Plan to reduce Ontario emissions calls for incentives for energy efficiency, natural gas phase-out

A Plan for Green Buildings, Jobs and Prosperity for Ontario  was released on September 15 by Environmental Defence and the Ontario Clean Air Alliance. It is a plain-language guide to why and how to reduce carbon emissions from “fossil gas” (aka natural gas) and a summary of the co-benefits of doing so: create good green jobs, lower energy bills, and economic growth. The report states that Ontario’s carbon emissions from power generation are on track to increase by more than 300% by 2030, and offers specific actions which would instead reduce emissions from fossil gas by 30 – 40%.

The Plan proposes: heavy government investment in programs for building energy efficiency, including grants and low-interest financial schemes to encourage consumer buy-in (for example, allowing  repayment on energy or property tax bills);  Phase out of fossil fuel power generation by 2030;  Net-zero building standards in construction;  Redirecting funds which currently subsidize natural gas pipelines (estimated at $234 million) to subsidize lower-cost zero-carbon heating alternatives; and reserving hydrogen and renewable fuels for the hardest-to decarbonize sectors like aviation and heavy industry.   

The report cites modelling done by Dunsky Energy Consulting in The Economic Impact of Improved Energy Efficiency in Canada  (2018) to claim that  the energy efficiency programs alone would create over 18,500 good jobs, and states that even more would be created locally by green energy and zero-carbon heating programs.

Canadian, Ontario governments launch youth consultations on climate issues

It’s almost as if Canadian governments have noticed the international Fridays for Future movement, or the Sunrise Movement in the U.S.! On July 21, both the federal and Ontario government announced the formation of youth councils, to engage with young people on climate issues. The federal Environment and Climate Change Youth Council  was announced in this press release, inviting Canadians between the ages of 18 to 25 to apply by August 18, to participate in consultations regarding climate change, biodiversity loss, and how to better protect the natural environment. “In particular, inaugural members will engage on Canada’s top priorities, including achieving net-zero emissions by 2050 and zero plastic waste by 2030.” Applicants must be sponsored/nominated by an NGO or charitable organization which relates to the mandate of Environment and Climate Change Canada. Ten people will be chosen to serve a two-year term on a voluntary basis and meet every four months.  The Youth Council website, with application information, is here.  

In Ontario, high school youth are invited to apply by August 4th to be members of a Youth Environment Council, which will meet monthly from September to April 2021 to hear from expert guest speakers, discuss a range of environmental and climate change issues and provide input to ministry officials, including the Minister of the Environment, Conservation and Parks.  Details and an application form are here.

Note to governments: the next Global Fridays for Future Climate Strike will be held on September 24, 2021, under the banner #UprootTheSystem. Demands are explained here.

Workforce 2030 coalition launches to encourage low-carbon skills training for Ontario building sector

Workforce 2030 was launched in Toronto on July 23 –  a cross-sectoral coalition of employers, educators, and workers in Ontario’s building sector. The press release states: “Workforce 2030’s goal is to accelerate workforce capacity by collectively impacting government policy, business practices, and education.”   The Statement of Principles is here, outlining values of collaboration and accountability, and equity.

From John Cartwright, member of the Advisory Council and President of the Toronto and York Region Labour Council: “Workforce 2030 is a collaboration that will increase the capacity of the skilled trades to meet the low-carbon standards required in the built form of tomorrow. We need to continuously improve low-carbon skills for the entire sector, deepen our commitment to high-quality training, and grow our workforce through equity and inclusion.”  

The Coalition is “catalyzed” by The Atmospheric Fund (TAF) and Canada Green Building Council (CaGBC), which hosts the Workforce 2030 website and whose research reports are highlighted there. The coalition will be organized into working groups, with the following themes:  Green Recovery Stimulus: Advocating for Workforce Capacity Investments; Workforce Capacity for Tall Timber Residential New Construction; Low-carbon Workforce Readiness: In-depth skills gaps assessment and industry co-developed action plan; Equitable and Inclusive Recruitment and Training; and Workforce Capacity for Retrofits.

The  14-person Advisory Board includes Julia Langer, (CEO, The Atmospheric Fund (TAF)); Akua Schatz,  Canada Green Building Council;  John Cartwright, President, Toronto and York Region Labour Council; Sandro Perruzza, CEO of Ontario Society of Professional Engineers; Rosemarie Powell, Executive Director, Toronto Community Benefits Network; Steven Martin, Business Manager, International Brotherhood of Electrical Workers (IBEW) Local 353; Mike Yorke, President, Carpenters District Council of Ontario;  and Corey Diamond, Executive Director, Efficiency Canada , among others.

Ontario Teachers’ pension fund invests in Abu Dhabi oil pipelines

The Ontario Teachers’ Pension Plan (OTPP), has outdone the May decision of AimCo in Alberta to invest in the Coastal GasLink pipeline,  with its announcement on June 23d that it is part of a consortium which has invested $10.1 billion  in a  gas pipeline network under development by the state-owned Abu Dhabi National Oil Company.  Details appear in the Globe and Mail    and Energy Mix on June 23.  The consortium partners are Toronto-based Brookfield Asset Management, New York-based Global Infrastructure Partners (GIP), and investors from Singapore, South Korea, and Italy.  The Ontario Teachers Pension Plan  is quoted by the Globe and Mail, stating: “This strategic transaction is attractive to Ontario Teachers’ as it provides us with a stake in a high-quality infrastructure asset with stable long-term cash flows, which will help us deliver on our pension promise.”

Advocacy group Shift Action for Pension Wealth and Planet Health responded with a scathing statement , which says:

“Investments like the OTPP’s in fossil fuel infrastructure are betting the hard-earned retirement savings of thousands of Ontario teachers against the long-term safety of our climate… Ensuring the growth of pensions in the long-term requires ending investments that lock-in fossil fuels and redeploying massive pools of finance into climate solutions like renewable energy and clean technology.”

Shift also links to a 25-page Toolkit for OTPP members on the risks of fossil fuel investment of their pension funds. (May 2020).   The OTPP Statement on Responsible Investing for 2019 is here.

Environmental rollbacks during Covid-19 in Canada and the U.S.

This post was updated on June 17 to include new developments in Alberta and Ontario. 

On June 3, Canadian journalist Emma McIntosh compiled and published a Canadian list of environmental rollbacks, and continues to update it as changes continue in almost every province.  “Here’s every environmental protection in Canada that has been suspended, delayed and cancelled during COVID-19” in the National Observer, is a compilation built by scouring news reports and legislative websites.  Although it includes all Canadian provinces, the Alberta and Ontario governments are highlighted as the worst offenders, including changes to Alberta’s environmental monitoring in the oil sands and weakening of air quality monitoring .  The inventory was updated to include Bill 22, The Red Tape Reduction Implementation Act , which passed first reading in the Alberta legislature on June 11. A 14-point omnibus bill, Bill 22 eliminates the need for cabinet approval for oil and gas projects, and dissolves the Energy Efficiency Alberta agency, begun in 2017. Alberta’s Environment Minister has said it  will be wound down by September and most staff re-assigned to the Emissions Reduction Alberta agency, which focuses on the oil and gas industry. Efficiency Canada reacted with a critical press release on June 12, titled “Alberta cuts successful job-creation engine in the midst of recession” – which states that “The agency created more than 4,300 private-sector jobs between 2017 and 2019”.

