (a campaigner at the Ancient Forest Alliance) and Gary Fiege ( president of the Public and Private Workers of Canada, formerly the Pulp and Paper Workers of Canada) who wrote, “We can protect old growth forests and forestry jobs at the same time”.  They call for the government to live up to their promise to implement the recommendations of their own Strategic Review

Forest management has a long history of conflict in British Columbia – with the CCPA’s Ben Parfitt a long-standing expert voice who continues to document the issues – most recently in “Burning our Way to a new Climate”. Another good overview appears in a 2018 article in The Narwhal, “25 Years after the War in the Woods: Why B.C.’s forests are still in crisis“. The WCR summarized the recent situation in March. For more on the current Old Growth protests:  An Explainer by Capital Daily in Victoria details the Fairy Creek Blockade, underway since the Summer of 2020 and continuing despite an injunction against the protestors upheld by the B.C. Supreme Court on April 1. The Tyee also produced a special report, The Blockaders on March 25, which compares the current Fairy Creek Blockade to the 1993 protests in the Clayoquot Sound, where 900 people were arrested in one of Canada’s largest acts of civil disobedience- known as the “War in the Woods”.  (This updates an September 2020 3-part series about that history, Part 1 ; Part 2;  and Part 3) .

Don’t call it a Just Transition – United Mineworkers announce Principles for Preserving Coal Country

United Mine Workers of America president Cecil Roberts was accompanied by West Virginia’s senior Senator Joe Manchin on April 19 when he announced the UMWA’s new principles for addressing climate change and the energy transition.  Preserving Coal Country: Keeping America’s coal miners, families and communities whole in an era of global energy transition is built on three goals: “preserve coal jobs, create new jobs, and preserve coalfield families and communities.” The UMWA statement calls for specific steps to achieve those goals, including enhanced incentives for carbon capture and storage research, with a goal of commercial demonstration of utility-scale coal-fired CCS by 2030; tax incentives for build-out of renewable supply-chain manufacturing in coalfield areas, with hiring preference for dislocated miners and families; and provision of wage replacement, family health care coverage, and pension credit/401(k) contribution, as well as tuition aid. For the community, the principles call for direct grants to coalfield counties/ communities/school districts to replace lost tax revenues for 20-year period, as well as targeted investment in infrastructure rehabilitation and development – roads, bridges, broadband, schools, health care facilities. 

The document concludes with a statement of willingness to work with Congress, President Biden, and other unions, and with this: “This cannot be the sort of “just transition” wishful thinking so common in the environmental community. There must be a set of specific, concrete actions that are fully-funded and long-term. The easiest and most efficient way to fund this would be through a “wires” charge on retail electric power sales, paid by utility customers, which would add about two-tenths of one cent per kilowatt hour to the average electric bill. This would amount to less than $3.00 per month for the average residential ratepayer.”  

Summaries appeared in: “Miners’ union backs shift from coal in exchange for jobs”  from Associated Press, published in the Toronto Star;  “Surprise news from the miners union gives Democrats an opening against Trumpism” in the Washington Post;   “A coal miners union indicates it will accept a switch to renewable energy in exchange for jobs”  in the New York Times, and “America’s largest coal mining union supports clean energy (with conditions)” in Grist.

At the same press conference on April 19, West Virginia Senator Joe Manchin announced that he will co-sponsor the Protecting the Right to Organize Act, or PRO Act, as reported by Reuters here. Passage of the PRO Act is also one of the action items in the Mine Workers Preserving Coal Country statement, and a key goal for American unions.

