Tuesday, March 21, 2023

Canada to take ‘hard’ look at UN call to hit emissions targets 10 years sooner: minister

By Mia Rabson The Canadian Press
Posted March 20, 2023


IPCC releases 6th synthesis report on global climate change: ‘Humanity is on thin ice’

Canada will take a “hard long look” at a call from global climate scientists to hit its long-term greenhouse gas emissions targets 10 years earlier than planned, Environment Minister Steven Guilbeault said Monday.

But he wouldn’t promise that it’s possible.

His comments came after the United Nations Intergovernmental Panel on Climate Change issued a new report Monday warning the world is teetering dangerously close to missing its critical targets to keep global warming in check.

The panel’s previous reports have warned that global warming must be limited to less than 2 C, and as close to 1.5 C as possible.

READ MORE: UN warns ‘humanity is on thin ice’ in latest climate report. What does it say?

After 1.5 degrees, “the risks are starting to pile on,” said report co-author Francis X. Johnson, a climate, land and policy scientist at the Stockholm Environment Institute. The report mentions “tipping points” around that temperature of species extinction, including coral reefs, irreversible melting of ice sheets and sea level rise on the order of several metres.

The latest report published Monday said the world is getting close to its last chance to prevent the worst of climate change’s future harms.

The panel, made up of dozens of international climate scientists, said that means that by 2035, worldwide greenhouse-gas emissions need to be less than half of what they were in 2019, and that wealthy nations need to aim for net-zero emissions by 2040.

Most of them, including Canada, have targeted 2050 for their net-zero commitment, which means that emissions are reduced so much that whatever is left is captured by technology or nature.

“Humanity is on thin ice — and that ice is melting fast,” United Nations Secretary-General Antonio Guterres said. “Our world needs climate action on all fronts — everything, everywhere, all at once.”


0:52
Canadian government announces new procurement rules requiring companies to disclose emissions, set reduction targets

Guilbeault says Canada will study the report but it can’t change its targets on a whim, because a target is meaningless without a realistic plan to reach it.

“This is a new request from the Intergovernmental Panel on Climate Change _ obviously, one that we will study very carefully in Canada,” he said.

“It’s one thing to simply say, ‘Well, you know, we want to reach this goal,’ but we have to give ourselves the means to get there. We do that now in Canada for 2050. We will obviously need to take a second hard long look at what the IPCC is proposing for 2040.”

Canada has set at least eight different emissions targets since 1988, and has failed to meet any of them to date. Its next target in 2030 hinges heavily on being able to ratchet down emissions from the oil and gas sector.

That 2030 target currently is to cut emissions so they are between 55 and 60 per cent of what they were in 2005. Based on emissions levels in 2020, meeting the 2030 goal would mean cutting about 23 million tonnes of emissions a year, on average. That’s the equivalent of taking five million passenger cars off the road every 12 months until the end of the decade.

READ MORE: Emissions cap coming for Canadian oil and gas by end of 2023: minister


Oil and gas production and transportation account for about one-quarter of Canada’s total emissions. Canada intends to cap those emissions this year and force them down at least 38 per cent by 2030. But it is getting pushback from Alberta and oilsands companies, which all say that target is not achievable.

The new UN report also says that by 2035, electricity needs to be entirely emissions-free, including no electricity from coal or natural gas.

Canada is already targeting a clean electricity grid by 2035, and the phasing out of unabated coal by 2030. Gas is still expected to play a role, but Guilbeault said that by 2035, gas plants will also have to employ carbon capture and storage technology.

“The choices and actions implemented in this decade will have impacts for thousands of years,” the report said, calling climate change “a threat to human well-being and planetary health.”

“We are not on the right track but it’s not too late,” said report co-author and water scientist Aditi Mukherji. “Our intention is really a message of hope, and not that of doomsday.”


2:13
CSIS warns climate change threatens national security, prosperity


The world has already warmed 1.1 C compared with pre-industrial times, and scientists stressed a sense of urgency around the 1.5 C goal.

“1.5 is a critical critical limit, particularly for small islands and mountain (communities) which depend on glaciers,” said report co-author and water scientist Aditi Mukherji, who’s also the climate change impact platform director at the research institute CGIAR.

Many scientists, including at least three co-authors, said hitting 1.5 degrees is inevitable.

“We are pretty much locked into 1.5,” said report co-author Malte Meinshausen, a climate scientist at the University of Melbourne in Australia. “There’s very little way we will be able to avoid crossing 1.5 C sometime in the 2030s.”

READ MORE: COP27: Canada has made ‘tremendous progress,’ says Guilbeault as emissions grow

But the big issue is whether the temperature keeps rising from there or stabilizes.

