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NAFTA makes ‘clean energy’ push
GARY PARK For Petroleum News
Energy leaders of the North American Free Trade Agreement have reached a pact to nudge their countries towards a clean energy future that includes lowering carbon emissions from the oil and natural gas sector to greater use of low-carbon electricity.
At a meeting in Winnipeg, U.S. Energy Secretary Ernest Moniz, Canadian Natural Resources Minister Jim Carr and Mexican Energy Secretary Pedro Joaquin Coldwell said their memorandum of understanding is designed to advance a “continental approach” to energy policy.
It follows a year in which the trio have worked closely on mapping North American energy trade and structure, sharing energy data, promoting reforms and new business opportunities, the Canadian government said.
Carr said he and his partners “want to build on North America’s strength as one of the world’s most dynamic and influential regions for secure and sustainable energy.”
He said the shared vision involves “a future where an expanding clean energy sector, a sustainable environment and a strong economy go hand in hand.”
Carr said the three countries have a common understanding of what constitutes clean energy and share a commitment to sustainability.
“North America is truly on the same page on all of these issues. I think that’s a happy alignment,” he said.
Canadian Prime Minister Justin Trudeau has said a continental energy strategy will be up for discussion in March when he makes a state visit to meet with President Barack Obama.
Environmental organizations hope that will result in a climate-change agreement that would be as binding on individual companies as trade agreements.
Mexico has been upgrading its electricity infrastructure to include natural gas-fired generators and pipelines, at the same time the U.S. is increasing gas exports to Mexico and foreign companies are being allowed to bid on oil developments.
Lawsuit But a cloud has been cast over the drive for clean energy in a hearing started Feb. 15 into a lawsuit against NAFTA by U.S.-based Windstream Energy, which is seeking C$568 million in damages for a moratorium imposed on its plans for a wind farm in southern Ontario.
A panel of law experts from the U.S., Finland and Spain has been convened to conduct the case which dates back five years when the Ontario government suddenly froze all offshore wind developments.
Windstream said it had previously signed a power contract with the Ontario government’s power authority and has posted C$6 million as security.
Under NAFTA, investments by U.S. companies in Canada cannot be expropriated - which Windstream argues is the case - without compensation.
Ontario, in its filing, said it had the “right to proceed with caution” on offshore wind and argued NAFTA allows “reasonable regulatory delays.”
An earlier, non-NATFA case was launched by Toronto-based Trillium Power Wind Corp., which, like Windstream, had planned a project on Lake Ontario when the provincial government imposed the moratorium.
Trillium initially demanded C$2.25 billion in damages from the government, but most of the suit was thrown out of court, leaving the company to sue only on the grounds that the moratorium amounted to “malfeasance in public office.”
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