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Energy

Federal emissions cap a slap in the face to Indigenous peoples: Stephen Buffalo

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From the MacDonald Laurier Institute

By Stephen Buffalo

We are sick and tired of being poor and welfare dependency. We have, particularly in the past 20 years, established hundreds of companies and partnerships and trained thousands of our people for work in the energy industry. Now the government is cutting our feet out from under us again.

It’s hard to remain quiet. Prime Minister Justin Trudeau has long said that relationship and reconciliation with Indigenous peoples is a top priority for his government.

And then he ignores us again. The Government of Canada is on the verge of doing it once more, this time on the emissions cap.

The government is preparing for COP28, the world climate event being held, seemingly without a touch of irony, in Dubai. The latest attempt at global attention grabbing is anticipated to be a reduction in greenhouse gas emissions which, in Western Canada, is a code for a sharp drop in authorized fossil fuel production.

Over the past four decades, Canadian governments urged and promoted Indigenous peoples to engage in the natural resource economy. We were anxious to break our dependence on government and, even more, to exercise our treaty and Indigenous rights to build our own economies. We jumped in with far more enthusiasm and commitment than most Canadians appreciate.

Well over 100 First Nations are substantially invested in oil and gas production as employees, employers, partners and equity participants. Dozens more have approved pipeline construction across their traditional lands. Many more have solid investments in oil and gas development and infrastructure. And we seek a greater and more meaningful role.

Of course, we do not support unchecked exploitation of natural resources. We insist on careful attention to environmental protection and remediation. And we expect and deserve fair compensation for the extraction of oil and gas from our lands. We are sick and tired of being poor and welfare dependency. We have, particularly in the past 20 years, established hundreds of companies and partnerships and trained thousands of our people for work in the energy industry.

Now the government is cutting our feet out from under us again. Over the past decade, Ottawa slowed pipeline development, passed legislation that hampered resource development, imposed increasingly strict controls on fossil fuel development, and created new levies and taxes to thwart our efforts.

They did all they could to shame the industry that, more than any other, sustains Canadian prosperity. Rapid population growth, manufacturing and urban sprawl, all major contributions to greenhouse gas emissions, have been largely untouched.

And now, in a bid to make Canada look ecologically virtuous on the world stage, the Liberal government is poised to impose further restrictions on the oil and gas sector. This is happening as Indigenous engagement, employment and equity investment is growing and at a time when our communities have had their first taste of real and sustainable prosperity since the newcomers killed off all the buffalo. Thanks for nothing.

We are astonished by Canada’s seemingly limited understanding of the role of oil and gas in Canadian prosperity. We get — and embrace — the concern about climate change and emissions. We support logical, collectively developed measures that will contribute to a reduction in Canada’s ecological impacts. But let us do this with our eyes wide open and by looking at all possible ways of meeting our climate targets. Norway gets little pushback for major expansions of its oil production; Canada, ever and undeservedly the global environmental doormat, takes intense criticism while operating one of the most environmentally sound and regulated energy sectors in the world.

All of Canada will pay a big price for our faux stewardship of the country’s remarkable energy resources. The federal government, wrestling with growing debt and staggering interest payments, collects billions annually in oil and gas revenues. The three western provinces contribute billions to federal equalization payments, with Quebec receiving the largest share.

But the western contribution earns little sympathy from Quebec, which stopped discussion of the Energy East pipeline in its tracks, closing off a new market for Canadian producers and retaining Eastern Canada’s dependence on imported oil. We are still waiting for a national “thank you” for access to the resources and the cash harvested from our oil and gas-rich lands.

It is fair to say that Canadians and the national government do not understand the seething anger building up in our communities. I know that I am not the only one who is truly upset. We followed government signals and found our feet economically in the past two decades. We created a space for ourselves in an industry that is fundamental to Canadian prosperity.

Indigenous people demonstrated their entrepreneurial skills and their ability to invest in both community development and long-term wealth creation keeping in mind both our present and future generations. The government seems willing to overturn our carefully won opportunities and prosperity, without the courtesy of full conversation acting as a colonial power.

