Saturday, October 16, 2021

The fight against climate change goes beyond reducing CO2 emissions

The Secret Negotiator

An insider talks about efforts to cut methane, one of the most prevalent greenhouse gases but which has had little attention

Cows are one of the biggest producers of methane, but also have huge economic and cultural value in many countries.
 Photograph: Robin Utrecht/Rex/Shutterstock

Sat 16 Oct 2021

While global climate efforts have tended to focus on the fight against carbon dioxide, many other threats that attract less attention are just as dangerous to our planet.

Negotiations over these more granular issues take place away from the limelight. But the policies and agreements that emerge are some of the most vital steps in the fight against climate change.

Over the past few weeks, one of these issues our team has focused on has been methane reduction. Methane, one of the most prevalent greenhouse gases, has accounted for nearly a third of global heating since the pre-industrial era. Yet efforts to combat it have been half-hearted.

On Monday, my country chose to join the fight to reverse this trend. We became one of 24 new signatories to the Global Methane Pledge, initiated by the US this year. The pledge, which is outside the traditional UN framework on climate change negotiations, committed its signatories to a 30% cut in methane emissions by the end of this decade.

Methane is up to 80 times more powerful than carbon dioxide, though it breaks down faster. Making urgent and drastic cuts will therefore have an immediate impact on reducing global temperatures.

Among the negotiating teams of climate vulnerable countries such as mine, however, scepticism is still rife. While the goals of the pledge are admirable, actions are needed to convince those of us most at risk that these efforts will pay dividends.

The international community has a recent history of lagging behind on some of its most celebrated pledges. The $100bn annual target for climate finance for poor countries, for instance, from 10 Cops ago, has still not been reached. Progress on the Paris agreement’s key commitments is mostly lagging around the world.

The only way forward is for the developed world to take immediate action and lead by example. The developing world is more than willing to commit to action, but it is a significant challenge. In our country, as in many others, methane is the principal source of emissions. Cows, which produce methane, have enormous economic and cultural value to many of our nations. Furthermore, rapid urbanisation results in huge increases in waste production, which also releases methane.

The only way forward is for the developed world to take the lead, share technology, and provide financial assistance. Then we can decouple economic development from methane, and strive towards a cleaner future. While there are barriers to cutting emissions in the developing world, we are more than willing to work with our international partners to overcome them. The security of our people is at risk, after all.

While the past week has demonstrated the potential of international collaboration to produce positive outcomes, there is far more to be done. For one, only 33 countries have signed on to this pledge. Major emitters – including China, India and Russia, which are among the top methane emitters – cannot shy away. For another, not enough financial support has been pledged to achieve the targets.

The negotiations around the methane pledge have been similar to the overall negotiation process. The demands from the climate vulnerable ring out as clear as ever: urgent action, global collaboration, and increased financial support are the only routes to a stable future. As Cop26 looms, these demands must be heard, understood, and acted upon by the developed world.

Every week we’ll hear from negotiators from a developing country that is involved in the United Nations Framework Convention on Climate Change negotiations and will be attending the Cop26 climate conference.
How to tackle decarbonization when fossil fuels are the backbone of the economy


© istock
BY MICHAEL LENOX AND BECKY DUFF, OPINION CONTRIBUTORS — 
10/14/21 
THE VIEWS EXPRESSED BY CONTRIBUTORS ARE THEIR OWN AND NOT THE VIEW OF THE HILL

Forest fires in California. Drought in the Southwest. Hurricanes in the Gulf. Flooding in New Jersey. Recent months have been filled with the deadly impact of extreme weather. Weather that scientists tell us is increasingly driven by climate change. With each new calamity, calls increase to better prepare for a future of frequent deadly weather events. But while such adaptation is surely going to be needed, if we don’t mitigate the underlying problem, reducing the emissions of greenhouse gases, we will be speeding ahead into an uncertain world.

Calls to mitigate climate change and to reduce emissions to net-zero are nothing new. Scientists having been sounding the alarm for decades. Yet, decarbonization as it is called, can be overwhelming. Fossil fuels are the backbone of our global economy. They fuel our cars, power our electrical plants, heat our homes. They are a vital feedstock for farming and manufacturing. How can we possibly eliminate them?

