CIAC supports federal government’s refocused climate change plan

December 12, 2020

The Chemistry Industry Association of Canada (CIAC) signaled it support in principle for Canada’s updated climate change plan announced today.

“We are pleased to see that the federal government listened to industries’ challenges and is working to develop carbon policies recognizing emission-intensive, trade-exposed sectors. By stating its intention to eliminate industrial solid and gaseous fuels from the Clean Fuel Standard (CFS) there is increased confidence in Canada’s ability to attract investment into this important sector while simultaneously pursuing a low carbon economy,” said Bob Masterson, President and CEO of CIAC.

In initial discussions, the CFS was to cover liquid, gaseous and solid fuels. In 2019, CIAC called attention to the CFS’ proposed carbon pricing duplication, pointing out it would push the total carbon price to an excess of $200 per tonne, effectively doubling the cost of natural gas for the industry. This would add millions of dollars of expenses on an industry that is already facing global competitiveness concerns. CIAC also stated strong concerns about its industry being captive to compliance costs passed on by others and without an ability to influence those costs.

Masterson further noted, “A transparent, predictable price on carbon that provides competitiveness considerations for Canada’s trade-exposed industrial sectors is a much preferred approach for dealing with the challenge of climate change.”

The Canadian chemistry industry agrees that climate change is an urgent issue. Achieving Canada’s emissions goals will require chemistry-based solutions in housing, transportation, energy storage, clean energy and numerous other applications. Canada’s chemistry industry can continue to meet those needs with some of the lowest carbon chemistry pathways currently available and while attracting new investment in innovative products and processes to drive emissions even lower.