Canada’s Expert Panel on Sustainable Finance recommends incentives to green pensions, RRSP’s

Canada’s Expert Panel on Sustainable Finance released its final report on June 14,  Mobilizing Finance for Sustainable Growth . The report makes fifteen recommendations,  stating “…. climate change opportunity and risk management need to become business-as-usual in financial services, and embedded in everyday business decisions, products and services.”  Although the Panel’s main focus was on institutional investments, they also made recommendations which would help individuals to make greener personal investments.

Tiff Macklem, Chair of the Expert Panel,  summarizes and simplifies the message of the Panel Report in “Climate change should be part of regular savings and investment decisions” in The Conversation  on July 3.  Concerning individual actions,  he states:  “To accelerate climate-conscious investment, we … recommend actively engaging Canadians in the climate opportunity and making their stake in fighting climate change more tangible…To engage them, we recommend the federal government create an incentive for Canadians to invest in accredited climate-conscious products. Specifically, we recommend that the Minister of Finance create additional space in RRSPs and defined contribution pension plans for these investments and offer a “super deduction” — in other words, a taxable income deduction greater than 100 per cent —on eligible investments.”   This proposal was further explained in “Expert panel on sustainable finance recommends super tax deduction to incentivize green savings” in Benefits Canada magazine.

Other recommendations in the final Report include:  Establish a standing Canadian Sustainable Finance Action Council (SFAC), with a cross-departmental secretariat, to advise and assist the federal government in implementing the Panel’s recommendations;  Establish the Canadian Centre for Climate Information and Analytics as an authoritative source of climate information and decision analysis;  Define and pursue a Canadian approach to implementing the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). Although the recommendations include goals for private financing of the building retrofit market and clean tech industry, they also include a call to support Canada’s oil and natural gas industry “in building a low-emissions, globally competitive future.”

 

Strong community advocacy brings landmark climate legislation to New York State

New YorK RenewsOn June 18, the New York State Assembly passed the Climate Leadership and Community Protection Act   – what the New York Times calls  “one of the world’s most ambitious carbon plans” (June 18) . Originally tabled in 2016 as the Climate and Community Protection Act , the Climate Leadership and Community Protection Act calls for the state to achieve 100 percent carbon-free electricity by 2040 and economy-wide, net-zero carbon emissions by 2050.  The final legislation was a compromise – stripped of measures on prevailing wages, apprenticeship programs, preferences for women- and minority-owned businesses, and investment for disadvantaged communities. The NY Renews coalition, comprised of  unions, community and environmental groups issued a statement  which reads, in part: “Ultimately, the Climate Leadership and Community Protection Act is a partial victory for New Yorkers. The fight for true climate justice demands transformative change, and we will bring that fight until our communities win…We stand strong knowing that as recently as last week, the Governor dismissed any funding for frontline communities, and in his Climate Leadership Act, refused to set a timeline for economy-wide emission reductions. This new legislation does both, and that is a direct result of years of tireless organizing by the members of the NY Renews coalition.”

New York Is About to Pass One of the Most Ambitious Climate Bills in the Land” in The Nation (June 19)  describes the political battles and compromises involved, and states “the real heroes of the fight for the CCPA are the hundreds of protesters who stormed the state Capitol on a recent Tuesday in June, and the dozens who staged a “die-in” outside the governor’s office to illustrate the consequences of failing to pass climate legislation.”  An article by David Roberts in Vox (June 20) also summarizes the nitty gritty of the bill and its evolution.

Planning under the new legislation will be led by a 22-member Climate Action Council, composed of the heads of various New York state agencies, along with members appointed by the governor, the Senate, and the Assembly. The Council will convene advisory panels on, for example, transportation, land use and local government, and will also convene working groups on Just Transition and Climate Justice.

Federal government announces $275 Million subsidy to LNG Canada in B.C.

Despite the ongoing contentious development of Liquified Natural Gas (LNG) in British Columbia and commitments to end fossil fuel subsidies, on June 24 federal Finance Minister Morneau  announced that the federal government will invest $275 million into LNG Canada’s $40 billion liquefied natural gas project in Kitimat: $220 million to be spent on energy-efficient gas turbines for the project, and  $55 million spent on replacing the Haisla Bridge in Kitimat. The announcement is summarized by the CBC in “Feds announce $275M ‘largest private sector investment in Canadian history’ — Kitimat, B.C.’s LNG project”