In Ontario, early on, the government suspended part two of the provincial Environmental Bill of Rights, excusing the government from notifying or consulting the public on environment-related projects, changes or regulations.  Changes were also made to zoning requirements, to speed the development approval process. Unexpectedly,  the government restored the protections on June , although it has been vague about its reasoning, and more importantly, has not revealed what projects were approved during the suspension period.  “Doug Ford government restores environmental protections it suspended amid COVID-19” (June 15). The article notes that since Premier Doug Ford took office in  2017, “Ontario has cancelled 227 clean energy projects, wound down conservation programs, weakened endangered species protections and has taken away powers from the province’s environmental commissioner.”

In Newfoundland

Although it is not noted in the National Observer inventory yet (updating is ongoing) – Newfoundland joined the ranks of major actors on June 4, when the government press release announced  a “New Regional Assessment Process Protects the Environment and Shortens Timelines for Exploration Drilling Program Approval”. This action reverses a 2010 decision and places authority for exploration approval back with the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB), rather than the federal Canadian Environmental Assessment Agency (CEAA). Calling the drilling of offshore exploration wells a “low impact activity”, the press release promises a faster approval process which “allows the province to become more globally competitive while maintaining a strong and effective environmental regulatory regime.”  A June 4 press release from the federal government endorses the move, according to their press release:  “The Government of Canada announces new regulatory measure to improve review process for exploratory drilling projects in the Canada-Newfoundland and Labrador offshore” .  

It is notable that the Just Recovery for All campaign launched in Canada on May 25  calls for a fair and just recovery from COVID-19 through relief and stimulus packages, and includes as one of its six principles:

“Bailout packages must not encourage unqualified handouts, regulatory rollbacks, or regressive subsidies that enrich shareholders or CEOs, particularly those who take advantage of tax havens. These programs must support a just transition away from fossil fuels that creates decent work and leaves no one behind.”

In the United States

Donald Trump’s environmental rollbacks during the Covid-19 pandemic have been well-reported, with the New York Times maintaining  an ongoing register in “The Trump Administration Is Reversing 100 Environmental Rules. Here’s the Full List” (last updated on May 20) and more recently, on June 4,  “ Trump, Citing Pandemic, Moves to Weaken Two Key Environmental Protections”. This article notes his Executive Order allowing agencies to waive required environmental reviews of infrastructure projects, and a new rule proposed by the Environmental Protection Agency which weakens air pollution controls under the  Clean Air Act regulations.

Greenpeace USA issued a response highlighting the racist intent of these changes, and DeSmog Blog published a blog “Trump EPA’s Refusal to Strengthen Air Quality Standards Most Likely to Harm Communities of Color, Experts Say“.

 

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Ontario updates: Advisory Panel on Climate Change appointed; Auditor General pans climate policies; Ontario youth launch new lawsuit

Post updated November 6:

In a November 28 press release,  Ontario’s  Minister of the Environment, Conservation and Parks announced the appointment of an Ontario Advisory Panel on Climate Change . The press release quotes the new Chair, Paul Kovacs who states: “The knowledge exists to prevent losses from flooding, wildfire and other climate extremes…. “Members of the advisory panel on climate change look forward to working with the Government of Ontario to champion climate resilience. Working together, we can break the alarming trend of rising severe weather damage to homes, businesses and public infrastructure. Action on climate resilience is a critical element of a comprehensive strategy on climate change.”

Members of the Advisory Panel come from a variety of sectors including non-profits, agriculture, insurance, and reflect the Panel’s focus on adaptation and conservation concerns. Neither green advocacy groups nor workers are represented. The brief bios of panelists are here :  Chair Paul Kovacs is founder and Executive Director of the  Institute for Catastrophic Loss Reduction at Western University; Vice-Chair Lynette Mader is the Manager of Provincial Operations for Ontario for Ducks Unlimited Canada and an expert on species-at-risk.  The other eight Panel members include Blair Feltmate , head of the Intact Centre on Climate Adaptation at the University of Waterloo and Chair of the Government of Canada Expert Panel on Climate Adaptation and Resilience Results.

ontario auditor general 2019The Advisory Panel was announced on the one-year anniversary of the Made-in-Ontario Environment Plan.   On December 4,  that policy initiative was reviewed when the provincial Auditor General tabled her annual report in the Legislature, including  Volume 2:  Reports on the Environment . In 183 pages and three chapters, the report provides an overview of  1. environmental issues in Ontario; 2. Operation of the Environmental Bill of Rights, and 3. Climate Change: Ontario’s plan to reduce Greenhouse Gas Emissions. The report details the government’s performance and finds that it has double-counted emissions reductions in some cases, over-estimated potential impacts of its own policies,  and is nowhere near able to meet its own 2030 emissions reductions targets.   The National Observer summarizes the report in “Ontario Auditor General slams Doug Ford’s climate policies”  and an analysis at the  TVO website tells a similar story in  “Ontario’s Auditor General gives the Tories’ climate plan a failing grade”.  This latest report follows on the previous  highly-critical report of the outgoing Environmental Commissioner,  A Healthy, Happy, Prosperous Ontario: Why we need more energy conservation  (March 2019), and  the Failure to Launch   report in October 2019 by Environmental Defence.

Youth launch lawsuit against Ontario government

All of these negative findings won’t help the government as they prepare to defend themselves against a new  climate change lawsuit by Ontario youth  who claim that the  Ford government’s softening of emissions reductions targets “will lead to widespread illness and death,” and thus has violated their charter rights under Section 7 of the Canadian Charter of Rights and Freedoms.  Seven  applicants from communities across Ontario, ranging in age from 12 to 24, are represented by lawyers from Ecojustice and Stockwoods LLP .  Details are in the Ecojustice  Case Backgrounderan overview of the action appears in the National Observer in  “These Ontario kids are taking climate protest from streets to courthouse” (Nov. 26).

mathur v province of ontario

66 recommendations from Special Advisor in investigation of Ontario’s 2019 record-setting floods

Disastrous and record-setting flooding occurred across the province of Ontario between April and July 2019, with 23 municipalities declaring states of emergencies.  In July 2019, the government appointed Doug McNeil, an experienced public servant from Manitoba, as Special Advisor on Flooding , with a mandate to consider the flood management and land use systems in Ontario.  His report was submitted to the government on October 31 and made public on November 28 – the press release is here. flooding firefighterThe 157-page  Report of an Independent review of the 2019 flood events in Ontario describes in detail the complex administrative and regulatory system which governs the province’s flood management , and  concludes that “the government and its partners were effective at reducing and mitigating flood risks…. the flooding was caused by a combination of weather conditions and found no human error or negligence in the operation  of “water control structures” (translation: dams).

Reaction to the report includes “Doug Ford government ducks fiscal responsibility for severe flooding” in the National Observer  (November 28) – which points out: “The first Ford budget had slashed by 50 per cent the flood management funds given to conservation authorities by his ministry to protect Ontario’s watersheds and canceled tree-planting efforts that limit flood damage.”  A Toronto Globe and Mail article focuses on the home-owners perspective in their overview “Ontario homes at risk of flooding should be made public: report”The Toronto and Region Conservation Authority reacted positively– their press release notes that many of their recommendations and comments about urban flooding were incorporated in the Special Advisor’s recommendations.  It is notable that the Chair of the TRCA was appointed on the same day as a member of Ontario’s new Advisory Panel on Climate Change.

