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Ottawa announces plan to phase out ‘inefficient’ fossil fuel subsidies

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Ottawa published its plan for eliminating inefficient fossil fuel subsidies today — making Canada the first country among wealthy, heavy-emitting nations to do so, according to the federal government.

In 2009, the countries that make up the G20 publicly promised to “phase out and rationalize … inefficient fossil fuel subsidies” over the “medium term.”

Such subsidies “encourage wasteful consumption, reduce our energy security, impede investment in clean energy sources and undermine efforts to deal with the threat of climate change,” said the G20 communique.

Environment and Climate Change Minister Steven Guilbeault announced the plan in Montreal Monday as Canada continues to grapple with one of the worst wildfire seasons ever recorded and devastating flooding in Nova Scotia.

“We’re eliminating subsidies to produce fossil fuels in Canada, unless those subsidies are aimed at de-carbonizing the emissions of the sector,” Guilbeault said.

Export Development Canada offices in downtown Ottawa.
The Export Development Canada offices in downtown Ottawa. (David Thurton/ CBC News)

Environment and Climate Change Canada and the Department of Finance developed the guidelines.

Guilbeault said there are exceptions to the government’s new directive. Federal dollars can still flow to fossil fuel projects if they:

  • Enable significant greenhouse gas emissions reductions

  • Support clean energy, clean technology and renewable energy

  • Support Indigenous economic participation in fossil fuel activities

  • Offer essential energy services to remote communities

  • Provide short-term support for an emergency

  • Support abated fossil fuels — oil and gas projects which capture production emissions through carbon capture.

The framework targets government departments, agencies and Crown corporations.

Canada's Minister of the Environment and Climate Change Steven Guilbeault speaks at the GLOBE Forum 2022 in Vancouver, British Columbia, Canada March 29, 2022. REUTERS/Jennifer Gauthier
Environment Minister Steven Guilbeault says the plan to eliminate what the government calls ‘inefficient’ fossil fuel subsidies has some exceptions. (REUTERS/Jennifer Gauthier)

Much of the federal government’s support for the fossil fuel sector comes from Crown corporations like Trans Mountain, the Canada Development Investment Corporation (CDEV) and Export Development Canada (EDC).

The advocacy group Environmental Defence estimates about $19 billion in financing for fossil fuels came from EDC in 2022.

Much of that support comes in the form of commercially viable loans. The current policy doesn’t consider those loans a subsidy.

Guilbeault said the government is working on identifying all remaining sources of public financing — including Crown corporations — and will announce a plan to phase those subsidies out by the end of 2024.

Phase-out plan is a ‘half measure’: NDP

A plan to phase out public financing of the fossil fuel sector, including Crown corporations, was a key requirement of the confidence and supply agreement the Liberals arranged with the NDP to support their minority government.

MP Laurel Collins, NDP critic for climate change and the environment, said in a media statement she is “frustrated” with a Liberal plan she described as a “half-measure.”

“The NDP will keep pushing for the immediate elimination of specific fossil fuel subsidies that Liberals left out — like the exploration and development expense deductions for oil and gas — and for a plan to end public financing of the fossil fuel sector,” Collins said.

The environmental advocacy group Environmental Defence said today’s guidelines set a “high benchmark” for other countries in the G20 to follow.

But Julia Levin, associate director of Environmental Defence, said more work must be done to close loopholes in the guidelines. She said the government’s investment tax credit for carbon capture continues to bankroll oil and gas directly.

“There are exemptions that continue to show the influence of big oil on climate policy decisions,” Levin said.

Mixed reviews from Alberta and industry

In a media statement, Alberta Environment Minister Rebecca Schulz said that while the province is still reviewing the new guidelines, she thinks Ottawa’s focus is misplaced.

“Fossil fuels are not the problem. Emissions are the problem, and Ottawa’s top priority should be working with provinces and finding more effective ways to help industry cut emissions in practical ways across all sectors,” Schulz said.

Energy for a Secure Future, which promotes the natural gas sector, said it doesn’t believe Canada has any inefficient oil and gas subsidies to eliminate.

