Emissions cap concerns among top environment issues in federal lobbying for six months of 2024
‘There’s a real sense of urgency on the part of the government to get [environment policy measures] finished,’ says Tim Gray, executive director of Environmental Defence.
Environment Minister Steven Guilbeault said all sectors of Canada’s economy need to reduce carbon Emissiona cap that includes oil and gas companies,’ according to an Environment press release on Dec. 7, 2023. The Hill TImes photograph by Andrew Meade
NEWS | BY JESSE CNOCKAERT | July 22, 2024
Environment-related advocacy, ranging from the much-debated federal cap on oil and gas emissions, to measures to curtail plastic pollution, were heavily discussed in federal advocacy in the first half of 2024, partly in anticipation of the approaching federal election, says the executive director of Environmental Defence.
“I’d say it’s a little bit busier than normal. There’s a lot of things that, as we get near the end of the government’s mandate, that they’re trying to get done,” said Tim Gray. “There’s a real sense of urgency on the part of the government to get these things finished, which makes sense. That’s really increased our need to be present, and have our views and those of the public heard.”
The environment was the top subject in federal lobbying between January and the end of June, appearing in 3,330 communication reports, based on a search of the federal lobbyists’ registry on July 17. Following behind were the subjects of economic development, which appeared in 3,041 communication reports, and industry, which appeared in 2,716 reports. A total of 18,448 communication reports in total were filed in the first six months of the year.
So far this year, Environmental Defence is the top contributor of communication reports listing the environment as a subject for discussion. Out of the total 146 communication reports filed by the organization for lobbying activity between January and June, 107 were related to the environment.
Top concerns for Environmental Defence in the first half of 2024 included policies related to climate change, such as the oil and gas emissions cap, as well as the issue of plastic pollution, according to Gray.
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On Dec. 7, 2023, the Liberal government introduced a draft of the Regulatory Framework for an Oil and Gas Sector Greenhouse Gas Emissions Cap, which proposes to cap 2030 emissions at 35 to 38 per cent below 2019 levels in order to reach a goal of reducing emissions in the sector to net-zero by 2050. Draft regulations of the oil and gas emissions cap are expected to be released in mid-2024, with final regulations planned for 2025.
Environmental Defence is advocating for the oil industry to “do their fair share” as part of the emissions cap, and for the final regulations to not include “loopholes” that would allow an increase in industry emissions, said Gray.
Tim Gray, executive director of Environmental Defence, says ‘we’d really like to see that emission cap be finalized before the next federal election, and if it’s going to happen, then the first consultation of the draft regulations would need to occur this fall, we feel.’ Photograph courtesy of Tim Gray
“The oil and gas sector is a source of a huge increase in emissions, and so it really needs to have that curtailed if we’re going to meet our climate commitments,” said Gray. “We’d really like to see that emission cap be finalized before the next federal election, and if it’s going to happen, then the first consultation of the draft regulations would need to occur this fall, we feel.”
Lisa Baiton, president of Canadian Association of Petroleum Producers (CAPP), argued in a statement released on May 27, 2024, that “a stringent emissions cap could result in significant job losses for Canadians, severe impacts on the economy and our GDP, and have the potential to compromise Canada’s energy security and prosperity.”
A report by S&P Global Commodity Insights, commissioned by CAPP, reported that if oil and gas drillers were required to cut greenhouse gas emissions by 40 per cent by 2030, industry could see $75-billion less in capital investment over the course of the next nine years compared with current policy conditions.
Environmental Defence countered with a press release on May 27, 2024, arguing that CAPP’s report resorted to misinformation, and assumes ongoing demand for Canadian oil and gas, among other errors.
“Every sector of Canada’s economy must do its part to combat climate change and build a safe, prosperous, and healthy future for Canadians. All sectors of our economy need to reduce their emissions, and that includes oil and gas companies,” said Environment Minister Steven Guilbeault (Laurier-Sainte-Marie, Que.) in a Dec. 7, 2023 Environment press release. “The government of Canada’s plan to cap and reduce emissions from Canada’s largest emitting sector is ambitious, but practical. It considers the global demand for oil and gas—and the importance of the sector in Canada’s economy— and sets a limit that is strict, but achievable.”
So far this year, Environmental Defence communicated with Guilbeault on May 17 and on June 18.
Environmental Defence is represented on the registry in-house by Gray, as well as by consultant Aaron Freeman of Pivot Strategic. The organization is also represented by consultants Don Moors, Brian Klunder and Ujwal Ganguly of Temple Scott Associates.
In terms of overall advocacy, the leading lobbying organization for the first half of 2024 was the Canadian Chamber of Commerce, which filed 148 communication reports. Of that total, 38 reports were filed for activity that occurred between April 15-16 for the organization’s lobby days on Parliament Hill.