The Special Advisor makes sixty-six recommendations for improved action and coordination by the provincial ministries and conservation authorities, and calls for sustained funding for  budgets related to flood management .  Recommendations include:

  • #3: “That the following be incorporated into the Provincial Policy Statement: • The reference to “impacts of a changing climate” throughout the Provincial Policy Statement helps to bring it to everyone’s attention and should be included in the Preamble as well.”
  • #15: That the Province consider adopting legislation that will require flood risk properties to be identified in some way that is publicly accessible, at the very least on the property title, to ensure that prospective buyers are aware.
  • #16 That municipalities consider utilizing local improvement charges to help finance and install (or upgrade) shoreline protection works, and if necessary, that the Province provide municipalities with enhanced authority to do so.
  • #52: That the Province continue the dialogue with the Insurance Bureau of Canada and the federal government on the steps needed to make flood insurance more available to more Ontarians.
  • #66: That the Province maintain, at a minimum, the current level of funding in departmental budgets and programs related to everything flood (i.e. existing approval processes and associated policies and technical requirements, floodplain mapping, maintenance of flood infrastructure, satellite imagery, etc.).

Calls for improvements to Ontario’s failed climate policies

failure-to-launchEnvironmental Defence released a one-year progress report on the climate change policies of the Ontario government in early October. Failure to Launch   reviews each of the promises/actions proposed by the Conservative government of Doug Ford under its much-citicized “ Made-In-Ontario Environment Plan,  which lowered Ontario’s target for GHG emissions reductions from 37 to 30 per cent below 2005 levels by 2030 and cancelled renewable energy programs.   Environmental Defence finds that the government has not even made sufficient progress in its first year to meet the diminished GHG reduction goals, and makes specific recommendations for accelerated action. A summary appears in the Environmental Defence blog .  Then, on November 7, thirty environmental advocacy groups, including Environmental Defence,  posted an Open Letter to the members of Ontario’s provincial parliament  on November 7, with specific demands which would take serious action on climate change.  This coincides with the recall of the legislature after an historic 4-month recess.

The government led  the new session with its  2019 Economic Outlook and Fiscal Review  under a new banner: “ A Plan to Build Ontario Together”.  Although analysts note many “about face” policy changes to some programs, the climate/environmental file hasn’t benefitted, as described in an article in the National Observer . It notes that there was no mention in the budget of the previously announced Ontario Carbon Trust, a fund of $400 million over four years to support the private sector in developing clean technologies .

Ontario to pursue carbon tax case, and dragging its feet on action

According to analysis of the Economic Outlook from TVO: “Anyone looking for signs of reasonableness from the Tories on carbon pricing will be disappointed: despite the recent federal-election results, the fall economic statement reiterates that the government will keep fighting the federal carbon tax in court. The Supreme Court of Canada is expected to hear the case in March 2020.”

On October 31, this press release  proposes to expand fines for environmental regulations, reinvesting that revenue “to support projects that provide local solutions to environmental issues”. Environmentalists were not impressed.

white pines decomissioningThe White Pines wind farm decommissioning began in October, with the government following through on its 2018 decision to cancel the almost-completed  project, despite an estimated cost to taxpayers of $100 million in costs and penalties.  The local press of Prince Edward County reported on October 31 “ Sadness for green energy supporters as dismantling begins on turbine project” . The National Observer published a related article concerning the costs of cuts to clean energy  programs, including White Pines: “Doug Ford ‘throwing away’ millions to kill Ontario clean energy programs” (Nov. 19). The article cites a cost to the taxpayer of $230 million from killing more than 750 renewable-energy projects.

A government press release on November 7 announced a “Multi-Sector Impact Assessment Will Help Communities Identify Climate Change Risks and Strengthen Resilience”.   Apparently there’s no urgency: the private sector contract for this assessment will be tendered in 2020 for 2 years, producing a final report in 2022.

 

Ontario Court rules that government broke the law by failure to consult on repeal of Cap and Trade regulations

doug ford scrap the taxA suit against the Conservative Ford government of Ontario was dismissed by the Ontario Divisional Court on October 11, but in the decision, a majority of judges wrote that the government breached Ontario’s Environmental Bill of Rights (EBR) by repealing the province’s Cap and Trade regulations without the required public consultation.  The CBC summarizes the decision and the National Observer writes,

“the judges found the Ford government was in “clear breach of the EBR” and that “its apparent efforts to avoid judicial review of this conduct raises serious concerns – not about whether the government had the lawful authority to repeal the Cap and Trade Act, but of its respect for the Rule of Law and the role of the courts, as a branch of government.”

The suit was brought by Greenpeace and Ecojustice in 2018.  The Greenpeace reaction on October 11 states:

“Scrapping cap-and-trade not only undercut a successful program that was helping Ontario reduce climate change-causing greenhouse gas emissions, it also cancelled 227 clean energy programs that would have benefit schools, hospitals, small businesses and public housing projects. It’s especially concerning that the Ford government did this in a way that silenced groups like Greenpeace and Ontario’s youth – who do not have a voice to vote, but stand to lose the most from climate inaction… Ontarians are marching in the streets demanding real action in response to the climate emergency and we call on the Ford government to listen to the people this time, starting with an abandonment of its challenge of the federal carbon tax.”

The Greenpeace statement also refers to Failure to Launch , a progress report on climate action in Ontario released on October 10 by Environmental Defence. A blog summarizes the findings; the full report is here , describing the destruction of climate change policies from the previous Liberal government, and making recommendations for improved future action.

Ontario Court of Appeal rules against the provincial challenge to the federal carbon price – Seven provinces will intervene in the Supreme Court appeal

doug ford scrap the taxOn June 28, the Ontario Court of Appeal issued their Decision , 4 to 1 in favour of the federal government’s right to impose a system of carbon pricing across Canada, under the Greenhouse Gas Pollution Pricing Act.   Some important excerpts from the majority decision:

“Parliament has determined that atmospheric accumulation of greenhouse gases causes climate changes that pose an existential threat to human civilization and the global ecosystem ….The need for a collective approach to a matter of national concern, and the risk of non-participation by one or more provinces, permits Canada to adopt minimum national standards to reduce [greenhouse gas] emissions…

The Act does this and no more. It leaves ample scope for provincial legislation in relation to the environment, climate change, and GHGs, while narrowly constraining federal jurisdiction to address the risk of provincial inaction.

The charges imposed by the Act are themselves constitutional. They are regulatory in nature and connected to the purposes of the Act. They are not taxes.

The Act is the product of extensive efforts – efforts originally endorsed by almost all provinces, including Ontario – to develop a pan-Canadian approach to reducing GHG emissions and mitigating climate change. This, too, reflects the fact that minimum national standards to reduce GHG emissions are of concern to Canada as a whole. The failure of those efforts reflects the reality that one or more dissenting provinces can defeat a national solution to a matter of national concern”

The Ontario government immediately announced that it will appeal the decision to the Supreme Court.  The Premier of Alberta, part of the Canada-wide Conservative opposition to the federal carbon tax, said that Alberta is reviewing the decision in his press release.  Saskatchewan, which lost its own court challenge to the GGPPA  in May 2019, has already filed an appeal in the Supreme Court of Canada, scheduled for December 5 2019 – notably after the coming federal election, in which climate change issues are widely expected to be a top priority for voters.

