Fraser Institute
Yes, B.C.’s Land Act changes give First Nations veto over use of Crown Land
From the Fraser Institute
By Bruce Pardy
Nathan Cullen says there’s no veto. Cullen, British Columbia’s Minister of Water, Land, and Resource Stewardship, plans to give First Nations joint decision-making authority over Crown land. His NDP government recently opened consultations on its proposal to amend the B.C. Land Act, under which the minister grants leases, licences, permits, rights-of-way and land sales. The amendments will give legal effect to agreements with Indigenous governing bodies. Those agreements will share decision-making power “through joint or consent models” with some or all of B.C.’s more than 200 First Nations.
Yes, First Nations will have a veto.
Cullen denies it. “There is no veto in these amendments,” he told the Nanaimo News Bulletin last week. He accused critics of fearmongering and misinformation. “My worry is that for some of the political actors here on the right, this is an element of dog-whistle politics.”
But Cullen has a problem. Any activity that requires your consent is an activity over which you have a veto. If a contract requires approval of both parties before something can happen, “no” by one means “no” for both. The same is true in other areas of law such as sexual conduct, which requires consent. If you withhold your consent, you have vetoed the activity. “Joint decision-making,” “consent,” and “veto” come out to the same thing.
Land use decisions are subject to the same logic. The B.C. government will give First Nations joint decision-making power, when and where agreements are entered into. Its own consultation materials say so. This issue has blown up in the media, and the government has hastily amended its consultation webpage to soothe discontent (“The proposed amendments to the Land Act will not lead to broad, sweeping, or automatic changes (or) provide a ‘veto.’”) Nothing to see here folks. But its documentation continues to describe “shared decision-making through joint or consent models.”
These proposals should not surprise anyone. In 2019, the B.C. legislature passed Bill 41, the Declaration of the Rights of Indigenous Peoples Act (DRIPA). It requires the government to take “all measures necessary” to make the laws of British Columbia consistent with the United Nations Declaration on the Rights of Indigenous People (UNDRIP).
UNDRIP is a declaration of the U.N. General Assembly passed in 2007. It says that Indigenous people have “the right to the lands, territories and resources which they have traditionally owned, occupied or otherwise used or acquired… to own, use, develop and control.”
On its own, UNDRIP is non-binding and unenforceable. But DRIPA seeks to incorporate UNDRIP into B.C. law, obligating the government to achieve its aspirations. Mere consultation with First Nations, which Section 35 of the Constitution requires, won’t cut it under UNDRIP. Under Section 7 of DRIPA, agreements to be made with indigenous groups are to establish joint decision-making or to require consent of the Indigenous group. Either Cullen creates a First Nations veto or falls short of the goalposts in DRIPA. He is talking out of both sides of his mouth.
Some commentators warned against these dangers long ago. For example, shortly after DRIPA was passed in 2019, Vancouver lawyer Robin Junger wrote in the Vancouver Sun, “It will likely be impossible for government to live up to the expectations that Indigenous groups will now reasonably hold, without fundamentally affecting the rights and interests of third parties.” Unfortunately, few wanted to tackle that thorny question head on at the time. All three political parties in B.C. voted in favour of DRIPA, which passed unanimously.
For a taste of how Land Act changes could work, ask some B.C. residents who have private docks. In Pender Harbour, for instance, the shishalh Nation and the province have jointly developed a “Dock Management Plan” to try and impose various new and onerous rules on private property owners (including red “no go” zones and rules that will make many existing docks and boat houses non-compliant). Property owners with long-standing docks in full legal compliance will have no right to negotiate, to be consulted, or to be grandfathered. Land Act amendments may hardwire this plan into B.C. law.
Yet Cullen insists that no veto will exist since aggrieved parties can apply to a court for judicial review. “[An agreement] holds both parties—B.C. and whichever nation we enter into an agreement (with)—to the same standard of judicial review, administrative fairness, all the things that courts protect when someone is going through an application or a tendering process,” he told Business in Vancouver.
