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Canadian Energy Centre

European governments are reassessing EU-directed green policies amid public unease

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11 minute read

From the Canadian Energy Centre

By Shawn Logan

How ‘greenlash’ is forcing Europe to scale back ambitious net zero policies

European governments are beginning to sound the retreat on some foundational net zero policies in the wake of “greenlash” from increasingly overburdened citizens.  

Russia’s invasion of Ukraine in 2022 prompted European governments to begin pivoting away from cheap Russian natural gas, which Europe increasingly relied on to backstop a laundry list of ambitious green policies. 

But despite pledges by the European Union to “divest away from Russian gas as quickly as possible,” nearly 15% of overall EU gas imports still came from Russia in the first half of 2023, while the amount of liquefied natural gas (LNG) imported from Russia actually increased by 39.5% compared to the same period in 2021, prior to the Ukraine invasion. 

Energy security and affordability have become central issues for Europeans amid a persistent global energy crisis, and that’s translated into a rethink of what had once seemed like unassailable green policies across Europe. 

Here’s a look at how some countries are dealing with the new global reality: 

Germany 

Nothing is more symbolic of Europe’s retreat from its net zero ambitions than Germany seeing a wind farm dismantled to make room for the expansion of a lignite coal mine just outside of Dusseldorf. 

And no European country has been more affected by the changing energy landscape than Germany, which introduced its multi-billion dollar Energiewende program in 2010, calling for a broad phaseout of fossil fuels and nuclear power, replacing them primarily with wind and solar power. 

Today, without cheap and reliable natural gas backups due to sanctions against Russia, Germany has gone from Europe’s economic powerhouse to the world’s worst performing major developed economy, facing “deindustrialization” due to skyrocketing energy costs. 

In addition to extending its deadline for shutting down coal plants until 2024, the German government has also scrapped plans for imposing tougher building insulation standards to reduce emissions as well as extending the deadline on controversial legislation to phase out oil and gas heating systems in homes, a decision the government admits will make it impossible to reach the country’s 2030 emissions targets. 

A major car manufacturer, Germany’s opposition to an EU-wide ban on the sale of new combustion vehicles by 2035 softened the legislation to allow exceptions for those that run on e-fuels. 

Germany’s quest for reliable energy exports prompted Chancellor Olaf Scholz to travel to Canada to make a personal appeal for Canadian LNG. He was sent home empty handed, advised there wasn’t a strong business case for the resource. 

Great Britain 

Britons have grown increasingly concerned about the cost of net zero policies, despite being largely supportive of striving for a greener future. 

YouGov poll in August found while 71% generally favoured Great Britain’s aim to reduce carbon emissions to net zero by 2050, some 55% agreed that policies should only be introduced if they don’t impose any additional costs for citizens. Only 27% agreed reaching the goal was important enough to warrant more spending. 

That shift in public sentiment prompted Prime Minister Rishi Sunak to pump the brakes on some key policies enacted to reach the U.K.’s legally binding target of reaching net zero emissions by 2050. 

In September, the government delayed its looming ban on new gas- and diesel-powered cars by five years to 2035, while also extending its phaseout of gas boilers in homes and suggesting exemptions for certain households and types of property. 

“If we continue down this path, we risk losing the British people and the resulting backlash would not just be against specific policies, but against the wider mission itself,” Sunak said of the potential consequences of maintaining strict net zero policies. 

The U.K. government also gave the green light for hundreds of new North Sea oil and gas licences, citing the need to bolster both energy security and the nation’s economy.  

France 

France’s net zero ambitions enjoy an advantage compared to its European peers due in large part to its significant fleet of nuclear power stations, which provide around 70 per cent of its electricity. 

However, President Emmanuel Macron has often opted for a more pragmatic approach to reaching climate targets, noting any energy transition can’t leave citizens disadvantaged. 

“We want an ecology that is accessible and fair, an ecology that leaves no one without a solution,” Macron said in September after ruling out a total ban on gas boilers, instead offering incentives to those looking to replace them with heat pumps. 

