:
Everyone is here, so let's get started.
We're now on session number four of our main estimates review today. I'll go through a bit of the formality for today's proceedings.
To begin with, pursuant to Standing Order 81(4) and the order of reference of Thursday, April 11, 2019, the committee will now consider the main estimates for the fiscal year ending March 31, 2020.
We will consider votes 1 and 5 under the Canadian Environmental Assessment Agency, and with that, I'd like to welcome Mr. Hallman, who is here for CEAA.
We will consider votes 1, 5, 10, 15, 20, 25 and 30 under the Department of the Environment, and we have Mr. Lucas here for the department.
We will consider votes 1 and 5 under the Parks Canada Agency, and Mr. Nadler is here.
I'd also like to welcome our minister, Minister McKenna, and parliamentary secretary Sean Fraser.
I will now call vote 1 under the Canadian Environmental Assessment Agency, which will permit general discussion of the estimates and questioning of witnesses. We'll go into the opening statement by the minister, and then we'll go right into our round of questions. It's like a regular session where each party will have six minutes at a time, we rotate, and we'll get as far as we can in our discussion by five o'clock.
I would also like to welcome Ms. Stubbs for the Conservatives, who's here today as our special guest; Ms. Mathyssen for the NDP and Mr. McKinnon on the Liberal side.
Minister, you have 10 minutes for an opening statement.
:
Thank you very much, Chair.
Thank you for the opportunity to speak to the committee. It's great being back; I appreciate the work the committee does. It's really important that action to protect the environment and tackle climate change is not a partisan issue.
[Translation]
I want to acknowledge the hard work of the colleagues who have joined me today: , parliamentary secretary for this portfolio; Dr. Stephen Lucas, deputy minister of Environment and Climate Change Canada; Michael Nadler, acting chief executive officer of the Parks Canada Agency; and Ron Hallman, president of the Canadian Environmental Assessment Agency.
Gentlemen, thank you for your work.
[English]
I want to start by recognizing that we're on the traditional territory of the Algonquin and Anishinabe peoples.
I also want to recognize all the people who are suffering with the flooding that's going on. That's people in New Brunswick, in Quebec, in Ontario and in the national capital region. I know our members of Parliament are working very hard; thank you for that.
On behalf of the Government of Canada and all Canadians, my department is taking strong action to protect our environment, fight climate change, conserve nature and grow our economy.
On April 11, the main estimates were tabled. For Environment and Climate Change Canada, the main estimates for 2019-20 are $1.8 billion. This represents an increase in planned spending of $312.2 million.
[Translation]
The increase is mainly due to new funding for two priorities. The first is to re-profile funds for the low carbon economy fund to support our work on climate change and clean growth. The second is to better protect Canada's nature, parks and wild spaces.
[English]
These main estimates also include four new votes that total $26.3 million. This includes Canada's marine safety response and funding for strong Arctic and northern communities.
[Translation]
In addition, we will be implementing a federal carbon offset system to develop the information technology infrastructure and tracking systems required for a national carbon offset credit system.
[English]
It also includes ensuring better disaster management, preparation and response. Unfortunately, the annual economic costs of disasters around the world have increased fivefold since the 1980s, as events related to climate change have occurred with more frequency and severity. Canada has not been immune to this trend.
Our planet is in crisis. Canadians are deeply anxious about climate change. Under the previous Conservative government, these concerns were ignored. Our country is warming at twice the global rate, according to expert Government of Canada scientists, and our north at three times the rate. Canadians voted for leadership that would confront this crisis with action: it is a moral imperative.
We're working hard to make sure all Canadians are part of our cleaner future, from resource workers and their communities to the school strikers and other young people calling for bold climate action.
Climate change is creating real and present dangers. Here in Ottawa and Gatineau, our riverbanks have been breached by floods once again. What we called the flood of a century now happens every few years.
[Translation]
Across our country, you will hear more and more stories related to the environment. These extreme weather events are happening more and more often because of a situation our species, humankind, has created.