Scientists emphasize that the world, civilization or humanity won’t end suddenly if and when Earth passes the 1.5 degree mark. Mukherji said “it’s not as if it’s a cliff that we all fall off.”

But an earlier IPCC report detailed how the harms _ from Arctic sea ice absent summers to even nastier extreme weather _ are much worse beyond 1.5 degrees of warming.

“It is certainly prudent to be planning for a future that’s warmer than 1.5 degrees,” said IPCC report review editor Steven Rose, an economist at the Electric Power Research Institute in the United States.
ST
—With files from The Associated Press

 


Guilbeault wants stronger links with Alberta on issues of oilsands tailings ponds

The federal government says it was not made aware of waste water leaks at the Kearl oilsands in Alberta and is now inviting the Alberta Energy Regulator and Imperial Oil to Ottawa. 
Sarah Reid reports.

By Bob Weber The Canadian Press
Posted March 20, 2023 

Federal Environment Minister Steven Guilbeault has repeated his call for a stronger federal presence when it comes to environmental monitoring and communications in the oilsands, following a pair of wastewater releases from Imperial Oil’s Kearl mine in Alberta.

“The reason the federal government is proposing to change the way we do monitoring and communications on the tailings ponds is that in this instance (the current system) didn’t work,” he said Monday.

Guilbeault added Ottawa is considering recommendations from the Mikisew Cree First Nation, which include reforms to environmental monitoring, currently conducted by industry.

“We agree with them. We need a better monitoring system.”


READ MORE: Kearl oilsands leak exposes gaps in how Alberta and Canada oversee industry: experts

The first release was spotted and reported in May as discoloured water near a tailings pond. It was found to be tailings seepage but no further updates were provided to area First Nations until February, when it was disclosed to the public and federal and provincial environment ministers along with a second release of 5.3 million litres of tailings.

That’s not acceptable, Guilbeault said.

“The system we have in place is failing.”

Guilbeault repeated his plan for a new body with federal, provincial and First Nation members that would meet regularly to share information, especially on environmental emergencies like the Kearl releases.


1:59 Anger grows after Alberta oilsands leak kept from public for months


It would also discuss cleaning up tailings releases, how to keep the vast toxic ponds contained and long-term solutions for them — proposals contained in a letter Guilbeault sent last week to his provincial counterpart, Sonya Savage.

“We would find processes where everyone gets the information in a timely, transparent and accurate manner,” he said. “No one has to find out months later something has been going on.”

Guilbeault said he also wants the body to look at reform of water monitoring in the area.

“Many would feel relieved if monitoring was done in an independent manner.”

Billy-Joe Tuccaro, chief of the Mikisew Cree First Nation, said Guilbeault promised as much in a meeting.

“They promised to increase the monitoring program,” he said.

Alberta’s current $50-million, industry-funded monitoring program hasn’t had a budget increase in a decade. The program has been criticized by its own scientists for being good at collecting data but bad at doing anything with it.




Northern Alberta community not satisfied with province, Imperial Oil responses to Kearl spill



In public statements, Savage has agreed to the need to look at communication between the two levels of government as well as long-term solutions to oilsands tailings, which cover in total 300 square kilometres and hold 1.4 trillion litres of toxic tailings.

Guilbeault said Savage seems open to dialogue.

Meanwhile, Tuccaro said drinking water for the community of Fort Chipewyan, promised by Ottawa, has started to arrive. The water is being shared with all First Nations potentially affected by the spill, he said.

But Tuccaro said Ottawa has yet to approve his band’s long-standing request for a long-term community health study in the community of Fort Chipewyan.

READ MORE: Ottawa says Kearl leaks harmful to wildlife; issues order to stop seepage

“They haven’t committed to a community health study,” he said. “That’s a big one.”

Tuccaro said comments from Imperial and the provincial government that there have been no impacts to water or wildlife do not reassure his community.

“They couldn’t even tell us (the seepage) is being contained,” he said. “We want it 100 per cent contained.”

Guilbeault said officials from Imperial Oil and the Alberta Energy Regulator will be invited to appear before the House of Commons environment and sustainable development committee.

Alberta requiring oil and gas companies to pay municipal taxes before getting new licences

Global News has asked the province if there are any additional powers in place to hold companies who aren’t seeking licence transfers or licences accountable.

The Alberta government’s 2022 survey of oil and gas companies found $220 million in unpaid taxes reported by municipalities, with $130 million in tax arrears (including penalties and interest) and $90 million in cancellations.

READ MORE: Unpaid oilpatch taxes rise again despite energy industry boom, say rural Alberta municipalities

“Many of these taxes will not be recoverable outside insolvency proceedings because they are owed by companies no longer operating or because the taxes have already been written off by municipalities, or both,” the United Conservative government said in a news release Monday.

