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This story was originally published by<\/em>\u00a0Canada\u2019s National Observer<\/a> and is reproduced here as part of the<\/em>\u00a0Climate Desk<\/a>\u00a0collaboration<\/em>.<\/p>\n Liberal Leader Mark <\/span>Carney\u2019s plan to address climate change is something of a Rorschach test, with the platform laying out a vision that can be interpreted in contradictory ways.<\/p>\n The platform includes commitments to advance major \u201cnation-building\u201d projects like high speed rail, an east-west power grid, producing hydrogen in Edmonton, and prioritizing clean and Canadian procurement for these projects. Liberals are also pitching investments in EV charging networks, issuing \u201ctransition bonds\u201d to attract more finance to the energy transition, prefabricated and modular housing to curb construction emissions, and strengthening the industrial carbon price.\u00a0<\/p>\n But the platform also leaves lots of room for interpretation about the role of fossil fuels in the Canadian economy.<\/p>\n Even though much of the platform describes modernizing the economy and reducing emissions, there is reason to be concerned that oil and gas could feature heavily in a Carney government because of his commitment to Canada becoming an energy superpower for both clean and conventional energy, says Keith Stewart, senior strategist with Greenpeace Canada.\u00a0<\/p>\n A commitment to cap oil and gas emissions is notably absent from the platform\u2014despite being a signature climate policy from the Trudeau era that has slowly worked through government bureaucracy for four years and is still not yet finalized.\u00a0<\/p>\n \u201cWe\u2019ve heard Carney waffle away from it and then waffle back towards it, and what I am expecting is some kind of emissions cap but with more flexibility mechanisms, which would basically weaken the cap,\u201d Stewart said. \u201cBut the fact that it\u2019s not in the platform is concerning.\u201d<\/p>\n The exposure of Canada\u2019s financial sector to fossil fuels \u201cis equivalent to the amount of subprime mortgages that triggered the crisis 12 or 14 years ago.\u201d<\/p>\n<\/blockquote>\n<\/figure>\n Stewart suspects its omission may be a strategy to avoid giving the Conservatives ammunition; the party has accused Carney of being \u201csneaky\u201d in eliminating the consumer carbon tax while leaving plans in place to cap emissions and maintain the industrial pricing system.\u00a0<\/p>\n \u201cIs that them trying to not give Conservatives anything to latch onto as they just want to cruise to victory and then they\u2019ll do what they\u2019re going to do? Because they also don\u2019t say they\u2019re not going to do it.\u201d<\/p>\n Asked to clarify whether the Liberal Party is still committed to the policy, a spokesperson for Carney pointed to comments the leader made in early April\u2014in which the leader did not confirm he will proceed with the cap.\u00a0<\/p>\n \u201cMy government is focused on results, and the results of the current consultation on the emissions cap will reflect the importance of efficiently and fairly achieving these objectives,\u201d Carney said on April 9. \u201cMy government will work closely with our oil and gas industry to reduce their emissions over time, so that Canadian conventional energy will supply the world for decades to come.\u201d<\/p>\n The spokesperson said Carney is still committed to the cap, but it was left out of the platform because it was a promise made by the previous government. However, a number of policies announced under Justin Trudeau are included in Carney\u2019s platform, such as continuing investment tax credits for clean electricity, clean hydrogen, electric vehicle supply chains and carbon capture, utilization and storage, as well a commitment to finalizing sustainable investment guidelines that had previously been included in Chrystia Freeland\u2019s mandate letter as finance minister.\u00a0<\/p>\n Laura Tozer, <\/span>an <\/span>assistant professor at the University of Toronto specializing in climate politics, energy transition and decarbonization, told\u00a0Canada\u2019s National Observer<\/em>\u00a0she doesn\u2019t want to see backsliding on emission-reduction policies and so it would\u2019ve been good to see a commitment to strengthening the emissions cap in the platform.\u00a0<\/p>\n \u201cBut I also don\u2019t want to put too much pressure on one thing as the thing that\u2019s going to deliver the wind-down of the fossil fuel industry,\u201d she said. By putting too much emphasis on a single policy, it can distract from the suite of measures that are required to transition the country\u2019s economy in a climate safe manner.\u00a0<\/p>\n Tozer said the Liberal platform contains many good things for climate, specifically referring to electric vehicle support, power grid modernization, investments in rural transit and phasing out fossil fuel use from federal buildings. The fact that climate policies were not siloed in a climate section of the platform, but rather infused across policy areas, she says, indicates Carney\u2019s Liberals see climate concerns as something to integrate across government efforts. But there was an opportunity to put forward a more credible plan too.