To understand the scope of the problem, it is helpful to know where emissions occur. About one-quarter of global emissions come from electricity production, primarily coal and natural gas plants. One-fifth of emissions come from industrial processes like the production of steel, cement and petrochemicals. Roughly 15 percent come from the use of gasoline in automobiles. Extracting and refining of fossil fuels make up another 10 percent, including the release of methane during fracking. Another 5 percent come from heating buildings. About one-quarter of emissions come from agriculture, largely from the release of methane by livestock and the creation of nitrous oxide from fertilizers.

Each sector presents unique challenges. For some, there are reasons for hope. We are in the midst of a major technological disruption with the rise of battery-powered electric vehicles. The adoption rate of EVs is increasing, new entrants and established companies are rushing to offer models, and the cost of vehicles is decreasing. On its current trajectory, EVs may be cheaper than traditional cars by the end of the decade, if not sooner.

A similar miracle is occurring in renewable energy. The price of wind and solar power has seen steep declines over the past decade. In many places, wind and solar are on par with natural gas turbines. Yet, challenges remain. To deal with intermittency — the sun doesn’t always shine and the wind doesn’t always blow – we will need to invest in substantial storage capacity and smart grid infrastructure that will encourage distributed sources of electricity generation.

Other sectors present even greater challenges. There are numerous alternatives to petroleum-based plastics, yet the demand for such plastics is increasing globally. While there are efforts to create “green cement,” these technologies are not yet market viable at scale. Biotech start-ups are pursuing lab-grown “clean” meat, but whether consumers are willing and can afford such products remains to be seen.

Yet, while the challenges are daunting, there are reasons for optimism. Markets have proven incredibly effective at diffusing new technologies when the economics become favorable. Economic history is marked by frequent “gales of creative destruction” as observed by economist Joseph Schumpeter. Think how quickly new digital technologies like smartphones and video streaming have become part of our lives. Clean technologies are gaining traction. What they need is a little push (or a big push in some cases).

As a matter of policy, economists advocate for putting a price in carbon such as a carbon tax. Advice which politicians promptly ignore especially here in the United States. Yet, there are numerous levers available to help advance clean technologies. Many of these need not be politically charged. Clean technologies are growth industries, creating jobs and driving international competitiveness. For a country like the U.S., there are huge economic opportunities in being a clean tech leader.

We need a broad technology policy that recognizes the specific needs of each emitting sector. Automobiles may need only a nudge — investments in charging infrastructure, perhaps a subsidy to retire old cars early. Electric utilities need massive infrastructure investment in storage, smart grids and building out renewable capacity. Industrials, such as steel and cement, need spending on research and development to explore alternative production technologies. Agriculture will need a broad array of policies to incentivize more sustainable farming and to encourage consumers to demand less carbon-intensive foods.

Climate change can be overwhelming. But we can, and must, get to the task of designing a decarbonized future. A well-designed technology policy can help accelerate clean alternatives and create new jobs and economic opportunities. Let’s not despair and get to making change happen.

Michael Lenox is the Tayloe Murphy professor of business at the University of Virginia.

Becky Duff is a senior researcher for the Batten Institute at the University of Virginia.

Lenox and Duff are the authors of the forthcoming “The Decarbonization Imperative: Transforming the Global Economy by 2050” from Stanford University Press.
Tales from the frontlines of the supply chain conundrum: Truckers and transport workers speak out



Watson McGlashan is seen standing in front of his truck , (Submitted)

Oct 14, 2021
BNN BLOOMBERG

By Temur Durrani
Multi-Platform Writer

He’s shoved it under a rug just tightly enough not to remember it. So, recalling it now is a memory that hurts Dwayne Degenstein all over again — like a debilitating wound he never healed from, but rather learnt to live with.

It was the early days of the pandemic and the 42-year-old trucker from Calgary was on the road.

“I remember feeling stranded,” Degenstein said. “All the stops you could think of weren’t accommodating us anymore. There were no washrooms, no showers, no open places to eat a hot meal; and maybe, perhaps if we’re lucky after more than 12 hours at work, a porta-potty was on the side of the road for us.”

In those moments, all he could do was try to get used to it, calling it a “new normal” or anything as such to keep doing his job so he could keep paying his bills.

“It’s like, sure, this guy’s been living on the road for five days now but that doesn’t matter. He doesn’t matter. He can get his shower when he’s done delivering this product. Maybe, just maybe.”

