Fossil fuel subsidies, plastics pollution, circular economy are key topics at the G7 Energy and Environment meetings

Following the G7  meetings at Charlevoix Quebec in June 2018, further meetings in Halifax from September 19 to 21 brought together the G7 ministers with responsibilities for Environment, Oceans and Energy.  The International Institute (IISD) published a comprehensive summary of the meetings  on September 25, with links to the official Chair’s Summary statements.  The National Observer was one of only a handful of media outlets which reported on these meetings.  Their report of September 25,  “Unscrambling the language of Canada’s G7 Climate Diplomacy”   is a plain language overview of what happened.  Environment and Climate Change Canada, as host of the meetings, also published press releases highlighting Canada’s commitments:  the press release of  September 19, titled “G7 environment meetings in Halifax focus on climate action, and the $26 trillion opportunity of clean growth and tackling air pollution”  announced a Canadian pledge of  $2 million for the National Adaptation Plan Global Network, to further climate change adaptation in  developing countries and $2 million for a new initiative to empower women entrepreneurs working on climate solutions in the developing world.  More broadly, Environment ministers discussed the  implementation guidelines for the Paris Agreement on climate change – the Paris Rulebook –  in an attempt to move that forward before the scheduled deadline of the UNFCCC  Conference of the Parties (COP 24) in Katowice, Poland, in December 2018.

On September 20, the Canadian government’s press release states : the Government of Canada committed to diverting at least 75 per cent of the plastic waste from government operations by 2030. It will achieve this by eliminating the use of unnecessary single-use plastics, increasing recycling rates, and leveraging its purchasing decisions to focus on sustainable plastic products. The Government of Canada also announced a $65 million investment through the World Bank for an international fund to address plastic waste in developing countries. ”

A contentious issue was fossil fuel subsidies. An earlier report by the National Observer , “G7 promise to kill fossil fuel subsidies hangs over Halifax meetings” (September 20)  , highlights the topic, which has been a perennial but never-resolved issue since the G20 first agreed to phase them out in 2009.  In 2016, the G7 first set a deadline for ending fossil fuel subsidies by 2025  ; Energy ministers at the 2018 Halifax meetings reaffirmed that commitment.

public-cash-oil-gas-en-1Despite the G7 commitment, “Canada is still the largest provider of subsidies to oil and gas production in the G7 per unit of GDP”, according to the newest report by the International Institute for Sustainable Development (IISD), which has published extensively on the issue.   Fossil Fuel Subsidies in Canada: ‘Public Cash for Oil and Gas: Mapping federal fiscal support for fossil fuels , a September 2018  report was published by  the International Institute for Sustainable Development (IISD), in collaboration with Oil Change International, Equiterre, Environmental Defence, and the Climate Action Network.  It also states that overall fossil fuel subsidies declined in Canada in 2016-2018 over 2015, but it  attributes this to the impact of oil price fluctuations on the value of deductions, and how companies use tax deductions,  rather than any substantive policy reform.  In a concluding discussion , the report states that the oil and gas sector will inevitably follow the economic path of the coal industry, and thus, “it is imperative that those in these declining energy sectors are part of the planning” for a Just Transition. Removing subsidies for the sector,  could create enough “fiscal space” to fund a just transition for workers and communities.

Green Budget cover 2019The Green Budget Coalition also weighed in recently on fossil fuel subsidies in its  Recommendations for Budget 2019 ,  which includes a discussion of the history of fossil fuel subsidies in Canada, a rationale for their phase-out, and calls for the government:  to provide a transparent accounting of what subsidies are in place to the Parliamentary Budget Office; not to introduce new subsidies; and to legislate a timeline for the phase-out of remaining deductions for fossil fuel exploration and production, and for direct subsidies.

Global Commission proposals for clean growth forecasts 65 million new low-carbon jobs in 2030

The Global Commission on the Economy and Climate released its 2018 flagship report at the G20 meetings in Argentina  on September 5 . Under the title, Unlocking the Inclusive Growth Story of the 21st Century: Accelerating Climate Action in Urgent Times , the report acknowledges that all models are imperfect, but its extensive research and modelling predicts that its “bold climate action” prescription could deliver at least US$26 trillion in economic benefits through to 2030, and over 65 million new low-carbon jobs in 2030, as well as avoid over 700,000 premature deaths from air pollution.  As the final point in its action road map, it calls for Just Transition measures and a role for civil society and trade unions in their creation.

