INDU Committee Report

SUPPLEMENTARY REPORT ISSUED BY THE BLOC QUÉBÉCOIS

GREEN RECOVERY: LEADING THE TRANSITION TO GREEN ENERGY AND THE CHALLENGES OF DECARBONIZATION BY 2030.

INTRODUCTION

The Bloc Québécois commends the members of the committee and the staff of the Library of Parliament for their work during this study. The same thanks go to all the witnesses, citizens and organizations called before the committee and the experts who contributed to the public debate on the subject by submitting their observations in the form of letters and briefs. There is no doubt that these contents will be relevant to revisit in the near future. Canadian environmental governance raises important issues that have significant impacts for future generations.  We wish to highlight, in order to give them the consideration they deserve, the relevant remarks that have been expressed by both citizens and experts, but which could not find their place in this report. We offer an overview of some elements that deserve more attention.

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Let us recall the Committee's mandate for this study by quoting the motion of September 26, 2022:

Pursuant to Standing Order 108(2) and the motion adopted by the Committee on September 26, 2022, the Committee resumed its study of the economic recovery from COVID-19.

A POLICY FRAMEWORK ON ELECTRIFICATION, LOW-CARBON ENERGY, RENEWABLE ENERGY AND THE FIGHT AGAINST CLIMATE CHANGE

The Bloc Québécois will support the transition to green energy by proposing massive investments in green innovation, transportation electrification, digital revolution, and research and development in all regions of Quebec in order to advance a green recovery that results in prosperity supported by Quebec entrepreneurship.  

The following recommendation was not supported by a majority of Members when it was debated.

Recommendation 1

That the Government of Canada, when implementing initiatives to restart the economy in the wake of the COVID-19 pandemic while seeking to reduce its greenhouse gas emissions, ensure that it defines a framework policy on transportation electrification, low-carbon energy, renewable energy and the fight against climate change,  in order to:

1. Promote R&D and commercialization opportunities in emerging technologies;
2. Support businesses by ensuring they have the resources to adopt innovative technologies;
3. Use the polluter pays principle, so that mitigation, reparation or compensation costs are borne by the person who caused the environmental damage requiring such measures;
4. Ensure that all financial decisions consider environmental impacts, that they are documented in the strategic considerations, and that there is transparent reporting on each federal organization's website how each financial decision contributes to improving environmental performance; and
5. Increase its spending level to between 1 and 2% of its gross domestic product (GDP) to decarbonize its economy.

ESTABLISHING A CONTROLLED DECLINE OF THE HYDROCARBON INDUSTRY

The Bloc Québécois is once again demanding an end to fossil fuel subsidies (as Canada has repeatedly committed to since 2009). The Bloc Québécois proposes to redirect Quebec's share of the money invested in fossil fuels to investments in Quebec's clean energy and in our research centres, while maintaining the necessary funding for a transition away from fossil fuels in Western Canada.

Recommendation 2

That the Government of Canada cease to impede the attainment of net-zero emissions objectives and examine a range of options aimed at transforming the fossil fuel industry, by requiring that the Canada Energy Regulator model and reduce petroleum production, in order to establish policies for a controlled and gradual decline of the fossil fuel industry.

Recommendation 3

That the Government of Canada allow its citizens to direct their savings to climate-friendly investments and provide incentives to do so.

SUPPORT FOR A NATIONAL ZEV STANDARD AND CHARGING STATIONS

A crucial part of the transition from fossil fuels to greener energy involves supporting and investing in the zero-emission vehicle (ZEV) industry. The Bloc Québécois supports standards in this area not only to help reduce greenhouse gas emissions, but also because of the employment and health benefits that follow.

Currently in Canada, transportation accounts for 24% of all carbon emissions ( https://www.canada.ca/en/environment-climate-change/services/environmental-indicators/greenhouse-gas-emissions.html#transport), and is therefore a sector that requires urgent attention. Canada currently lags behind the world when it comes to electric vehicles, with sales accounting for only 7.7% of all vehicle sales in the first quarter of 2022 compared to the global 15%. For its part, Quebec leads the way with 12.7% of sales.

Creating standards and regulations to encourage the investment, sale, and adoption of electric vehicles is an important step in addressing this issue. This means that electric vehicles built in Canada, using taxpayers' money, will remain here rather than being sold abroad. It also means that Canada would attract innovative businesses, motivate SMEs and companies already established here, and create well-paying, high-value jobs that support a sustainable and diversified future.

In addition, if we want to encourage the energy transition with ZEVs, Canada must make a serious commitment to build and maintain the infrastructure necessary for their use. It is essential to eliminate the main barrier to the adoption of electric vehicles: the lack of electric terminals.