Dwayne Degenstein is seen. (Submitted)

Degenstein’s memory of that time is not an isolated incident.

In recent interviews with BNN Bloomberg, more than a dozen truckers and transportation workers across Canada said they’ve been through the same.

For some, it's an occurrence that continues to happen. And for others, it's been worse, among a sea of problems they believe are only getting more dire — without governments, managements or any such authorities paying attention, they said.

These are the voices from the frontlines of the supply chain concerns that have spiralled globally — causing breakneck deadlines in an already frenzied sector, with expectations that keep rising for transporters despite stalled wages and declining work conditions.

No wonder, many of them said, there is an unprecedented labour shortage for truckers in Canada.

BNN Bloomberg is waiting on comment from the federal government, several departments from which have not yet responded after multiple requests.

WORSENING CONDITIONS

“I got into this career after being a trained and registered nurse for nearly 15 years,” Degenstein said in an interview, while on a rare night off after what seemed like an eternity.

At the time he made the switch, it was better money than his nursing shifts. “In fairness, it still is,” he said. But Degenstein now spends more days wondering whether all those extra hours without any breaks and dire conditions are worth it anymore.

“You’re put through a horrible ringer even without all those pandemic circumstances attached,” he said. “An average day could look like 14 hours at least… Just imagine yourself basically living in a truck. It’s brutal.”

Phillip Adler, a trucker in his 20s who lives in rural Manitoba, scoffs at the idea of any work-life balance.

“Even if some companies did give you decent times with your family when you aren’t working on the road, all of that went out the window when the pandemic happened,” he said. “All anyone cares about is whether you get the delivery done on time. There’s just no respect for us.”

Sergio Machado said some of his peers have even been placed in situations where their vehicles are camera-monitored to make sure they don’t use hands-free devices, or do anything else that managers believe will delay deliveries
.
Sergio Machado is seen. (Submitted)

“As if somehow too much music or a safe call to pass the time will delay our work,” said the 52-year-old from Edmonton.

Machado has witnessed delays on the U.S. border as well, but found himself and his peers being blamed for that. “Drivers are micromanaged, but anything can happen at the border during COVID, with that stress passed down to us,” he said.

“And what happens if you didn’t have a good night’s sleep? Doesn’t matter. You still have to get things done.”

That’s why many truckers become owner-operators instead of working for large or medium-sized companies. However, the insurance and onboarding costs to do so are rarely affordable for most people.

“The expectations have been the same — they’ve always been gruesome and cumbersome, but the pandemic just exposed the problem,” Machado said. “Personally, I can’t afford to take a day off, so I have to come into work day in and day out, whether I’m sick or not.”



The Open 'We're pushed to the limit': Truckers voice concerns over working conditions amid supply chain woes
The shortage of truckers in Canada is disrupting supply chains, exacerbated by the pandemic. From fatigue to low pay and lack of service facilities for long-haul drivers, Sergio Machado of Service SMachado Inc. tells BNN Bloomberg that authorities need to address the working condition of truckers to solve supply chain troubles.

'We're pushed to the limit': Truckers voice concerns over working conditions amid supply chain woes

The shortage of truckers in Canada is disrupting supply chains, exacerbated by the pandemic. From fatigue to low pay and lack of service facilities for long-haul drivers, Sergio Machado of Service SMachado Inc. tells BNN Bloomberg that authorities need to address the working condition of truckers to solve supply chain troubles.

Adler, who has chosen not to get the COVID-19 vaccine, said there’s also a particular stigma against drivers like him.

“I don’t have a problem with putting on a mask or anything like that. But if you don’t feel comfortable with the vaccine like me, you can’t sit in restaurants, you can’t sleep in beds, you can’t even go to the toilets,” he said.

Degenstein, who is fully vaccinated however, said while he believes everyone should get the jab, it is a personal choice that should not be the cause of someone’s basic rights being stripped away.

“To be frank, this is probably the most COVID-safe thing there is because you’re constantly solitary,” he said. “Besides, it’s a shame if we lose the few people we have in the industry over something like this.”

LABOUR SHORTAGE OF TRUCKERS


According to a new report from Trucking HR Canada, an average of 18,000 jobs needed to be filled in the second quarter of 2021 across the country.

That’s three very busy months — April, May and June — for jobs in the transportation industry that no one took up.