<\/p>\n \u201cThe Liberal platform in some ways shows some missed opportunities to advance this vision of how climate action can bring economic development and affordability for Canadians because it\u2026is mired in propping up dying fossil fuel industries,\u201d she said.<\/p>\n Carney\u2019s Liberal Party hasn\u2019t yet said which energy projects they will prioritize. \u201cHave they not decided yet\u2026or is it they\u2019re just not telling us?\u201d<\/p>\n<\/blockquote>\n<\/figure>\n For Tozer, Carney\u2019s pitch to make Canada an energy superpower in both clean and fossil fuels is a major concern because climate science is clear that to avoid catastrophic warming a managed decline of the fossil fuel industry is required.\u00a0<\/p>\n For that reason, the big missed opportunity for Carney was to redefine what being an \u201cenergy superpower\u201d means in 2025, Tozer said.\u00a0<\/p>\n \u201cWhat an energy superpower should mean for Canada in this day and age is support for renewable energy expansion, remaking our communities in ways that are sustainable and a managed decline of the fossil fuel industries that are introducing all of this risk into our economy,\u201d she said.\u00a0<\/p>\n The risk to the Canadian economy by staying in the oil and gas business is severe because as demand for oil and gas drops as forecasted, the very expensive infrastructure will become stranded, meaning investors won\u2019t recoup costs. That risk is especially acute for Canadian financial institutions.\u00a0<\/p>\n At a Senate banking committee meeting in May, Brussels-based Finance Watch chief economist Thierry Philipponnat compared the fossil fuel risk to the 2008 housing crisis, calling it\u00a0imperative<\/a>\u00a0that Canada start seriously tackling fossil fuel risks to the financial sector.\u00a0<\/p>\n \u201cIf we don\u2019t, it\u2019s certain that, in human terms, we\u2019ll have a new financial crisis on top of the climate crisis,\u201d he said. \u201cExposure to fossil fuels is equivalent to the amount of subprime mortgages that triggered the crisis 12 or 14 years ago.\u201d<\/p>\n Previously, Carney has said he does not support legislation like the Climate Aligned Finance Act that would require federally regulated financial institutions, such as banks and pension funds, to align their portfolios with Canada\u2019s emission reduction targets. Carney\u00a0told a Senate committee last year<\/a>\u00a0he disagrees with the bill because it \u201cdictates\u201d how banks should adjust their practices with \u201cpunitive\u201d rules.<\/p>\n Stewart\u00a0<\/strong>called the<\/span> platform a document designed to be open to interpretation, particularly when it comes to building major national projects without detailing what those are.\u00a0<\/p>\n All major parties are leaning into nation-building projects as a way to strengthen the Canadian economy in the face of economic aggression from US President Donald Trump. <\/p>\n Carney\u2019s top rival, Conservative Leader Pierre Poilievre, outlined in early April 10 projects he would rapidly approve, including LNG Canada Phase 2, Suncor\u2019s proposed bitumen mine expansion and\u00a0an all-season road<\/a>\u00a0to access critical minerals in northern Ontario\u2019s Ring of Fire. (LNG Canada Phase 2 is waiting on a decision from its owner Shell, not the federal government, to proceed.)\u00a0<\/p>\n Carney hasn\u2019t outlined which projects he is focused on, Stewart said.\u00a0<\/p>\n \u201cSo it\u2019s a question of have they not decided yet?\u201d he said. \u201cOr is it they\u2019re just not telling us so that they can allow everyone to see what they want to see?\u201d<\/p>\n At last week\u2019s debate, Carney endorsed the Pathways Alliance\u2019s carbon capture megaproject as something his government would advance if elected.\u00a0<\/p>\n \u200b\u200b\u201cOne of the big projects we need to move forward with is carbon capture and storage\u2014the Pathways project\u2014so that we have oil and gas that is competitive not just today, but 10 years from now, 20 years from now,\u201d he said. \u201cAs the world uses less, we want to have more market share.\u201d<\/p>\n To achieve that, the Liberal platform proposes extending tax credits for carbon capture investments, using \u201ccarbon contracts for difference\u201d to guarantee a price on carbon to derisk emission reduction investments and for Canada to be \u201ca world leader in responsible energy production\u201d by using carbon capture, utilization and storage technology.\u00a0<\/p>\n With less than a week until voters head to the polls and the leaders\u2019 debates in the rearview mirror, platforms are one of the last opportunities federal parties have to earn support from the public.\u00a0<\/p>\n\n
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