In terms of environment-related advocacy, the Chamber filed nine reports on that subject in the first six months of 2024, which included communication with Conservative MP Gérard Deltell (Louis-Saint-Laurent, Que.) and Liberal MP George Chahal (Calgary Skyview, Alta.) on April 15.
In December 2023, the Chamber issued a statement warning that the federal government’s oil and gas emissions cap was being pursued without adequate consideration of industry concerns.
“The proposed emissions cap will make Canada un-competitive in the fight for the global capital that actually encourages investment in net-zero technologies, some of which do not yet exist at scale in the market. We shouldn’t be the jurisdiction with the least attractive fiscal policies for decarbonization,” argued the Chamber in the statement.
Besides discussing the environment, the Chamber is also engaging the federal government regarding a controversial digital services tax, which came into force on June 28. The much-anticipated Digital Services Tax Act was introduced into Parliament on Nov. 30, 2023 as part of Bill C-59, and requires foreign tech giants to pay a three per cent levy on revenue from Canadian users, retroactive to 2022.
Matthew Holmes, senior vice-president of policy and government relations for the Canadian Chamber of Commerce, told The Hill Times that the new tax represents a “trade irritant” with the U.S.
Matthew Holmes, senior vice-president of policy and government relations for the Canadian Chamber of Commerce, says ‘we’re very concerned about the government poking the bear in the United States with this new [digital services] tax.’ Photograph courtesy of Matthew Holmes
“We’re very concerned about the government poking the bear in the United States with this new tax,” said Holmes. “We really feel that it’s not worth the pain that we risk by introducing this new tax. We’re very critical of the government’s efforts to introduce the digital services tax.”
The Chamber argues on its website that the digital services tax may be applied to the revenue earned by large foreign and domestic businesses on online services, but the “true cost” of the tax would ultimately be passed on to consumers in the form of higher prices for products and services that rely on digital platforms.
The Canadian Chamber of Commerce is represented on the registry in-house by its president, Perrin Beatty.
The third-most active organization in the first half of 2024 was the Canadian Cattle Association (CCA), which filed 136 communication reports, of which 61 related to the environment. In communications with public office holders, the CCA was arguing that beef production is “part of the solution when it comes to environmental outcomes,” such as through carbon sequestration activities and contributions to biodiversity, according to Jennifer Babcock, CCA’s senior director of government and public affairs.
The CCA is also interested in ensuring that beef producers are not penalized by the federal price on carbon, Babcock said.
Jennifer Babcock, senior director of government and public affairs for the Canadian Cattle Association, says ‘there’s direct and indirect impacts with the carbon tax,’ and ‘When we’re heating the livestock barns with these fuels, then they’re getting hit with the tax.’ Photograph courtesy of Jennifer Babcock
“There’s direct and indirect impacts with the carbon tax,” said Babcock. “When we’re heating the livestock barns with these fuels, then they’re getting hit with the tax, and in some parts of the country that’s just the only fuel mechanism that they have. And as we saw the past few years, it gets really cold in the wintertime. You need to have the heat going in those barns if you’re going to keep things rolling and keep the cycle of life going. It is really essential, and there are not alternatives available.”
The Canadian Cattle Association is represented on the registry in-house by Nathan Phinney, CCA’s president; Tyler Fulton, vice-president; Dennis Laycraft, executive vice-president; and Leigh Rosengren, chief veterinary officer.
Top lobbying organizations (Jan. to June, 2024)
Organization Comms reports
Canadian Chamber of Commerce 148
Environmental Defence Canada 146
Canadian Cattle Association 136
National Council of Canadian Muslims 125
TELESAT CANADA 122
Aerospace Industries Association of Canada 110
TELUS Corporation 101
University of Alberta 93
Canadian Federation of Independent Business 87
Canadian Pacific Railway Company 84
Heidelberg Materials 84
The above table shows the organizations that filed the most communication reports between January and June in 2024. Information courtesy of the federal lobbyists’ registry.
Most-lobbied Cabinet ministers (Jan. to June, 2024)
Cabinet minister Comms reports
Minister of Innovation François-Philippe Champagne 114
Finance Minister Chrystia Freeland 76
President of the Treasury Board Anita Anand 69
Minister of Export Promotion Mary Ng 58
Minister of Energy and Natural Resources Jonathan Wilkinson 58
Minister of Environment Steven Guilbeault 54
Minister of Immigration Marc Miller 53
Minister of Labour and Seniors Seamus O’Regan 51
Minister of Northern Affairs, Minister responsible for Prairies Economic Development Canada and Minister responsible for the Canadian Northern Economic Development Agency Dan Vandal 47
Minister of Agriculture Lawrence MacAulay 45
The above table shows the Cabinet ministers that were listed in the most communication reports between January and June 2024. Information courtesy of the federal lobbyists’ registry.
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