Energy
Resource Works Margareta Dovgal on B.C. Climate Policies, and Their Implications
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From EnergyNow.ca
By Margareta Dovgal
In the midst of a memorable polar cold snap in January, British Columbia faced a stark reality that should serve as a valuable lesson for climate activists and policymakers alike. As Stewart Muir, the founder of our organization, aptly pointed out at the time, “When it’s cold like now, BC gets two thirds of its energy for heating, etc., from natural gas. Promises to ditch the fuel by 2030, 2035, 2050, are political theatre to be taken with a large scoop of road salt.”
The deep freeze eventually thawed, but it left behind a lingering question about the feasibility of ambitious climate policies in a province heavily reliant on natural gas for its energy needs. The provincial government responded with a proposal to ban conventional gas equipment in new residential, commercial, and institutional buildings by 2030. This move would not only prohibit the sale and installation of gas water heaters but also impose restrictions on new gas furnaces and boilers, permitting them only as part of a hybrid dual-fuel system that integrates electric or gas heat pumps with conventional gas combustion appliances.
While the government embarked on consultations with natural gas contractors, First Nations, and other stakeholders, the public sentiment was reflected in a Castanet news service poll in the Okanagan region. The poll asked, “Should BC ban the use of conventional natural gas for home heating as of 2030?” The results were strikingly clear:
- No: 12,460 (91%)
- Yes: 725 (5.3%)
- Unsure: 501 (3.7%)
However, the proposal to shift away from natural gas raised concerns about BC’s electricity infrastructure. During the cold snap, the province had to import 15% of its electricity, and when Alberta faced even colder temperatures, BC had to step in and send power across the border. Contractors like Al Russell of Prince George questioned the province’s ability to meet increased electricity demands, especially with the limitations of existing infrastructure.
Russell pointed out the need for significant upgrades to the electricity grid, including more and larger transmission lines and transformers. The pressing question remained: “Where are we getting this power from and how are we getting it there? When does this expansion start, and how much will it cost?”
These concerns are not unique to BC. A recent report from the Public Policy Forum emphasized that to achieve its goal of net-zero emissions by 2050, Canada must invest heavily in expanding its electricity generation capacity. This ambitious undertaking comes with a potentially significant cost, with the report envisioning a landscape filled with new dams, turbines, nuclear plants, and solar panels.
Even though BC’s BC Hydro once maintained that no additional power generation was needed, the province now anticipates a shift from a surplus to a deficit of power by 2030, even with the Site C power dam set to be operational by 2025. Consequently, BC Hydro plans to seek new clean and renewable energy sources through a competitive process, inviting power providers to contribute to the province’s energy needs.
Premier David Eby has also announced a significant update to Hydro’s 10-year capital plan, earmarking nearly $36 billion for community and regional infrastructure projects by 2034. However, building new transmission lines in the past has proven to be a lengthy process, taking anywhere from eight to ten years. Eby himself acknowledged that such delays were unacceptable.
Chair of the Energy Futures Initiative, Barry Penner, highlighted the findings of the North American Electric Reliability Corporation, which forecasted increased energy risks for BC in 2026 due to rising demand and the retirement of natural-gas-fired generation.
All these developments transpire as BC advances its CleanBC policy and program. Yet, the BC Business Council voiced concerns about the economic implications, stating that the provincial government’s policies could potentially shrink BC’s economy by $28 billion by 2030, setting prosperity back more than a decade.
The cold snap served as a reminder that the impact of these policies goes beyond mere comfort or convenience. In northern climates like BC’s, extreme cold can pose significant hazards to human health, wellness, and survivability. It also underscores the importance of stable and secure infrastructure, especially with the risk of water pipes bursting during freezing temperatures.
As BC strives to replace some natural gas services with electricity, affordability becomes a pressing concern. There are three key aspects to consider:
- Capital and Operating Costs: Transitioning to electricity comes with increased costs compared to running natural gas systems.
- Heat Pump Installation: Installing heat pumps adds to the financial burden.
- Housing and Rent Costs: The ripple effect of increased costs may result in higher housing and rent expenses, exacerbating affordability challenges in the region.
An editorial from The Orca labeled BC’s natural gas plan as ‘all hot air,’ expressing concerns about making new homes more expensive to build and live in, especially during a housing crisis.
The climate policies in BC carry significant implications, not only for the affordability of living in the province but also for its economic growth and stability. These policies have the potential to impact the types of jobs available, their associated wages, and the province’s global competitiveness.
The net outcome of these policies could determine the fate of industries deeply rooted in BC’s history. If these industries can no longer thrive due to regulatory changes, it may have far-reaching consequences for the well-being of the province’s residents.
As BC navigates this complex landscape, there is an opportunity for the provincial government to engage with and consider the concerns of the public. With an election year on the horizon, the public should continue to ask questions, seek clarity, and actively participate in shaping the future of their province.