For a thorough discussion of the decision and compilation of reactions, read: “Doug Ford loses carbon tax battle with Trudeau” in the National Observer .  “Ontario Court of Appeal Upholds Federal Carbon Tax” appeared in The Energy Mix on July 2 and also compiles reaction from many sources. “Federal Carbon Pricing Regime Now Two-for-Two” (July 2) in Lexology offers a more lawyerly perspective.   And for the mood in Ontario, read “Doug Ford’s $30 million carbon tax fight is money down the drain but it keeps his brand afloat” in the Toronto Star (July 3) or in the Globe and Mail, The real carbon tax is the money provinces are spending on lawyers.”

Provinces line up to participate in Supreme Court appeal: ( Updated as of July 10):  As of July 8, seven provinces are  registered as intervenors in the Saskatchewan challenge to the carbon tax, scheduled to be heard by the Supreme Court of Canada in December 2019.  On July 8, CBC reported that  New Brunswick Premier Blaine  Higgs  abandons  planned carbon tax court fight , stating that the province will not waste taxpayers’ money on their own carbon tax court case, but will act as an intervenor in the Saskatchewan’s appeal.  Prince Edward Island is also intervening, as explained in  P.E.I. intervening in Saskatchewan’s carbon tax court challenge” (July 5).  The Premier of PEI states they are “absolutely not” joining the fight against a carbon tax, but are intervening as a way to reserve the right to participate in future. Even more surprisingly, “Quebec intervenes in Saskatchewan’s challenge of carbon tax“, as reported in the Montreal Gazette on July 8.  Quebec has joined the case to ensure its provincial rights are upheld in any court decision, and to protect Quebec’s existing cap and trade system. 

stampede ford 2019Aaron Wherry of CBC posted an analysis of the Conservative premiers’ positions against the federal carbon price in Premiers say they want a ‘co-operative’ approach to climate policy. Are they serious? (July 10).  It discusses the differences amongst  Alberta’s Jason Kenney, Ontario’s Doug Ford, Saskatchewan’s Scott Moe, New Brunswick’s Blaine Higgs and Bob McLeod of the Northwest Territories, who are meeting separately, in advance of the formal Council of the Federation meeting in Saskatoon, July 9 to 11.

 

Ontario Environmental Commissioner report falls on deaf ears as Ford government slashes energy efficiency programs,attacks carbon pricing (again)

ECO 2019 health happy prosperous Ontario coverA Healthy, Happy, Prosperous Ontario: Why we need more energy conservation  is the final report of Ontario’s Environmental Commissioner Dianne Saxe, released on March 27. The report documents the province’s energy use, argues for the value of energy conservation, and makes recommendations:  for improving utility conservation programs and energy efficiency programs for homeowners, and for urban planning policies to promote greater population density in “compact, complete communities” with jobs, transit and housing. The official summary of the report is here  ; a summary  was published by The National Observer on March 27.

This is the final report of the Environmental Commissioner because the ECO Office  has fallen to the pro-business agenda of the Doug Ford government: after April 1, it no  longer acts as an independent agency reporting directly to the Legislature, but will be merged into the Office of the Auditor General. The Commissioner has been critical of government policies – for example,  in the  annual Greenhouse Gas Reduction Progress Report for 2018, Climate Action in Ontario: What’s next? (September 2018).  With the 2019 Energy Conservation Progress report,  The Happy Health report , she states that current government policies encourage the use of fossil fuels in the province and will result in higher energy costs for consumers, higher greenhouse gas emissions, and increased air pollution, with associated adverse health impacts.

The “Government of the People” slashes energy efficiency, promotes P3’s: Despite the blunt criticism and recommendations of the Environment Commissioner (and many others), the Ford government continues to implement its “pro-business” agenda.  It is planning cancellations to consumer energy efficiency programs, as reported by  The  National Observer on March 20, “Exclusive: Doug Ford’s government slashing programs designed to save energy in buildings”  (March 20) and in “Ontario Slashes Energy Efficiency Programs, Delays Promise to Cut Hydro Rates”  in the Energy Mix  (March 25), which summarizes the Globe and Mail article, “Ontario Pulls the plug on energy conservation programs”  (subscription required).  A day later, the Globe and Mail said the cutbacks will include “subsidies for modern lighting, such as LED bulbs, more efficient air conditioners and furnaces, and upgrades to commercial refrigeration equipment. The government will also centralize the delivery of eight programs aimed at businesses, low-income seniors, and First Nations communities…”

On March 19, the government posted “Ontario Moving to Increase Innovation and Competition in Infrastructure Market” (March 19) , stating that it is  “ working for the people to make the province a leading destination for investment and job creation by increasing innovation and competition in its public-private partnership (P3) market.” This will include action to “Open P3 projects to greater innovation by making output specifications less prescriptive and rebalancing the Infrastructure Ontario bid evaluation criteria to better reward design innovation.”  Incidentally, the Ontario’s government is also willing to take credit for  federal infrastructure programs: as described in the March 12 press release, Ontario Launches $30 Billion Infrastructure Funding Program . In fact, the $30 billion refers to combined federal, provincial, and local funding  over the next 10 years through the federal Investing in Canada Infrastructure Program. The provincial share is a maximum of 33% .

And finally, the Ford government continues its attacks on carbon pricing:  A March 25 press release, “Ontario closes the book on cap and trade carbon tax era”  announces that “the  total compensation amount is $5,090,000 for a total of 27 participants” as a result of the the Cap and Trade Cancellation Act, 2018 (Oct. 2018) .  The press release continues: “But in one week, the federal government will impose a brand-new job-killing carbon tax, punishing the hardworking people of Ontario… Our government remains part of a growing coalition of provinces across Canada that oppose this cash-grab, which raises the cost of essentials like home heating and gasoline.”   The reality is that as of April 1st, the federal carbon pricing backstop will take effect in Ontario and the three other provinces that failed to design their own carbon pricing system under the Pan-Canadian Framework  — Saskatchewan, Manitoba, and New Brunswick.

Ecofiscal-Commission-10-Myths-about-Carbon-Pricing-Infographic-vertical-1.jpgThe EcoFiscal Commission is the latest to defend carbon pricing, with 10 Myths about Carbon Pricing in Canada – saying “Myths and misleading statements, however, continue to damage the debate over carbon pricing. A debate based on poor information does a disservice to Canadians….this new report will improve the quality of the debate by drawing on the best available evidence to debunk ten common myths. The report aims to serve as a resource for Canadians who want to learn what the evidence says about carbon pricing and its impacts on emissions, the economy, affordability, and jobs.”

The constitutional challenge to the carbon backstop is awaiting the court’s decision in Saskatchewan, and in Ontario, the court case will begin in late April. All related court documents are here .  Also in April,  the Ontario government releases its budget on the 11th.

Canada: the year past and the battle over carbon pricing in the year ahead

The Energy Mix Yearbook Review for 2018 is undoubtedly the most thorough and informed review of 2018 climate issues for Canadians.  It compiles its newsletter coverage of 2018 stories and adds context and analysis, as well as a multitude of links to further reading.  The sections of exceptional interest include “Jobs and Just Transition: Renewables and Efficiency Jobs Surge while Fossil Employment Sags “; “Fossils go for Broke”  and “Canada’s Contradiction: Low-Carbon Leader or Perpetual Petro-State?”  .  Other, briefer overviews for Canada include “State of Play 2018”  from EcoJustice, highlighting legal issues;  “ 10 wins for Canadian energy and climate action in 2018: Year in review” with a positive slant from the Pembina Institute (Dec. 20) ; and from the Council of Canadians 2018 in Review: Offshore drilling (December 21),  a chronology from Atlantic Canada.

