New Brunswick launches consultation on industrial emissions – updated

The Government of New Brunswick opposes the federal government carbon tax and maintains a “We can’t afford a carbon tax” page on the government website – which estimates the costs (but none of the benefits) of the federal carbon backstop in effect in the province.  On June 13, New Brunswick introduced its own Made-in-New Brunswick  Regulatory Approach for Large Emitters ,  an output-based pricing system which will cover roughly 50 per cent of greenhouse gas emissions in the province and will require large industrial emitters, including electricity generators, to reduce their greenhouse gas emissions intensity by 10 per cent by 2030.

The CBC summarized the plan and reaction in “Province proposes carbon tax on tiny fraction of emissions from big industrial polluters”  (June 13) . CBC states that the proposed system would tax only 0.84 percent of greenhouse gas emissions from the province’s biggest emitters, such as Irving Oil,  far below the 20 per cent in the existing federal system. However, it covers the same industrial sectors, applies to the same gases and applies the same price scale of $20 per tonne this year, rising to $50 per tonne in 2022.

A Discussion paper , Holding Large Emitters Accountable: New Brunswick’s Output-Based Pricing System  forms the basis of a public comment period about the proposed system, which runs from June 13 to July 12.  One public response has been published by the Ecofiscal Commission in Exception to the Rule: Why New Brunswick’s Industrial Carbon Pricing System is Problematic (June 19) , which contends that under the proposed regulations, “firms can very easily achieve their emissions intensity benchmark, because it will be essentially set to current levels.”

The Conservation Council of New Brunswick reaction was quoted by the CBC, and also states that the proposed regulations are too weak.  Emphasizing the importance of the issue, on June 25 the Council released Healthy Climate, Healthy New Brunswickers: A proposal for New Brunswick that cuts pollution and protects health,  by Louise Comeau and Daniel Nunes. The Council characterizes the report as “the first comprehensive look at how climate change will affect the physical and mental health of all New Brunswickers, but particularly the very young, seniors, the isolated, and those living on low incomes.”  The report combines climate projections and existing community health profiles for 16 New Brunswick communities, emphasizing the risks of more intense precipitation, flooding and heat waves. It includes recommendations for action and attempts to end on a hopeful note. The report is available in English and French versions from this link .

Updates on New Brunswick’s carbon tax:  On July 8, CBC reported “New Brunswick Premier Blaine  Higgs  abandons  planned carbon tax court fight” , which explains that the province will save taxpayers’ money by supporting Saskatchewan’s Supreme Court of Canada challenge to the carbon tax as an intervenor, since Saskatchewan’s arguments are the same as New Brunswick’s.   Also in  July, an historical and political analysis appeared in Policy Options, “ New Brunswick’s timid foray into carbon pricing”, as part of the week-long series , The Evolution of Carbon Pricing in the Provinces .

 

New Brunswick’s new Climate Change Act unlikely to meet the federal carbon pricing benchmark

The government of New Brunswick introduced its Climate Change Act on December 14, 2017. According to the government press release ,   the province will adopt the federal government’s intensity targets for the 10 large industrial emitters in the province,  and  will redirect existing taxes on gasoline and diesel fuel – but not heating fuel –  to a new Climate Change Fund.  It forecasts that in 2018, 2.33 cents per litre of existing gasoline taxes and 2.76 cents per litre of existing diesel fuel taxes will be transferred to the Climate Change Fund, amounting to about $37 million, to be invested in infrastructure adaptation and energy efficiency improvements for homes, business, industry and transportation.  For details, see the government Backgrounder  and see the CBC analysis “Liberals’ sleight-of-hand carbon tax formally proposed in climate bill “(Dec. 14) for summary and reaction.  In  “Legislation misses mark on protecting families and communities from worst of climate change impacts in N.B.” , the Conservation Council of New Brunswick calls the government plan “an uninspiring follow-up to last December’s climate change action plan , which was a smart road map for climate action and job creation that was among the best in the country…. we have legislation that largely maintains the status quo and sets us on a race to the bottom when it comes to protecting the health and safety of New Brunswickers and taking advantage of the economic opportunities that come with ambitious climate action.”

