Canadian government is falling short of GHG emissions targets, needs a plan to phase out fossil fuel subsidies

On October 3, Canada’s  Commissioner of the Environment and Sustainable Development tabled highly critical audit reports in the House of Commons.  From the  Commissioner’s press release  : “the government’s efforts to reduce greenhouse gas emissions have fallen short of its target and that overall, it is not preparing to adapt to the impacts of climate change. Only five of 19 government organizations had fully assessed their climate change risks and acted to address them.” … “Many departments have an incomplete picture of their own risks, and the federal government as a whole does not have a full picture of its climate change risks. If Canada is to adapt to a changing climate, stronger leadership is needed from Environment and Climate Change Canada, along with increased initiative from individual departments.”   The Commissioner also criticized the Department of Finance and Environment and Climate Change Canada for a “disconcerting lack of real results” towards meeting  Canada’s G20 commitment to phase out inefficient fossil fuel subsidies.

The CBC reports on reaction and press conference remarks; the National Observer ran two articles, “Watchdog finds Canada ‘nowhere near’ ready for climate risks” and  “Parliamentary watchdogs conducting nationwide climate audits“, which reports that, for the first time, Auditors General are conducting climate change audits of all federal, provincial and territorial governments, working together to develop reports for their respective jurisdictions and a summary report of national performance on mitigation and adaptation.

The October 2017 federal  audit reports are all available in English and in French. The relevant reports are: Progress on Reducing Greenhouse Gases—Environment and Climate Change Canada ; Adapting to the Impacts of Climate Change; Funding Clean Energy Technologies; and  Departmental Progress in Implementing Sustainable Development Strategies. The archive of previous reports is here .

The new British Columbia government tackles climate change policy and controversies: Site C, Kinder Morgan, and Carbon Tax neutrality

As the smoke from over 100  forest fires enveloped British Columbia during the summer of 2017, a new brand of climate change and environmental policy emerged after June 29, when the New Democratic Party (NDP) government assumed power , thanks to a Confidence and Supply Agreement with the Green Party Caucus.  Premier John Horgan appointed Vancouver-area MLA George Heyman, a former executive director of Sierra Club B.C. and president of the B.C. Government Employees and Service Employees’ Union, as Minister of Environment and Climate Change Strategy, with a mandate letter which directed Heyman to, among other priorities, re-establish a Climate Leadership team,  set a new 2030 GHG reduction target, expand and increase the existing carbon tax, and “employ every tool available to defend B.C.’s interests in the face of the expansion of the Kinder Morgan pipeline.”  A separate mandate letter to the Ministry of Energy, Mines and Petroleum Resources, directed the Minister to create a roadmap for the province’s energy future, to consider all Liquified Natural Gas proposals in light of the impact on climate change goals, to freeze hydro rates and to  “immediately refer the Site C dam construction project to the B.C. Utilities Commission on the question of economic viability and consequences to British Columbians in the context of the current supply and demand conditions prevailing in the B.C. market.” In addition, the government “will be fully adopting and implementing the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP), and the Calls to Action of the Truth and Reconciliation Commission.”

Some notes on each of these priorities:

Re the B.C. Climate Leadership Plan The recommendations of the B.C. Climate Leadership Team were ignored by the Liberal government when delivered in 2016.  In mid-September 2017, the reasons for that became clear, as reported by the National Observer , DeSmog Canada, Rabble.ca and Energy Mix . According to the National Observer,  “provincial officials travelled to Calgary to hold five rounds of secret meetings over three months in the boardroom of the Canadian Association of Petroleum Producers (CAPP). Representatives from Alberta-based oil giants Encana and Canadian Natural Resources Ltd (CNRL) are shown on the list of participants meeting with B.C.’s ministry of natural gas development.”  In the article for DeSmog Canada, Shannon Daub and Zoe Yunker state that the Climate Leadership process was a stunning example of institutional corruption: “what can only now be characterized as a pretend consultation process was acted out publicly….  The whole charade also represents an abuse of the climate leadership team’s time and a mockery of B.C.’s claims to leadership during the Paris climate talks, not to mention a tremendous waste of public resources.”  The documents underlying the revelations were obtained under Freedom of Information requests by Corporate Mapping Project  of the Canadian Centre for Policy Alternatives, of which Shannon Daub is Associate Director.

Re the  Carbon Tax:  The Budget Update released on September 11 states: “The Province will act to reduce carbon emissions by increasing the carbon tax rate on April 1, 2018 by $5 per tonne of CO2 equivalent emissions, while increasing the climate action tax credit to support low and middle income families. The requirement for the carbon tax to be revenue-neutral is eliminated so carbon tax revenues can support families and fund green initiatives that help us address our climate action commitments.” For context, see “B.C. overturns carbon tax revenue-neutrality”  (Sept. 22) by the Pacific Institute for Climate Solutions;  for reaction, see the Canadian Centre for Policy Alternatives-B.C. or the Pembina Institute .