Macron also famously dropped a proposed fuel tax in 2018 that sparked sweeping yellow vest protests across France when it was announced.  

France has also extended the timeframe of its two remaining coal plants to continue operating until 2027, five years later than the plants were originally set to be shuttered. 

Italy 

Feeling the impacts of the global energy crisis, Italy has begun reassessing some of its previous commitments to transition goals. 

Earlier this year, Italy pushed back on EU directives to improve the energy efficiency of buildings, which Italy’s national building association warned would cost some $400 billion euros over the next decade, with another $190 billion euros needed to ensure business properties met the required standards. The Italian government has called for exemptions and longer timelines. 

Italy also warned the European Commission it would only support the EU’s phase out of combustion engine cars if it allows cars running on biofuels to eclipse the deadline, while further questioning a push to slash industrial emissions 

Paolo Angelini, deputy governor at the Bank of Italy, warned a rapid abandonment of fossil fuel-driven industries could have a devastating impact. 

“If everybody divests from high-emitting sectors there will be a problem because if the economy does not adjust at the same time, things could blow up unless a miracle happens in terms of new technology,” he said. 

Poland 

Like Italy, Poland has dug in its heels against some EU net zero initiatives, and is actually suing the EU with the goal of overturning some of its climate-focused legislation in the courts. 

“Does the EU want to make authoritarian decisions about what kind of vehicles Poles will drive and to increase energy prices in Poland? The Polish Government will not allow Brussels to dictate,” wrote Polish Climate and Environment Minister Anna Moskwa on X, formerly known as Twitter, in July. 

In addition to looking to scrap the EU’s ban on combustion engine cars by 2035, Warsaw is also challenging laws around land use and forestry, updated 2030 emissions reduction targets for EU countries, and a border tariff on carbon-intensive goods entering the European Union. 

With some 70% of its electricity generated by coal, Poland is one of Europe’s largest users of coal. And it has no designs on a rapid retreat from the most polluting fossil fuel, reaching an agreement with trade unions to keep mining coal until 2049. 

Netherlands 

The political consequences of leaning too far in on net zero targets are beginning to be seen in the Netherlands. 

In March, a farmer’s protest party, the BBB or BoerBurgerBeweging (Farmer-Citizen Movement), shook up the political landscape by capturing 16 of 75 seats in the Dutch Senate, more than any other party, including the ruling coalition of the Labor and Green Parties. 

The upstart party was formed in 2019 in response to government plans to significantly reduce nitrogen emissions from livestock by 2030, a move estimated to eliminate 11,200 farms and force another 17,600 farmers to significantly reduce their livestock. 

What followed were nationwide protests that saw supermarket distribution centres blockaded, hay bales in flames and manure dumped on highways. 

In November, Dutch voters will elect a new national government, and while BBB has dropped to fifth in polling, much of that support has been picked up by the fledgling New Social Contract (NSC), which has vowed to oppose further integration with EU policies, a similar stance offered by the BBB. The NSC currently tops the polls ahead of the Nov. 22 election. 

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Canadian Energy Centre

Alberta oil sands legacy tailings down 40 per cent since 2015

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Wapisiw Lookout, reclaimed site of the oil sands industry’s first tailings pond, which started in 1967. The area was restored to a solid surface in 2010 and now functions as a 220-acre watershed. Photo courtesy Suncor Energy

From the Canadian Energy Centre 

By CEC Research

Mines demonstrate significant strides through technological innovation

Tailings are a byproduct of mining operations around the world.

In Alberta’s oil sands, tailings are a fluid mixture of water, sand, silt, clay and residual bitumen generated during the extraction process.

Engineered basins or “tailings ponds” store the material and help oil sands mining projects recycle water, reducing the amount withdrawn from the Athabasca River.

In 2023, 79 per cent of the water used for oil sands mining was recycled, according to the latest data from the Alberta Energy Regulator (AER).