- Margareta Dovgal on these issues, and more, on Vancouver’s Spice Radio: https://ow.ly/hxsB50QvfJ9
Margareta Dovgal is Managing Director of Resource Works. Based in Vancouver, she holds a Master of Public Administration in Energy, Technology and Climate Policy from University College London. Beyond her regular advocacy on natural resources, environment, and economic policy, Margareta also leads our annual Indigenous Partnerships Success Showcase. She can be found on Twitter and LinkedIn.
Energy
Federal Government Suddenly Reverses on Critical Minerals – Over Three Years Too Late – MP Greg McLean
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From Energy Now
By Calgary MP Greg McLean
Government in Full Reverse
Canada-U.S. Trade Relations is obviously the most pressing issue facing Canadians today.
It’s important to remember how we arrived at this point, but also to question the sincerity of the Liberal Ministers and leadership contenders who are now posing solutions, such as:
- We need to diversify our resource trade
- We need to build pipelines and infrastructure to get our exports to tidewater
- We need to streamline our regulatory burden that stands in the way of development
- We need to halt the escalating carbon tax
- We need to reverse the capital gains tax increase
The Liberals are turning themselves inside out on the policy choices they have made over nine years, and put Canada in a precarious economic position vis-à-vis our trade position.
If you believe what they are saying now, these Liberal Ministers and leadership contenders are saying that Canada needs EXACTLY THE OPPOSITE of what they have delivered over these past nine years.
I can’t comment on whether these NEW Liberal policy positions completely lack sincerity, or whether they are the result of a ‘deathbed conversion’, but nine years of moving in the exact opposite direction to their new words has led Canada to where it is today – and that is nine lost years for Canadians, our prosperity, and our role in a complex world.
Below is another example of a specific morphing of a Liberal policy – to the one I helped put forth – 3 ½ years ago – regarding Canada’s policy on critical minerals.
Minister Late to Critical Mineral Strategy
Here’s a gem of wisdom from December’s Fall Economic Statement:
Canada will work with the United States and other likeminded partners to address the impacts of non-market policies and practices that unduly distort critical mineral prices. This includes ensuring that market participants recognize the value of critical minerals produced responsibly, with due regard for high environmental standards and labour practices.
Then, on January 16th, the following from Canada’s Natural Resource Minister, Jonathan Wilkinson:
During a panel discussion in Washington on Wednesday, Natural Resources Minister Jonathan Wilkinson proposed that enforcing a floor on metals prices could be “one of the centerpieces of the conversations we would then be having at the G7” summit later this year.
Western nations have long warned that China’s dominance in everything from nickel to lithium has let the country’s producers flood the market with supply, thereby keeping prices artificially low for competitors. Wilkinson has touted price floors as a way to combat that market control.
What a great idea!
Here’s the relevant excerpt from June, 2021, from a dissenting report on the Natural Resources Committee, when I served as my party’s critic, in contrast to the government’s critical minerals approach at that time:
Recommendation 4: Coordinate with our allies to establish a dedicated supply stock of critical minerals, possibly through a physical storage and floor pricing mechanism for visibility and pricing purposes.
Excerpt: Canada is too small of a market to undertake this effort on its own, but it can play a key role with its longstanding leadership as the mining jurisdiction of choice in the world. Canada’s pre-eminent role as a financing jurisdiction for international mining is well understood. Although we are at the early stages of losing this historical leadership to Australia, acting quickly to solidify Canada’s leadership will be a strong signal. Australia and Europe have already established critical mineral strategies to offset the dominance of the market that China has exerted. At the very least, Canada’s coordination needs to include the United States, and probably Mexico (through CUSMA), as the ongoing funding of a critical mineral supply may require backstopping developments with a price amelioration mechanism. In essence, a floor price to ensure the protection of critical mineral developments from manipulating price volatility – and which has held back developments, or caused the insolvency of several of these developments, due to non-transparent world market pricing mechanisms. … Establishing a steady supply of these critical minerals will lead to more value-added opportunities, in conjunction with our trade partners.
Conservative Dissenting Recommendations
My question to the Minister: ‘What took you so long?’
This approach was presented three and a half years ago – and the Government chose to ignore it then.
No surprise now, perhaps, as we’ve seen this Minister flip-flop on so many of the nonsense policies he’s put forth or acquiesced in at Cabinet:
- The Clean Electricity Regulations (still opaque)
- Canada’ role in shipping hydrocarbons to the world
- Building energy infrastructure
To say nothing of the various Cabinet decisions he has been a part of that have led to Canada’s current weak negotiating position with our allies. We effectively have not had a Minister of Natural Resources under his tenure.