Re the Kinder Morgan Trans Mountain Pipeline:  On October 2, 2017, the Federal Court of Appeal  is scheduled to start the longest hearing in its history, for the consolidated challenges to the National Energy Board and Federal Cabinet approval of Kinder Morgan’s Trans Mountain Project.  The government has applied for intervenor status, and in August  hired environmental lawyer and former B.C. Supreme Court Justice  Thomas Berger as an external legal advisor on the matter.  West Coast Environmental Law blogged, “See you in court, Kinder Morgan” , which provides a thorough summary of the 17 cases against the TransMountain expansion; WCEL has also published a Legal Toolbox to Defend BC from Kinder Morgan, which goes into the legal arguments in more detail.  The NEB website provides all official regulatory documents. Ecojustice is also involved in the complex court challenge.

Re the Site C Dam:  In early August, the B.C. government announced a review of the Site C project by the B.C. Utilities Commission.  The Preliminary Inquiry Report was released on September 20,  calling for more information before passing judgement on whether BC Hydro should complete the project. The Inquiry Panel also finds “a reasonable estimate of the cost to terminate the project and remediate the site” would be $1.1 billion, based on the figures provided by BC Hydro and Deloitte consultants. The Inquiry report is  summarized by  CBC . Next steps:  a series of round-the-province hearings and final recommendations to government to be released in a final report on November 1.

After years of protests about Site C, evidence against it seems to be piling up. A series of reports from the University of British Columbia Program on Water Governance, begun in 2016, have addressed the range of issues involved in the controversial project : First Nations issues; environmental impacts; regulatory process; greenhouse gas emissions; and economics.  In April, an overview summary of these reports appeared  in Policy Options as  “Site C: It’s not too late to hit Pause”,  stating that Site C is “neither the greenest nor the cheapest option, and makes a mockery of Indigenous Rights in the process.”   On the issue of Indigenous Rights, the UN Committee on the Elimination of Racial Discrimination called for a halt on construction in August, pending a full review of how Site C will affects Indigenous land.

If Site C is a good project, it’s time for Trudeau to trot out the evidence” in  iPolitics (Sept. 17), calls Site C “an acid test for Trudeau’s promise of evidence-based policy” and an environmental and economic disaster in the making.  The iPolitics article summarizes the findings of a submission to the BC Utilities Commission review by Robert McCullough, who concluded that BC Hydro electricity demand forecasts overestimate demand by 30%, that its cost overruns on the project will likely hit $1.7 to $4.3 billion, and that wind and geothermal are cleaner alternatives to the project. McCullough’s conclusions were partly based on his review of the technical report by Deloitte LLP, commissioned by the Inquiry.

 

Pollution cost Canada $2 billion in Lost Labour Output alone

The June 2017 report, Costs of Pollution in Canada: Measuring the impacts on families, businesses and governments reviews and synthesizes existing studies to produce the most comprehensive assessment of pollution and its costs  in Canada to date. Some quick facts: the cost of climate change-related heat waves in Canada is estimated to have been $1.6 billion in 2015; Smog alone cost Canadians $36 billion in 2015. But the report also provides detailed estimates, organized in three categories: 1.  Direct Welfare Costs: (Harm to health and well-being such as  lower enjoyment of life, sickness and premature death); 2.  Direct Income Costs – (Direct out of pocket expenses for families (e.g. medications for asthma), businesses (e.g. increased maintenance costs for buildings) and governments (remediation of polluted sites); and 3. Wealth impacts.

Direct Welfare Costs of pollution, the most studied and understood,  are estimated as at least $39 billion in 2015, or about $4,300 for a family of four.  The Direct Income Costs   that could be measured amounted to $3.3 billion in 2015, but the study cautions that this many important costs could not be measured, and full impacts on income were likely in the tens of billions of dollars.  In this category, the study estimates  Lost Labour Outputs, using a metric derived from the 2016  OECD study,  The  Economic Consequences of Outdoor Air Pollution.  The OECD estimates outdoor air pollution to cost 0.1% of national GDP, which, when applied to Canada’s  2015 GDP of approximately  $1,986 billion, implies a costs of about $2 billion in lost labour output alone. And finally, Wealth impacts, or costs on value of assets , are said to be the least understood of pollution costs, about which, “We simply do not know how much pollution costs us in terms of lost wealth”.

Costs of Pollution in Canada: Measuring the impacts on families, businesses and governments was prepared by the International Institute for Sustainable Development (IISD), with funding from the Ivey Foundation; the full report is available in English- only. Summaries are in English  and French.Short  videos were derived in cooperation with the Conference Board of Canada to focus on key topics:  e.g. extreme weather, contaminated sites, and smog .

