$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. The CLC later released a Summary and Analysis of the Budget, here.

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? “.

International Energy Agency roadmap for a sustainable recovery forecasts job growth led by retrofitting and electricity

The International Energy Agency, in cooperation with the International Monetary Fund, released a roadmap which would require global investment by governments of USD 1 trillion annually between 2021 and 2023 to create jobs and accelerate the deployment of clean energy technologies and infrastructure.  The World Energy Outlook Special Report: Sustainable Recovery , released on June 18th states:  “Through detailed assessments of more than 30 specific energy policy measures to be carried out over the next three years, this report considers the circumstances of individual countries as well as existing pipelines of energy projects and current market conditions.” The report data and analysis will form the basis for the IEA Clean Energy Transitions Summit on July 9 2020, where decision-makers in government, industry and the investment community will meet to discuss policy options for economic recovery post Covid-19.

From the report: ” Our new IEA energy employment database shows that in 2019, the energy industry – including electricity, oil, gas, coal and biofuels – directly employed around 40 million people globally. Our analysis estimates that 3 million of those jobs have been lost or are at risk due to the impacts of the Covid-19 crisis, with another 3 million jobs lost or under threat in related areas such as vehicles, buildings and industry. “ The recommendations promise to save or create approximately 9 million jobs per year, with the greatest number in building retrofitting for energy efficiency, and in the electricity sector.  The Sustainable Recovery Plan also seeks to avoid the kind of rebound effect which occurred after the 2008/2009 recession, claiming that it would stimulate economic growth while achieving annual energy-related greenhouse gas emissions which “would be 4.5 billion tonnes lower in 2023 than they would be otherwise”,  decreasing air pollution emissions by 5%, and thus reducing global health risks.

Under the heading of “Opportunities in technology innovation”, the report examines four specific technologies: “hydrogen technologies, which have a potentially important role in a wide range of sectors; batteries, which are very important for electrification of road transport and the integration of renewables in power markets; small modular nuclear reactors, which have technology attributes that make them scalable as an important low-carbon option in the power sector; and carbon capture, utilisation and storage (CCUS), which could play a critical role in the energy sector reaching net-zero emissions. We also compare the near-term job creation potential of some of these measures.” The IEA is preparing an Energy Technology Perspectives Special Report on Clean Energy Technology Innovation, which will be released in early July 2020.

Which Canadian companies rank as  Sustainable or as Clean Tech innovators?

Corporate knights cover 2020Canadian magazine Corporate Knights recently published the 2020 edition of its annual Global 100 , which ranks the 100 most sustainable corporations in the world.  This overview article describes the environmental and social responsibility indicators which are considered in the rankings, including average CEO pay ratio, the number of women on their boards and female executives, linking executive compensation to targets related to the UN Sustainable Development Goals (SDGs), and “the carbon-productivity measure” of revenue per tonne of CO2 emitted.  The ranked list is topped by Orsted of Denmark (formerly DONG (Danish Oil and Natural Gas) – profiled here . The top-ranked Canadian corporation, at 10th position, is Algonquin Power & Utilities Corp. , which describes itself as: “a growing renewable energy and regulated utility company with assets across North America. The Corporation  acquires and operates green and clean energy assets including hydroelectric, wind, thermal, and solar power facilities, as well as sustainable utility distribution businesses (water, electricity and natural gas) through its two operating subsidiaries: Liberty Power and Liberty Utilities.”   The Global 100 issue also include general articles which focus on Canadian sectors: “Hydro-Quebec plugs into China’s EV push”;  “The EV Revolution will take batteries, but are they ethical”  ;  “Financing our future with a green building bonanza”, and “The ultimate guide to responsible investing“.

The Global Cleantech 100 report, published in San Francisco,  is an industry-based annual ranking of private companies judged “most likely to make significant market impact globally over the next five to ten years.” An Expert Panel of cleantech investors reviewed over a thousand possible private companies and selected 100, of which 12 are Canadian.  Although U.S. companies dominate the list,  the twelve  Canadians which were judged to be global leaders are : Axine industrial waste-water technologies ; Carbicrete  in Montreal (cement-free, carbon free concrete); Carbon Engineering in Calgary (Developer of technologies for the capture of carbon dioxide at industrial scale); Carbon Cure of Dartmouth N.S.,   (manufactures a technology for concrete producers that introduces recycled CO2 into fresh concrete); Ecobee ,developer of Wifi smart thermostats for home and commercial applications; Enbala  (provider of demand side energy management systems); GaN Systems of Ottawa (Developer of gallium nitride (GaN) semiconductors); LiCycle of Mississauga (developer of lithium ion battery recycling technology); Minesense of Vancouver (developer of sensor technology for mine operation) ; OpusOne of Richmond Hill Ontario (developer of optimization solutions for distributed electricity grid systems) ; Semios of Vancouver (Developer of precision crop management systems); and Svante of Burnaby B.C.  (commercial scale carbon capture).