The National Observer summarizes the reaction from the federal government  in “New Brunswick defends climate plan against McKenna’s concerns”, quoting the Minister’s  Facebook post which reiterated the federal position that it will impose a carbon tax on any jurisdiction which falls short of federal carbon pricing benchmarks under the Pan-Canadian Framework on Clean Growth and Climate Change.  In a separate statement on December 15 , the Minister extended the deadline for provincial compliance till the end of 2018.

New Brunswick arrives at First Ministers’ meeting with a new Climate Action Plan

On December 7, the government of New Brunswick released its climate action plan,  Transitioning to a Low-carbon Economy .  It pledges a “made-in-New Brunswick price on carbon and caps on GHG emissions that reflect the reality of the New Brunswick economy”; similarly, the pledge to phase out coal as a source of electricity is “respecting New Brunswick’s economic reality and considering potential financial support from the federal government”. Government operations, facilities and vehicles will become  carbon-neutral by 2030 .  The government pledges to develop working groups with First Nations to address priority actions, and include First Nations representatives on a climate change advisory committee.   Only one day previously, on December 6, New Brunswick issued a press release  reiterating the government’s support for the Energy East pipeline, on the grounds that “An estimated 4,551 direct and indirect jobs are expected during construction of the pipeline, with 321 jobs every year of operation. The potential increase to New Brunswick’s GDP is more than $3 billion.”

In Case you missed it: Some policy landmarks over the summer

Ontario, Quebec and Mexico agree to promote carbon markets in North America: On August 31, at the 2016 Climate Summit of the Americas , the three jurisdictions announced   a joint declaration  which states: “The Partners are determined to jointly promote the expansion of carbon market instruments for greenhouse gas emissions reduction in North America.”   See the Globe and Mail summary here .

Alberta appoints an Oil Sands Advisory Group:  On July 14, Alberta appointed a 15-member Oil Sands Advisory Group   to provide expert advice on how to implement its 100 megatonne per year carbon emissions limit for the oil sands industry, and on “a pathway to 2050, including responding to federal and other initiatives that may affect the oil sands after 2030.”  Co-chairs appointed are: Climate and energy advocate Tzeporah Berman,   Melody Lepine of the Mikisew Cree First Nation, and Dave Collyer, former president of the Canadian Association of Petroleum Producers.

New Brunswick Climate Action Committee: The government’s Select Committee on Climate Change   held public hearings and accepted submissions over the summer.  In July, New Brunswick’s  Conservation Council produced its  “Climate Action Plan for New Brunswick”. It  proposes to reduce GHG  emissions through investments in retrofitting, starting with social and low-income housing; expand renewable energy ; provide incentives for electric and energy efficient vehicles; modernize industry and manufacturing to reduce waste and pollution, and accelerate installation of the Energy Internet (Smart Grid telecommunications) to manage a more distributed electricity load. These investments would help NB Power phase coal out of electricity production over the next 15 years.

U.S. and China formally join the Paris Agreement: On September 3, the eve of the G20 Summit in Hangzhou China, the two countries responsible for almost  40% of the world’s GHG emissions announced that they will formally ratify the Paris Accord.  See coverage in The Guardian ;  “U.S. and China formally join historic Paris climate agreement; Canada not yet ready”  in the Globe and Mail;  “Landmark China-U.S. climate breakthrough elicits tepid response” from Weekly Climate Review.  Check the Climate Analytics website  for their “ratification tracker”, which on September 9 states “ it is estimated that at least 58 countries are likely to have ratified the Paris Agreement by the end of 2016, accounting for 59.88% of global emissions. Under this scenario, the Paris Agreement will entry into force by the end of the year.”  The website has details country-by-country.

New U.S.  fuel standards for heavy-duty vehicles after model year 2018:  The U.S. Environmental Protection Agency   and the Department of Transportation’s National Highway Traffic Safety Administration jointly finalized standards for medium- and heavy-duty vehicles, to improve fuel efficiency and cut carbon pollution.  Heavy duty vehicles include:combination tractors (semi trucks), heavy-duty pickup trucks and vans, and vocational vehicles (including buses and garbage or utility trucks). The new rule and an archive of related documents is available at the EPA website . The American Council for an Energy Efficient Economy   applauds the new rules; as does the trucking industry, according to the New York Times coverage .  Canada is expected to follow suit, based on the  the Joint Leaders’ statement from the Three Amigos Summit, June 29,  :  “Canada, the U.S., and Mexico commit to reduce GHG emissions from light- and heavy-duty vehicles by aligning fuel efficiency and/or GHG emission standards by 2025 and 2027, respectively. We also commit to reduce air pollutant emissions by aligning air pollutant emission standards for light- and heavy-duty vehicles and corresponding low-sulphur fuel standards beginning in 2018. In addition, we will encourage greener freight transportation throughout North America by expanding the SmartWay program to Mexico.” Canada last updated its emission standards for heavy-duty trucks in 2013, covering up to model year 2018.