On December 20, easily overlooked because of the holiday season,  Environment and Climate Change Canada published five separate review reports.  Clean Canada:  Protecting the Environment and Growing our Economy   is a snapshot of Canada’s federal climate action policies and expenditures, and seems intended for a wide popular audience.  Second Annual Synthesis Report regarding the Pan-Canadian Framework on Clean Growth and Climate Action   (French version here )  is a more detailed accounting of the policies and programs by the federal and provincial governments in 2018, organized in chapters relating to carbon pricing, complementary measures (buildings, transportation, electricity, agriculture, etc.); adaptation and resilience; clean technology and innovation and jobs; reporting and oversight; federal engagement and partnership with Indigenous people .  2018 Canada’s Greenhouse Gas and Air Pollutant Emissions Projections Report  (French version here ) provides, again,  a policy overview but its main purpose is to continue the series of annual reports (since 2011) of detailed emissions data for economic sector and  geographic region. It also includes emissions projections to 2030 under two different scenarios – (spoiler alert: oil and gas will be Canada’s leading source of emissions, followed by transportation and heavy industry).

Other substantial reports published on December 20 will form the basis for consultations in 2019.  The new draft for the Federal Sustainable Development Strategy 2019 to 2022 will inform a public consultation until April 2, 2019. (The companion 2018 Progress Report on the Federal Sustainable Development Strategy  evaluates the 2016 to 2019 strategy goals and the activities of  41 federal departments and agencies.)

The final Clean Fuel Standard Regulatory Design Paper focuses on the liquid fuels regulations, with comments requested by February 1, 2019. The draft regulation is scheduled to be published in 2019 and a final regulation by 2020, bringing to an end a complex consultation process that began in 2016 (summarized by WCR  in January 2018).  The Clean Fuel Standard will apply to the full life cycle of all fuels, gasoline and diesel, aviation fuel, natural gas for heating, and metallurgical coal, and has been called the single most important policy tool to achieve Canada’s emissions reductions target for 2030.

And finally, a regulatory proposal relating to the most publicized issue for 2019: carbon pricing.  Next Steps in Implementing the Federal Pollution Pricing System for Large Industry (the “Output Based Pricing System”)  was released on December 20, and carries  a deadline for public comments of February 15, 2019. The Output Based Pricing System registration system went live on November 1, 2018, with reporting and verification requirements starting on January 1, 2019.

The coming battles over Carbon tax in 2019:   As Prime Minister Justin Trudeau announced in late October 2018,  the federal government has not backed down on its determination to impose a carbon pricing policy across all Canadian jurisdictions in 2019, despite resistance and constitutional challenges led by the premiers of Saskatchewan and Ontario.  In some provinces – British Columbia , Alberta , Quebec  – established carbon pricing systems continue; in Nova Scotia , Prince Edward Island , Newfoundland and Labrador –  newly approved systems which meet the government’s benchmarks under the Pan-Canadian Framework will begin.   In the other provinces who have opposed the federal plan – Manitoba , Saskatchewan , New Brunswick and Ontario  –  the federal backstop fuel charge will be imposed starting in April 2019, sweetened by a “Climate Action Incentive”,  whereby all carbon revenue collected by the federal government will go directly back to people in the provinces from which it was generated.  The Annex of the Second Annual Synthesis Report of the Pan-Canadian Framework  provides up to date summaries for the situation in each province.

Public opinion supports the government’s carbon tax actions, though barely, according to polling made public by Global News on January 3 . Based on a November 9 internal poll conducted for the Liberal party, 46 per cent supported and 44 per cent opposed the plan  in Saskatchewan and Manitoba ; in Ontario, 43 per cent were in support and 32 per cent opposed. Nationally, support was at 47 per cent and opposition was at 29 per cent, with women more supportive than men.

Recently, one article appeared in the labour press, supporting carbon pricing:  “Pricing carbon first step to tackling climate change” in CUPE’s Economy at Work newsletter (Jan. 2).  The mainstream press has been far more active, with general support for a carbon tax: for example,  an editorial in  the Globe and Mail newspaper is titled: “ Do you want a carbon tax, or do you want to be lied to? “(Dec. 26) . The editorial is critical of the Ontario government’s Ontario Carbon Trust proposal, about which it states:  “One emerging conservative alternative to carbon pricing is working with business to spur the development of green technology. What that usually means is taxpayers giving subsidies to business.… “Ontario’s Progressive Conservatives ….say they will dish out $400-million on a “Carbon Trust” that will collaborate with industry on emissions cuts. They can rail against carbon pricing all they want; spending taxpayer money has the same effect on pocketbooks as asking consumers to pay more.”

The Canadian Chamber of Commerce was also widely cited as supporting a carbon tax, to the extent that they issued a press release on December 17 2018, clarifying their position:  “While some of the [media] coverage notes the Chamber’s support for carbon pricing, it neglects to include that the support is contingent upon significant caveats. The report calls for government to take concrete steps to reduce the overall regulatory burden on businesses in Canada, and to return the revenues from the carbon tax to business to help them lower their carbon emissions and their energy costs.”  The report referred to, outlining the full arguments, is   A Competitive Transition: How smarter climate policy can help Canada lead the way to a low carbon economy, which was published in December 2018.

Take it to the Courts!  Saskatchewan filed its challenge to the constitutionality of the federal price on carbon pollution in April 2018; the Saskatchewan Court of Appeal announced that it will hear the case in February 13 and 14, 2019, and released the lengthly list of intervenors which it has allowed to appear.  Intervenors include the provinces  of Ontario and New Brunswick on the side of Saskatchewan, and the province of British Columbia on the side of the federal government; other intervenors include the Canadian Public Health AssociationEcoJustice, representing the David Suzuki Foundation and the Athabasca Chipewyan First Nation; and the Council of Canadians , as part of a  group of seven other civil society groups, including the National Farmers Union and  Climate Justice Saskatoon.

A separate case  was filed by the Government of Ontario and will be heard by the Ontario Court of Appeal in April 2019.  The full list of intervenors, as well as the court filings by the Ontario government, appear at the Court of Appeal website here . British Columbia and New Brunswick have also applied for intervenor status in this case.

How will the courts decide?   “Courts should not have to decide climate change policy” appeared on December 21  in Policy Options,  with a discussion of the carbon pricing cases as well as the recent litigation by Quebec’s ENvironnement JEUnesse . Co-authors Nathalie Chalifour and Jason Maclean  argue that “only a collaborative  approach to policy-making is capable of delivering the kinds of rapid, forward-looking and systemic changes in how industries and societies function that are necessary to avoid the most catastrophic consequences of climate change. Litigation, by contrast, is necessarily reactive and typically divisive, time-consuming and influenced by the incremental development of legal precedent.”  Regarding the provincial carbon tax challenges, they state that “the federal Greenhouse Gas Pollution Pricing Act is an example par excellence of cooperative federalism.”…. “There’s little doubt that the courts will confirm the federal government’s jurisdictional authority to regulate GHG emissions. They may even decide that the Constitution obliges the government to take more serious climate action.”

A complex road is ahead, as indicated by a C.D. Howe Institute Memo published in October 2018:   “Federal carbon-pricing backstop is new constitutional territory”.