More innovative Canadian companies are profiled at the website of  Sustainable Development  Technology Canada,  an arms-length agency overseen by the Minister of  Innovation, Science and Industry . On January 15, the Minister announced government investment of $46.3 million in 14 start-up cleantech companies.  The list of companies is provided in the press release. 

Political will and urgent action required to save our planet, IPCC Report warns

IPCC 2018reportThe world’s climate science experts have spoken in the landmark report released by the Intergovernmental Panel on Climate Change (IPCC) on October 8.  The full title is: Global Warming of 1.5 °C: an IPCC special report on the impacts of global warming of 1.5 °C above pre-industrial levels and related global greenhouse gas emission pathways, in the context of strengthening the global response to the threat of climate change, sustainable development, and efforts to eradicate poverty . That dry title doesn’t reflect the importance and impact of this report –  the first time that the UN body has modeled the difference between the impacts of the Paris agreement goals of 2°C and 1.5 °C, and an urgent, unanimous challenge by 91 scientists to the policy makers and politicians of the world to act on the solutions outlined in their models .  An IPCC official  quoted in a CBC report strikes the hopeful tone the report tries to achieve: “We have a monumental task in front of us, but it is not impossible… This is our chance to decide what the world is going to look like.”

The official report, commonly called  Global Warming 1.5  runs over 700 pages. The official press release  states:  “The report finds that limiting global warming to 1.5°C would require “rapid and far-reaching” transitions in land, energy, industry, buildings, transport, and cities. Global net human-caused emissions of carbon dioxide (CO2) would need to fall by about 45 percent from 2010 levels by 2030, reaching ‘net zero’ around 2050. This means that any remaining emissions would need to be balanced by removing CO2 from the air….Limiting warming to 1.5ºC is possible within the laws of chemistry and physics but doing so would require unprecedented changes”.  A 34-page Summary for Policymakers and a 3-page Headline Statements provide official summaries. Climate Home News offers  “37 Things you need to know about 1.5 global warming”  and  The Guardian offers summary and context in  “We must reduce greenhouse gas emissions to net zero or face more floods”  by Nicholas Stern and “We have 12 years to limit climate change catastrophe, warns UN”  (also republished in The National Observer) .

CAN CANADIANS EXPECT URGENT ACTION? :  A thorough CBC summary of the report appears in “UN Report on global warming carries life- or- death warning” , and the Globe and Mail published “UN Report on Climate Change calls for urgent action to avert catastrophic climate change”    (Oct 8) – yet no official reaction has been released by the federal government of Canada. “Trudeau’s Big Oil-friendly decisions mean climate chaos”  from Rabble.ca contrasts the IPCC report with a brief summary of Canada’s recent policy failures. “No change to Canada’s climate plans as UN report warns of losing battle” appeared in the National Observer (Oct. 8).  The National Observer also posted “We challenge every Federal and provincial leader to read the IPCC report and tell us what you plan to do” on October 9, characterizing Canada’s current divisions over a national carbon tax as representative of the world’s dilemma – the failure of political will to act on known scientific facts.  350.org Canada also addresses the issue of political will with  an online petition   calling for an emergency debate in the House of Commons on Canada’s plan to limit climate change, in light of the IPCC report.

Opinion Pieces are still being written, including:  “To avoid catastrophic climate change, we need carbon pricing” by Dale Beugin and Chris Ragan of the Ecofiscal Commission in the Globe and Mail  (Oct. 9) which argues that  “The best that economics has to offer is telling us we have a key solution right under our noses. Carbon pricing is now a Nobel Prize-winning idea. ”

On Climate, Our Choice Is Now Catastrophe or Mere Disaster ” by Crawford Kilian in The Tyee  . ….” modern governments and most of their voters are sleepwalking into catastrophe. If anyone or anything can wake them up, we might have a chance. And if we don’t work hard to turn that catastrophe into a mere disaster, we won’t be able to say nobody warned us. ”

“Canada’s carbon-tax plan is collapsing just as the planet runs out of time” in the Washington Post (Oct. 9)…. ” Today, Canadians should take a minute to write to their elected officials provincially and federally and demand that we get the carbon tax done. Every elected official should take a moment to decide how they would like to be remembered. That is, assuming there will be anyone around to remember.”