About $76 million of those unpaid taxes are owed by companies that are still operating, the province said, meaning that money is “potentially recoverable, including through repayment agreements.”

Municipalities have repayment agreements in place to help collect $48 million in unpaid taxes, the province said.

Click to play video: 'Alberta government offering tool to municipalities to help collect taxes from energy firms'
Alberta government offering tool to municipalities to help collect taxes from energy firms

The ministerial order was issued under the Responsible Energy Development Act, requiring the AER to receive evidence that municipal taxes have been paid when approving licence transfers or new licences.

“While most companies pay their taxes regularly and on time, there are a few delinquent companies that owe overdue property taxes,” Energy Minister Pete Guthrie said. “That is why we’re putting in place this ministerial order – to continue building on our recent work. Our goal is to reduce unpaid taxes throughout the province.”

Under the ministerial order, companies will have to confirm that their unpaid municipal taxes across the province do not exceed the maximum threshold allowed or that they have a repayment agreement in place whenever they apply for new licences or for licence transfers because they’re seeking to sell their assets, the UCP government said.

The maximum threshold has not yet been determined. The province says it will be set after reviewing the AER’s analysis of current licensee information related to unpaid municipal taxes, and in consultation with municipal affairs and energy.

READ MORE: Alberta rural leaders on oil well cleanup plan: ‘How a fox would design a henhouse’

Unpaid municipal taxes from the Alberta oilpatch keep rising despite the industry’s boom, the province’s rural communities say.

“This is the worst ever,” said Paul McLauchlin, president of Rural Municipalities of Alberta, which released the data on March 7.

“We’ve got a serious problem.”

The group says energy companies now owe towns and villages in which they operate a total of $268 million. That’s up more than six per cent from last year and up 261 per cent since 2018, when the association began keeping track.

As well, the rate of nonpayment is increasing.

Previously, the province’s UCP government told the AER that it “may” use factors such as tax arrears in ruling on whether to allow transfers of energy assets.

Municipalities can submit statements of concern on applications for licence transfers if the companies involved have unpaid taxes. Municipalities can also attach liens to property if taxes go unpaid.

Click to play video: 'Oil and gas tax changes in Alberta after rural municipality outcry'
Oil and gas tax changes in Alberta after rural municipality outcry

“The RMA is pleased to see the province taking action to hold oil and gas companies accountable for paying property taxes,” McLauchlin said in a news release Monday.

“Although only a small number of companies avoid their property tax payment obligations, this issue has had major fiscal impacts on rural municipalities across Alberta,” he said.

“As 41 per cent of unpaid taxes are owed by companies that are currently operating, we are optimistic that this change will have an immediate positive impact in rural Alberta.

“We look forward to working with the AER and relevant ministries to determine how our members can support the AER in enforcing this new requirement,” McLauchlin added.

READ MORE: Alberta rural municipalities say unpaid oilpatch taxes rising despite high energy prices

The province said its municipal affairs ministry and the AER will work together to create an annual list of companies whose unpaid municipal taxes exceed the threshold amount.

Companies on this list will be targeted by the AER to provide proof of tax payment.

READ MORE: Alberta to pilot oil and gas royalty breaks for legally required well cleanup

The Opposition NDP called the directive late and hypocritical.

“For years, the UCP let the issue of unpaid municipal taxes grow and ignored calls from rural municipal leaders and the Alberta NDP to use the power of the AER to withhold licences from these bad actors,” NDP municipal affairs critic Joe Ceci said in a statement.

“The government could withhold licenses to incentivize the cleanup of wells, and in fact, rural municipal leaders have been calling for this tool to be used. Instead, Danielle Smith wants to give away $20 billion of Albertans’ money to delinquent companies for something they are already obligated to do.”

Click to play video: 'Pilot project plan aims to clean up inactive oil well sites in Alberta'
Pilot project plan aims to clean up inactive oil well sites in Alberta

–With files from Bob Weber, The Canadian Press

RBC fossil fuel expansion funding jumped 45% last year to US$10.8B: report

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Data from an environmental group shows RBC's fossil fuel expansion-related funding jumped by almost half last year to its highest level since the Paris climate agreement was reached in 2015.

Stand.earth says the bank's US$10.8 billion in funding last year to expansion projects and companies working to increase oil and gas production represents a 45 per cent rise from 2021, and that it goes against both the conclusions of the latest UN climate report and RBC's own climate commitments.

The UN report out Monday emphasized the urgency of taking more ambitious action to reduce greenhouse gas emissions, while the International Energy Agency has previous said no new fossil fuel supply projects should be built to give the world an even chance of limiting warming to 1.5 C.

RBC said in its latest climate report out earlier in March that its lending and financed emissions are reflective of Canada's economy, and that a balanced approach is needed for an orderly and inclusive energy transition. 