 

New Ontario Environment Plan steps backwards on emission reduction ambitions

On November 29, the Ontario government of Doug Ford released its promised climate change proposals in a new report, called Preserving and Protecting our Environment for Future Generations: A Made-In-Ontario Environment Plan. The government will  continue consultation, with public submissions accepted here until January 28 2019,  and  pledges to establish an Advisory Panel on Climate Change.  The major focus of the plan is to establish a Carbon Trust of $400 million over four years, which includes a $50 million ‘reverse auction,’ through which the government will fund private sector clean technology proposals.  It commits to an 8% emissions reduction over the next 12 years, a much less ambitious target than that of the previous Liberal government.  Reaction has been almost universally negative, as compiled by Climate Action Network Canada and by the CBC in “Ontario Climate change plan includes fund to help big polluters reduce emissions”  (Nov. 29) .  The Ecofiscal Commission offers a detailed critique and assessment in “Up in the Air” ;  the Pembina Institute  states  “The plan weakens Ontario’s carbon pollution reduction targets by 27 per cent…. The plan released today contains mainly aspirational statements and plans to make plans.”

Green party 2018 leaping into the futureThe Ontario Green Party calls the Ford government plan a Litter Reduction Plan, not a climate plan . The Green Party’s own Climate Plan, Leaping into the future: A comprehensive strategy for reducing Ontario’s emissions, was released on November 15, and sets a  100% carbon neutral by 2050 target, and a return to carbon pricing.

 

Updating the political battle of carbon pricing in Canada

Justin TrudeauOn October 23,  Prime Minister Justin Trudeau announced that the federal government will hold its resolve to impose a carbon pricing policy across all Canadian jurisdictions in 2019 – see the press release, “Government of Canada Putting a price on pollution”   (Oct. 23).  Key to the plan: the Climate Action Incentive, whereby all carbon revenue will go directly back to people in the provinces from which it was generated.  David Roberts of Vox hits the nail on the head with  “Canadian Prime Minister Justin Trudeau is betting his reelection on a carbon tax” (Oct. 24) , stating,  “It’s a thoughtful plan, remarkably simple, transparent, and economically sound for something cooked up in a politically fraught context. If it’s put into place (and stays in place), it would vault Canada to the head of the international pack on climate policy.”

Reaction from the Canadian mainstream media: From the Globe and Mail, an Editorial:  “For the Liberals, a spoonful of sugar helps the carbon tax go down” ;  “Arguments against the carbon tax boil down to a desire to do nothing” (Oct. 24)   by Campbell Clark ; “Carbon tax vs. climate change will be an epic contest” by John Ibbitson  and “Trudeau’s carbon tax rebate is smart – but complicated”  by Chris Ragan of the Ecofiscal Commission . From Andrew Coyne in the National Post: “Liberals’ carbon tax plan has its faults — but who has a better option?”  and from Chris Hall of the CBC, “How the Liberals hope to escape the ‘Green Shift’ curse in 2019”  (Oct.23)  .

The National Observer provides some detail to the complex calculations of the backstop rebates of the Climate Action Incentive, but the detail is at the government’s webpage, Pricing Pollution: How it will work  which provides links to individual explainers for each province and territory.

Other Responses: Rabble.ca Elizabeth May of the Green Party of Canada ;  Canadians for Clean Prosperity ;  and the Smart Prosperity Institute , which also provides a compilation of reaction and reports .

There seems to be general agreement that it is politics, not economics, which will determine support for the carbon plan.  Ontario Premier Doug Ford has been making the rounds with other Conservative politicians in Canada to coordinate their messaging and opposition to the federal carbon tax – culminating in the introduction of Bill No. 132—The Management and Reduction of Greenhouse Gases Amendment Act , 2018 in Saskatchewan on October 30, and on October 31, passage of Ontario’s Bill 4, The Cap and Trade Cancellation Act.  The National Observer describes the events of October 31 and summarizes the recent  political dance in “Doug Ford and Andrew Scheer play fast and loose with facts about carbon tax”  . Other press coverage: from the CBC:   “‘The worst tax ever’: Doug Ford and Jason Kenney hold campaign-style rally against carbon levy”  on Oct. 5 ;   “Doug Ford attacks ‘terrible tax’ on carbon alongside Saskatchewan Premier Scott Moe” on Oct. 29; and  “Doug Ford meets Andrew Scheer as carbon tax war heats up”  on October 30, describing their meeting in Toronto.  The gist of their arguments:  the carbon tax is a money-grab which will “drive up the price of heating your home”, with Doug Ford stating “It’s just another Trudeau Liberal tax grab. It’s a job-killing, family-hurting tax. ”  After the rebate details were announced on October 23, Ford has added that the promised rebates are “a complete scam”, “trying to buy Canadians with their own money.”   But as iPolitics reported on October 26, “Ford gets his facts wrong while bashing federal carbon tax”  and  “Ford doubles down on falsehoods about federal carbon tax”  .  iPolitics cites the independent analysis of the carbon tax’s impact by  Ontario’s Financial Accountability Officer, Ontario financial office cap and tradewhich supports the federal government’s numbers, and differs from Premier Ford’s public statements.  Meanwhile, the Ontario government promises to release their climate plan in November,  according to the Toronto Star   (Oct. 29), and Andrew Scheer also promises a climate plan “in 183 days”.

Activists force consultation re Ontario’s cap and trade policy as Environment Commissioner pans government’s actions to date

Ontario commissioner Report-Cover-In the annual Greenhouse Gas Reduction Progress Report for 2018, titled Climate Action in Ontario: what’s next? , the Environmental Commissioner of Ontario has published a blunt critique of the Conservative government’s actions to date.

As was widely reported, the  government in Ontario (among other actions) tried to dismantle the province’s cap and trade program after its election, introducing  Bill 4, the Cap and Trade Cancellation Act, 2018  on July 25 .  The Environmental Commissioner wrote:

 “Unfortunately, cap and trade was both complex and poorly communicated; for some, its costs were more obvious than its benefits. Today, cap and trade, the low-carbon programs that it funded, and 752 renewable energy projects have all been swept away, with nothing in their place. The government’s proposed replacement, the Cap and Trade Cancellation Act (Bill 4), currently lacks most of the features of a good climate law.…. There is no perfect answer, but the best international model for long-term consistency is the United Kingdom’s Climate Change Act. The U.K. Parliament sets legally binding long-term emission limits, plus five-year carbon budgets 12 years in advance, based on non-partisan, expert advice and reporting. Ontario should do the same.”

The Commissioner’s report includes appendices, including Appendix B: Revenue from cap and trade: What was it used for?

On September 11, environmental activists filed a lawsuit against Bill 4, alleging that it violates the Ontario Environmental Bill of Rights because no public consultations were held on the  matter.  On the same day, a notice appeared in the Environmental Registry,  allowing  for comments online or in writing, until October 11.    EcoJustice, one of the groups behind the lawsuit, (along with Greenpeace  and the University of Ottawa) has posted a summary of all these developments on September 25 in “Let Premier Ford know where you stand on climate action”, urging comments.

