For our latest blog, our thanks for the following article to Resource Works, the B.C.-based not-for-profit supporter of responsible natural-resource development and a supporter of our Alliance:
In its latest display of environmental correctness, the federal government passed a new anti-greenwashing law that requires individuals or organizations making claims or promises about the climate benefits of products or processes to prove their truth.
Such “truth,” the law stipulates, must be proven to the satisfaction of a federal bureaucracy — by way of “an adequate and proper test” or “adequate and proper substantiation in accordance with internationally recognized methodology.”
However, those tests and methodologies have not been defined or announced, and thus remain hopelessly vague. A federal bureaucrat is now empowered under the law to review such climate statements and claims, and to compel court proceedings if they deem them not to meet the ambiguous criteria.
It’s clear the law (Bill C-59, amendments to the Competition Act) would apply to companies claiming, for example, that their production processes or new technologies will reduce greenhouse gas emissions. However, the Competition Bureau conveniently will not have to prove that the claims are false or misleading. The new law instead requires the accused company or agency to prove their innocence.
The penalties can be severe, with fines of up to $10 million ($15 million for repeat offenders) or as much as three times the benefit derived from the misrepresentation. If that benefit cannot be reasonably determined, the penalty could be up to three percent of the company’s annual worldwide gross revenues.
Canada is thus following the green correctness of the European Parliament, which now requires “proof” of claims of a neutral, reduced, or positive impact on the environment when a producer reduces or offsets emissions.
The European Union’s move followed a study by the European Commission, which found more than half of green claims were vague, misleading, or unfounded, with 40% being “completely unsubstantiated.”
Industry in Canada has been quick to protest Bill C-59, and it’s not just the oil and natural gas sector raising concerns. Industries ranging from automotive to mining to manufacturing are also challenging the new law.
Dennis Darby, CEO of the Canadian Manufacturers & Exporters Association, called the changes “quite heavy-handed” and said his member companies worry about potential legal challenges over any environmental claims they make about emissions-reducing technologies.
The Canadian Association of Petroleum Producers (CAPP) also protested: “These amendments effectively silence discussion around climate and environmental policy for political gains, while promoting the voices of those most opposed to Canada’s oil and natural gas sector.
“The federal government’s approach to these amendments has introduced a new level of complexity and risk for those looking to invest in Canada. The amendments to the Competition Act will make it more difficult for proponents to speak to Canadians and gain public support for their projects, particularly for those focused on reducing emissions.”
CAPP argued in a submission to the Competition Bureau: “The effect of this legislation is to silence the energy industry and those that support it, in an effort to clear the field of debate and promote the voices of those most opposed to Canada’s energy industry.
“Implementing a vague law with exceptionally high penalties, without consultation, and with an outsized impact on the country’s largest industries, is both anti-democratic and anti-business.”
Will the new Canadian law also apply (as CAPP says it should) to climate campaigners and green groups who claim that a company, product, or process damages the global climate?
One green group recently attacked liquefied natural gas (LNG) developments in British Columbia using (among other things) a photoshopped image of a smoke-emitting oil and gas facility in Iran. Could that be prosecuted under the new law? It should be, but who knows?
Will the new reverse-onus law apply in practice to government departments, ministries, and ministers? Again, who knows?
The federal Canada Energy Regulator, for example, made a number of green statements in a recent Market Snapshot about LNG in BC:
- “LNG Canada is actively working on electrifying certain processes, especially for the proposed Phase 2. This shift will reduce reliance on fossil fuels and help lower the carbon intensity of LNG production.”
- “Woodfibre LNG will use electric motors powered by renewable electricity from B.C. Hydro, making the project one of the lowest-emission LNG export facilities in the world.”
- “The proposed Cedar LNG facility will also be powered by renewable electricity from B.C. Hydro and will be one of the lowest-emission LNG facilities in the world.”
- “The proposed Ksi Lisims LNG facility would have one of the lowest carbon intensities of large-scale LNG export projects in the world, utilizing several technologies to reduce carbon emissions, including renewable hydropower from the B.C. electricity grid.”
- “The Tilbury LNG facility is powered by renewable hydroelectricity, which means it can produce LNG that is nearly 30 percent less carbon-intensive than the global average.”
Does the Canada Energy Regulator now have to “prove” all those statements?
And what about Prime Minister Trudeau himself? The First Nations LNG Alliance (which has said the law could be used as one more tool to discourage Indigenous partnerships and investment in energy projects) asked if the law would apply to the prime minister.
“Prime Minister Justin Trudeau hailed the go-ahead decision by the Cedar LNG project, majority-owned by the Haisla First Nation in B.C. He said it will be ‘the world’s lowest carbon footprint LNG facility.’ So does the prime minister now have to ‘prove’ that Cedar LNG is the world’s lowest carbon footprint LNG facility?”
Regardless, under this new law, you’re guilty unless you prove your innocence to some back-room bureaucratic body. That’s simply not a Canadian concept, nor a Liberal one. This new law needs to be changed or repealed.
- This article as it appeared on Resource Works: https://ow.ly/5AwQ50TtLsB
(Posted here 23 September 2024)
