Canada’s Energy Law is controversial
2023.01.22 13:12
Canada’s Energy Law is controversial
By Ray Johnson
Budrigannews.com – Union and community leaders are warning that politicization of the Just Transition bill obscures the needs of workers in Canada’s western oil patch. However, controversy is raging over federal legislation intended to assist the fossil fuel labor force transition to a greener economy.
The Liberal government of Prime Minister Justin Trudeau is expected to present its long-awaited workforce transition bill this spring, anticipating economic changes as they pursue ambitious targets to reduce emissions that cause climate change.
The legislation, according to the government of Alberta, Canada’s primary crude-producing province, will eliminate the oil and gas industry, which accounts for 5% of GDP.
“When I hear the words “Just Transition,” it means that jobs will be cut, which is not an option for Alberta!” Last week, Alberta’s Conservative Premier Danielle Smith posted a message on Twitter.
Smith is using the threat of job losses to attack Trudeau and rally her conservative base ahead of the provincial election in May. However, she has been criticized for misinterpreting the number of jobs that may be at risk. The oil and gas industry employs approximately 185,000 people, making the bill a hot topic in Alberta.
The Trudeau government is working to allay concerns regarding the 2019-promised bill. Unauthorized to speak publicly, a government source with knowledge of the file stated that the legislation will focus on decision-making principles and job creation.
In a recent interview with Reuters, Trudeau stated that the sooner Alberta’s “political class” realized that the future was nothing to be afraid of, the better.
Gil McGowan, President of the Alberta Federation of Labour (AFL), stated, “This shouldn’t be a political issue; this is an issue about what’s really happening in the global economy.”
McGowan cited the recent coal phase-out in Alberta as a case study, stating that the goal should be to assist communities in adjusting to large-scale industrial shifts and economic diversification.
As part of an accelerated energy transition that was first announced in 2015 and will conclude seven years ahead of schedule, the final coal-fired power station in Alberta will convert to later this year.
In 2015, the thermal coal industry in the province employed more than 3,100 people. Others found employment in mine reclamation or the newly converted gas power stations, while others took early retirement or moved north to the oil patch.
Lead author Ian Hussey now claims that the Parkland Institute research center’s 2019 estimate of up to 3,500 new jobs in renewable energy and coal-to-gas power station conversions was far too low.
He stated, “When we did that research, renewable investment has taken off in a way that was never even thought of.”
According to Energy Safety Canada, the current workforce is 18% smaller than the peak of 225,900 in 2014, despite the fact that the oil and gas industry is currently experiencing a skills shortage in the face of tight labor markets worldwide. By 2030, 200,000 clean energy jobs could be created, according to the think tank Clean Energy Canada.
According to McGowan of the AFL, the bill could be Canada’s answer to the U.S. Inflation Reduction Act, a $430 billion green energy subsidy package that was passed last year, if done correctly.
With programs like retirement bridging, relocation packages, and C$12,000 ($8,945.21) retraining vouchers, former coal miner Len Austin said policymakers made a “really good effort.” Austin now runs a Just Transition center for former coal workers that is funded by the government.
He went on to say that governments need to be aware that not everyone is qualified to work in renewable energy, and that there was insufficient funding for economic diversification and infrastructure projects in coal communities to generate new employment opportunities.
Austin stated, “It’s absolutely not that simple…going from making C$100,000 to C$40,000 plays a big part in the decision-making that comes with the idea of losing your livelihood.”