$17.6 Billion announced for Green Recovery in Canada’s new Budget- but still not enough to meet the Climate Emergency – updated

On April 19, the federal government tabled its much-anticipated 2021 Budget, titled A Recovery Plan for Jobs, Growth, and Resilience, announcing $30 billion over five years and $8.3 billion a year afterward to create and maintain early learning and child-care programs – stating:  “It is the care work that is the backbone of our economy. Just as roads and transit support our economic growth, so too does child care”. COVID-19 wage subsidy, rent subsidy and lockdown support programs will be extended until September, depending on how long the crisis continues, the maximum sickness benefit period for Employment Insurance will be extended from 12 to 26 weeks, and a new Canada Recovery Hiring Program will provide employers with funding to hire new workers between June 6, 2021 and November 20, 2021.  A new $15 federal minimum wage will apply in federally regulated private businesses.

Green Recovery and the Climate Emergency: The Budget still falls short

In an article in Policy Options in March, Mitchell Beer laid out the challenge: Chrystia Freeland must pick a lane with next budget – climate change or oil and gas? Climate activists laid out what they were looking for in Investing for Tomorrow, Today: How Canada’s Budget 2021 can enable critical climate action and a green recovery , published on March 29 and endorsed by nine of Canada’s leading environmental organizations: Pembina Institute, Nature Canada, Climate Action Network Canada, Environmental Defence, Équiterre, Conservation Council of New Brunswick, Ecology Action Centre, Leadnow, and Wilderness Committee. 

Yet it appears that the federal Budget is still trying to maintain one foot on the oil and gas pedal, while talking about GHG emissions and clean technologies. The reactions below indicate such concerning elements – incentives on the unproven technologies of carbon capture and storage and hydrogen, no signs of an end to fossil fuel subsidies, no mention of a Just Transition Act, and, despite hopes that the Prime Minister would announce an ambitious target at the U.S. Climate Summit convened by President Biden, a weak new GHG reduction target increasing to only 36 per cent below 2005 levels by 2030.

The Budget summary announces “$17.6 billion in a green recovery that will help Canada to reach its target to conserve 25 per cent of Canada’s lands and oceans by 2025, exceed its Paris climate targets and reduce emissions by 36 per cent below 2005 levels by 2030, and move forward on a path to reach net-zero emission by 2050.” This  Backgrounder summarizes some of the Green Recovery highlights, which include :

  • $4.4 billion to support retrofitting through interest-free loans to homeowners, up to $40,000
  • $14.9 billion over eight years for a new, permanent public transit fund
  • $5 billion over seven years, to support business ventures through the Net Zero Accelerator program – which aims to decarbonize large emitters in key sectors, including steel, aluminum, cement—and to accelerate the adoption of clean technology. Examples given are aerospace and automobile manufacture industry.
  • $319 million over seven years “to support research and development that would improve the commercial viability of carbon capture, utilization, and storage technologies.” This would be in the form of an investment tax credit, with the goal of reducing emissions by at least 15 megatonnes of CO2 annually.
  • a temporary reduction by half in corporate income tax rates for qualifying zero-emission technology manufacturers, such as solar and wind energy equipment, electric vehicle charging systems, hydrogen refuelling stations for vehicles, manufacturing of equipment used for the production of hydrogen by electrolysis of water, production of hydrogen by electrolysis of water and others
  • $63.8 million over three years, starting in 2021-22, to Natural Resources Canada, Environment and Climate Change Canada, and Public Safety Canada to work with provinces and territories to complete flood maps for higher-risk areas.
  • $2.3 billion over five years to conserve up to 1 million square kilometers more land and inland waters, and an additional $200 million to build natural infrastructure like parks, green spaces, ravines, waterfronts, and wetlands.

Reactions

Watershed moment for child care, long-term care: Budget 2021: But pharmacare, tax reform and climate change remain in limbo”, from CCPA states: “Budget 2021 delivers on a number of previously-announced emission reduction initiatives and green infrastructure projects, including $14.9 billion over eight years for a new, permanent public transit fund…….Unfortunately, while the budget makes big strides toward a greener economy, it fails once again to tackle Canada’s dependence on fossil fuel production. Without a clear plan and timeline for winding down oil and gas extraction we simply cannot meet our net zero emission target.”

