Pathways Alliance removes online materials following Bill C-59's passage, raising concerns over new greenwashing penalties
Pathways Alliance has removed all online materials after Prime Minister Justin Trudeau’s government passed a law that could levy major fines for “greenwashing,” according to Bloomberg.
The industry group promoting Canada's oil sands sector, an umbrella organization of major Canadian oil sands companies, scrubbed its website and social media feeds after Bill C-59 passed its final vote in Parliament.
Bill C-59 “will create significant uncertainty for Canadian companies that want to communicate publicly about the work they are doing to improve their environmental performance, including to address climate change,” stated a message on Pathways Alliance's website.
They also noted, “With uncertainty on how the new law will be interpreted and applied, any clarity the Competition Bureau can provide through specific guidance may help direct our communications approach in the future.”
The new law amends Canada’s competition act to address deceptive marketing practices.
Companies could face legal action if they make environmental performance claims that are not supported by “internationally recognized methodology,” a phrase criticized by oil companies and Alberta’s government for its vagueness.
The Canadian Association of Petroleum Producers also removed some content from its website and digital platforms, awaiting further guidance from the Competition Bureau.
Lisa Baiton, the association’s president, said, “The effect of this legislation is to silence the energy industry and those that support it in an effort to clear the field of debate and to promote the voices of those most opposed to Canada’s energy industry.”
Climate advocacy groups such as Ecojustice and the Quebec Environmental Law Centre welcomed the legislation.
Julien Beaulieu, a lawyer, and researcher with the Quebec centre, stated, “From now on, firms willing to advertise their net-zero commitments, their reliance on carbon offsets, and their nature conservation pledges will need to back these claims with sufficient evidence.”
Kendall Dilling, president of Pathways Alliance, mentioned that the organization is preparing a statement to explain its actions.
The group includes Canada’s largest oil sands producers, such as Cenovus Energy Inc., Suncor Energy Inc., Imperial Oil Ltd., MEG Energy Corp., and Canadian Natural Resources Ltd. Pathways Alliance was formed as the oil sands industry faced increasing pressure to address its high carbon emissions.
Pathways plans to invest $16.3bn in a carbon capture and storage system aimed at reducing emissions by 22 million metric tons by 2030, with the goal of becoming net-zero by 2050.
Initially, the reductions will come from capturing emissions at their oil sands facilities and transporting them via pipeline to Cold Lake in central Alberta for underground sequestration. The long-term plan to achieve net-zero emissions has not been fully detailed.
The law resulted from a late amendment to Bill C-59, supported by Trudeau’s Liberal Party along with the New Democrats and Bloc Quebecois.
The amendment addresses business claims about mitigating climate change impacts that lack “adequate and proper substantiation” based on “internationally recognized methodology.”
During a House of Commons committee meeting, Liberal lawmaker Patrick Weiler provided an example, saying, “A company may say that they are on track to net-zero emissions by a certain year but not have done that, and that can be a form of greenwashing.”
At a Senate committee review of the bill, government policy official Samir Chhabra acknowledged that “a number of industry stakeholders” expressed concerns about the new language and its interpretation.
Chhabra mentioned that the Competition Bureau will eventually provide guidance on what constitutes an “internationally recognized methodology,” as the term is currently undefined.