The report is structured around a sectoral approach, focused on energy, cities, food and land use, water, and industry. Across those economic sectors, every chapter hammers the theme of urgency, calling this the world’s “use it or lose it moment”. “The decisions we take over the next 2-3 years are crucial because of the urgency of a changing climate and the unique window of unprecedented structural changes already underway. The world is expected to invest about US$90 trillion on infrastructure in the period up to 2030, more than the entire current stock today. …. Investing it wisely will help drive innovation, deliver public health benefits, create a host of new jobs and go a long way to tackling the risks of runaway climate change. Getting it wrong, on the other hand, will lock us into a high-polluting, low productivity, and deeply unequal future. “

Unlocking the Inclusive Growth Story of the 21st Century  calls for the following urgent actions:

  1. “governments should put a price on carbon and move toward mandatory climate risk disclosure for major investors and companies.”  (Specifically, the carbon price for the G20 economies should be at least US$40-80 by 2020, with a predictable pricing pathway to around US$50-100 by 2030, accompanied by a phase-out of fossil fuel subsidies and harmful agricultural subsidies and tax-breaks by 2025);
  2. all economies should place much greater emphasis on investing in sustainable infrastructure as a central driver of the new growth approach;
  3. “ the full power of the private sector and innovation needs to be harnessed.” (Specifically, “ By 2020, all Fortune 500 companies should have science-based targets that align with the Paris Agreement.”  Governments need to change regulations, incentives and tax mechanisms that are a major barrier to implementing a low-carbon and more circular economy, and public-private partnerships should be encouraged.
  4. “a people-centred approach is needed to ensure lasting, equitable growth and a just transition. It is good economics and good politics.”….“All governments should establish clear Energy Transition Plans to reach net-zero energy systems, and work with energy companies, trade unions, and civil society to ensure a just transition for workers and communities. Successfully diversifying local economies as we shift away from coal and eventually other fossil fuels will require multi-stakeholder dialogue, strategic assistance, re-training, and targeted social protection.”

The Global Commission  is comprised of government leaders, academics, and business leaders, including Sharan Burrow of the ITUC, and Lord Nicholas Stern. Established in 2013, the Commission published its first, landmark report in the New Climate Economy initiative in 2014:  Better Growth, Better Climate , which established its position that there is no trade-off between growth and strong climate action. In addition to the annual policy document, international climate issues are published  in a Working Paper series, available here .

 

G7 Summit makes some progress on Just Transition, plastics pollution – but not on fossil fuel subsidies

G7 leaders 2018With the chaos emanating from Donald Trump’s performance at the G7 Summit   hosted by Canada on June 8 and 9,  it would be easy to miss the news about one of the five Summit themes :  Working Together on Climate Change, Oceans, and Clean Energy  . But according to a brief statement by Canada’s Climate Action Network,  G7 Stands it Ground : “The G7 should be congratulated for publicly acknowledging for the first time the need for a just transition…..Canada showed leadership by stickhandling this climate outcome as the G7 host. ”

In contrast to the Final Communique of 2017, which contained only one paragraph on climate change,  the 2018 Official Communique   includes four lengthly paragraphs (#23 – 27,  including #26 which is the independent statement of the United States).   Included:  “Canada, France, Germany, Italy, Japan, the United Kingdom and the European Union reaffirm their strong commitment to implement the Paris Agreement, through ambitious climate action; in particular through reducing emissions while stimulating innovation, enhancing adaptive capacity, strengthening and financing resilience and reducing vulnerability; as well as ensuring a just transition, including increasing efforts to mobilize climate finance from a wide variety of sources. ….  Also, Recognizing that healthy oceans and seas directly support the livelihoods, food security and economic prosperity of billions of people, …. We endorse the Charlevoix Blueprint for Healthy Oceans, Seas and Resilient Coastal Communities, and will improve oceans knowledge, promote sustainable oceans and fisheries, support resilient coasts and coastal communities and address ocean plastic waste and marine litter. Recognizing that plastics play an important role in our economy and daily lives but that the current approach to producing, using, managing and disposing of plastics and poses a significant threat to the marine environment, to livelihoods and potentially to human health, we the Leaders of Canada, France, Germany, Italy, the United Kingdom and the European Union endorse the Ocean Plastics Charter.”

Background: As usual, several reports and position statements were released in advance of the international meetings.  The Climate and Energy Working Group of the G7 Global Task Force, (a broad coalition of over 40 civil society organisations) released  their  Recommendations  on a full range of climate change issues, and a separate Brief titled It’s Time for G7 countries to commit to Just Transition , which concluding with this: “Canada, as President of the G7, and building on the work of the Task Force on the Just Transition for Canadian Coal-Power Workers and Communities has the opportunity to elevate this discussion, and promote mainstreaming of just transition principles across all G7 priorities and discussions for the upcoming years.”