“Federal Budget React: Canadian Civil Society Responds” compiles reactions from Canada’s major climate advocacy groups, including Climate Action Network’s own statement: “…. Some investments made by budget 2021 are extremely helpful – particularly investments in clean transportation, energy efficient homes, resilient agriculture, and Canada’s first green bonds. Some investments made by budget 2021 are extremely worrisome – investments in carbon capture and storage risk perpetuating our dangerous addiction to fossil fuels, and some of the forestry investments perpetuate a transactional relationship with nature that treats it like a commodity we can trade. Yet the big take away is this: we are in a time of changing norms, and Budget 2021 does not present a vision for climate-safe transformational change” 

Budget 2021 is a healthy dose for the clean economy, but climate measures lack potency” from the Toronto Atmospheric Fund, which points out “There is no way to reach our near-term or net zero targets without retrofitting practically all of Canada’s homes and buildings.  That’s why the lack of mention of energy efficiency and deep retrofits for buildings beyond single-family homes is surprising … There is no mention in the budget of strategic incentives or financing for municipalities or developers to ensure new construction is near-zero construction.”

The Canadian Labour Congress press release, Canada’s unions welcome ‘crucial’ funding for child care, skills training and $15 federal minimum wage doesn’t mention any of the green recovery elements.

From NUPGE: Federal Budget 2021: Lofty ambitions need details , which follows NUPGE President Larry Brown’s letter to Environment and Climate Change Minister Wilkinson, titled No more delays on climate action, justice.  

Federal Budget Leaves Out Transit Workers and Riders as Operational Transit Funding Completely Left Out, Says ATU Canada” from the Amalgamated Transit Union  

If not now, when?” Liberals waste another shot at equitable recovery with Budget 2021 from Canadian Union of Public Employees

And from the National Observer: “Critics throw shade at federal budget cash for home retrofits”  and  “Will Trudeau’s wager on carbon capture help or hurt the environment? “.

Two new reports call for end to subsidies and phase-out of Canada’s oil and gas industry

Two new reports expose Canada’s continuing financial support of the fossil fuel industry and call for a phase-out. These appeared in the same week as the federal government reported Canada’s latest National Inventory of Emissions to the United Nations’ UNFCC, showing that the oil and gas industry is the top source of carbon emissions in Canada.

The first report, by Environmental Defence, is Paying Polluters: Federal Financial Support to Oil and Gas in 2020 , released on April 15. It estimates that the government has provided or promised at least $18 billion to the oil and gas sector in 2020 alone, including  $3.28 billion in direct subsidy programs and $13.47 billion in public financing. Paying Polluters decries the lack of transparency – especially for funding through Export Development Canada  – but nevertheless attempts to list the tax subsidies and direct spending programs, in an Appendix at the end of the report. In addition to obvious subsidies, the tally includes loans for pipeline construction, research into new technologies for cleaner processes, job subsidies for reclamation of oil wells, and even policing costs for pipeline construction – think $13 million taxpayer dollars paid to the Royal Canadian Mounted Police to protect the construction site of the Coastal GasLink pipeline.

Environmental Defence concludes with five recommendations, including a call for greater transparency, and for “a roadmap to achieve Canada’s commitment to phase out inefficient fossil fuel subsidies before 2025, and shift these investments and public finance towards supporting a path to resilient, equitable zero-carbon societies.” It should be noted that the government first pledged to phase out these subsidies in 2009. The report is summarized, with reactions, by Sarah Cox in The Narwhal, on April 16.  

A second report, Correcting Canada’s “One-eye shut” Climate Policy, was released on April 16 by the Cascade Institute. It summarizes Canada’s history of fossil fuel production, and refutes those who argue that we are a small country whose emissions don’t compare to those of China or the U.S. Calling on Canada to accept its global responsibility, the authors state that “Canada’s 2021-2050 oil and gas production would exhaust about 16 percent of the world’s remaining carbon budget. Canada is indeed a “carbon bomb” of global significance.”  This is the first of many hard-hitting, frank statements in the report, including a highly critical discussion of the “fool’s gambit” of hydrogen production, and an assessment that “A highly resourced and well-organized “regime of obstruction” has developed in Canada to block effective climate action and ensure increased fossil fuel extraction.”