“These projects are economically viable, and that’s why people are investing their private capital in them,” said Shannon Joseph, a member of the organization’s advisory council.

Joseph said tax measures offered to any other types of business in Canada should also go to the oil and gas sector. She also called on Canadians to remember the role fossil fuels play in our economy and funding our social safety net.

“What Canadians need to know about the energy sector in Canada is that it is a major source of investment and innovation, it is a major source of jobs and GDP, and that the world is still asking us for this energy,” she said.

Others within the industry applauded the exemptions for projects that have Indigenous ownership or reduce emissions.

“We’re pleased to see the guidelines recognize the need for government partnership on projects essential to Canada’s efforts to meet its climate commitments, including the Pathways Alliance’s ambitious proposed carbon capture and storage project,” said Kendall Dilling of Pathways Alliance, an association of oilsands companies.

 

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Suspicious deaths of two N.S. men were the result of homicide, suicide: RCMP

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Nova Scotia RCMP say their investigation into two suspicious deaths earlier this month has concluded that one man died by homicide and the other by suicide.

The bodies of two men, aged 40 and 73, were found in a home in Windsor, N.S., on Sept. 3.

Police say the province’s medical examiner determined the 40-year-old man was killed and the 73-year-old man killed himself.

They say the two men were members of the same family.

No arrests or charges are anticipated, and the names of the deceased will not be released.

RCMP say they will not be releasing any further details out of respect for the family.

This report by The Canadian Press was first published Sept. 16, 2024.

The Canadian Press. All rights reserved.



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Turning the tide: Quebec premier visits Cree Nation displaced by hydro project in 70s

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For the first time in their history, members of the Cree community of Nemaska received a visit from a sitting Quebec premier on Sunday and were able to share first-hand the story of how they were displaced by a hydroelectric project in the 1970s.

François Legault was greeted in Nemaska by men and women who arrived by canoe to re-enact the founding of their new village in the Eeyou Istchee James Bay region, in northern Quebec, 47 years ago. The community was forced in the early 1970s to move from its original location because members were told it would be flooded as part of the Nottaway-Broadback-Rupert hydro project.

The reservoir was ultimately constructed elsewhere, but by then the members of the village had already left for other places, abandoning their homes and many of their belongings in the process.

George Wapachee, co-author of the book “Going Home,” said community members were “relocated for nothing.”

“We didn’t know what the rights were, or who to turn to,” he said in an interview. “That turned us into refugees and we were forced to abandon the life we knew.”

Nemaska’s story illustrates the challenges Legault’s government faces as it looks to build new dams to meet the province’s power needs, which are anticipated to double by 2050. Legault has promised that any new projects will be developed in partnership with Indigenous people and have “social acceptability,” but experts say that’s easier said than done.

François Bouffard, an associate professor of electrical engineering at McGill University, said the earlier era of hydro projects were developed without any consideration for the Indigenous inhabitants living nearby.

“We live in a much different world now,” he said. “Any kind of hydro development, no matter where in Quebec, will require true consent and partnership from Indigenous communities.” Those groups likely want to be treated as stakeholders, he added.

Securing wider social acceptability for projects that significantly change the landscape — as hydro dams often do — is also “a big ask,” he said. The government, Bouchard added, will likely focus on boosting capacity in its existing dams, or building installations that run off river flow and don’t require flooding large swaths of land to create reservoirs.

Louis Beaumier, executive director of the Trottier Energy Institute at Polytechnique Montreal, said Legault’s visit to Nemaska represents a desire for reconciliation with Indigenous people who were traumatized by the way earlier projects were carried about.

Any new projects will need the consent of local First Nations, Beaumier said, adding that its easier to get their blessing for wind power projects compared to dams, because they’re less destructive to the environment and easier around which to structure a partnership agreement.

Beaumier added that he believes it will be nearly impossible to get the public — Indigenous or not — to agree to “the destruction of a river” for a new dam, noting that in recent decades people have come to recognize rivers as the “unique, irreplaceable riches” that they are.