This is nonsense on stilts. By that standard, no government official has final authority under any statute. All statutory decisions are potentially subject to judicial review, including decisions of Cullen himself as the minister responsible for the Land Act. He doesn’t have a veto? Of course he does. Moreover, courts on judicial review generally defer to statutory decision-makers. And they don’t change decisions but merely send them back to be made again. The argument that First Nations won’t have a veto because their decisions can be challenged on judicial review is legal jibber jabber.
When the U.N. passed UNDRIP in 2007, people said they can’t be serious. When the B.C. legislature passed DRIPA in 2019, people said they can’t be serious. The B.C. government now proposes to give First Nations a veto over the use of Crown land. Don’t worry, they can’t be serious.
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Carbon Tax
Carney fails to undo Trudeau’s devastating energy policies
From the Fraser Institute
By Tegan Hill and Elmira Aliakbari
On the campaign trail and after he became prime minister, Mark Carney has repeatedly promised to make Canada an “energy superpower.” But, as evidenced by its first budget, the Carney government has simply reaffirmed the failed plans of the past decade and embraced the damaging energy policies of the Trudeau government.
First, consider the Trudeau government’s policy legacy. There’s Bill C-69 (the “no pipelines act”), the new electricity regulations (which aim to phase out natural gas as a power source starting this year), Bill C-48 (which bans large oil tankers off British Columbia’s northern coast and limit Canadian exports to international markets), the cap on emissions only from the oil and gas sector (even though greenhouse gas emissions have the same effect on the environment regardless of the source), stricter regulations for methane emissions (again, impacting the oil and gas sector), and numerous “net-zero” policies.
According to a recent analysis, fully implementing these measures under Trudeau government’s emissions reduction plan would result in 164,000 job losses and shrink Canada’s economic output by 6.2 per cent by the end of the decade compared to a scenario where we don’t have these policies in effect. For Canadian workers, this will mean losing $6,700 (annually, on average) by 2030.
Unfortunately, the Carney government’s budget offers no retreat from these damaging policies. While Carney scrapped the consumer carbon tax, he plans to “strengthen” the carbon tax on industrial emitters and the cost will be passed along to everyday Canadians—so the carbon tax will still cost you, it just won’t be visible.
There’s also been a lot of buzz over the possible removal of the oil and gas emissions cap. But to be clear, the budget reads: “Effective carbon markets, enhanced oil and gas methane regulations, and the deployment at scale of technologies such as carbon capture and storage would create the circumstances whereby the oil and gas emissions cap would no longer be required as it would have marginal value in reducing emissions.” Put simply, the cap remains in place, and based on the budget, the government has no real plans to remove it.
Again, the cap singles out one source (the oil and gas sector) of carbon emissions, even when reducing emissions in other sectors may come at a lower cost. For example, suppose it costs $100 to reduce a tonne of emissions from the oil and gas sector, but in another sector, it costs only $25 a tonne. Why force emissions reductions in a single sector that may come at a higher cost? An emission is an emission regardless of were it comes from. Moreover, like all these policies, the cap will likely shrink the Canadian economy. According to a 2024 Deloitte study, from 2030 to 2040, the cap will shrink the Canadian economy (measured by inflation-adjusted GDP) by $280 billion, and result in lower wages, job losses and a decline in tax revenue.
At the same time, the Carney government plans to continue to throw money at a range of “green” spending and tax initiatives. But since 2014, the combined spending and forgone revenue (due to tax credits, etc.) by Ottawa and provincial governments in Ontario, Quebec, British Columbia and Alberta totals at least $158 billion to promote the so-called “green economy.” Yet despite this massive spending, the green sector’s contribution to Canada’s economy has barely changed, from 3.1 per cent of Canada’s economic output in 2014 to 3.6 per cent in 2023.
