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Enviro clean-up time in Canada Prime minister dumps embattled environment minister, says more must be done; uneasy industry waits for action on greenhouse gases Gary Park For Petroleum News
The Canadian government has done an about-face on its environmental priorities, dragging the oil and gas industry back into the unknown.
Conceding his administration had lost control of the issue, Prime Minister Stephen Harper unloaded embattled Rona Ambrose from the environment portfolio, replacing her with John Baird, seen as more decisive and a better communicator.
Harper, who did not include the environment among his five top priorities when he was elected a year ago, underscored his change of heart by creating a new cabinet committee on the environment and energy security that will consult with industry and across government departments on implementing the government’s Clean Air Act.
In patching up what was widely perceived as his government’s greatest vulnerability, Harper put the final cabinet pieces in place for an election that is anticipated this spring.
Making a rare concession, Harper said Jan. 4 that the cabinet shuffle is clear evidence that “we need to do more on the environment. We recognize that, particularly when it comes to clean air and climate change, that Canadians deserve a lot more.”
“It should be a priority, so that is going to occupy a lot of our time,” he said.
Will Kyoto be revived? How much more might be a source of concern in the oil and gas industry, which has understood that a Harper administration will not attempt to enforce the greenhouse gas emission limits contained in the Kyoto Protocol.
There is no indication yet from Harper or Baird that the government has any intention of reviving Kyoto, but the government is under pressure from Canadians to introduce measures aimed at tackling climate change — an issue that has become the leading concern after several months of some of the most extreme weather on record.
But there is cause for disquiet in the industry as pressure builds on the government to take tougher action against the leading industrial sources of greenhouse gases, with the Alberta oil sands at the top of the hit list.
Even Indian Affairs and Northern Development Minister Jim Prentice, who comes from Calgary, has waved a warning flag.
As chairman of the committee on environment and energy security, he said the environment is now clearly a priority for the government and Harper, which carries implications for fossil-fuel burning electricity producers, the oil sands sector and pipeline companies.
That puts Prentice in a tight spot. He is already the cabinet minister who oversees pipeline projects, notably the proposed Mackenzie Gas Project, which he wants to see move ahead.
Oil sands pose a challenge While the pipelines pose a challenge, an even greater test will be how the government deals with the oil sands, which have become synonymous with greenhouse gases.
Emissions from the northern Alberta resource were estimated at 27 million metric tons in 2005 and, if work proceeds on more than C$100 billion worth of projects, are forecast to reach 114 million metric tons in 2017.
The industry is no longer trying to deny its contributions to greenhouse gas emissions or the urgent need to find solutions.
Rick George, chief executive officer of Suncor Energy, said last year that the intensity of emissions has been reduced over recent years, but the total emissions are rising making “this an especially pressing issue.”
Despite efforts by many oil sands operators to develop new recovery and processing technologies, Harper is under pressure from Canadians and within his own party to act on greenhouse gases and blunt the growing view that the Liberal party opposition under new leader Stephane Dion (a former federal environment minister and pro-Kyoto advocate) had seized control of an issue that could decide the next election.
Harper believed he could satisfy Canadians by shifting from Kyoto, which he suggested was a recipe for economic chaos, and introducing the Clean Air Act which put the emphasis on reducing air pollution and protecting the health of Canadians.
The act concentrated on compulsory cuts to industrial air pollution, but came under fire for targeting a 45 to 65 percent reduction in greenhouse gas emissions from 2033 by 2050.
Ambrose struggled to win public support for the legislation and the Conservatives appeared to pay a price by sliding behind the Liberals in the polls.
Environmental policy a top priority The act was sent to special House of Commons committee in a bid to force strong amendments on the government.
A survey released Jan. 4 by Decima Research showed environmental policy has become the top priority for Canadians and the subject of most discontent with the Harper government.
The results showed that over the past four months the profoundly unseasonable weather that has hit most parts of Canada has produced a dramatic surge on national concern over the environment.
Decima found that 19 percent of respondents said the environment was the issue that concerned them most, compared with only 6 percent in September.
When respondents were asked to rate government action in 20 different areas, 74 percent said it was doing a bad job on the environment and only 18 percent gave their approval.
Even in Alberta, Canada’s energy powerhouse and a Harper stronghold, 61 percent said the government was doing a poor job.
Some environmental optimism There was some optimism among environmental groups that Baird would bolster that record.
Stephen Hazell, executive director of the Sierra Club of Canada, said Baird had shown he “can deliver, that he knows how Ottawa works.”
But it would need Harper’s backing for Baird to tackle climate change policy and succeed in the portfolio, Hazell said.
“The worry is that this is really just a political thing in the lead-up to the next election,” he said.
Baird told CanWest News that he is ready to take a non-partisan approach to dealing with “one of the biggest challenges the planet is facing.”
He plans to get the best advice from environmental groups and work with the other federal parties to achieve results, Baird said.
What he has yet to disclose is whether the oil and gas industry faces more stringent regulations than those contained in the Clean Air Act.
Dion has made no attempt to hide his view that the industry should make deep cuts in its greenhouse gas emissions through technology-based solutions.
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