WELL-INFORMED GLOBAL SUMMARIES :IPCC: Radical Energy Transformation Needed to Avoid 1.5 Degrees Global Warming”   and “Not Just CO2: These Climate Pollutants Also Must Be Cut to Keep Global Warming to 1.5 Degrees”appeared  in Inside Climate News. The World Resources Institute published “8 Things You Need to Know About the IPCC 1.5˚C Report” , accompanied by a  blog and infographic which  explains the consequential difference between 1.5 and 2.0 global warming levels. Climate Action International monitored the discussions leading up to the release of the report: here is their summary and a compilation of global reactions . A compilation of reactions from the academics at Imperial College and the Grantham Research Institute on Climate Change and the Environment (LSE) is here.

A brief Comment was already issued by the policy and communications director of the Grantham Research Institute on Climate Change and the Environment at the London School of Economics and Political Science, which calls the report a “conservative assessment” because it omits discussion of some of the largest risks and their impacts – notably  population displacements, migration and possibly conflict, as well as  potential climate  ‘tipping points’, such as disruption to the Gulf Stream in the Atlantic and shifts in the monsoon in Africa and Asia.

Another key issue: the controversial role of geoengineering, such as carbon capture and storage or “carbon dioxide removal technologies”(CDR) .  “Negative Emissions technologies in the new report on limiting global warming” was posted at Legal Planet (Oct. 8) , pointing out how important geoengineering is in the report’s models. The author argues that ”  …. The text of the relevant chapter is honest about large-scale negative emissions, when it states:  “Most CDR  technologies remain largely unproven to date and raise substantial concerns about adverse side-effects on environmental and social sustainability. ” But the author argues that the message was deliberately watered down  in the executive summaries and in the Summary for Policymakers.

On October 4, just before the release of Global Warming 1.5, 110 organizations and social movements, led by Friends of the Earth International, released their Hands Off Mother Earth! Manifesto, which opposes any geoengineering solutions, including carbon capture and storage.

It’s hard to overestimate the importance of this report, and it will draw more and more discussion as the UNFCCC meetings in Katowice, Poland approach in December 2018.

Council delivers recommendations for Canada’s energy transition, including “cleaner oil and gas”

Generation energy council reportThe federal government established a  Generation Energy consultation process in 2017, to inform an energy policy for a low-carbon future.  That process concluded when the appointed Generation Energy Council presented its Report  to Canada’s Minister of Natural Resources on June 28.  The report, titled Canada’s Energy Transition: Getting to our Energy Future, Together, identifies “four pathways that collectively will lead to the affordable, sustainable energy future”: waste less energy, switch to clean power, use more renewable fuels, and produce cleaner oil and gas.  The report outlines concrete actions, milestones for each of these pathways – most problemmatic of which is the pathway cleaner oil and gas.  Each pathway also includes a general statement re the “tools” required, giving passing mention to  “Skill and Talent Attraction and Development”.

The priorities for the “cleaner oil and gas” pathway include: “reducing emissions per unit of oil or natural gas produced; • improving the cost competitiveness of Canadian oil and gas; and • expanding the scope of value-added oil and gas products and services for both domestic and export markets.”  The report lauds the potential of Carbon Capture Use and Storage (CCUS), as well as the economic value of the petrochemical industry. Amongst  the milestones in this pathway: “By 2025, reduce methane emissions by 40 to 45 percent from 2012 levels, with ongoing improvements thereafter.. …By 2030, reduce life-cycle greenhouse gas emissions for oil sands extraction to levels lower than competing crudes in global markets…Develop a trusted and effective regulatory system, including a life-cycle approach to greenhouse gas emissions, as measured by objective third party assessment of key attributes relative to competing jurisdictions…  By 2030, a more diversified mix of oil and gas products, services and solutions to domestic and global markets has a measurably significant impact on industry and government revenues.”

The Council was co-chaired by Merran Smith (Clean Energy Canada and Simon Fraser University)  and Linda Coady (Enbridge Canada); members are listed here . The Council heard from over 380,000 Canadians in an online discussion forum and in person. An impressive archive of submissions and commissioned studies, some previously published and some unique, is available here . Authors include government departments, academics, business and industry associations, and think tanks.