New measures in budget bill could hammer oil companies for talking about environmental work
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Published Jun 22, 2024 • 3 minute read
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Alberta Premier Danielle Smith calls the bill “draconian,” while Saskatchewan Premier Scott Moe calls it censorship against the oil and gas industry. Not the words you normally hear when provincial politicians are talking about a federal budget bill.
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Bill C-59, which passed through the Senate and was given Royal Assent on Thursday, is no ordinary budget bill.
What the premiers are upset about are provisions in the bill, including one added in later on as an amendment that they say targets oil and gas companies from speaking about their business. In fact, several industry groups have come out against the bill as well. One, Pathways Alliance, scrubbed their social-media feeds and website for fear of prosecution.
Section 236 of Bill C-59 added two new paragraphs to the Competition Act that allows the competition commissioner to review statements made by companies regarding climate change.
The act now allows the commissioner to look at statements where a business makes claims about “protecting or restoring the environment or mitigating the environmental and ecological causes or effects of climate change.” Any claims must be backed up by “adequate and proper substantiation in accordance with internationally recognized methodology.”
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The problem, those in the industry say, is that the wording of the bill is incredibly vague.
If an oil company said that they had reduced their CO2 emissions caused by production by 30%, anyone could challenge that claim to the competition commissioner. The company would have to show their evidence to back up the claim, but if the commissioner didn’t like what the company presented, they could be taken to court and face fines of $10 million or more.
“These amendments create significant uncertainty and risk for all Canadian companies, regardless of sector, that communicate publicly about environmental performance, including actions to address climate change,” a letter signed by the CEOs of Canada’s largest oil and gas companies said.
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“The result of this legislation, which has been quickly put in place with little or no consultation, is to silence Canadian businesses taking climate action.”
The bottom line, say businesses, is speaking plainly and openly in Canada carries too big of a risk.
“This is a gag law. It’s a federal gag law,” said Saskatchewan Justice Minister Bronwyn Eyre.
Moe said that his province is considering all options, Smith has said that Alberta will consider a legal challenge. Both provinces have recently passed legislation aimed at curbing Ottawa’s attempts to encroach on areas of provincial jurisdiction, but it’s not clear that would apply in these circumstances.
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Regardless, these changes are a serious curtailing of freedom of expression by the Trudeau government, which loves to tell anyone and everyone how much they love the charter. If this section of the law is challenged on constitutional grounds, it would have to be struck down or the Supreme Court would have to finally admit they only protect charter rights they agree with politically.
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“This is being done to intentionally intimidate boards and shareholders, silence debate and amplify the voices of those who oppose Canada’s world-leading energy industry,” Smith said.
Both she and Moe have compared these provisions to a private member’s bill introduced by New Democrat Charlie Angus. Bill C-372, introduced last February but still not passed, would make it criminal for a natural gas company to say that their product is greener than oil for heating a home because it creates fewer emissions.
The fact that this is a true statement wouldn’t matter if C-372 passes.
In many ways, though, it doesn’t matter if that bill passes because the Liberal-NDP coalition has effectively adopted the essence of Angus’ bill. Companies won’t face criminal prosecution, but they will face massive legal bills and potentially steep fines due to C-59.
The government is once again attacking a vital industry in Canada, chasing away investment and good jobs all due to Prime Minister Justin Trudeau’s green zealotry.
Replacing this government can’t happen soon enough.