Other position statements:  The Global Investor statement to G7 leaders, signed by 319 investors representing more than USD $28 trillion in assets , and a Statement from the We Mean Business Coalition  .  Both business-oriented groups affirm their commitment to the Paris Agreement and made recommendations.

g7 fossil fuel scorecard infographics_canadaAlso, from the Overseas Development Institute (ODI), Oil Change International (OCI), Natural Resources Defense Council (NRDC) and Global Subsidies Initiative (GSI) : the G7 Fossil Fuel Subsidy Report Card , released on June 4 . It states that  G7 governments continue to provide at least $100 billion in subsidies to the production and use of coal, oil and gas, and ranks the G7 countries according to seven indicators: transparency; pledges and commitments; ending support for coal mining; ending support for exploration; ending support for oil and gas production; ending support for fossil fuel-based power; and ending support for fossil fuel use.  Using these categories,  Canada ranked 3rd out of the G7 countries overall, after France (1st) and Germany (2nd), followed by U.K., Italy, Japan, and the U.S. (7th).  This, against the backdrop of an Ekos Research  public opinion poll from March 2018 that shows Canadians want an end to fossil fuel subsidies in virtually every part of the country and across gender, age, region, education, and income. For a new discussion of the issue and the Scorecard report, see “Canada leads G7 in oil and gas subsidies” in The Narwhal.

The National Observer coverage of the entire G7 Summit is here, with a focus on the trade dispute, but including “G7 still negotiating as clock runs down on climate commitments and “McKenna praises IKEA move to ban single-use plastics by 2020” , which discusses the broader issue.

Reactions :  A compilation of reactions appears in “G7 Leaders isolate Trump on Climate” in The Energy Mix, and CAN-RAC  released a position paper in response  Shaping the Future: A new vision for civil society and the G7 .   Environmentalists, including Greenpeace,  called the Plastics Charter inadequate because it is voluntary,and focuses on recycling and repurposing, rather than reduction or an outright ban on single-use plastics.  The Chemistry Industry Association of Canada (CIAC) and the Canadian Plastics Industry Association (CPIA) released a statement of support of the Ocean Plastics Charter on June 10 , also stating that its members: ” had committed to goals of 100 per cent of plastics packaging being recyclable or recoverable by 2030 and 100 per cent of plastics packaging being reused, recycled, or recovered by 2040.”

 

 

 

Federal budget gets high marks for conservation initiatives but disappoints on green economy spending

Budget 2018, Equality + Growth: A Strong Middle Class   was tabled by the federal government on February 27.  The Globe and Mail published a concise overview in  “Federal budget highlights: Twelve things you need to know” .  A compilation of reaction and analysis from the Canadian Centre for Policy Analysis is here , including statements from CCPA partner organizations such as the United Steelworkers   and the Canadian Labour Congress.

budget_analysis 2018The section of the Budget which relates most to a low carbon economy is in Chapter 4: Advancement .  The Budget commits an unprecedented $1.3 billion over 5 years for conservation partnerships and the protection of lands, waters, and species at risk – prompting the Pew Trust in the U.S. to call the biodiversity targets “an example to the world” in  “With earth in peril, Canada steps up” .  Responses from the 19 environmental advocacy members of the Green Budget Coalition are compiled here , applauding the  “historic” and “landmark” investments in the Budget.  DeSmog Canada summarizes the provisions, which aim to protect 17 per cent of land and 10 per cent of oceans by 2020 under the United Nations Convention on Biological Diversity, and commit to recognizing  Indigenous leadership.

But on the climate change front?

The National Observer writes: “Budget delivers new conservation fund but avoids climate commitments” (Feb. 27) , highlighting the Budget allocations announced for the  the  $2.6 Billion Low Carbon Economy Fund  (announced in 2016) : $420 million will go to Ontario, for retrofitting houses and reducing emissions from farms;  $260 million will go to  Quebec for farming and forestry best practices, as well as energy retrofitting, and incentives for industry;  $162 million will go to British Columbia, partly for reforestation of public forests; $150 million will go to Alberta for energy efficiency programs for farmers and ranchers, for  renewable energy in Indigenous communities, and for restoring forests after wildfires;  $51 million is going to New Brunswick and $56 million to Nova Scotia for energy retrofitting. Allocations for Manitoba will be announced later, and for Saskatchewan if it signs on to the Pan-Canadian Framework.