Machado said it’s because there really is no other incentive being provided to potential recruits “other than you should do it if you love being on the road.” Simultaneously, he added, there is a lack of loyalty from drivers due to a lack of appreciation.

“Let’s put it this way: We’re considered essential, but no one is supporting us in Canada,” he said. “There’s no bonuses, upon signing on or otherwise. And some companies are paying less than 50 cents a mile.”

On the flipside, things are much better in the U.S., Machado said. “I could be making tons more in Texas with actual signing bonuses. Maybe that’s why so many people choose to go there instead,” he added.

Numbers from Statistics Canada in 2019 show that only between seven and nine per cent of truck drivers are women. That number is even lower when considering women of colour or factoring in Black, Indigenous and other people of colour who are workers in the industry.

It’s a widespread problem, said Carol Lariviere, a trucker in her 50s who lives in Alberta.

“This is a hard job and we risk our lives every day out here,” said Lariviere. “There is little respect or reward for that. The pandemic made the job even harder, but at least we were working.

“The expectation of truckers and what's demanded of this job changed 30 years ago. It’s much worse now. Ridiculous timeframes and appointment times, even when there's a snowstorm.”

THE SUPPLY CHAIN CONUNDRUM

Josh Aldrich, a 38-year-old who lives in a small town in British Columbia, pulled over on his way to Calgary to chat with BNN Bloomberg.

He said it’s not uncommon now to make at least eight to ten stops per drive for every trucker.

“That wouldn’t be OK even if we did have no constructions on our roads and highways,” Aldrich said. “But we do. And it takes about two or three more hours almost every time because of that — let alone the stops themselves.”

The supply chain disruption has been revealed from the manufacturing side quite well, Aldrich added, using chip shortages and the notorious toilet paper shortages as an example.

        Josh Aldrich is seen. (Submitted)

“But what I would like to tell you is about how much of a ripple effect that has on us and how manufacturers can get away with it, while we can’t,” he said. “We have way too few drivers now who are the ones that get blamed when things aren’t on time.”

Watson McGlashan’s family has been in the construction and aggregate industry for generations.

“Within my section of the industry, we’ve certainly faced a lot of rising costs along with materials we haul, but with rates not keeping up — making the margins of profit difficult to keep up with,” the 27-year-old from Ottawa said.

“Historically the industry has made no room for independent owners to flourish, so not only is that an increasing issue but also the lack of those able to work for bigger companies.”

And then there’s the extreme climate events like wildfires. “Who do you think gets those emergency items delivered in that situation? We do,” said Aldrich.

“Every single thing you have seen — from the toothpick in your hand to the toilet paper you buy on shelves — has sat in the back of a truck. But when it comes to how regular people treat us on the road by overtaking us and speeding around us or flipping us off in general, we’re seen like the very toilet paper you use to wipe yourself.”

SOLUTIONS? ‘ONLY IN THEORY AND TALK’

Steve Roach is skeptical there will ever be any solutions for these problems.

The 38-year-old trucker from Edmonton is hesitant to even bring any ideas up, because he hasn’t heard a single person listen to his concerns or those from his colleagues in the 15 years he’s worked within the sector.

“There’s no legitimate union or anyone to file a grievance to,” he said. “And the associations that do exist are trying their best, but I don’t ever remember that leading to anything. So how about we start there? Have someone just literally talk to us.”

Throwing money at the problem is one thing, but that isn’t happening either, said Roach.

Steve Roach is seen. (Submitted)

“Making $60,000 to $70,000 is a good way to earn per year if you’re working 9 a.m. to 5 p.m. or at a desk. But for us, we’re working more hours of the day than we aren’t and we literally live in our place of work on wheels.”

Other solutions can include creating incentives, loyalty programs and “simply calling it what it is: trucking is a skilled trade like any other, and as such should be treated that way with the respect you would give to them,” Roach said.

“But all these things are only in theory and talk. I don’t know if they’ll ever work.”

For now, Roach is just looking forward to being home again. Still, he’s already worried about the next worry.

“When you do get burned out and finally go home for a few days, by the time your body and mind recovers, it's time to go back and do it again,” he said. “The phone just doesn't stop ringing and it never ends.”