California continues to lead with landmark legislation:  California legislation (SB32) was passed in late August, and signed by Governor Jerry Brown on September 8,  requiring the state to reduce its greenhouse gas emissions to 40 percent below 1990 levels by 2030 .   An economic analysis by consulting firm Environmental Entrepreneurs (E2)  was released during the public debate  around SB32, claiming that thousands of jobs had been created in every District of the state by the predecesor Global Warming Solutions Act. See the press release here.  And the 8th annual edition of California’s Green Innovation Index  by Next10 quantifies a booming clean energy economy, with solar generation increased by 1,378 percent in the past 5 years.  “California’s Historic Climate Legislation becomes Law” from Think Progress is typical of the superlatives throughout the news coverage.

As evidence of California’s important leadership role:  on August 1, New York’s Public Service Commission approved the Clean Energy Standard   which mandates that 50 percent of the New York state’s electricity will come from renewable, clean energy sources by 2030 .   California had passed legislation in 2015 to mandate utilities to provide 50 percent of their electricity generation from renewable sources by 2030, and require a 50 percent increase in energy efficiency in buildings by 2030.

Minority Report challenges Australia’s Climate Change policies:  Australia’s Cimate Change Authority released a report at the end of August:  Towards a climate policy toolkit: Special Review of Australia’s climate goals and policies  .  Authority experts David Karoly and Clive Hamilton so disagreed with the majority report that they issued their own Minority Report   (see the press release here  ) .  Clive Hamilton stated  “The majority report gives the impression that Australia has plenty of time to implement measures to bring Australia’s emissions sharply down.  This is untrue and dangerous”.

Shift in Climate Change policy in the U.K. government:  The new post-Brexit government of Theresa May has made “ a stupid and deeply worrying” decision according to The Independent ,    by moving the work of the  Department for Environment and Climate Change to a new  “Department for Business, Energy & Industrial Strategy.”    Reassurance from the June adoption of  a world-leading GHG emissions reduction target, as reported in The Guardian  here and here , has been challenged. The BBC reported that  “Just days after the United Kingdom committed  to cut greenhouse gas emissions 57% from 1990 levels by 2032, the country’s grid operator reported this morning that the country will miss its existing EU long-term targets for 2020,  unless it adopts more aggressive clean energy policies.”

 

May 2016 News: New Brunswick and Newfoundland extend Fracking bans

New Brunswick’s Minister of  Energy announced an indefinite extension of the province’s fracking ban on May 27, based on the February  report  of its Hydraulic Fracturing Commission,  according to a CBC report  . Similarly, the Newfoundland and Labrador Hydraulic Fracturing Review Panel released its final Report  at the end of May, with a  recommendation that the “pause” on fracking in Western Newfoundland continue.  See the Panel website,   which includes Submissions and Documents , as  well as technical reports as appendices,  which include research into the economic and jobs impacts of fracking, as well as impacts on human health and water resources.

New Brunswick has also released a discussion guide , Building a Stronger New Brunswick Response to Climate Change , in order to to stimulate public input for the Select Committee on Climate Change, constituted in April 2016.  There is no target date yet for its report.

New Brunswick establishes a Select Committee on a Green Economy

The New Brunswick legislature voted to establish an  all-party select committee on Climate Change on  April 8 , to hold public consultations and produce a report . Read the summary by the Conservation Council of New Brunswick here  . The Premier held an “Opportunity Summit” meeting  on April 4  in Edmundston to consult on green economy issues.