Methane regulations: a path to lower emissions and more jobs for Alberta

Dont Delay BlueGreen 2017 coverA July 2017  report by Blue Green Canada,   argues that the Alberta government should implement methane regulations immediately, rather than wait for the proposed federal regulations to take effect in 2023.    Speeding up regulations “could reduce air pollution, achieve our climate targets more cost-effectively, and create thousands of high-paying jobs in a single step”, according to Don’t Delay: Methane Emission Restrictions mean Immediate jobs in Alberta .  Blue Green estimates that Alberta’s oil and gas operations release $67.6 million worth of methane annually, and recovering it for energy use could create more than 1,500 new jobs in the province – well paid jobs,  including work in engineering, manufacturing, surveying, and administration.

Environmental organizations, labour groups and technology companies sent a joint Open Letter to Premier Rachel Notley in August, urging her to view the proposed federal methane regulations   as a floor, not a ceiling, and reiterating the argument for economic opportunity: “There are a number of innovative companies in Alberta ready to supply methane capture and detection technologies and services and a large majority of these companies report being poised for strong growth given the right regulatory signals.” The letter, from Blue Green Canada, Canadian Association of Physicians for the Environment, Iron and Earth, Keepers of the Athabasca, Pembina Institute, Peace River Environmental Society, Progress Alberta, Questor Technology, Unifor, and United Steelworkers is here.

Accelerating the target date for regulations is not the only concern.  “Five Ways Alberta Can Raise the Bar on Methane Regulations” at DeSmog Blog, (August 1) makes recommendations for tighter rules for venting and flaring, improved monitoring, and expanded scope. Also in August, the Environmental Law Centre of Alberta released Methane Reduction under the Climate Change Leadership Plan , the latest paper in its Climate Change Legal Roadmap series, which makes recommendations for improvements to both the provincial and federal regulations.  The task of developing methane regulations in Alberta falls to the Alberta Energy Regulator (AER), which has said that it is currently reviewing the feedback from its draft regulations, and will release a document for public comment in Fall 2017.

Alberta’s Climate Leadership Plan in 2015 called for 45 per cent reduction in methane emissions from the oil and gas industry by 2025. The Pan-Canadian Framework included a commitment to reduce methane emissions from the oil and gas sector by 40 to 45 per cent from 2012 levels by 2025, and in May 2017, the federal government released draft regulations beginning in 2020, with a second phase beginning in 2023.

Earlier, related reports:  In April, Environmental Defence released  Canada’s Methane Gas Problem: Why strong regulations can reduce pollution, protect health and save money , which demonstrated that methane emissions are higher than reported by industry: 60% higher in Alberta. Research funded by the David Suzuki Foundation and released in April, found that methane emissions in B.C. are 250% higher than reported.  The Cost of Managing Methane Emissions,  a June blog from the Pembina Institute, sheds light on the GHG savings to be had by instituting regulations.

Parliamentary committee recommends a legislated right to a healthy environment in its review of the Canadian Environmental Protection Act

On June 15, the Standing Committee on the Environment and Sustainable Development tabled its report, Healthy Environment, Healthy Canadians, Healthy Economy: Strengthening the Canadian Environmental Protection Act, 1999,   and the French version, Un Environnement Sain, des Canadiens et une Économie en Santé : Renforcer la Loi Canadienne sur la Protection de l’environnement (1999).

Called a “ground-breaking”  report by the David Suzuki Foundation, this review of  the Canadian Environmental Protection Act (CEPA)  makes 87 recommendations to modernize the law.  The Ecojustice blog ,  “Much to celebrate in committee report on Canadian Environmental Protection Act”  summarizes some of the recommendations, including  the  introduction of national drinking water and air quality standards; “stronger enforcement provisions to ensure polluters are held to account; improved transparency, public reporting and consultation requirements; and faster timelines to ensure regulatory action is taken swiftly once a toxic threat is identified”.  Most important, however, is the recommendation that the Act recognize and protect the right of every person in Canada to a healthy environment – a right recognized in 110 other countries.

The reaction  from  East Coast Environmental Law also notes this right to a healthy environment, and emphasizes the environmental justice implications:  “ The Report… suggests that the importance of environmental rights to Indigenous peoples and vulnerable populations should be emphasized.  … The Report acknowledges that environmental burdens aren’t shared equitably by communities across Canada, …… it also makes a number of recommendations that address environmental injustice. For example, it recommends that the Act be expanded to include an obligation to protect the environment in a non-discriminatory way; that it enhance the procedural rights that protect access to information, access to justice, and public participation in environmental decision-making; that it address the inequitable burden of toxic exposure in Canada; and that it recognize the principles enshrined in the United Nations Declaration on the Rights of Indigenous Peoples.”

The response from the David Suzuki Foundation also summarizes the recommendations, and makes clear that these are not yet law.  The  Minister of Environment and Climate Change, and eventually Cabinet, will consider the report, with legislation expected in the fall.   Ecojustice calls it “ a once-in-a generation opportunity to dramatically improve our most important environmental law.”

Environment and Climate Change Canada has compiled links to a history of CEPA . The Standing Committee website is here, with links to witnesses and the 68 briefs received.