After 7 years in business, Edmonton plant-based food company goes public

Nabati Foods moved to a new manufacturing facility in

 northwest Edmonton in May

Ahmad Yehya, co-founder and CEO of Nabati Food displays one of the company's plant-based food products in its warehouse. (Travis McEwan/CBC)

Nabati Foods, a plant-based food company in Edmonton, is marking a year of growth as it commenced trading its common shares on the Canadian Securities Exchange last week.

"That has been a great milestone for us. Of course, that is offering a huge opportunity for us to be more transparent [and] invite a lot more publicity and interest in our investors to look at our company," said Ahmad Yehya, the company's co-founder and CEO.

Nabati Foods makes gluten-free, kosher, vegan, and non-GMO versions of products like cheeses and cheesecakes. It is trading on the securities exchange under the symbol MEAL.

In May the company moved into a new manufacturing facility in the McArthur Industrial area. In August it launched its plant-based liquid egg product, which had been in the works for a few years. This week the company announced its products will be available on Costco's Canadian website.

It's quite the change from the company's humble beginning, which started with sales at the farmer's market nearly seven years ago.

"I started this company with my partner and wife, and we were looking at just making something that really is focused on delivering great products, mouth-watering plant-based foods to consumers," Yehya said.


Edmonton plant-based food company goes public

Nabati Foods, a plant-based food company in Edmonton, has grown over the past year, as has the industry. 1:58

Plant-based food companies across Canada are seeing exponential growth with matching customer demand.

In March Lovingly Made Ingredients, a manufacturer of plant-based sausages and burgers, opened its facility in Calgary.

Last year, the  Agri-food Analytics Lab at Dalhousie University estimated the Canadian plant-based food market to be worth $400 million.

Sylvain Charlebois, the lab's director said the market is expected to expand beyond $1 billion by 2024 or 2025.

"The growth trajectory for that category is pretty impressive compared to other other food categories," Charlebois said in an interview.

Dalhousie researchers last year found 19 Canadian plant-based brands that generated more than $3 million each in annual sales.

"We are expecting that number to double by the end of next year, so it's getting busier, which is actually good news for consumers, since that category appeared to have been too expensive for many consumers," Charlebois said.

He points to rising food costs as one of the reasons why consumers are moving away from animal proteins.

Dalhousie, in partnership with Caddle, surveyed 10,005 Canadians over the summer about food prices at the grocery store.

The survey, released in late September, found that 57 per cent of Alberta consumers had decided to reduce their meat purchases due to higher prices — the highest rate in Canada.

"People are thinking about their pocketbook. They're not just thinking about health. They're not just thinking about environmental or animal welfare," said Charlebois.

"They're really thinking about the socioeconomics of the meat counter in general."

Yehya's next goal for Nabati Foods is to expand the global market.

"I'd like to think that we're really spearheading this and there's very, very few plant based companies in Alberta," he said.

"We do want to change the economy here, and there's an initiative as well from the government in terms of policy to diversify the economy."

A new 'Buy American' plan is alarming the auto sector — and the federal government

Freeland said she's 'very aware' of a proposal that

 could hurt Canadian auto production

GM workers in Michigan connect a battery pack underneath a partially assembled 2018 Chevrolet Bolt EV in 2018. (Rebecca Cook/Reuters)

For months now, a legislative proposal inching its way through the U.S. Congress has been stoking consternation across the border.

Canadian policy-makers and businesses have been warily eyeing Buy American proposals designed to shift auto production to the U.S.

Deputy Prime Minister Chrystia Freeland said during a trip this week to Washington that she raised some of those concerns with U.S. Treasury Secretary Janet Yellen.

"It's a focus. It's a priority," Freeland told a news conference Thursday after she attended global financial meetings. "I am very aware of the proposals being discussed here in the United States."

At issue are two massive trillion-dollar bills currently before Congress that form the heart of President Joe Biden's domestic agenda. The next few weeks could decide whether they pass.

WATCH: Deputy Prime Minister Chrystia Freeland discusses 'Buy American'

Freeland on Buy America

2 days ago
2:42
The CBC's Alex Panetta asks Deputy Prime Minister Chrystia Freeland for an update on Buy America provisions and how her government is responding. 2:42

One is a bipartisan infrastructure bill that's already passed the Senate. It's loaded with Buy American provisions.

The other bill has more specific implications for the auto sector.