In his first budget, Prime Minister Carney largely stuck to the Trudeau government playbook on energy and climate policy. Ottawa will continue to funnel taxpayer dollars to the “green economy” while restricting the oil and gas sector and hamstringing Canada’s economic potential. So much for becoming an energy superpower.
Energy
Expanding Canadian energy production could help lower global emissions
From the Fraser Institute
By Annika Segelhorst and Elmira Aliakbari
Canada’s most timely opportunity to lower overall global emissions is through expanded exports to regions that rely on higher-emitting fuel sources.
The COP30 climate conference in Brazil is winding down, after more than a week of discussions about environmental policy and climate change. Domestic oil and natural gas production is frequently seen as a fundamental obstacle to Canada’s climate goals. Yet the data shows that Canadian energy production is already among the world’s cleanest, generating lower greenhouse gas (GHG) emissions per barrel-of-oil-equivalent produced, among major producing countries. Expanding the role of Canadian oil and gas in global markets can replace higher GHG-emitting alternatives around the world, driving down global GHG emissions.
Prime Minister Carney’s first budget highlights Canada’s “emissions advantage” in a chart on page 105 that compares the amount of GHG emissions released from producing oil and natural gas across 20 major producing countries. Compared to many other top-producing countries, Canada releases fewer GHG emissions per barrel of oil and gas produced when considering all phases of production (extraction, processing, transport, venting and flaring).
For oil production, Canada has an advantage over most major producers such as Venezuela, Libya, Iran, Algeria, Nigeria, China, Russia and Qatar. Canada’s emissions per barrel of oil produced are below the global average, making Canada among the lower emitting producers worldwide.
Similarly, Canada’s natural gas production has an emissions per barrel equivalent that is lower than the global average and is below major producers such as Turkmenistan, Uzbekistan, Nigeria, Indonesia, China, Argentina, Malaysia, Australia, Algeria, Iran, Russia, India and the United States. The chart below reveals countrywide average GHG emissions per barrel of oil or natural gas produced in 2022.
Source: International Energy Agency (2023), The Oil and Gas Industry in Net Zero Transitions 2023, IEA, Paris, p. 69
Canada’s emissions advantage stems from years of technological innovations that require less energy to produce each barrel of oil along with improvements in detecting leaks. From 1990 to 2023, Canada’s total production of crude oil rose by 199 per cent, while emissions per barrel of oil produced declined by 8 per cent, according to Environment and Climate Change Canada (ECCC). In the oilsands, since 1990 emissions per barrel have fallen by nearly 40 per cent while emissions from natural gas production and processing have decreased by 23 per cent.
Canada has already implemented many of the most practical and straightforward methods for reducing carbon emissions during oil and gas production, like mitigation of methane emissions. These low-hanging fruits, the easiest and most cost-effective ways to reduce emissions, have already been implemented. The remaining strategies to reduce GHG emissions for Canadian oil and gas production will be increasingly expensive and will take longer to implement. One such approach is carbon capture, utilization, and storage (CCUS), a technology which traps and stores carbon dioxide to prevent it from reaching the atmosphere. Major infrastructure projects like this offer potential but will be difficult, costly and resource intensive to implement.
Rather than focusing on increasingly expensive emission reductions at home, Canada’s most timely opportunity to lower overall global emissions is through expanded exports to regions that rely on higher-emitting fuel sources. Under a scenario of expanded Canadian production, countries that presently rely on oil and gas from higher-emitting producers can instead source energy from Canada, resulting in a net reduction in global emissions. Conversely, if Canada were to stagnate or even retreat from the world market for oil and gas, higher-emitting producers would increase exports to accommodate the gap, leading to higher overall emissions.
As Canada’s climate and energy policy continues to evolve, our attention should focus on global impact rather than solely on domestic emissions reductions. The highest environmental impact will come from enabling global consumption to shift towards lower-emitting Canadian sources.
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