Energy East Pipeline is not worth the Risks

Energy East Pipeline is Not Worth the Risks: The Ontario Energy Board released the conclusions from an 18-month study and consultation on August 13. A Review of the Economic Impact of Energy East on Ontario  considered the impacts on tax revenue and local employment, and concluded that “there is an imbalance between the economic and environmental risks of the project and the expected benefits for Ontarians”.   The greatest concerns were expressed about potential gas shortages as the pipeline switches from transporting natural gas to oil, proximity to important waterways, and the need for up-to-date technology to prevent and mitigate spills. Employment impacts were difficult to estimate because of lack of data from the Trans Canada proposal, but were considered minimal, especially in Northern Ontario.   The final report was prepared by researchers at the Mowat Centre and University of Toronto; consultants’ reports and submissions are available online at the Consultation website, including the Canada’s Building Trades Unions submission.

The Conservation Council of New Brunswick describes the natural environment and thriving fishery and tourism industry in its August report, Tanker Traffic and Tar Balls: What TransCanada’s Energy East Pipeline means for the Bay of Fundy and Gulf of Maine . The report cites the dangers to whales increased noise and traffic in already busy shipping lanes, as well as the greater danger of an oil spill. Further, it cites research that states that oil dispersants can by 52 times more toxic than spilled oil to certain marine species. It concludes with 9 recommendations for further consultation, research, and environmental protection legislation.

The Council of Canadians also exposed the dangers of Energy East oil spills to waterways across Canada in a 2014 report,  Energy East: Where Oil meets Water.

New Brunswick’s Controversial New Forestry Plan Allows for Expanded Cutting on Crown Lands

The New Brunswick government released a new forestry plan in March 2014, following heavy lobbying by the forest industry, led by J.D Irving Ltd. The industry argued that they needed a long-term commitment to access the wood supply from Crown Lands to justify the large capital investment necessary to make New Brunswick mills efficient. The 2014 Strategy for Crown Lands Forest Management increases the amount of softwood (chiefly spruce and fir) that can be harvested from Crown Lands by 20%, and reduces the areas that are off-limits to industrial cutting (including watercourse buffers, deer wintering areas, and old growth forest) from 28% to 23% over a 10-15 year period. The result, according to the government, will be “500 new, well-paid private sector jobs” and “more than $22 million in additional annual wages”. Direct forest sector employment in New Brunswick had fallen 24% and the number of mills had fallen 47% since 2004, according to the government. Since the release, J.D. Irving Ltd. has committed to $513 million in capital investments in its mills, mostly at Irving Pulp & Paper in Saint John.

In response to the March Strategy document, Rino Ouellet, Atlantic area Director for Unifor, issued a press release which echos the government’s economic arguments and endorses the Forestry Plan. In a February press release, he had stated, “…in order for the plan to work, it must include in the process First Nations people, wood lot owners, labour, and crown land rights…and must continue to allow for environmentally-protected areas”.

On another side of this triangular debate, opposition includes: the provincial leader of the Green Party, who calls it “a plan for plunder”; the executive director of the Canadian Parks and Wilderness, who calls it “regressive”; Graham Forbes, a professor from University of New Brunswick, who says it is unsustainable; and Rod Cumberland, a retired government biologist, who says many provincial government scientists are alarmed, but are too afraid to speak out for fear of losing their jobs.

The political storm continues on this issue. On April 24th, the government tabled in the legislature the terms of an agreement with J.D. Irving which increases the company’s annual allocations of softwood, for an initial term of 25 years, beginning on July 1, 2014. The contract calls for the company’s performance to be reviewed every five years, with five-year renewals contingent upon satisfactory performance.

LINKS

Putting Our Resources To Work: A Strategy For Crown Lands Forest Management on the New Brunswick government website at: http://www2.gnb.ca/content/dam/gnb/Departments/nr-rn/pdf/en/ForestsCrownLands/AStrategyForCrownLandsForestManagement.pdf

J.D. Irving press release is at: http://www.newswire.ca/en/story/1335353/new-crown-forest-policy-drives-16-8-million-investments-in-the-forests-mills-and-suppliers-74-jobs-created

Unifor’s March press release: “Atlantic’s Largest Forestry Union applauds Long term plan for Sector” at:

http://www.unifor.org/en/whats-new/press-room/atlantics-largest-forestry-union-applauds-long-term-plan-sector; February press release at: http://www.newswire.ca/en/story/1298929/forestry-plan-much-needed-for-new-brunswick

