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Canada’s current climate plan is ineffective and wasteful

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Article submitted by The MacDonald Laurier Institute

Alternative approaches will not only reduce emissions more efficiently but will provide socio-economic benefits beyond Green-House Gas mitigation.

OTTAWA, ON (June 27, 2023): The federal government has committed to reduce its greenhouse gas emissions by 40 to 45 percent below 2005 levels by 2030 and has spent or committed over $113 billion in climate related initiatives. Yet, Canada will still likely miss its 2030 emissions target by 48 percent. The government risks heavily indebting Canadians without meeting its climate goals.

In this new MLI paper – Maximizing value, minimizing emissions: The cost-effective path for Canada’s climate agenda, Senior Fellow Jerome Gessaroli proposes a climate policy based on international collaboration that would be more cost-effective than policies the government has implemented to date.

“A marginal cost analysis of methane abatement projects shows that it is possible for Canada to reduce its GHG emissions in a more cost-effective way by looking further afield to other countries than by focusing only on domestic projects.”

According to Gessaroli, Canada, along with numerous other countries, has yet to tap into the potential benefits of international cooperation. By leveraging comparative advantages such as technologies, lower costs, and mitigation opportunities, countries can join forces to reduce GHG emissions beyond their territorial borders. Recognition and encouragement of emissions reductions resulting from international collaboration, as outlined in Article 6 of the 2015 Paris Agreement, can lead to more effective climate outcomes compared to domestic initiatives.

Of particular significance is Article 6.2, which allows countries to voluntarily collaborate on GHG emissions reduction and receive credit for reductions achieved outside their political boundaries. Canada can leverage Article 6.2 by engaging in cooperative arrangements with foreign countries to share costs or exchange technical capabilities for mitigation benefits. By doing so, Canada can reduce global emissions while receiving credit toward its formal climate targets under the Paris Agreement.

“The projects can lead to further international collaboration and partnerships in other areas,” writes Gessaroli.

“And depending upon the project, local benefits such as job creation, worker training, enhanced water quality, more efficient water usage, and greater agricultural productivity are possible extras over and above the emissions mitigation.”

Regrettably, the federal government appears to show limited interest in utilizing Article 6.2 to meet greenhouse gas emission goals. With a range of abatement technologies across multiple sectors, Canada possesses the means to facilitate substantial GHG emission reductions in other countries, thereby helping to meet our own climate objectives.

The report concludes by urging the federal government to rethink its climate spending priorities and prioritize policies that deliver the greatest GHG abatement outcomes at the lowest cost. By embracing international collaboration and actively pursuing cooperative climate initiatives, Canada can significantly contribute to global emissions reductions while simultaneously reaping socio-economic benefits.

To learn more, read the full paper here:

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Jerome Gessaroli is a senior fellow with the Macdonald Laurier Institute. He writes on economic and environmental matters, from a market-based principles perspective. Jerome teaches full-time at the British Columbia Institute of Technology’s School of Business, courses in corporate finance, security analysis, and advanced finance. He was also a visiting lecturer at Simon Fraser University’s Beedie School of Business, teaching into their undergraduate and executive MBA programs.

The Macdonald-Laurier Institute is the only non-partisan, independent national public policy think tank in Ottawa focusing on the full range of issues that fall under the jurisdiction of the federal government.

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Alberta

Pierre Poilievre – Per Capita, Hardisty, Alberta Is the Most Important Little Town In Canada

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From Pierre Poilievre

The tiny town of Hardisty, Alberta (623 people) moves $90 billion in energy a year—that’s more than the GDP of some countries.

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Business

Why it’s time to repeal the oil tanker ban on B.C.’s north coast

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The Port of Prince Rupert on the north coast of British Columbia. Photo courtesy Prince Rupert Port Authority

From the Canadian Energy Centre

By Will Gibson

Moratorium does little to improve marine safety while sending the wrong message to energy investors

In 2019, Martha Hall Findlay, then-CEO of the Canada West Foundation, penned a strongly worded op-ed in the Globe and Mail calling the federal ban of oil tankers on B.C.’s northern coast “un-Canadian.”