Fundamentally, more electrical charging stations are needed along routes. The highway charging infrastructure is clearly inadequate and when there are charging stations, too many are defective or do not have a high-speed charging configuration (level 2). This reality overshadows the potential for efficiency in long-distance travel and is a concern during the winter months. In fact, in 2021, the Department of Natural Resources undertook a study in partnership with e-Camion to demonstrate the effectiveness of fast charging along the Trans-Canada Highway between Ontario and Manitoba in order to demystify the "dilemma" of winter and rural charging. This study, funded at more than 11M dollars, was conclusive.

Future investments in this area must take into account the needs of rural communities and the importance of charging station maintenance. In this context, one option is the implementation of a program supporting the creation of electrical terminals in municipalities across the country.

The Government of Canada can play a role in this transition by ensuring that its fleet transitions to hybrid and zero-emission vehicles.  Canada Post is currently the Crown corporation with the largest fleet of vehicles, and there is a need to accelerate their transition to all-electric, which is currently estimated to be completed by 2040 ( https://www.canadapost-postescanada.ca/blogs/personal/perspectives/canada-post-environment-sustainability-2022/).  The result of this investment will provide electric charging stations near every Canada Post office.

The Bloc Québécois believes that the electric vehicle industry will be a key element of a post-pandemic green recovery if a standard is set and significant investments in infrastructure are made.

Recommendation 4

That the Government of Canada support the transition to electric transportation by adopting a standard and defining the regulatory mandate for zero-emission vehicles; investing in infrastructure that will support this effort, including funding a program to install electric charging stations in municipalities that request them and nearby all Canada Post offices, all while maintaining its purchase incentives for hybrid and zero-emission vehicles.

Recommendation 5

That the Government of Canada initiate discussions with the main commercial banners of the hydrocarbon industry present in Canada in order to develop agreements that, on a cost-shared basis, would allow the hydrocarbon industry to make a concrete contribution to the adoption of hybrid and zero-emission vehicles through the installation of fast-charging infrastructure in all points of sale across Canada.

ENCOURAGING THE TRANSITION OF ITS BUILDING STOCK: ENERGY-EFFICIENT BUILDINGS

To make properties more energetically efficient and to promote the energy efficiency of all buildings, the government must demand action from property owners: effective, affordable and innovative solutions exist. For example, artificial intelligence can be used to reduce energy consumption in a building, and the recovery of heat produced by certain industrial equipment can also be used to the heat the building itself, or it could be redistributed to nearby residential areas. Buildings can also store energy and participate in energy sharing infrastructure networks. Combined with other technologies, such as wind and solar energy, not to mention geothermal energy (horizontal and vertical), results are truly within reach.

For companies that do not proactively transition to greener buildings, the government must put in place sanctions that will lead them to do so. These could include a reduction in the subsidies companies receive if their buildings do not meet efficiency standards.

Moreover, the government must set an example by accelerating the transformation of its real estate. As the owner of more than 39,000 buildings across the country, the government has a large role in this transition: it has the responsibility, in its publicly expressed desire to be "green", to lead the way. The entire manufacturing and industrial production chain would be stimulated, not to mention the countless positive impacts for the workforce and the economy as a whole. Moreover, the issue of investments is pertinent: it has been amply demonstrated and repeated by several organizations that investments occur in environments where there is predictability and structure within projects. The Government of Canada must seize this opportunity, amplify its projects within its own ranks, in all sectors.

Recommendation 6

That the Government of Canada act in an exemplary manner in the energy transition and that it embody this transition in every action, particularly in its real estate, by accelerating an energy efficient transformation, and that it impose penalties on subsidies received to companies whose buildings are not energy efficient.

Recommendation 7

That the Government of Canada encourage industries that are actively engaged in reducing the use of fossil fuels in the construction and operation of buildings and accelerate the development of a dynamic market that renovates private buildings.

ENVIRONMENTAL SOVEREIGNTY

The Intergovernmental Panel on Climate Change, IPCC, sounded the alarm in its latest report: we have very little time to avoid catastrophe, and the next few years will be crucial.  Québec must therefore have the autonomy to implement solutions that will help it fight climate change effectively.  Québec is a leader in environmental protection and its commitment to renewable energy, conservation efforts and rigorous environmental regulations is exemplary.

In Quebec, the Charter of Human Rights and Freedoms already establishes that a person may apply for an injunction to enforce his or her right to environmental quality.

Quebec has repeatedly stated that it opposes any intervention by the federal government in environmental matters in Quebec and that it is important to recognize Quebec's jurisdiction in environmental matters. It is with this in mind that the Bloc Québécois has introduced a bill to amend seven federal statutes to make the environment an exclusively provincial jurisdiction.

Recommendation 8

That the Government of Canada affirm that, when it comes to the environment, Quebec must be the only one to decide what happens on its territory.