For Reactions: The Crown Lands Debate, a Feature on the CBC website at: http://www.cbc.ca/nb/features/crownforestrydebate/ including, “Irving clout with Government challenged in wake of Forest Deal” at:http://www.cbc.ca/news/canada/new-brunswick/irving-clout-with-government-challenged-in-wake-of-forest-deal-1.2572410; and “New Crown Forest Plan slammed by retired Provincial Biologist” at: http://www.cbc.ca/news/canada/new-brunswick/new-crown-forest-plan-slammed-by-retired-provincial-biologist-1.2580430; “New Crown Forestry Plan greeted with Shock, Dismay” at: http://www.cbc.ca/news/canada/new-brunswick/new-crown-forestry-plan-greeted-with-shock-dismay-1.2570803

“J.D. Irving’s Crown Forest Contract Made Public” is at the CBC at:

http://www.cbc.ca/news/canada/new-brunswick/j-d-irving-s-crown-forest-contract-made-public-1.2620780

Protests Continue in New Brunswick; UNIFOR Supports First Nations with a Call for a National Moratorium

The government of New Brunswick continues to support fracking despite First Nations protests, according to New Brunswick’s Energy Minister, quoted in the Globe and Mail. Read “Anti-fracking protests shouldn’t hinder shale-gas sector, N.B. Energy Minister says” (Nov. 14) in the Globe and Mail at: http://www.theglobeandmail.com/news/politics/anti-fracking-protests-shouldnt-hinder-shale-gas-sector-nb-energy-minister-says/article15447462/. But UNIFOR, the union which represents energy workers, expressed support for the First Nations protests and called for a national moratorium on fracking. Read the press release at:  http://www.unifor.org/en/whats-new/news/unifor-calls-national-moratorium-fracking and the full statement by the National Executive Board (November 12) at: http://www.unifor.org/sites/default/files/attachments/neb_resolution_on_fracking_nov2013_e.pdf.

Energy East Pipeline: Job Creation Projections Provided by TransCanada

TransCanada Pipelines released an economic analysis of their Energy East pipeline project on September 9, providing detailed estimates of direct, indirect and induced job creation, as well as the impact on tax revenues and Canadian GDP. The report was prepared by Deloitte and Touche LLP, using a Statistics Canada input/output model. It forecasts more than 10,000 full-time jobs will be directly supported during the development and construction phase (2013 to 2018), with approximately half of the jobs in construction, engineering, architectural, and oil and gas support services industries. In the operational phase, approximately 1,000 full-time jobs are forecast.

Despite the enthusiasm of federal politicians and New Brunswick Premier David Alward, CBC and the Globe and Mail have reported skepticism about the job creation numbers by New Brunswickers. There is also serious opposition from Ontario and Quebec, based on environmental and safety concerns.

LINKS

Energy East: The Economic Benefits of TransCanada’s Canadian Mainline Conversion Project at the Deloitte website at: http://www.energyeastpipeline.com/wp-content/uploads/2013/09/Energy-East-Deloitte-Economic-Benefits-Report.pdf; A briefer (2-page) Backgrounder is available at: http://www.energyeastpipeline.com/wp-content/uploads/2013/09/Energy-East-Economic-Analysis-Backgrounder.pdf.

“TransCanada Touts National Benefits of Energy East Plan” (Sept. 10) in the Globe and Mail at: http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/energy-east-pipeline-will-create-2000-jobs-transcanada/article14213238/

Energy East Pipeline may create 10,000 Jobs, Study Says (Sept. 10) is at the CBC website at: http://www.cbc.ca/news/canada/new-brunswick/energy-east-pipeline-may-create-10-000-jobs-study-says-1.1699614

“N.B. Mayor adds to Chorus of Dissent against Energy East Pipeline Plan” (Sept. 12) in the Globe and Mail at:http://www.theglobeandmail.com/news/politics/nb-mayor-adds-to-chorus-of-dissent-against-energy-east-pipeline-plan/article14298359/

“TransCanada’s Eastern Path hits Snag in Ontario”(Aug. 22) in the Globe and Mail is at: http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/transcanadas-eastern-path-hits-roadblock-in-ontario/article13909022/