[English]
The simple fact is that in 2019, if you don't have a plan for the environment, you don't have a plan for the economy. Our made in Canada climate plan, made with all Canadians, includes phasing out coal-fired electricity and regulating greenhouse gas emissions from vehicles, methane emissions from oil and gas, and HFCs, which on their own could account for half a degree of global warming. We're also investing in energy efficiency across the country.
An important part of any serious climate plan ensures it's no longer free to pollute. Climate change is already costing us a fortune. Last year, extreme weather caused $1.9 billion in property damage. That number is estimated to go as high as $43 billion by 2050.
[Translation]
Putting a price on carbon is a practical and proven solution to reduce emissions. Let me also unequivocally remind you that all direct proceeds from federal carbon pricing will be returned to the jurisdiction in which they were collected. In Ontario, Manitoba, Saskatchewan and New Brunswick, taxpayers get the money back through the climate action incentive when they file their 2018 taxes.
[English]
Let me be clear that all money collected under the price on pollution is going back into the province, with 90% of the money going directly to families. Eighty per cent of families will be better off, so go file your taxes if you are in Ontario, Manitoba, Saskatchewan or New Brunswick.
Last week, the parliamentary budget office's independent analysis found that under the federal system, all but the wealthiest 20% of Canadians will get more back through the climate action incentive rebate than they pay. A price on pollution encourages Canadians to make cleaner choices, reduces pollution and helps Canada meet its Paris Agreement requirements. It is a practical and affordable way to fight climate change.
[Translation]
Leading economists from all over the world agree that putting a price on pollution and returning the money, as this system does, is one of the most effective ways to encourage people and businesses to reduce their pollution.
[English]
While we are standing on the precipice of a climate catastrophe, members of the opposition want to make climate action a partisan issue. We've been waiting a year—yes, today marks 365 days—to see the Conservatives' climate plan. They keep stalling, but time is running out. Worse, they're misleading Canadians about how the federal price on pollution works.
A number of our Conservative colleagues recently sent out taxpayer-funded householders— newsletters—that deliberately withheld details about how their constituents can claim their climate action incentive. That's hundreds of dollars that rightly belong to their constituents, to Canadians.
Conservatives are more focused on scoring partisan points than looking out for the people they're elected to represent and ensuring they are better off.
[Translation]
That's just one of the ways I have seen the members of the opposition use to mislead their constituents and to spread information that is partially, or even totally, false. Climate change is a serious and urgent issue that should not be used as a political forum by the opposition.
[English]
The children who are marching the streets may not be able to vote yet, but they know that we need to do more, not less. They do not inherit the earth from us when we are done polluting it. We are borrowing the earth from them.
Mr. Chair, protecting the environment and supporting a sustainable economy also means keeping our waters clean and our oceans healthy. That's why our departmental plan outlines strategies to protect Canada's freshwater resources and reduce marine litter and plastic waste.
[Translation]
We are continuing to work with international partners, all levels of government, indigenous communities, industry and the public to reduce plastic waste and its pollution.
[English]
We launched the ocean plastics charter during Canada's G7 presidency, to beat plastic pollution and keep it out of our oceans, lakes and rivers. Membership has expanded to 18 governments and over 50 organizations. We're working with the provinces and territories on a Canada-wide strategy to keep plastics in the economy and out of landfills.
[Translation]
Work also continues on implementing the recommendations of the committee's report on the Canadian Environmental Protection Act. Many of the actions require using new science, and actions are being taken to strengthen the use of new science in decision-making.
[English]
Our departmental plan also highlights major investments in conservation. The world is home to 60% less wildlife than it was in 1970 and wilderness is disappearing rapidly. Canada is one of five countries that holds the world's significant remaining wilderness. We are in a unique position to lead. That's why our government launched the nature legacy fund; the single-largest investment to protect nature in Canada's history. We've also protected 11.8% of our land and fresh water and 8% of our oceans and coastal areas. We're well on our way to doubling the amount of nature being protected across Canada.
On that note, I'd like to speak now about the main estimates for the Parks Canada Agency.
[Translation]
Protected areas play a critical role in restoring the health of ecosystems and protect biodiversity. Intact wilderness absorbs twice as much carbon as other landscapes, helping to mitigate the impact of climate change.
