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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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RCMP end latest N.B. search regarding teenage girl who went missing in 2021

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BATHURST, N.B. – RCMP in New Brunswick say a weekend ground search for evidence related to the disappearance of a teenage girl in 2021 didn’t reveal any new information.

In an emailed statement, the RCMP said 20 people participated in the search for evidence in the case of Madison Roy-Boudreau of Bathurst.

The release said the search occurred in the Middle River area, just south of the girl’s hometown.

Police have said the 14-year-old’s disappearance is being treated as a homicide investigation.

The RCMP said the search “did not reveal any new information regarding the circumstances of her disappearance.”

There are no plans for another search until police receive a tip or a lead pointing to a new search area.

This report by The Canadian Press was first published Oct. 21, 2024.

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Man Tasered after trespassing in Victoria school, forcing lockdown

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VICTORIA – A middle school in Victoria was forced into a lockdown after a man entered the building without permission, and police say they had to use a stun gun to make an arrest.

Victoria police say officers received multiple calls around noon on Monday of an unknown male entering Central Middle School, leading staff to set off emergency procedures that put the building under lockdown.

Police say its emergency response team arrived within minutes and found the suspect, who “appeared to be in a drug-induced state,” in the school’s library.

A statement from police says the suspect resisted arrest, and officers had to use a Taser to subdue the man.

He’s being held by police and has been assessed by emergency medical staff.

Police say the man was not armed and there were no continuing safety concerns for students and staff following the arrest.

This report by The Canadian Press was first published Oct. 21, 2024.

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B.C. Greens’ ex- leader Weaver thinks minority deal with NDP less likely than in 2017

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VANCOUVER – Former B.C. Green leader Andrew Weaver knows what it’s like to form a minority government with the NDP, but says such a deal to create the province’s next administration is less likely this time than seven years ago.

Weaver struck a power-sharing agreement that resulted in John Horgan’s NDP minority government in 2017, but said in an interview Monday there is now more animosity between the two parties.

Neither the NDP nor the B.C. Conservatives secured a majority in Saturday’s election, raising the prospect of a minority NDP government if Leader David Eby can get the support of two Green legislators.

Manual recounts in two ridings could also play an important role in the outcome, which will not be known for about a week.

Weaver, who is no longer a member of the Greens, endorsed a Conservative candidate in his home riding.

He said Eby would be in a better position to negotiate if Furstenau, who lost her seat, stepped aside as party leader.

“I think Mr. Eby would be able to have fresh discussions with fresh new faces around the table, (after) four years of political sniping … between Sonia and the NDP in the B.C. legislature,” he said.

He said Furstenau’s loss put the two elected Greens in an awkward position because parties “need the leader in the legislature.”

Furstenau could resign as leader or one of the elected Greens could step down and let her run in a byelection in their riding, he said.

“They need to resolve that issue sooner rather than later,” he said.

The Green victories went to Rob Botterell in Saanich North and the Islands and Jeremy Valeriote in West Vancouver-Sea to Sky.

Neither Botterell nor Valeriote have held seats in the legislature before, Weaver noted.

“It’s not like in 2017 when, you know, I had been in the (legislature) for four years already,” Weaver said, adding that “the learning curve is steep.”

Sanjay Jeram, chair of undergraduate studies in political science at Simon Fraser University, said he doesn’t think it’ll be an “easygoing relationship between (the NDP and Greens) this time around.”

“I don’t know if Eby and Furstenau have the same relationship — or the potential to have the same relationship — as Horgan and Weaver did,” he said. “I think their demands will be a little more strict and it’ll be a little more of a cold alliance than it was in 2017 if they do form an alliance.”

Horgan and Weaver shook hands on a confidence-and-supply agreement before attending a rugby match, where they were spotted sitting together before the deal became public knowledge.

Eby said in his election-night speech that he had already reached out to Furstenau and suggested common “progressive values” between their parties.

Furstenau said in her concession speech that her party was poised to play a “pivotal role” in the legislature.

Botterell said in an election-night interview that he was “totally supportive of Sonia” and he would “do everything I can to support her and the path forward that she chooses to take because that’s her decision.”

The Green Party of Canada issued a news release Monday, congratulating the candidates on their victories, noting Valeriote’s win is the first time that a Green MLA has been elected outside of Vancouver Island.

“Now, like all British Columbians we await the final seat count to know which party will have the best chance to form government. Let’s hope that the Green caucus has a pivotal role,” the release said, echoing Furstenau’s turn of phrase.

The final results of the election won’t be known until at least next week.

Elections BC says manual recounts will be held on Oct. 26 to 28 in two ridings where NDP candidates led B.C. Conservatives by fewer than 100 votes after the initial count ended on Sunday.

The outcomes in Surrey City Centre and Juan de Fuca-Malahat could determine who forms government.

The election’s initial results have the NDP elected or leading in 46 ridings, and the B.C. Conservatives in 45, both short of the 47 majority mark in B.C.’s 93-seat legislature.

If the Conservatives win both of the recount ridings and win all other ridings where they lead, Rustad will win with a one-seat majority.

If the NDP holds onto at least one of the ridings where there are recounts, wins the other races it leads, and strikes a deal with the Greens, they would have enough numbers to form a minority government.

But another election could also be on the cards, since the winner will have to nominate a Speaker, reducing the government’s numbers in the legislature by one vote.

Elections BC says it will also be counting about 49,000 absentee and mail-in ballots from Oct. 26 to 28.

The NDP went into the election with 55 ridings, representing a comfortable majority in what was then an 87-seat legislature.

Jeram, with Simon Fraser University, said though the counts aren’t finalized, the Conservatives were the big winners in the election.

“They weren’t really a not much of a formal party until not that long ago, and to go from two per cent of the vote to winning 45 or more seats in the B.C. provincial election is just incredible,” he said in an interview Monday.

Jeram said people had expected Eby to call an election after he took over from John Horgan in 2022, and if he had, he doesn’t think there would have been the same result.

He said the B.C. Conservative’s popularity grew as a result of the decision of the BC Liberals to rebrand as BC United and later drop out.

“Had Eby called an election before that really shook out, and maybe especially before (Pierre) Poilievre, kind of really had the wind in his sails and started to grow, I think he could have won the majority for sure.”

He said he wasn’t surprised by the results of the election, saying polls were fairly accurate.

“Ultimately, it really was a result that we saw coming for a while, since the moment that BC United withdrew and put their support behind the conservatives, I think this was the outcome that was expected.”

— With files from Darryl Greer

This report by The Canadian Press was first published Oct. 21, 2024.

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