PLASTICS ELIMINATION STRATEGY

On June 22, 2022, the Government of Canada published the Prohibition of Single-Use Plastics Regulations.  The Regulations prohibit the manufacture, import and sale of six categories of single-use plastic articles, with a temporary exemption for export:

• Shopping bags
• Utensils
• Food containers that contain expanded or extruded polystyrene, polyvinyl chloride, oxo-degradable plastic or black plastic made of carbon black
• Rings for beverage packaging
• Mixing sticks
• Straws

The regulations aim to prevent plastic pollution by eliminating or restricting the six categories of UPUs that pose a threat to the environment.

The main obstacle to the goal of zero plastic waste is the ever-increasing amount of plastic produced and sold, which generates 4.4 million tons of plastic waste annually in Canada. This barrier is coupled with an over-reliance on plastic products and a strategy of investing in recycling them to eliminate them. 

Today, despite efforts to improve plastic recycling rates, 92% of Canada's plastic waste still ends up in landfills, incinerators and the natural environment (rivers, lakes, oceans).

Unfortunately, there is no market for these plastics, especially those containing additives that are toxic to the environment and ecosystems, including food packaging that almost always contains forever chemicals, making it very difficult to recycle them.

Government action is required not only to limit the use of plastics, but also to put in place regulations to reduce and reuse our plastics. For example, policies can and should be put in place to reduce the amount of plastic packaging used by the retail, food, and other commercial industries. There are sustainable alternatives and Canada must encourage industries to abandon plastic, too often made from virgin resins, directly from the petrochemical industry. Packaging standards can become more stringent in the same way that fuel efficiency and energy standards have become more stringent.

While reducing our use of plastics and other materials, Canada must support reuse and refill systems. Refill and reuse have many benefits for the environment. They contribute to extending the life of products and reduce the ecological footprint of an activity or community.  For example, if the food industry were to embrace refill and reuse, an estimated 20,000 new jobs would be created in areas such as supply chain, sanitation and delivery.

Refill and reuse save natural resources and limit greenhouse gas or pollutant emissions generated by the disposal of a product at the end of its life while contributing to the circular economy and the reduction of waste production.

Currently, there are more reuse and reuse stores in Montreal per capita than anywhere else in Canada.

Recommendation 9

That the Government of Canada adopt more effective strategies to manage plastic waste and reduce the amount of non-recoverable plastic waste, particularly because it is largely made from non-renewable fossil materials that produce GHGs,

1. adding bottle caps and lids and laminated plastic products to the list of single-use plastic item categories; 
2. intensifying local refill and reuse systems;
3. by extending the deposit on a greater number of products to enhance and improve recovery.

FORESTRY

The most recent IPCC report outlines the crucial importance of forest ecosystems in carbon capture and storage.  Our boreal forest alone stores twice as much carbon as the world's oil reserves. We need to value the role of these carbon sinks at all levels and ensure that Ottawa recognizes the ecological and economic potential of forests.

The forest is of great importance from an economic, tourist and cultural point of view. It is essential to support existing regional opportunities for vertical integration. Currently, the forest supply chain is defined by wasted potential, with inefficient border crossings and associated taxation. It is therefore essential to adopt a robust, sectoral and in-depth approach to relaunching the entire value chain in the forest sector.

In order to achieve this added value, a circular economy must also be supported. All harvested parts of the trees, even waste from processing, can be used. For example, it is possible to create forest biomass with industrial waste.

In this way, we can not only add value, but also ensure that we develop a resilient industry that can meet environmental objectives.

Québec has a bioindustrial infrastructure and a high-performance capacity for fundamental and applied scientific research. The forest sector is innovative and develops promising new biosource products. It is exciting to see the innovations of this industry and the growth prospects for value-added wood products.

Recommendation 10

That the Government of Canada recognize the ecological and economic potential of forests to meet greenhouse gas reduction targets set by international agreements and invest in the forest bioeconomy - the transformation of forest resources into value-added products and services that contribute to the greening of the planet and the economic diversification of resource regions.

AGRICULTURE:

Food security should be a fundamental right of every citizen. The pandemic has demonstrated the vulnerabilities that exist within the global supply chain and, therefore, the dangers that come with over-reliance on other countries. The support of our local farmers and producers has therefore become a key element of the post-pandemic green transition.  The development of a program that enhances and supports production, processing and local supply chains is becoming a necessity in order to increase the resilience of our economy and the development of short supply chains. This is all the more true given Quebec's immense agricultural potential, as a lot of abandoned and fallow ground could be developed in this way.

In the context of the green recovery, the environmental costs associated with the global supply chain can no longer be dissociated from its fragility.  The carbon footprint of food production must be visible through a pricing system that will reveal the real environmental cost.  By doing so, the conscious consumer would be able to make an intelligent choice.

Recommendation 11

That the Government of Canada establish a regional fund to support innovation to enable the development of sustainable and local agriculture and a fund dedicated to the recultivation of fallow land.

Recommendation 12

That the Government of Canada consider implementing carbon footprint pricing for food products.