It's the sprawling budget legislation intended to advance numerous Biden priorities on climate change, health care, daycare, parental leave and possibly immigration.

In that bill, Democrats plan to offer $12,500 US in tax credits for the purchase of electric vehicles. Parts of those credits would be reserved for cars assembled in the U.S.

'A critical period' for auto investment

The timing has some Canadians particularly unnerved. Auto companies are on the cusp of making long-term choices about where to build and assemble their electric vehicles.

Auto-industry analyst Kristin Dziczek said the budget legislation could create an incentive to build new production lines in the U.S.

She said Canada has actually gotten off to a strong start in electric vehicle investment, with Detroit's Big Three all making major commitments there in recent months. Battery production is also growing in Canada.

Canada recently saw a gusher of investment in electric-vehicle construction, including some announced by Prime Minister Justin Trudeau at a Ford facility in Ontario last year. Some observers say those investments could dry up if the U.S. tax plans pass. (Sean Kilpatrick/CP)

But she added it's still early days in the electrification race. 

Most of the important investments will be made in the next few years, said Dziczek, vice-president of the Center For Automotive Research.

"It could be problematic [for Canada]," she told CBC News.

"We're really in the early stages. The investments made between now and 2026 are going to chart the course of the industry for decades to come. We are in the critical period."

She said the plan as currently drafted would block foreign-assembled cars from some credits immediately and from the entire $12,500 after 2026.

There are actually two versions of the legislation — one in the House of Representatives and the other in the Senate — and they differ slightly.

Dziczek said the House version is slightly stricter but both plans offer credits for cars built by union workers, cars assembled in the U.S., and batteries made in the U.S.

The plan is to boost Michigan plants

It's intended to make Michigan's big unionized factories more competitive against non-union manufacturers, including those based in the southern U.S.  

Canadian officials have been pushing for exemptions for Canada. 

They argue that the plans as currently designed would hurt North American competitiveness — and also hurt union workers in Canada.

They've argued that the idea of penalizing electric vehicle production in Canada even runs counter to the stated goals of the U.S. administration.

Biden's poll numbers have sunk and he wants a legislative win. His White House is urging lawmakers to pass his spending bills within weeks. (Leah Millis/Reuters)

The Biden administration has promised to work with Canada to develop electric vehicles, and to lean on Canada for more extraction of the minerals needed to make them.

Similar appeals for a Canadian exemption, however, fell flat in the infrastructure bill: it passed the Senate recently with no specific carve-out.

"We're watching this very closely," said Brian Kingston, CEO of the Canadian Vehicle Manufacturers' Association. "It's problematic." 

Plan compared to a 33 per cent tariff

Another auto industry official compared the plan to a 33 per cent tariff. 

That's because, after 2026, the whole $12,500 credit would be subject to Buy American rules — meaning a price advantage for U.S. electric cars worth one-third their average value — said Flavio Volpe.

"We're all kind of anxious," said Volpe, head of Canada's Automotive Parts Manufacturers' Association.

"It's an investment-chiller, potentially … It is concerning."

Insiders watching this file say the people most likely to scupper the provisions are Democrats in the southern U.S., whose non-union plants would be put at a disadvantage.

The tax plan has been championed primarily by two Democrats, both from the northern industrial belt in Michigan: Dan Kildee in the House and Debbie Stabenow in the Senate.

In May, when her proposal advanced through a Senate committee, Stabenow cast it as a matter of competing with China on next-generation technology.

U.S. Senator Debbie Stabenow, seen here last month, is one of the Michigan Democrats pushing the tax plan. (Elizabeth Frantz/Reuters)

"China has hundreds of companies making electric cars, and they have help — over $100 billion of help so far from the Chinese government," she said.

"Our automakers and workers are the best in the world. They are making the private sector investments needed to electrify the industry, but they can't do it alone."

Ottawa polled Americans on 'Buy American'

The fact that Biden-era Democrats back Buy American politics is no surprise. It was clear well before they took power.

And it's a reason the Canadian government sought a better understanding of U.S. attitudes on Buy American issues in the lead-up to Biden's inauguration.

Ottawa commissioned a poll last winter for $129,853.54 that asked Americans and Canadians questions about continental issues, including trade.

It found U.S. respondents supported Buy American policies by a huge margin — but they supported a "Buy North American" policy by an even larger margin, with 79 per cent in favour and 17 per cent opposed.