[English]
The main estimates propose about $1.65 billion in total funding for the Parks Canada Agency. This represents an increase of $178 million. In addition, budget 2019 proposes $368 million for capital projects to protect natural treasures in our national parks, historic sites and marine conservation areas.
To quickly highlight a few of Parks Canada's recent accomplishments, in October, Canada reached an agreement in principle with the Qikiqtani Inuit Association for the proposed Tallurutiup Imanga/Lancaster Sound national marine conservation area in Nunavut. It will become the largest protected area in Canada, covering 2% of our oceans.
[Translation]
In early 2019, the first-ever management plan for Rouge National Urban Park was tabled in Parliament. Meanwhile, budget 2019 proposed to take steps to legally establish Thaidene Nëné National Park Reserve in the Northwest Territories.
[English]
I'd like to speak about the vital work of the Canadian Environmental Assessment Agency. The government tabled Bill , which proposes to put in place better rules to protect our environment and rebuild public trust in decisions about major projects. It also aims to restore investor confidence and ensure that good projects can move forward in a timely way. The agency plays a key leadership role in the development and implementation of this legislation and associated regulations, and can be very proud of the many contributions it makes on behalf of Canadians. The Senate is diligently considering this bill, as I speak.
The agency's total 2019-20 main estimates is $74.2 million. The requested funding supports continued delivery of environmental assessments under the current act. It also anticipates new and expanded activities under the proposed impact assessment act. These activities would touch on impact assessment, partnering with indigenous peoples. They would work on cumulative effects and collaborating with other jurisdictions to make assessments more efficient, supporting the objective of one project, one review.
[Translation]
Mr. Chair, this concludes my formal remarks to the committee.
I thank you again for the invitation. I look forward to your questions.
:
Thank you very much, Mr. Fisher, for your tireless efforts on this file.
I and our government are always happy to consider solutions for how we can protect more nature. It's because of your advocacy, because you spoke very often about the importance of protecting the Blue Mountain-Birch Cove Lakes wilderness area, that we're doing so and offering Haligonians a greater opportunity to connect with nature for generations to come. Protecting nature is not just in far-flung places, it's where people can actually get to it.
As you mentioned, we have a $1.3-billion historic investment in protecting more nature. It's been very exciting to see the interest across the country from indigenous peoples, conservation groups, towns, cities and Canadians. Canadians believe we have a chance to protect what we love but also, as we know, nature is very important as we tackle climate change, a natural sink of climate change as we adapt to the impact of science.
My deputy has pointed out we have many different successes, but one of the most powerful ones was protecting Edéhzhíe, over 14,000 square kilometres in the Northwest Territories, from work by the Dehcho. It was very moving to be there while the snow was falling, while they talked movingly about how long they had worked to protect this area.
Scott Islands off the coast of B.C., the greenbelt area in Montreal, the Isle Haute, which I know is very important to our colleague .... There are many examples of how we can work together.
We also announced a $100-million investment to support conservation groups like the Nature Conservancy, working with partners like Ducks Unlimited.... I think there's a huge opportunity to work with all Canadians to protect more of the nature that we love.
:
That's okay. My question was to you, Minister, and you made the announcement before Christmas, so I would expect that by now you would know.
Of course, the reality is that you don't know the impact, because the cost-benefit analysis on your own departmental website says, quote, that “there are no models within the Department designed to model”, one, “emission reductions”, two, “credit supply”, “or”, three, “economic impacts of” your new Liberal fuel standard “policy in detail.” It also says, “The Department is currently developing a Fuel Lifecycle Assessment Modelling Tool”, I understand, “and...may use new and updated models for publication in the Canada Gazette, Part II, should they become available in time....”
In your own internal documents, I think they are estimating a carbon tax of around $230 a tonne—that would be the equivalent of it—on industry. The Chemistry Industry Association says that your fuel standard will be the equivalent of a carbon tax of “$200 a tonne” on industry, and Ontario manufacturers, as you must know, are warning that it could kill their ability to sell exports to the United States.
What's really curious about this is that you gave large emitters an 80% exemption from your carbon tax, your carbon tax of $30 a tonne, specifically because, you said—and as Conservatives have been warning for years—your new carbon tax would kill jobs and drive businesses out of Canada, but you're imposing a cost four times greater with your new Liberal fuel standard.
