Tyler Kula, The Observer – April 11, 2016 – Sarnia-Lambton’s chemical companies need more time to prepare for Ontario’s new cap-and-trade policy, a local economy advocate says, arguing that part of the money raised from the plan should be reinvested in those same companies.
The Sarnia-Lambton Economic Partnership (SLEP) recently released a number of recommendations prior to Queen’s Park’s planned implementation of cap and trade next year.
“I think industry would like to see some delay in the time frame to enable them to better understand the system and put systems in place themselves,” said George Mallay, SLEP’s general manager.
Cap and trade charges emitters for polluting over and above a government-set cap, requiring they purchase credits earned by lower-than-cap emitters.
It’s designed to push big polluters into reducing their carbon footprints, and to spur innovation in cleaner, more environmentally responsible technologies.
Government, meanwhile, is giving many heavy emitters free allowances, or credits free of charge, until 2020.
At that point, plans are to review next steps.
“The real concern I guess is after 2020,” Mallay said, noting Chemical Valley companies will benefit to varying degrees from free allowances until then.
SLEP is calling for a study into regional economic impacts from cap and trade, and wants clarity on what sort of free allowances will be offered past 2020 for new builds and businesses.
“I would hope we would get some notion of the impact of price, what it’s going to mean for them in terms of how they have to increase their price,” Mallay said, suggesting Sarnia companies may be at a disadvantage compared to counterparts in the U.S. Gulf Coast where there’s no cap-and-trade policy.
The money government has said will be reinvested into emissions-reducing initiatives should also be given back to chemical companies that are making products that contribute to energy efficiency, Mallay said.
House insulation, low-temperature detergents and lightweight materials are examples, he said.
“In terms of reducing overall greenhouse gasses, I think they not only need to look at the footprint of a chemical company, but also look at the products that chemical companies provide that help reduce the overall level of greenhouse gases.”
Environmental advocate Vanessa Gray, with the group Aamjiwnaang and Sarnia Against Pipelines (ASAP), said she expects provincial cap and trade will make positive change, but not fast enough.
“This doesn’t change the fact that (local companies are) still working with dangerous chemicals,” she said. “There are still things that could go wrong in these facilities.”
Aamjiwnaang First Nation, bordered by oil refineries and other chemical industries, is most at risk, she said.
SLEP, meanwhile, is also looking for government transition dollars to help local companies adjust to the new rules when they’re implemented, and is also encouraging more money for new technology development in the region.
“We’re trying to build a bio-hybrid chemistry and energy complex here, so there’s an opportunity also for Ontario to take advantage of that and help us be successful in becoming that and then selling those technologies and services globally,” Mallay said.
Posted in: Headlines