Plan B — lawsuits

So what happens if Canada's arguments don't sway Washington lawmakers? 

The next step could be lawsuits. Volpe said that if the plan advances, he would expect to see a trade-discrimination case filed either before the World Trade Organization or through the dispute panels of the new North American trade agreement.

Freeland, meanwhile, said Canada has other levers to pull.

She said U.S. companies get about $1 billion a year in business from Canada's federal government.

And she said this year's federal budget, which included historic spending, also included a provision promising that Canada would take a reciprocal approach with countries on procurement.

"What Canada is saying to our partners is, 'Our procurement opportunities will be open to your companies just as much as your procurement opportunities are open to ours,'" Freeland said Thursday.

She said she discussed that with Yellen as well.

 Nova Scotia

Atlantic Canadian energy proponents aim to advance clean hydrogen

Atlantic Hydrogen Alliance says initiative will enable

 transition to low-carbon economy

As energy industry stakeholders announced the Atlantic Hydrogen Alliance during a press conference on Friday, illustrator James Neish drew key messages from the speaker's remarks on large white paper. (Submitted by Allison Garber)

A number of Atlantic Canadian energy organizations are joining forces to advance the clean hydrogen industry in the region.

The Atlantic Hydrogen Alliance seeks to accelerate the development, production, use and export of green hydrogen, a low-carbon energy source already being explored in countries including France, Japan, Australia and Norway.

Hydrogen is created by splitting water molecules into hydrogen and oxygen by electrolysis, but it's only considered green if a renewable energy such as wind or hydro power is used in the process.

Alisdair McLean, executive director of the Offshore Energy Research Association, said Atlantic Canada is behind other provinces in advancing the green hydrogen sector.

McLean said in order for the Atlantic provinces to meet ambitious emissions targets established by provincial governments and Ottawa, a significant increase in renewable energy resources — beyond renewable electricity — are needed.

"If we're serious about getting to net-zero [carbon emissions], we need to be serious about exploring hydrogen's potential in the region," McLean said during a press conference on Friday announcing the alliance at Pavillion 22 in Halifax.

This infographic depicts the life cycle of green hydrogen. (Submitted by Atlantic Hydrogen Alliance)

Earlier this year, B.C. became the first province to introduce a low-carbon hydrogen strategy, and Alberta signed an agreement that could lead to a $1.3-billion hydrogen plant.

The federal government also announced plans in late 2020 to increase the use of hydrogen to help meet its climate targets.

McLean said clean hydrogen can be produced in large scale, stored for months and transported easily.

It has a number of applications, especially for sectors not powered by electricity, such as the transportation industry, by using a combination of electric and hydrogen fuel cell vehicles.

"Hydrogen can also be used for grid scale energy storage, providing weeks or months of energy storage so we have reliable green electricity when demand is highest in the winter," said McLean.

He also said hydrogen can be blended into the natural gas distribution system to deliver cleaner energy to buildings and industrial consumers for heating.

Colleen d'Entremont, president of the Atlantica Centre for Energy, says the public has been demanding options for lower carbon emissions, and green hydrogen is part of the answer. (Aly Thomson/CBC)

Colleen d'Entremont, president of the Atlantica Centre for Energy in Saint John, N.B., said the alliance plans to create a roadmap for the development and deployment of hydrogen in Atlantic Canada.

She said the group also plans to work with governments to identify and develop the policies, regulations, codes, and standards needed for the sector.

The alliance will also facilitate the creation of one or more hydrogen "hubs" in Atlantic Canada, and begin to increase awareness and interest for hydrogen development locally, she said.

"I think true to the roots of Atlantic Canada, where we collaborate and we're all like-minded, it's an opportunity for us to work together to look at how can we further green up and reduce emission in the energy sector," said d'Entremont.

Halifax Mayor Mike Savage and MP Andy Fillmore were both on hand for the event. Both touted clean hydrogen as a viable option to help reduce emissions and vowed their governments would support such initiatives.

The alliance includes: Heritage Gas of Dartmouth, N.S.; Liberty Utilities of Fredericton; Saint John Energy; Atlantica Centre for Energy; EcoNext of St. John's, N.L.; Offshore Energy Research Association in Halifax; Port of Halifax, and Deloitte Canada in Halifax.