Correcting Canada’s “One-eye shut” Climate Policy references the Environmental Defence  Paying Polluters report, agreeing with the call for a phase-out of government support and subsidies. It also offers more information about subsidies – for example, an estimate that the provincial supports, including royalty credits, constitute an additional estimated $4.2 billion a year. Other less-than-obvious examples of support for oil and gas:  subsidies that encourage fossil fuel consumption, like aviation or mobility investments,  and over $250 million  directed to four oil sands major companies under Canada’s Emergency Wage Subsidy during Covid-19.  The report states that Imperial Oil alone received $120 million in wage support while concurrently issuing $320 million in dividends. Yet on the issue of oil and gas jobs, the authors state that in 2019, the oil and gas sector represented just 1 percent of direct employment in Canada, and 5.5 percent in Alberta. “To save costs, the industry has aggressively cut jobs, by 23 percent over the 2014 to 2019 period, even as oil and gas production increased by 24 percent, reaching record highs, over that same period.”

The One-Eye Shut report goes further, offering specific policy options within the federal jurisdiction to phase out the industry, including: “prohibiting the leasing of federal lands and waters for fossil fuel production and infrastructure; implementing a “climate test” on all new fossil fuel projects and removing federal impact review exemptions; canceling the Trans Mountain expansion pipeline; divesting federal public investment funds from fossil fuel production; and removing federal subsidies and public financing that supports fossil fuel exploration, production, or transportation, including federal funding for technologies that delay a transition away from oil and gas.”

Correcting Canada’s “One-eye shut” Climate Policy: Meeting Canada’s climate commitments requires ending supports for, and beginning a gradual phase out of, oil and gas production  is a Technical Paper written by University of Waterloo professor Angela Carter and PhD. Student Truzaar Dordi, and published by the Cascade Institute.   Participating Institutions include the Corporate Mapping Project, University of Waterloo, Royal Roads University, and the McConnell Foundation.

Sierra Club green recovery plan calls for “ironclad labor and equity standards”

The Sierra Club U.S. report How to Build Back Better: A 10-year Plan for Economic Renewal  is a blueprint for economic renewal – in which the environmental advocacy group continues to demonstrate clear support for the needs of workers.  Released in March, this report includes a call for public investments which “must come with ironclad labor and equity standards to curb racial, economic, and gender inequity instead of reinforcing the unjust status quo.”  To support the job quality theme, the Sierra Club also released a 1-pager titled Cross-cutting environmental, labor and equity standards and  a 3-page summary titled Why Standards Matter, an overview of job quality issues .


Briefly, the Sierra Club recommends a pandemic recovery plan which would create over 15 million good jobs, based on public investment of $1 trillion per year for ten years. Investments would go to many sectors including infrastructure and clean manufacturing, but also the care sector and the public sector. In addition to job creation, the plan addresses systemic racism, supports public health, and cuts climate pollution nearly in half by 2030. The economic renewal plan is based on the THRIVE Agenda, which is itself based on job projections and modelling by academics at the Political Economy Research Institute (PERI), led by Robert Pollin. Their latest analysis was published by PERI as Employment Impacts of Proposed U.S. Economic Stimulus Programs (March 2021).  Sierra Club released a  3-page summary of  job projections; an interactive Jobs Calculator ; and Fact Sheets for each of the sectors considered: regenerative agriculture, clean energy, care and public sector, transportation, manufacturing, buildings, and clean water for all, and pollution-free communities. All these accompanying documents, along with the full report, are available here.

THRIVE stands for “Transform, Heal, and Renew by Investing in a Vibrant Economy” and is summarized in the Sierra Club press release of  March 25. The coalition has grown out of the Green New Deal Network, itself a coalition of 15 U.S. organizations that are focused on combating social inequity and environmental destruction through political action.