Six years later, her opinion hasn’t changed.

“It was bad legislation and the government should get rid of it,” said Hall Findlay, now director of the University of Calgary’s School of Public Policy.

The moratorium, known as Bill C-48, banned vessels carrying more than 12,500 tonnes of oil from accessing northern B.C. ports.

Targeting products from one sector in one area does little to achieve the goal of overall improved marine transport safety, she said.

“There are risks associated with any kind of transportation with any goods, and not all of them are with oil tankers. All that singling out one part of one coast did was prevent more oil and gas from being produced that could be shipped off that coast,” she said.

Hall Findlay is a former Liberal MP who served as Suncor Energy’s chief sustainability officer before taking on her role at the University of Calgary.

She sees an opportunity to remove the tanker moratorium in light of changing attitudes about resource development across Canada and a new federal government that has publicly committed to delivering nation-building energy projects.

“There’s a greater recognition in large portions of the public across the country, not just Alberta and Saskatchewan, that Canada is too dependent on the United States as the only customer for our energy products,” she said.

“There are better alternatives to C-48, such as setting aside what are called Particularly Sensitive Sea Areas, which have been established in areas such as the Great Barrier Reef and the Galapagos Islands.”

The Business Council of British Columbia, which represents more than 200 companies, post-secondary institutions and industry associations, echoes Hall Findlay’s call for the tanker ban to be repealed.

“Comparable shipments face no such restrictions on the East Coast,” said Denise Mullen, the council’s director of environment, sustainability and Indigenous relations.

“This unfair treatment reinforces Canada’s over-reliance on the U.S. market, where Canadian oil is sold at a discount, by restricting access to Asia-Pacific markets.

“This results in billions in lost government revenues and reduced private investment at a time when our economy can least afford it.”

The ban on tanker traffic specifically in northern B.C. doesn’t make sense given Canada already has strong marine safety regulations in place, Mullen said.

Notably, completion of the Trans Mountain Pipeline expansion in 2024 also doubled marine spill response capacity on Canada’s West Coast. A $170 million investment added new equipment, personnel and response bases in the Salish Sea.

“The [C-48] moratorium adds little real protection while sending a damaging message to global investors,” she said.

“This undermines the confidence needed for long-term investment in critical trade-enabling infrastructure.”

Indigenous Resource Network executive director John Desjarlais senses there’s an openness to revisiting the issue for Indigenous communities.

“Sentiment has changed and evolved in the past six years,” he said.

“There are still concerns and trust that needs to be built. But there’s also a recognition that in addition to environmental impacts, [there are] consequences of not doing it in terms of an economic impact as well as the cascading socio-economic impacts.”

The ban effectively killed the proposed $16-billion Eagle Spirit project, an Indigenous-led pipeline that would have shipped oil from northern Alberta to a tidewater export terminal at Prince Rupert, B.C.

“When you have Indigenous participants who want to advance these projects, the moratorium needs to be revisited,” Desjarlais said.

He notes that in the six years since the tanker ban went into effect, there are growing partnerships between B.C. First Nations and the energy industry, including the Haisla Nation’s Cedar LNG project and the Nisga’a Nation’s Ksi Lisims LNG project.

This has deepened the trust that projects can mitigate risks while providing economic reconciliation and benefits to communities, Dejarlais said.

“Industry has come leaps and bounds in terms of working with First Nations,” he said.

“They are treating the rights of the communities they work with appropriately in terms of project risk and returns.”

Hall Findlay is cautiously optimistic that the tanker ban will be replaced by more appropriate legislation.

“I’m hoping that we see the revival of a federal government that brings pragmatism to governing the country,” she said.

“Repealing C-48 would be a sign of that happening.”

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