Climate Compensation: Considering the Liability of Oil and Gas Companies on the Toronto Stock Exchange

CLIMATE COMPENSATION: CONSIDERING THE LIABILITY OF OIL AND GAS COMPANIES ON THE TORONTO STOCK EXCHANGE
A report released on October 9 by the Canadian Centre for Policy Alternatives (CCPA) and West Coast Environmental Law considers the total potential liability of five oil and gas companies currently trading on the Toronto Stock Exchange-EnCanada, Suncor, Canadian Natural Resources, Talisman, and Husky. Informed by a discussion of the liability claims against the tobacco industry, the authors provide an overview of possible legal approaches to climate compensation, and conclude that those five TSX-listed companies alone could be incurring a global liability as high as $2.4 billion per year for their contribution to climate change.

See Payback Time? What the Internationalization of Climate Litigation Could Mean for Canadian Oil and Gas Companies at the CCPA website at: https://www.policyalternatives.ca/publications/reports/payback-time.

Northern Gateway Headed to Court as NEB Approval Provokes Criticism of Review Process

On December 19th, the National Energy Board granted conditional approval to the controversial Enbridge Northern Gateway pipeline, citing 209 conditions.The federal NDP and Green parties criticized the decision, while some opponents of the pipeline allege the joint review panel itself has been “undemocratic” and has undermined the integrity of the environmental review process in general, echoing an August 2013 lawsuit in which NGO ForestEthics claimed NEB public participation rules were unconstitutional. A series of at least 10 lawsuits has been launched in response to the NEB approval, notably one by B.C. Nature and one by a coalition of NGOs including EcoJustice, ForestEthics, Living Oceans Society, and Rainforest Conservation Foundation. The environmental groups allege the Joint Review Panel (JRP) final report contains serious legal and scientific gaps, such as uncertainty regarding geohazards along the pipeline route and the behaviour of spilled bitumen in marine environments. They claim the JRP also failed to address legal obligations to the humpback whale and caribou populations whose habitats lie in the pipeline path, both of which are protected under the Species at Risk Act.

Three First Nations, Gitxaala, Git’gat, and Haisla, have launched lawsuits of their own calling for federal review of the NEB decision. They claim their unique constitutional rights regarding development on their lands were also neglected during the review process.

Read the press release from EcoJustice on their lawsuit at: http://www.ecojustice.ca/media-centre/press-releases/environmental-groups-launch-lawsuit-over-flawed-northern-gateway-report. CBC coverage of lawsuits from environmental groups is available at: http://www.cbc.ca/news/canada/british-columbia/northern-gateway-pipeline-report-draws-lawsuit-1.2501051; coverage of First Nations lawsuits is available at: http://www.cbc.ca/news/canada/british-columbia/gitga-at-northern-gateway-lawsuit-joins-9-other-challenges-1.2507155.

According to West Coast Environmental Law, Enbridge may be experiencing difficulty attracting investment to the project in light of persistent opposition. See: NEB’s Thumbs Up Ignores Wall of Opposition that will Stop Enbridge (Jan. 16) is at: http://wcel.org/resources/environmental-law-alert/neb%E2%80%99s-thumbs-ignores-wall-opposition-will-stop-enbridge.

Professional Associations have a Role to Play in Climate Change

A report published by West Coast Environmental Law starts from the position that climate change is a cross-cutting issue that affects advice and decision-making in many different professions, including architects and engineers, professional foresters, biologists, insurance professionals, accountants, and city planners. The report calls for an enhanced role for professional associations using the existing tools, such as codes of conduct and ethics, standards of practice, requirements for continuing professional development, and policy statements. In one example, the author suggests a statement of ethical responsibility to “act in the public interest (including promoting sustainability); not speak beyond one’s expertise or competence; not make misleading statements or falsify data; and act with due diligence”. The report describes exemplary climate change initiatives underway by such groups as the Canadian Institute of Planners, Professional Engineers and Geoscientists of BC (APEGBC), and Greenhouse Gas Management Institute (GHGMI).

LINKS

Professionals and Climate Change: How professional associations can get serious about global warming, written by Andrew Gage and published by West Coast Environmental Law (WCEL), a British Columbia “non-profit group of environmental law strategists and analysts dedicated to safeguarding the environment through law”. Available at:
http://wcel.org/sites/default/files/publications/Professionals%20and%20Climate%20Change_0.pdf