The Pembina Institute reaction is also fairly positive in  “Budget 2018 builds on last year’s commitment to climate change” . “We are pleased to see that Budget 2018 allocates $109 million over five years to develop, implement, administer, and enforce the federal carbon pollution pricing system. …Another $20 million over five years is allocated to fulfill the PCF’s (Pan-Canadian Framework on Clean Growth and Climate Change) commitment to assess the effectiveness of its measures and identify best practices. ”

Less positive reaction:  “Council of Canadians disappointed by Trudeau government’s budget 2018” (Feb.27), which  points out that the government has allocated $600 million to host the G7 summit in June 2018 in Quebec,  yet the Budget fails to phase out subsidies for the fossil fuel industry, as it committed to at the G20 meetings and in the October 2015 election.  Elizabeth May of the Green Party also “laments squandered opportunities” and points out that “Budget 2018 does not touch subsidies to fossil fuels in the oil patch and for fracked natural gas”.

In advance of Budget 2018, the Canadian Labour Congress published “What Canada’s unions would like to see in the federal budget” – a broad perspective which included a call for “a  bold green economic program of targeted investments over the next five years for renewable energy development and infrastructure” … and “ the establishment of Just Transition training and adjustment funds for workers affected by climate change and the transition to a low-carbon economy, automation, the digitisation of work, and job losses caused by trade agreements like CETA.” The CLC response  to the actual Budget emphasizes the positive  developments on issues like pharmacare and pay equity, but is silent on the green economy issues. Canadian Union of Public Employees’ reaction is similar.

 

Canada, the World Bank and International Confederation of Trade Unions announce a partnership to promote Just Transition in the phase-out of coal-fired electricity

One-Planet-Summit-sign2-1024x605Canada’s Environment and Climate Change Minister is back on the  international stage at the One Planet Summit in Paris, which is focusing on climate change financing – notably phasing out  fossil fuel subsidies, and aid to developing countries.  In a press release on December 12,  Canada announced a partnership with the World Bank Group to accelerate the transition from coal-fired electricity to clean sources in developing countries, stating: “This work also includes sharing best practices on how to ensure a just transition for displaced workers and their communities to minimize hardships and help workers and communities benefit from new clean growth opportunities. The transition to a low-carbon economy should be inclusive, progressive and good for business. We will work together with the International Trade Union Confederation in this regard.”   The World Bank Group announcement was briefer : “Canada and the World Bank will work together to accelerate the energy transition in developing countries and, together with the International Trade Union Confederation, will provide analysis to support efforts towards a just transition away from coal.”  The ITUC Just Transition Centre hadn’t posted any announcement as of December 13.

Other Canadian partnerships announced in a general press release: a Canada-France Climate Partnership to promote the implementation of the Paris Agreement through  carbon pricing, coal phase-out, sustainable development and emission reductions in the marine and aviation sectors; Canada was selected as one of five countries for a new partnership with the Breakthrough Energy Coalition led by Bill Gates; and Canada , along with five Canadian provinces, two U.S. states, and Mexico, Costa Rica and Chile, signed on to the Declaration on Carbon Markets in the Americas, to strengthen  international and regional cooperation on carbon pricing.

The World Bank, one of the organizers of the One Planet Summit, made numerous other announcements – including that it will no longer finance upstream oil and gas developments after 2019, and as of 2018, it  will report greenhouse gas emissions from the investment projects it finances in key emissions-producing sectors, such as energy. Such moves may be seen as a response to the demands of the Big Shift Global campaign of Oil Change International, which  released a new briefing called “The Dirty Dozen: How Public Finance Drives the Climate Crisis through Oil, Gas, and Coal Expansion  on the eve of the One Planet Summit.  Over 200 civil society groups also issued an Open Letter   calling on G20 governments and multilateral development banks to phase out fossil fuel subsidies and public finance for fossil fuels as soon as possible, and no later than 2020.  Signatories include Oil Change International, Les Amis de la Terre – Friends of the Earth France, Christian Aid, Greenpeace, Reseau Action Climat – Climate Action Network France, WWF International, BankTrack, Climate Action Network International, Global Witness, 350.org, Germanwatch, Natural Resources Defense Council, CIDSE, and the Asian Peoples Movement on Debt and Development.

In Canada, Environmental Defence is collecting signatures in a campaign to stop fossil fuel subsidies , stating  “ Together, federal and provincial governments hand out $3.3 billion in subsidies every year for oil and gas exploration and development. In 2016, Export Development Canada, a crown corporation, spent an additional $12 billion in public money to finance fossil fuel projects.”