Jumping in to this debate:  Canadians for Clean Prosperity, which commissioned a study to examine the costs and benefits of carbon “costs” (e.g. fuel and household heating) in Ontario, Saskatchewan, and Alberta, in the event that the federal carbon price backstop is triggered in 2019.  The author, Dave Sawyer of EnviroEconomics, concludes that most households, regardless of income, would receive more money through rebates than they would pay out through a carbon price, assuming that all fees are rebated to consumers.   The report summary is here ; the formal report is  Federal Carbon Price Impacts on Households in Alberta, Saskatchewan and Ontario  .  An economist’s (Brendan Frank) explanation of the EnviroEconomics report appears in an  EcoFiscal Commission blog “How carbon dividends affect incentives (hint: they don’t)”  (Sept. 26).

Ford government sued by Greenpeace for cancellation of cap and trade without consultation

Doug FordUpdated September 11:

On September 11, CBC News broke the news that “Greenpeace suing Ontario government over cancellation of cap-and-trade program” The lawsuit was filed  in Ontario Superior Court by EcoJustice and the University of Ottawa’s Ecojustice Environmental Law Clinic.  It asks the Court to quash the legislation, on the grounds that the Conservative government “unlawfully failed” to hold public consultations before cancelling  the program, as required by Ontario’s Environmental Bill of Rights. An expedited hearing on the matter has been granted and scheduled for September 21.  The EcoJustice press release of September 11 is here .

At issue is Bill 4, The Cap and Trade Cancellation Act, 2018 , introduced in July to honour a campaign pledge to repeal Ontario’s cap and trade program, authorized through the Climate Change Mitigation and Low-carbon Economy Act, 2016  of the previous Wynne government.  Yet as the National Observer  reported on August  15, “Ontario legislature adjourns without adopting Ford government bill to cancel cap and trade” .  The article also compiles expert opinion and reaction to the move, and notes  that the government will be expected to propose new greenhouse gas emissions reduction targets when the Ontario legislature returns for its fall sitting on Sept. 24.

In “Ford government does U-turn, expands electric vehicle rebates for Tesla buyers”  (Aug. 31), CBC reports on another Court case involving the rookie Ford government.  The Court ruled against the government and in favour of  Tesla, which had claimed that it had been discriminated against when the government discontinued electric and hybrid vehicle sales incentives.   The CBC quotes Sara Singh, an Ontario NDP MP, who stated in August:  “This is likely only the first of many decisions against the Ford government’s decision to rip up hundreds of cap-and-trade and green energy contracts.” The Huffington Post compiled a list the legal actions against the government, on a variety of fronts, on Sept. 5.

Others who have weighed in on Ford’s climate and energy policies: Climate Action Network, along with 37 signatories,  sent an Open Letter to Premier Ford  on August 8.  It documents the heat and fire emergencies throughout the province in the summer of 2018, and calls for a public commitment, along with a detailed plan,  to achieve Ontario’s existing legislated emissions reduction goals.  Environmental Defence maintains an online petition calling for similar action.

Regarding Ford’s cuts to renewable energy programs: A widely-cited article appeared in Forbes magazine: “Ontario’s Economic Investment Outlook Dims With New Government Energy Actions”  (Aug. 13)   (and was re-posted by the Pembina Institute )  stating:  “In one fell swoop Ontario’s government has dramatically slashed a source of funding for clean transportation infrastructure to help consumers lower travel costs, erased hundreds of clean energy projects to help consumers reduce electricity costs, dimmed the prospects for jobs and economic growth from clean tech industries, and took a major step backwards in making the province an attractive climate for business and investment today – and into the future.”

Job losses feared as Ontario government cancels renewable energy contracts

On  July 13, the Province of Ontario announced the immediate cancellation of 758 renewable energy projects, calling them “unnecessary and wasteful” .  In “Inside Ontario’s clean energy contract cancellations”  by GreenTech Media  (July 26), the CEO of the Canadian Solar Industry Association estimates that  Ontario will lose 6,000 jobs and half a billion dollars of investment as a result, although the general tone of the article displays confidence in the unstoppable momentum of clean energy.  The decision, however, has thrown the industry into confusion, disappointed some consumers, and is seen as a blow to Ontario’s reputation amongst investors.

A sampling of reaction:  “Green shift to green slump: How trade decisions and electoral politics are crippling the vision of a clean Canadian power play”    in the Globe and Mail (Aug. 3)

Solar companies may exit Ontario for Alberta after Doug Ford kills rebate program”    from CBC News

Renewable Energy stocks slide as Ontario vows to scrap clean- power projects” in the Globe and Mail  (July 13)

Clean power advocates disappointed by defiant in the face of Ford’s sweeping cuts”   (July 17) in the National Observer

Cancellation of Energy Contracts Punishes Famers, School Boards, Municipalities and First Nations”   a press release from the Canadian Solar Industries Association.  CanWEA also responded to the announcements with a disjointed compilation of links about the benefits of wind energy  (July 13) .

wind turbine and cowsOne high profile  example of the cancelled projects:  the White Pines wind project in Prince Edward County, owned by German company WPD ,  which was first approved in 2010 and was weeks away from completion when it was cancelled by Bill 2, The Urgent Priorities Act.  Local reaction appeared in  The Picton Gazette , and the National Observer published an extensive four part report, “Inside one Ontario town’s  decade long wind war”  .    CBC News published  “Ford government’s plan to cancel wind project could cost taxpayers over $100M, company warns”  , and even the conservative National Post published “John Ivison: Wind turbine decision says Doug Ford’s Ontario is closed for business”   (July 23), calling it a “bone-headed”decision.  Activist group Leadnow.ca has posted on online petition, “Save the White Pines project”  .

 

 

Against the evidence for its efficiency, Ontario’s Cap and Trade program axed

Doug Ford clappingIn Ontario, newly-elected Premier Doug Ford quickly fulfilled a central campaign promise, as the Province revoked the cap-and-trade  regulations and prohibited all trading of emission allowances, officially announced on July 3, 2018.   A further July 25  press release  announced the introduction of Bill 4, The Cap and Trade Cancellation Act, 2018  and claimed that “The average Ontario family will receive $260 in annual savings thanks to the elimination of the cap-and-trade carbon tax.”  All programs currently funded through the cap-and-trade revenues have been cancelled, including the immediate wind-down of the Green Ontario Fund, which funded many energy efficiency incentive programs.  The Cap and Trade Cancellation Act repeals the Climate Change Mitigation and Low-carbon Economy Act, 2016  of the previous Wynne government “and provides for various matters related to the wind down of the Cap and Trade Program.”

Earlier, on July 13, the province had announced  the cancellation of 758 renewable energy projects, calling them “unnecessary and wasteful” – one notable example, the almost-completed White Pines wind project in Prince Edward County.  And on August 2, in addition to the previously announced court challenge  to the federal government’s carbon pricing requirements under the Pan Canadian Framework,  Ontario’s  Attorney General announced a second court challenge  – this time in  the Ontario Court of Appeal.  “Doug Ford’s Ontario pursues ‘doomed’ plan to stop Trudeau government’s efforts to fight climate change”   in the National Observer (August 2) summarizes the development from a political viewpoint, and the Globe and Mail’s editorial is titled: “Caroline Mulroney’s carbon-tax court challenge is a partisan waste of money

Reactions :

Ford government Attempts to minimize Ontario taxpayer losses after abandoning carbon markets”   (July 25) in the National Observer;

“Ontario’s fiscal watchdog to probe cancellation of cap and trade,at Horwath’s request”   in the Globe and Mail (July 24);

From Professor Mark Winfield, York University:  “Doug Ford’s energy shake-up could cost Ontario”  in The Conversation (July 25)   ;

Clean power advocates disappointed but defiant in the face of Ford’s sweeping cuts” from the National Observer (July 17)

Solar companies may exit Ontario for Alberta after Doug Ford kills rebate program”  from CBC News (June 21) ;

Scrapping of cap and trade revenues a big loss for Ontario tenants badly in need of apartment retrofits”   from ACORN Canada;

  “From Cap-and-Trade to White Pines: What Lies Ahead In Ontario’s Energy Sector” from Toronto law firm Gowlings .