Nothing topped it off more succinctly than his speech at the World Petroleum Show, held in Calgary in September 2023, when his remarks on behalf of the Government of Canada left industry participants around the world questioning whether the Minister was ‘tone-deaf’ or if, in fact, he knew anything about natural resources.
It seems his move to the position I promoted – three and a half years ago – shows that he’s finally listening and learning (or un-learning his previous narratives, perhaps)– but it’s quite late in the day. Time and our future have been wasted.
Alberta
Open letter to Ottawa from Alberta strongly urging National Economic Corridor
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Canada’s wealth is based on its success as a trading nation. Canada is blessed with immense resources spread across a vast country. It has succeeded as a small, open economy with an enviable standard of living that has been able to provide what the world needs.
Canada has been stuck in a situation where it cannot complete nation‑building projects like the Canadian Pacific Railway that was completed in 1885, or the Trans Canada Highway that was completed in the 1960s. With the uncertainty of U.S. tariffs looming over our country and province, Canada needs to take bold action to revitalize the productivity and competitiveness of its economy – going east to west and not always relying on north-south trade. There’s no better time than right now to politically de-risk these projects.
A lack of leadership from the federal government has led to the following:
- Inadequate federal funding for trade infrastructure.
- A lack of investment is stifling the infrastructure capacity we need to diversify our exports. This is despite federally commissioned reports like the 2022 report by the National Supply Chain Task Force indicating the investment need will be trillions over the next 50 years.
- Federal red tape, like the Impact Assessment Act.
- Burdensome regulation has added major costs and significant delays to projects, like the Roberts Bank Terminal 2 project, a proposed container facility at Vancouver, which spent more than a decade under federal review.
- Opaque funding programs, like the National Trade Corridors Fund (NTCF).
- Which offers a pattern of unclear criteria for decisions and lack of response. This program has not funded any provincial highway projects in Alberta, despite the many applications put forward by the Government of Alberta. In fact, we’ve gone nearly 3 years without decisions on some project applications.
- Ineffective policies that limit economic activity.
- Measures that pit environmental and economic objectives in stark opposition to one another instead of seeking innovative win-win solutions hinder Canada’s overall productivity and investment climate. One example is the moratorium on shipping crude through northern B.C. waters, which effectively ended Enbridge’s Northern Gateway proposal and has limited Alberta’s ability to ship its oil to Asian markets.
In a federal leadership vacuum, Alberta has worked to advance economic corridors across Canada. In April 2023, Alberta, Saskatchewan and Manitoba signed an agreement to collaborate on joint infrastructure networks meant to boost trade and economic growth across the Prairies. Alberta also signed a similar economic corridor agreement with the Northwest Territories in July 2024. Additionally, Alberta would like to see an agreement among all 7 western provinces and territories, and eventually the entire country, to collaborate on economic corridors.
Through our collaboration with neighbouring jurisdictions, we will spur the development of economic corridors by reducing regulatory delays and attracting investment. We recognize the importance of working with Indigenous communities on the development of major infrastructure projects, which will be key to our success in these endeavours.
However, provinces and territories cannot do this alone. The federal government must play its part to advance our country’s economic corridors that we need from coast to coast to coast to support our economic future. It is time for immediate action.
Alberta recommends the federal government take the following steps to strengthen Canada’s economic corridors and supply chains by:
- Creating an Economic Corridor Agency to identify and maintain economic corridors across provincial boundaries, with meaningful consultation with both Indigenous groups and industry.
- Increasing federal funding for trade-enabling infrastructure, such as roads, rail, ports, in-land ports, airports and more.
- Streamlining regulations regarding trade-related infrastructure and interprovincial trade, especially within economic corridors. This would include repealing or amending the Impact Assessment Act and other legislation to remove the uncertainty and ensure regulatory provisions are proportionate to the specific risk of the project.
- Adjusting the policy levers that that support productivity and competitiveness. This would include revisiting how the federal government supports airports, especially in the less-populated regions of Canada.
To move forward expeditiously on the items above, I propose the establishment of a federal/provincial/territorial working group. This working group would be tasked with creating a common position on addressing the economic threats facing Canada, and the need for mitigating trade and trade-enabling infrastructure. The group should identify appropriate governance to ensure these items are presented in a timely fashion by relative priority and urgency.
Alberta will continue to be proactive and tackle trade issues within its own jurisdiction. From collaborative memorandums of understanding with the Prairies and the North, to reducing interprovincial trade barriers, to fostering innovative partnerships with Indigenous groups, Alberta is working within its jurisdiction, much like its provincial and territorial colleagues.
We ask the federal government to join us in a new approach to infrastructure development that ensures Canada is productive and competitive for generations to come and generates the wealth that ensures our quality of life is second to none.
-
Devin Dreeshen
Devin Dreeshen was sworn in as Minister of Transportation and Economic Corridors on October 24, 2022.
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