If I'm a truck driver and driving a truck 50 hours a week, how many cents per litre will the new Liberal fuel standard add to the cost of diesel?
:
Thank you so much, Mr. Chair.
I just want to say thank you so much, Minister, and thank you so much, parliamentary secretary and all of you, for being here today. I really appreciate it. This is an issue that is super important for the residents of my riding of Davenport. I would say that it's one of their top issues. I want to make two comments because, Minister, I think you've done a really wonderful job of saying this, and this is something that's near and dear.... Because of the publicity that's in the media today, there seems to be some idea that the only thing the federal government is doing to tackle climate change is putting a price on pollution, and that's not true.
I want to say thank you so much for saying that under the pan-Canadian framework we have a rich number of urgent climate action measures that we are putting into place to combat climate action. You've mentioned the clean fuel standard, the elimination of the coal-fired plants and the historic investment in transit. You haven't mentioned the zero emissions and car infrastructure, but the list goes on. To me, that was important to reiterate. I do think that through your answers you've been mentioning that and I don't think we should wait for a perfect plan to take action on climate change. We should put in as many measures as possible.
There was also an earlier question about whether we are meeting our Paris accord targets. I know that this comes up in my riding of Davenport. It's been less than three years. We're not going to see massive emissions reductions in less than three years, but that doesn't mean we stop. If anything, I know that people in my riding say to keep on moving forward, that they know you have all the right elements. They say to keep on moving forward and keep on moving as fast as possible. I want to say thank you so much for all of these efforts. I believe that at least in my riding, they feel they're the right efforts and, if anything, they ask me to go faster, as fast as possible.
Formally, my first question is actually for the , just because I want to get his voice in here. Davenport residents, especially the youth in my riding, are very concerned about the number of species that are disappearing on a daily basis. In Canada we have listed on our website I think 521 plant and animal species at risk under the species at risk registry. I just wonder if our parliamentary secretary, Mr. Fraser, can update us on how Environment and Climate Change Canada is moving forward with the protection of species at risk.
:
Sure. On the cross-border issue, it's a big deal, whether you look at sage grouse or whether you look at the porcupine herd that crosses the Yukon-Alaska boundary.
With respect to southern mountain caribou, this is something that should alarm all Canadians. Of course, there are different species, but we should all recognize that the caribou is on our currency. It's a charismatic species that, in my mind, is something we can't lose.
If you look across the species, there are about 4,000 or so—I think I'm close—animals still alive today. That's a reduction of more than one-third in the past five years. These are dire circumstances.
I was in northeastern British Columbia last week for meetings with communities and different groups that were trying to restore efforts. The situation is a little different, depending on where in the province you sit, but we have serious efforts going on to partner with the Province of British Columbia to establish a province-wide conservation framework under section 11 of the Species at Risk Act.
In the central region, I really want to draw attention to the leadership role that the Saulteau and West Moberly First Nations have been playing. They're starting to reverse the trend of decline and are actually seeing recovery efforts through a combination of maternal penning and predator control measures that they're putting in place. It's not going to last, however, if we don't restore the habitat as well.
We're partnering right now with the Province of British Columbia and those first nations communities, to ensure that we create the conditions that will allow the population to not just come back but to sustain itself over time.
I know there is some anxiety in communities that use the backcountry for recreational purposes or for economic purposes. Rest assured that we're working with communities and with the province to establish the best path forward that will mitigate any social and economic consequences, with the primary goal being preventing the extirpation of these herds.
Just one final note—there are herds that have existed for thousands of years in southern British Columbia that are gone today. This is something that should shock the conscience of every Canadian.
:
We're already paying the cost of climate change right now. We've gone from $400 million in costs a decade ago to $2 billion. The costs are estimated to rise to $43 billion or more.
We're paying the costs, and we have a huge economic opportunity of clean growth. You can tackle climate change, grow the economy and create good jobs, and do it in an affordable way. Let's be clear: with a price on pollution, we're giving the money back. All the money is going back to Canadians. That means that 80% of them are better off; it is the Parliamentary Budget Officer who is saying that the 20% who are going to pay more are the wealthiest.
