Commentary | Moe Qureshi, Louise Comeau and Brenna Walsh
In light of recent unprecedented fire behaviour and its devastating impact on Atlantic Canadian communities, it is with great concern that we address the Atlantic premiers regarding their call for the federal government to delay the implementation of the Clean Fuel Regulations.
Scheduled to take effect on July 1, these regulations are vital in achieving climate targets and ensuring a sustainable future for Atlantic Canada and beyond.
The regulations were negotiated over a six-year period with full participation of provinces, industry and environmental stakeholders through technical working groups, as well as several public comment periods. Over that time, lobbying by provinces, including Atlantic energy ministers, and companies like Irving Oil resulted in concessions by the federal government that weakened the potential greenhouse gas reductions.
These concessions included delaying the release of the regulations from 2020 to 2023, and removing heating oil, gaseous and solid fuels from the agreement, leaving only gasoline and diesel covered.
The Clean Fuel Regulations, a polluter-pay policy focused on refinery operations, include significant flexibility to incentivize innovation. It is unreasonable for another postponement as the Atlantic energy ministers already got a three-year delay asked for in 2020. At that time, the request was based on giving industry time to make investments to generate credits toward compliance. That extension was granted so investments should have been made, and companies like Irving Oil should be ready to comply with a 3.5 gram of carbon dioxide equivalent/megajoule reduction.
Industry has had three years to prepare for these regulations, and it is irresponsible to pass on this cost to consumers when it is their own inaction causing problems.
The Clean Fuel Regulations, alongside carbon pricing, are indispensable tools if Canada is to make significant strides in reducing emissions. To achieve national climate commitments and fulfil the objectives of the Paris Agreement, all provinces must support effective federal climate policies. Delaying the implementation of these regulations is not a viable option, as recent wildfires have shown the urgent need for action.
The premiers have cited concerns over the disproportionate impact the regulations may have on Atlantic Canada, as well as the potential increase in gasoline and diesel costs. While we acknowledge the rising affordability challenges faced by Canadians, it is crucial to address the inaccuracies and misinterpretations surrounding these concerns.
The Parliamentary Budget Officer’s recent report, which assesses the distributional impacts of the regulations, fails to provide a comprehensive analysis. The PBO baseline scenario assumes a failure to act on reducing transportation emissions to an equivalent degree that the regulations would achieve. By doing so, it ignores the benefits, overstates the costs on household budgets and neglects the costs of using alternative mechanisms to reduce emissions.
A more accurate assessment of the costs and benefits is imperative.
Firstly, the regulations aim to reduce Canada’s contribution to climate change, which is already imposing substantial costs on communities nationwide. Atlantic Canadians, in particular, are well aware of the real and rising costs of climate inaction, such as increasing forest fires, coastal threats from hurricanes and droughts affecting farming.
Furthermore, the regulations position Canada to compete in the global green economy, attracting new investments and creating tangible benefits. Ontario’s accelerated investment in electric vehicle manufacturing, private sector interest in offshore wind in Atlantic Canada, and wind and solar projects set to generate millions in taxes and billions in investments demonstrate the economic potential of climate action.
It is counterproductive for political leaders to instil fear and hesitation among Canadians regarding climate action. Instead, it is crucial that we come together to expedite the transition to a cleaner, healthier and more resilient future. By embracing Canadian innovation and demonstrating true leadership, we can create communities that thrive while addressing our emissions problem. Implementation of the regulations is how Canadians can remain global leaders at the forefront of climate policy.
We urge Premier Tim Houston, Premier Blaine Higgs, Premier Andrew Furey and Premier Dennis King to prioritize climate leadership and support the timely implementation of the Clean Fuel Regulations. The federal government cannot bear the burden alone, and all provinces must play their part in safeguarding our environment and securing a sustainable future.
It is time to put aside excuses, show true leadership and accelerate the journey toward a cleaner and more prosperous Canada.
Moe Qureshi is the manager of climate solutions, and Louise Comeau is the co-executive director, with the Conservation Council of New Brunswick. Brenna Walsh is a senior energy co-ordinator with the Ecology Action Centre in Halifax.
This article appeared in the Chronicle Herald/Saltwire Network on Wednesday, June 7, 2023.