The Narwhal maintains an ongoing archive of excellent articles which chronicle the controversy over fracking and LNG in B.C,  here .  Two recent “must read” articles from: “6 Awkward Realities behind B.C.’s big LNG Giveaway”  (April 6)  which discusses the B.C. government’s move to bundle tax exemptions and cheap electricity rates into a $5.35 billion  incentive package for  LNG Canada in March 2019, and “B.C. government quietly posts response to expert fracking report” (June 28) which discusses the government’s  response to the report of its own  independent Scientific Review of Hydraulic Fracturing in British Columbia, released in February 2019. As noted in the Narwhal article, the panel was mandated to assess the potential impacts of fracking on water quantity and quality; on seismic activity, and on  fugitive emissions – but not on public health, despite concerns raised and the known scientific evidence.  According to the government news release,  a working group has been established to address the  97 recommendations made by the expert panel.

Some recent relevant reading about LNG and the fracking associated with its production: 

RE the Emissions of LNG: The New Gas Boom , published  on July 1 by the Global Energy Monitor, an international non-governmental organization that catalogues fossil-fuel infrastructure. The report states that a growing global supply of natural gas is on a “collision course” with the Paris Agreement, and that the increase in natural gas is driven largely by the North American fracking boom- with 39% of new development  occurring in the U.S., 35% in Canada.  The GEM report is discussed from a Canadian viewpoint in  “Global boom in natural gas is undermining climate change action: reportNational Observer (July 2)  and  “’Clean’ natural gas is actually the new coal, report says: Don Pittis” at CBC  .  Previous to the Global Energy Monitor report, Marc Lee had weighed in on the high GHG emissions of fracked natural gas in  “ LNG’s Big Lie”, an article in the Canadian Centre for Policy Alternatives Policy Note ( Lee’s arguments were also published in The Georgia Straight,  (June 17) and an OpEd in The Globe and Mail . )

compendium re frackingIn the U.S.   in June 19, The sixth edition of the Compendium of Scientific, Medical, and Media Findings Demonstrating Risks and Harms of Fracking  was published by Physicians for Social Responsibility and Concerned Health Professionals of New York. Written by scientists, doctors and journalists, it is an analysis of original research studies published from 2016-2018 on the health impacts of fracking . One of the most impactful statements from the press release: “The notion that natural gas can serve as an intermediate “bridge fuel” between coal and renewable energy is fallacious and now disproven by new scientific evidence showing that methane is a more powerful greenhouse gas than formerly appreciated and escapes in larger amounts from all parts of the extraction and distribution process than previously presumed, including from inactive, long-abandoned wells. Grossly underestimating methane emissions threatens to undermine the efficacy of efforts to combat climate change.” A summary press release is here ,  or see the Common Dreams article “’We Need to Ban Fracking’: New Analysis of 1,500 Scientific Studies Details Threat to Health and Climate”   (June 19).

International Energy Agency report, LNG Market Trends and their Implications   (June 20) provides statistical analysis of the changing Asian markets for LNG.

Coal transition funds announced for Alberta and Saskatchewan communities

On June 28, the federal government announced funding of $4,489,100 through the Canada Coal Transition Initiative.  Details of the funded projects – four in Alberta and five in Saskatchewan –  are listed in the Backgrounder . The Saskatchewan projects include establishing a solar installation training program in Estevan; development of business retention and expansion plans for Weyburn, Estevan, Moose Jaw and Coronach; and an economic and employment impact analysis with a regional strategic economic mitigation plan to support the Coronach & Region Coal Transition Initiatives. The Canada Coal Transition Initiative is a $35 million, five-year strategic fund to support skills development and economic diversification activities for workers and communities impacted by the government’s February 2018 decision to phase out traditional coal-fired electricity generation by 2030.

Since the June 28 announcements, brief reactions  have appeared: “Federal government gives $1.2M to Sask. groups to phase out coal” at CBC Saskatchewan; “Feds announce funding for coal energy transition in Saskatchewan, Alberta”which quotes a United Mineworkers spokesperson and the official province of Saskatchewan response;  “Leduc, Parkland counties among recipients of federal coal transition handout” in the Edmonton Journal, and  “Edmonton-area counties get help from Ottawa for coal transition” at CBC Edmonton.

The June 28 funding press release also  states:

In response to the Task Force on Just Transition for Canadian Coal Power Workers and Communities, the Government of Canada intends to:

Create worker transition centres (funded through Budget 2018);

Explore new ways to protect wages and pensions; and

Create a $150 million infrastructure fund, beginning 2020-21, for impacted communities, administered by Western Economic Diversification Canada and the Atlantic Canada Opportunities Agency.