Legault’s visit to northern Quebec came on Sept. 15, when the community gathers every year to remember the founding of the “New Nemaska,” on the shores of Lake Champion in the heart of the boreal forest, some 1,500 kilometres from Montreal. Nemaska Chief Clarence Jolly said the community invited Legault to a traditional feast on Sunday, and planned to present him with Wapachee’s book and tell him their stories.

The book, published in 2022 along with Susan Marshall, is filled with stories of Nemaska community members. Leaving behind sewing machines and hunting dogs, they were initially sent to two different villages, Wapachee said.

In their new homes, several of them were forced to live in “deplorable conditions,” and some were physically and verbally abused, he said. The new village of Nemaska was only built a few years later, in 1977.

“At this time, families were losing their children to prison-schools,” he said, in reference to the residential school system. “Imagine the burden of losing your community as well.”

Thomas Jolly, a former chief, said he was 15 years old when he was forced to leave his village with all his belongings in a single bag.

Meeting Legault was important “because have to recognize what happened and we have to talk about the repercussions that the relocation had on people,” he said, adding that those effects are still felt today.

Earlier Sunday, Legault was in the Cree community of Eastmain, where he participated in the official renaming of a hydro complex in honour of former premier Bernard Landry. At the event, Legault said he would follow the example of his late predecessor, who oversaw the signing of the historic “Paix des Braves” agreement between the Quebec government and the Cree in 2002.

He said there is “significant potential” in Eeyou Istchee James Bay, both in increasing the capacity of its large dams and in developing wind power projects.

“Obviously, we will do that with the Cree,” he said.

This report by The Canadian Press was first published Sept. 16, 2024.



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Quebec premier visits Cree community displaced by hydro project in 1970s

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NEMASKA – For the first time in their history, members of the Cree community of Nemaska received a visit from a sitting Quebec premier on Sunday and were able to share first-hand the story of how they were displaced by a hydroelectric project in the 1970s.

François Legault was greeted in Nemaska by men and women who arrived by canoe to re-enact the founding of their new village in the Eeyou Istchee James Bay region, in northern Quebec, 47 years ago. The community was forced in the early 1970s to move from their original location because they were told it would be flooded as part of the Nottaway-Broadback-Rupert hydro project.

The reservoir was ultimately constructed elsewhere, but by then the members of the village had already left for other places, abandoning their homes and many of their belongings in the process.

George Wapachee, co-author of the book “Going Home,” said community members were “relocated for nothing.”

“We didn’t know what the rights were, or who to turn to,” he said in an interview. “That turned us into refugees and we were forced to abandon the life we knew.”

The book, published in 2022 by Wapachee and Susan Marshall, is filled with stories of Cree community members. Leaving behind sewing machines and hunting dogs, they were initially sent to two different villages, 100 and 300 kilometres away, Wapachee said.

In their new homes, several of them were forced to live in “deplorable conditions,” and some were physically and verbally abused, he said. The new village of Nemaska was only built a few years later, in 1977.

“At this time, families were losing their children to prison-schools,” he said, in reference to the residential school system. “Imagine the burden of losing your community as well.”

Legault’s visit came on Sept. 15, when the community gathers every year to remember the founding of the “New Nemaska,” on the shores of Lake Champion in the heart of the boreal forest, some 1,500 kilometres from Montreal. Nemaska Chief Clarence Jolly said the community invited Legault to a traditional feast on Sunday, and planned to present him with Wapachee’s book and tell him their stories.

Thomas Jolly, a former chief, said he was 15 years old when he was forced to leave his village with all his belongings in a single bag.

Meeting Legault was important “because have to recognize what happened and we have to talk about the repercussions that the relocation had on people,” he said, adding that those effects are still felt today.

Earlier Sunday, Legault had been in the Cree community of Eastmain, where he participated in the official renaming of a hydro dam in honour of former premier Bernard Landry.

This report by The Canadian Press was first published Sept. 16, 2024.

The Canadian Press. All rights reserved.



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