We need to take action on climate change, but the way you develop a climate plan is by actually working with Canadians. It's doing the hard work over a full year, negotiating with provinces and territories, indigenous peoples and cities, hearing from Canadians of all sorts—environmentalists, young people. You don't make a climate plan in secret meetings with oil lobbyists. You simply don't. That is not what the future looks like.
I am the environment minister for energy workers as well as young people, people who live in the north and people who live in the south, and we have a responsibility. We can show the world how you can tackle climate change while you're a natural resources-based economy, and how you can do it in an affordable way by creating jobs. I'm proud that we have the Carbon Pricing Leadership Coalition, where you have the major companies in Canada stepping up and saying, yes, we have to put a price on pollution. I'm proud that we have young people marching on the street demanding more of us, not less.
We all need to take climate change extremely seriously. It is not just an environmental issue. It is an economic issue. It is a health issue. It is an existential issue for indigenous peoples and for people who live in small island developing states where they are literally going under water, and, as the Pope has said, it is a moral issue.
We need to continue acting on climate change. We have a plan that we are working hard on. We will meet our targets and then, you know what, we're going to do more because we need to do more. The whole world needs to do more, but hard things are hard. It's hard for countries around the world. I was really pleased to be hosting a nature summit last week in Montreal, where governments were talking about how we can do more on climate change through nature-based solutions. That's amazing.
That's why here in Canada we have Stephen Guilbeault,
[Translation]
a leading Quebec environmentalist who is helping us do more by telling us how Canada can reduce its emissions in the transportation sector and how to build greener buildings.
[English]
Tamara Vrooman, who is the head of Vancity, is also providing us solutions. I was in Vancouver seeing an affordable housing build that is net zero. How awesome is that? We can do amazing things. We have the ingenuity. We are Canadians. We can tackle climate change. We live in one of the coldest—and sometimes one of the hottest—countries, and we can build better. We can get around better. We can do it all while creating good jobs and making life affordable and bringing folks together. That is what we are committed to doing. That is what I will continue spending every single waking moment doing. I am a competitive swimmer. We have a goal. We've set the goal. Every single day we're going to continue working on this goal. I'm going to do everything I can, my damnedest, to bring people together so we can do this.
:
We've been clear that we need to eliminate inefficient fossil fuel subsidies, and we've said we will do so by 2025. Through the tax system, we've already eliminated nine out of 10 fossil fuel subsidies. We know we need to be doing more.
We have also looked at and put out a consultation paper to hear from Canadians about what would constitute a non-tax inefficient fossil fuel subsidy. I think we need to have serious reflection on that, because that might include diesel. We provide support for indigenous communities that are on diesel in the north. Many communities have not transitioned to renewables. I think we need to have a serious discussion across the board, and we do everything in a transparent way.
We have an opportunity to move to a cleaner future, and we're going to continue to look at all the opportunities to do that and to make the investments. We understand that the environment and the economy go together, and Canada has a huge opportunity to showcase to the world our innovation and our clean solutions. I see those solutions across the board from Enwave in downtown Toronto, which is actually taking water from the deep dark part of the Great Lakes, from Lake Ontario, where it's extremely cold, to cool our buildings in downtown Toronto, saving 80% of the GHG, which is much more energy efficient.
I have seen CarbonCure in Mr. Fisher's riding. This is an amazing company that takes emissions from industry and injects them into cement to make cheaper, stronger cement. We need to create the incentives.
One of the greatest incentives we can provide to foster clean solutions is to put a price on pollution, because guess what? That makes it more efficient for people to choose clean solutions. If you believe that we need to grow the economy, that we need to transition to a cleaner future, that we want to have the technology and the solutions right here in Canada from our inventors and our entrepreneurs, then everyone here should support putting a price on pollution, because that's exactly what it does.
We are doing it in an affordable way. We are giving the money back to families so that life is affordable, and we are creating the incentive for them to save even more money using LED light bulbs, using smart thermostats in their homes. There are many opportunities for folks to save money, for us to innovate and to create the solutions the world desperately needs.