Indigenous people have been betrayed many times over the last 200 years, but the most recent betrayals always hurt the most. We thought Canada had turned the corner in its respect for Indigenous peoples and our rights. Watch carefully over the next few days. If the prime minister talks about emissions controls, he really means production rollbacks. This is a slap in the face of Indigenous peoples.

Stephen Buffalo is a proud member of the Samson Cree Nation. He is president and CEO of the Indian Resources Council of Canada, chair of the board of directors of Alberta Indigenous Opportunities Corporation, a senior fellow at the MacDonald Laurier Institute, and the first ever Indigenous governor of the Canadian Energy Executive Association.

Canadian Energy Centre

Trans Mountain completion shows victory of good faith Indigenous consultation

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Photo courtesy Trans Mountain Corporation

From the Canadian Energy Centre

By Joseph Quesnel

‘Now that the Trans Mountain expansion is finally completed, it will provide trans-generational benefits to First Nations involved’

While many are celebrating the completion of the Trans Mountain pipeline expansion project for its benefit of delivering better prices for Canadian energy to international markets, it’s important to reflect on how the project demonstrates successful economic reconciliation with Indigenous communities.

It’s easy to forget how we got here.

The history of Trans Mountain has been fraught with obstacles and delays that could have killed the project, but it survived. This stands in contrast to other pipelines such as Energy East and Keystone XL.

Starting in 2012, proponent Kinder Morgan Canada engaged in consultation with multiple parties – including many First Nation and Métis communities – on potential project impacts.

According to Trans Mountain, there have been 73,000 points of contact with Indigenous communities throughout Alberta and British Columbia as the expansion was developed and constructed. The new federal government owners of the pipeline committed to ongoing consultation during early construction and operations phase.

Beyond formal Indigenous engagement, the project proponent conducted numerous environmental and engineering field studies. These included studies drawing on deep Indigenous input, such as traditional ecological knowledge studies, traditional land use studies, and traditional marine land use studies.

At each stage of consultation, the proponent had to take into consideration this input, and if necessary – which occurred regularly – adjust the pipeline route or change an approach.

With such a large undertaking, Kinder Morgan and later Trans Mountain Corporation as a government entity had to maintain relationships with many Indigenous parties and make sure they got it right.

Trans Mountain participates in a cultural ceremony with the Shxw’ōwhámél First Nation near Hope, B.C. Photograph courtesy Trans Mountain

It was the opposite of the superficial “checklist” form of consultation that companies had long been criticized for.

While most of the First Nation and Métis communities engaged in good faith with Kinder Morgan, and later the federal government, and wanted to maximize environmental protections and ensure they got the best deal for their communities, environmentalist opponents wanted to kill the project outright from the start.

After the government took over the incomplete expansion in 2018, green activists were transparent about using cost overruns as a tactic to scuttle and defeat the project. They tried to make Trans Mountain ground zero for their anti-energy divestment crusade, targeting investors.

It is an amazing testament to importance of Trans Mountain that it survived this bad faith onslaught.

In true eco-colonialist fashion, the non-Indigenous activist community did not care that the consultation process for Trans Mountain project was achieving economic reconciliation in front of their eyes. They were “fair weather friends” who supported Indigenous communities only when they opposed energy projects.

They missed the broad support for the Trans Mountain expansion. As of March 2023, the project had signed agreements with 81 Indigenous communities along the proposed route worth $657 million, and the project has created over $4.8 billion in contracts with Indigenous businesses.

Most importantly, Trans Mountain saw the maturing of Indigenous capital as Indigenous coalitions came together to seek equity stakes in the pipeline. Project Reconciliation, the Alberta-based Iron Coalition and B.C.’s Western Indigenous Pipeline Group all presented detailed proposals to assume ownership.

Although these equity proposals have not yet resulted in a sale agreement, they involved taking that important first step. Trans Mountain showed what was possible for Indigenous ownership, and now with more growth and perhaps legislative help from provincial and federal governments, an Indigenous consortium will be eventually successful when the government looks to sell the project.