Decades of operations, rising production and federal regulations prohibiting the release of process-affected water have contributed to a significant accumulation of oil sands fluid tailings.

The Mining Association of Canada describes that:

“Like many other industrial processes, the oil sands mining process requires water. 

However, while many other types of mines in Canada like copper, nickel, gold, iron ore and diamond mines are allowed to release water (effluent) to an aquatic environment provided that it meets stringent regulatory requirements, there are no such regulations for oil sands mines. 

Instead, these mines have had to retain most of the water used in their processes, and significant amounts of accumulated precipitation, since the mines began operating.”

Despite this ongoing challenge, oil sands mining operators have made significant strides in reducing fluid tailings through technological innovation.

This is demonstrated by reductions in “legacy fluid tailings” since 2015.

Legacy Fluid Tailings vs. New Fluid Tailings

As part of implementing the Tailings Management Framework introduced in March 2015, the AER released Directive 085: Fluid Tailings Management for Oil Sands Mining Projects in July 2016.

Directive 085 introduced new criteria for the measurement and closure of “legacy fluid tailings” separate from those applied to “new fluid tailings.”

Legacy fluid tailings are defined as those deposited in storage before January 1, 2015, while new fluid tailings are those deposited in storage after January 1, 2015.

The new rules specified that new fluid tailings must be ready to reclaim ten years after the end of a mine’s life, while legacy fluid tailings must be ready to reclaim by the end of a mine’s life.

Total Oil Sands Legacy Fluid Tailings

Alberta’s oil sands mining sector decreased total legacy fluid tailings by approximately 40 per cent between 2015 and 2024, according to the latest company reporting to the AER.

Total legacy fluid tailings in 2024 were approximately 623 million cubic metres, down from about one billion cubic metres in 2015.

The reductions are led by the sector’s longest-running projects: Suncor Energy’s Base Mine (opened in 1967), Syncrude’s Mildred Lake Mine (opened in 1978), and Syncrude’s Aurora North Mine (opened in 2001). All are now operated by Suncor Energy.

The Horizon Mine, operated by Canadian Natural Resources (opened in 2009) also reports a significant reduction in legacy fluid tailings.

The Muskeg River Mine (opened in 2002) and Jackpine Mine (opened in 2010) had modest changes in legacy fluid tailings over the period. Both are now operated by Canadian Natural Resources.

Imperial Oil’s Kearl Mine (opened in 2013) and Suncor Energy’s Fort Hills Mine (opened in 2018) have no reported legacy fluid tailings.

Suncor Energy Base Mine

Between 2015 and 2024, Suncor Energy’s Base Mine reduced legacy fluid tailings by approximately 98 per cent, from 293 million cubic metres to 6 million cubic metres.

Syncrude Mildred Lake Mine

Between 2015 and 2024, Syncrude’s Mildred Lake Mine reduced legacy fluid tailings by approximately 15 per cent, from 457 million cubic metres to 389 million cubic metres.

Syncrude Aurora North Mine

Between 2015 and 2024, Syncrude’s Aurora North Mine reduced legacy fluid tailings by approximately 25 per cent, from 102 million cubic metres to 77 million cubic metres.

Canadian Natural Resources Horizon Mine

Between 2015 and 2024, Canadian Natural Resources’ Horizon Mine reduced legacy fluid tailings by approximately 36 per cent, from 66 million cubic metres to 42 million cubic metres.

Total Oil Sands Fluid Tailings 

Reducing legacy fluid tailings has helped slow the overall growth of fluid tailings across the oil sands sector.

Without efforts to reduce legacy fluid tailings, the total oil sands fluid tailings footprint today would be approximately 1.6 billion cubic metres.

The current fluid tailings volume stands at approximately 1.2 billion cubic metres, up from roughly 1.1 billion in 2015.

The unaltered reproduction of this content is free of charge with attribution to the Canadian Energy Centre.

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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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