Boundary Dam facility estevan

Boundary Dam facility in Estevan -photo by Don Healy / Regina Leader-Post) 

How the coal transition is impacting the communities across Canada is evident from the What we heard from Canadian coal power workers and communities report which accompanied the release of the Final Report of the Task Force on Just Transition for Canadian Coal Power Workers and Communities in January 2019.  Climate Justice Saskatoon has also published the results of its interviews with people in Estevan and Coronach in its Bridging the Gap project.   Articles have also appeared: “Estevan, Sask. preparing for coal phase-out putting hundreds of jobs at risk”  at Global News (May 2019)  is a profile of the community;  “Saskatchewan reaches agreement with Ottawa to cut power-generation emissions”(January 2019) outlines the agreement reached between the federal and provincial government, allowing  Boundary Dam Three near Estevan to continue beyond 2030, thanks to its nearly $1.5 billion Carbon Capture and Storage  retrofit.

European Industrial Policy report calls for social dialogue, shared responsibility for skills training in transition

Industry 2030 just transition graphicA Vision for the European Industry until 2030, released by the European Commission on June 27,  is the final report of a High-Level Industrial Roundtable working group of 20 members from business and academia, and also including the General Secretary of industriAll Europe  and the former Deputy General Secretary of the European Trade Union Confederation (ETUC).  The press release from the ETUC  is titled “Industry 2030 report is a step towards just transitions”, and states: “The comprehensive report puts European industry on a path to an “innovative, sustainable, competitive and human-centered collaborative economy [that] respects planetary boundaries…. It proposes an action plan which includes massive investment in innovation on digital and zero or low-carbon technologies, a commitment to fair and rules-based international trade and to social inclusiveness that leaves no worker or region behind.”

The report is wide-reaching, and includes a strong awareness of environmental and climate change imperatives – for example, amongst the the “game-changing actions” recommended are: Carbon-leakage 2.0 plan: ; a Green Deal with industry which shares risks and benefits, drawing on the principles of the  “Entrepreneurial State” concept outlined by Mariana Mazzucato; standardized carbon reporting; and a Circular Economy leadership role for Europe by 2030.

Some statements on the issue of  Social Dialogue: 

“Climate, energy, raw materials, and bio-economy policies are key areas considered essential for the future of EU industry in terms of challenges and opportunities. They need to go hand in hand with industrial policy and a societal dialogue on what emission reduction and other environmental policies mean in terms of costs, benefits and behavioural changes for everyone. (p. 13)

Considering the speed with which technologies and new business models transform entire industries, planning structural disruption regularly and proactively is key. The establishment of a culture of social dialogue at all levels (company, sector, regional, national) becomes imperative to ensure smooth and just workforce transitions, to help re-train those whose jobs are at risk and to support the regeneration of adversely affected regions.”(p. 19)

Ensure social fairness of industrial transition:  Foster a culture of constructive and effective social dialogue at all levels of the economy (company, sector, country), according to national industrial relations systems and timely information and consultation processes as key elements for anticipating and managing change, i.e. skills.”

Selected statements from the extensive proposals re education and training: 

“Link education and training  policy more strategically to the industrial policy for instance by reinforcing cooperation between companies (especially SMEs), social partners & industry and education and training providers.

Enhance industry’s active role in upskilling and skills development. EU citizens of all ages need to be sensitized to engage in lifelong learning. At the same time, private sector, in collaboration with EU, national and European social partners, should be encouraged to provide training and life-long learning opportunities for all workers. This could be done by establishing new and innovative educational programmes and solutions to complement the role of academia and scaling-up successful existing initiatives, e.g. work-based learning and dual systems , modularized learning offer, e-learning; promotion of quality and effective apprenticeships; promotion of sector-specific training initiatives; providing adult learning opportunities to prevent skills obsolesce and support employability; installing a culture of lifelong learning, including through the promotion of the internal mobility of workers inside the company….

Maintain or increase the employability of the workforce, especially in sectors in transition, by up- and reskilling of the workforce to the jobs of the future, and supporting a smooth transition from one job to another (group outplacement, employment cells, tailor-made training programmes, job search assistance). This should be a shared responsibility between industry and the public sector.”  (p.32)

Build a pan-European coalition involving the EU, Member States, regions, industry, education and training systems and trade unions to take a systemic approach to skills…. Under the coalition, the EU will build on existing instruments to further facilitate flexibility and fast response mechanisms to react to changing labour market needs through procedures for the certification and compatibility of skills
and qualifications across borders and industrial sectors, e.g. using skills badges, which shall recognize informal learning, e.g. by working in a company. (p.33)