Before his election but based on the platform statements,  Unifor said in June  : “Workers in Ontario need forward-looking policies with the intention to build a green economy, but instead Ford announced his intention to cancel a successful program and pick an unnecessary fight with the federal government…. “Workers accept that climate change is real and need our government to lead with a real, predictable plan to reduce emissions and grow green jobs.”

Was there a problem with Ontario’s cap and trade system?  The April 2018 WCR article “New evidence supports benefits of cap and trade policies”  summarized several favourable studies, including  A Progress Report on Ontario’s Cap-and-Trade Program and Climate Change Action Plan: Year One ,  published by the Clean Economy Alliance –   which concluded that, in the first year of cap-and-trade employment had grown at the same time that Ontario economy grew to a 7-year high.  Environmental Defense published “Carbon pricing has no downside: why are we still arguing about it?” , which summarized the Clean Economy Alliance report, as well as No Bad Option: Comparing the Economic Impact of Ontario Carbon Pricing Scenarios  by Hadrian Mertins-Kirkwood, published in April 2018 by CCPA in partnership with the Clean Economy Alliance.

More recently, Dale Beugin, Don Drummond, Glen Hodgson and Mel Cappe asked “If not carbon pricing in Ontario – which works well – then what, Mr. Ford?”   in a blog published by the Ecofiscal Commission.   The purpose of the brief summary is to “correct the record on some of the myths and misunderstandings surrounding carbon pricing. The economic evidence clearly contradicts some of the recent rhetoric coming from Ontario.”  Earlier Ecofiscal opinion appeared in “Tread Carefully: Ontario’s cap-and-trade system meets a fork in the road” (June 8)  , and  “Can Ontario hits its targets without carbon pricing?”  .

In the U.S.,  economist Marc Hafstead  recently published “Carbon taxes and employment: Rhetoric vs research” in the Summer Issue of Resources, the online newsletter of Resources for the Future (RFF) , stating  “Opponents of policies to price carbon will likely continue with the “job-killing” rhetoric, but careful economic analysis suggests that these arguments are seriously exaggerated.”  (the brief article is based largely on his academic working paper Unemployment and Environmental Regulation in General Equilibrium: Considering a US Carbon Tax: Economic Analysis and Dialogue on Carbon Pricing Options  )  .

 

Federal government sets out new requirements for Infrastructure funds – climate lens, community benefits

The Investing in Canada Plan of the federal government will invest more than $180 billion over 12 years for public transit projects, green infrastructure, social infrastructure, trade and transportation, and Canada’s rural and northern communities. Two recent press releases define how the program funds will be awarded:  at the start of June , Infrastructure Canada announced that proposals under the Investing in Canada program, as well as the Disaster Mitigation and Adaptation Fund,  and those submitted to the Smart Cities Challenge,  will be required to use a “climate lens”, to assess “how their projects will contribute to or reduce carbon pollution, and to consider climate change risks in the location, design, and planned operation of a project.”  The General Guidance document for Climate Lens is here  .

second press release,  on June 22,  announced a new Community Employment Benefits requirement – under which applicants for major projects will be required to set targets for training and employment opportunities for at least three groups targeted by the CEB initiative: Indigenous peoples, women, persons with disabilities, veterans, youth, apprentices, and recent immigrants, as well as procurement opportunities for small-to-medium sized businesses and social enterprises.  The  General Guidance document for Community Enterprise Benefits   explains the administrative details.

Mowat report community benefits agreements Ontario became the first Canadian jurisdiction to promote community benefits, through the Infrastructure for Jobs and Prosperity Act 2015 , and in May 2018, the province announced five new community benefits projects under its Long-term Infrastructure plan.

Engage and Empower , an April 2018 report from the Mowat Centre at University of Toronto,  discusses the Ontario Community Benefits framework, and sets out principles which are applicable outside Ontario.  It states: “it is essential to engage that community to understand the types of benefits that are most aligned with its priority needs, and to continue this engagement throughout the project as impacts are being measured and evaluated. This process of defining and engaging the community requires an ongoing relationship built on trust and collaboration … It is critical that governments avoid an overly prescriptive approach and recognize, instead, that communities are dynamic and robust ecosystems – with existing networks and capabilities – and desire autonomy in the process of defining, articulating and negotiating the benefits to accrue through an infrastructure project.”

 

Doug Ford has begun to dismantle Ontario’s climate leadership – Step 1, exit the cap-and-trade agreement

Doug FordAs a result of the provincial election on June 7, Progressive Conservative leader Doug Ford will take power as the premier of Ontario on  June 29, 2018.  Even before that hand-over date, he has begun to make the changes many feared –  announcing on June 15 that Ontario will exit the cap and trade market of the Western Climate Initiative (which includes California and Quebec)  and on June 19,  cancelling the $377-million Green Ontario Fund,  financed by the proceeds of cap-and-trade auctions and which provided consumer incentives for energy efficiency improvements.  On June 21, he committed to keep the Pickering Nuclear Generating Station in operation until 2024  –  in the name of protecting 4,500 local jobs and an additional 3,000 jobs province-wide.  Some general articles about the Ford government appeared in The Tyee  “Green hopes, NDP fears, and PC Dreams: The challenges that await Ontario in Ford Nation” (June 15);  “What does a Doug Ford victory mean for the climate?”  in The Narwhal (by DeSmog Canada),  and “Doug Ford’s Environmental policies light on details, advocates say” on CBC News (June 13).

Ford’s decision to end the cap and trade market has many implications – the possibility of lawsuits from investors and companies who had bought carbon credits, as well as a direct confrontation with the federal government, which requires all provinces to enact carbon pricing by 2019, under the Pan-Canadian Framework for Clean Energy and Climate Change.  Additionally, the federal government  just passed Bill C-74, which includes Part 5: The Greenhouse Gas Pollution Pricing Act on June 14 , the day before Ford’s announcement.  For discussion of the carbon pricing issue, see  “Ontario’s Doug Ford says the province is abandoning its price on carbon pollution” in the National Observer (June 15) ;  “PC’s will end Ontario cap and trade program, Ford vows” in the Globe and Mail (June 15).  An official reaction from Environmental Defence is here , with more detail in their blog, “What you need to know about Ontario’s carbon pricing drama” . From the Ecofiscal Commission, “Tread Carefully: Ontario’s cap-and-trade system meets a fork in the road” (June 8) , and “Can Ontario hits its targets without carbon pricing?”  (June 21) , which discusses the two remaining options for reducing emissions: regulations and incentives.  Finally,  the arguments are summed up in the Unifor press release, “Unifor urges Premier-designate Doug Ford to maintain the cap and trade system” : “Workers in Ontario need forward-looking policies with the intention to build a green economy, but instead Ford announced his intention to cancel a successful program and pick an unnecessary fight with the federal government…. Workers accept that climate change is real and need our government to lead with a real, predictable plan to reduce emissions and grow green jobs.”