The bank's report showed that its overall financed emissions for the oil and gas industry rose about 23 per cent last year compared with 2021, though only after significantly revising down the 2021 level on what it said was improved data.

RBC has committed to reaching net zero financed emissions by 2050, and has set interim targets for 2030, but Richard Brooks at Stand.earth says the bank's funding actions run counter to those commitments.

"It should be a trend downward, but we're seeing the opposite happening," said Brooks, climate finance director at the group. 

The latest UN report from the Intergovernmental Panel on Climate Change also urged increased funding to climate solutions, which he said RBC is also falling short on.  

The bank has committed to providing $500 billion in sustainable finance by 2025, with about $85 billion issued last year, but Brooks said the bank is still putting about $99 towards fossil fuels for every $1 they put into renewables.

"We need all of our tools in our tool box to be aligned around this, and we certainly need our biggest banks to be aligned on this. And right now our biggest bank, RBC, is not."

This report by The Canadian Press was first published March 20, 2023.

Toxic oil sands spills spur Canada to boost oversight

Canada’s federal government is stepping up environmental oversight in Alberta’s oil sands after Imperial Oil Ltd. and the provincial regulator were slow to report toxic spills.

Environment Minister Steven Guilbeault has proposed a joint federal-provincial-Indigenous working group with the involvement of the oil company to address concerns about the spill. Imperial and the regulator have been asked to testify on the spill at the House of Commons Standing Committee on Environment and Sustainable Development.

“This slow notification to the federal government and Indigenous communities is of serious concern,” the federal ministry of Environment and Climate Change Canada said in a release Monday.

The ministry said it and Indigenous communities near Imperial’s Kearl oil sands mine weren’t made aware of two spills from a storage pond until nine months after the first of those spills happened when the Alberta Energy Regulator published an emergency order for Imperial to contain the ongoing seepage.

Imperial maintains it did notify local communities at the time of both leaks, company spokeswoman Lisa Schmidt said in an email. “We deeply regret communications during our investigation into the May incident were not regularly provided to communities following our initial notification as we did not meet their expectations,” she said. 

“Imperial has committed to taking the necessary steps to improve our communications, so this does not happen in the future,” she said.

An email to the Alberta Energy Regulator seeking comment was not immediately returned.

The seepages, in May and February, were deemed harmful to fish and, on March 10, enforcement officers issued a directive requiring Imperial to take immediate action to prevent leaks from entering fish-bearing waters. 

Communities including Athabasca Chipewyan First Nation and Mikisew Cree First Nation have expressed continuing concern for their health and safety, the ministry said. The federal government has approved funding to ship bottled water to the Mikisew Cree First Nation but local drinking water has been found to meet Canadian standards. 

 NYU Stern Professor of Economics Lawrence J. White joins Yahoo Finance Live to discuss the state of the U.S. banking system, UBS’s emergency rescue of Credit Suisse, and the outlook for the global economy.














Expect more consolidation in U.S. regional banks: Julian Klymochko 


Julian Klymochko, CEO and CIO of Accelerate Fintech, joins BNN Bloomberg to discuss his take on UBS’ decision to buy Credit Suisse. Klymochko says that he does expect more M&A activity in U.S. regional banks and says that shareholders of these small banks should be concerned. He says that some of these failing banks represent very attractive buys to the bigger players and talks about the implications for TD’s acquisition of First Horizon Bank now that times are tough.

Canada’s financial system has strength to weather banking turmoil: Freeland

Canada’s finance minister stressed Monday that the country’s financial institutions are set up to weather the chaos roiling the banking world.

“We have strong institutions, and we have a financial system that has proven its strength time and again,” Chrystia Freeland said in a Monday speech.

“Our financial institutions have the capital they need to weather periods of turbulence.”

She made the comments in Oshawa, Ont., after Sunday night’s news that USB would buy the beleaguered Credit Suisse Group AG, narrowly avoiding a meltdown at the Swiss lender that many feared could spread to other banks and potentially lead to a snowballing financial crisis.

The Credit Suisse saga followed the closure of Silicon Valley Bank in the U.S. earlier this month, and added to concerns about instability in the banking world.

Freeland said Monday that prudent risk management is “a hallmark of Canadian banks,” and a guiding principle for financial regulators. She said Canada is monitoring the financial situation and talking with allies.

“Canadians can and should be confident that at a time of global uncertainty, there is no better place to be than Canada,” she said.

Freeland spoke just over a week before the federal Liberal government is set to introduce its annual budget. She promised “fiscal restraint” along with targeted aid for Canadians hit hardest by high inflation.

She also referenced a previously announced health-care spending plan and “clean economy” spending on things such as electric vehicle batteries and mining for critical minerals.