If an Indigenous partner ultimately acquires an equity stake in Trans Mountain, observers close to the negotiations are convinced it will be a sizeable stake, well beyond 10 per cent. It will be a transformative venture for many First Nations involved.

Now that the Trans Mountain expansion is finally completed, it will provide trans-generational benefits to First Nations involved, including lasting work for Indigenous companies. It will also demonstrate the victory of good faith Indigenous consultation over bad faith opposition.

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Economy

Biden signs suicidal ‘No Coal’ pact, while rest of world builds 1,000 new plants

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From Heartland Daily News

By  James Taylor James Taylor

The Biden administration has just signed an economic suicide pact that would require the United States and six other Western democracies to shut down its coal power plants by 2035, while China, India and the rest of the world currently have more than 1,000 new coal power plants in the planning or construction phase. The no-coal pact allows all nations but the Suicidal Seven to continue using as much affordable coal power as they like.

Climate activists often point to China as a climate role model, noting that China manufactures more wind and solar power equipment than any other nation. China, however, isn’t stupid enough to use much of that equipment. Realizing that conventional energy – and especially coal power – is more affordable and reliable than wind and solar power, China manufactures wind and solar equipment, sells the equipment to America and Western Europe, and then powers its own economy primarily with coal power.

In America, government intervention has already caused the shutdown of many coal power plants and the construction of expensive wind and solar projects. In more than half the states, renewable power mandates require a certain percentage of electricity in the state to come from wind or solar. Federal laws and regulations punish coal power at nearly every step of coal mining and utilization. Massive subsidies for wind and solar allow wind and solar providers to charge substantially reduced prices for their product at taxpayers’ expense.

Even with government tipping the scale so heavily in favor of wind and solar power, the so-called green transition is coming with an enormous price tag. According to the U.S. Energy Information Administration, there was a 21 percent increase in wind and solar power since Joe Biden took office in January 2021 through the end of 2023. At the same time, electricity prices also rose by 21 percent. Prior to Biden taking office, the long-term electricity price trend was an increase of approximately 1 percent per year. The green transition has increased the pace of electricity price inflation by 700 percent. And that doesn’t account for all the wind and solar subsidies that are hidden in our tax bills.

There is little reason to believe we are on the verge of a climate crisis. A good resource documenting this good news is ClimateRealism.com. Yet, even if a climate crisis were imminent, unilateral coal disarmament is a foolish way for America to approach carbon dioxide emissions.

Since 2000, the United States has reduced its carbon dioxide emissions more than any other country in the world. U.S. emissions are down 21 percent, while the rest of the world has increased its emissions by 47 percent. Clearly, America “showing leadership” reducing carbon dioxide emissions is leading to nothing other than the rest of the world free license to jack up their own emissions. Even if the United States and the rest of the Suicidal Seven could somehow eliminate all of their emissions, it would have little impact on the global trend.

Ultimately, Biden’s pact to eliminate American coal use will further ramp up inflation. After all, energy is an important cost component in almost every product bought and sold in the economy. In addition to the inflation impact, Biden’s pact will force American businesses into a major competitive disadvantage versus businesses in China, India, and the rest of the world, which will be paying substantially lower energy costs than American businesses.

Under Biden’s plan, we will end up sinking vast economic resources into eliminating coal power and as much carbon dioxide as possible from the American economy. Even then, we will still be looking at global emissions continuing to rise. At that point, Biden’s plan is for America to assume the lion’s share of global “climate reparations” and financial bribes to induce China, India, and the rest of the world to reduce their carbon dioxide emissions. After sabotaging our own economy with higher energy prices, we will literally borrow money from China in order to then bribe China to reduce its carbon dioxide emissions.

It would be hard to think of a crazier domestic energy policy.

James Taylor ([email protected]) is president of The Heartland Institute.

Originally published by The Center Square. Republished with permission.

For more on the U.S. electric power system, click here.

For more on coal, click here.

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