Ottawa (February 16, 2018) – The Honourable Sergio Marchi, President and CEO of the Canadian Electricity Association (CEA), issued the following statement on the Government of Canada’s proposed amendments to coal-fired as well as natural-gas-fired electricity regulations:
“Clean energy is central to the federal government’s clean growth and climate action plan. And because Canada’s electricity mix is one of the cleanest in the world, at over 82% greenhouse gas (GHG) emissions free, our sector is well positioned to lead Canada’s transition to a low-carbon, clean energy future. In fact, the sector has reduced GHG emissions by over 30% since 2005 – more than any other industrial sector – and it is set to do an additional 30% by 2030.
We do commend the Government of Canada for its open and transparent approach in developing the proposed amendments. However, these new regulations add another layer of regulatory burden on the electricity sector, which powers millions of homes, businesses and important public institutions such as schools and hospitals. The compounded impact when other proposed federal measures are taken into account, including the Clean Fuel Standard, the Carbon Pricing Mechanism, and the just tabled Bills C-68 (amendments to the Fisheries Act) and C-69 (changes to environmental assessment, energy regulation and navigation protection), are significant. While the federal government is not directly responsible for setting electricity rates, its regulations certainly have a significant impact on rates across the country. Therefore, besides pursuing clean and reliable power, it must be more prudent about the issue of rate affordability.
In addition, the Canadian government must carefully consider the growing competitiveness gap vis-à-vis the United States, and other international jurisdictions. The Governor of the Bank of Canada has recently outlined, for example, that we are losing on investment flows, as those monies are showing a preference for the US. Moreover, the continued uncertainty with the NAFTA negotiations will further intensify the movement of capital into the US.
As part of its financial tool box, the federal government needs to continue to strengthen measures to incentivize investments in low-emitting technologies that would help the electricity sector to further reduce GHG emissions, and help transform other sectors such as transportation.
We must ensure that Canada’s electricity sector can continue to deliver on its core mandate of safe, reliable, affordable and sustainable power for all. Towards this end, we look forward to further engagement with Environment and Climate Change Canada on these proposed regulations.”
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