The Right Honourable Justin Trudeau, P.C., M.P., Prime Minister of Canada, Ottawa
justin.trudeau@parl.gc.ca
Office of the Prime Minister
80 Wellington Street
Ottawa, ON
K1A 0A2
The Honourable Steven Guilbeault, P.C., M.P.
Minister of Environment and Climate Change (ECCC)
Steven.Guilbeault@parl.gc.ca
House of Commons
Ottawa, ON
K1A 0A6
Dear Prime Minister Trudeau and Minister Guilbeault,
I am writing regarding the Canadian Sustainable Jobs Plan, the details of which were released by your government on June 15, 2023 in the form of Bill C-50, An Act respecting accountability, transparency and engagement to support the creation of sustainable jobs for workers and economic growth in a net-zero economy.
Thank you for your unrelenting expressed concerns for the environment and workers. I think we can all agree that protecting the environment is paramount for health and prosperity, and workers in dignified jobs create an enviable country in which to live.
This is why the Sustainable Jobs Plan causes me consternation.
The goal of the Plan is to create “sustainable jobs” and support workers and communities, including those in hydrocarbon producing regions of the country, as the economy transitions to net zero by 2050. Although, with no formal definition of “sustainable jobs” included in the Act, it is not obvious what jobs the government includes in the term.
If the resources in the Plan are intended to be allocated for a “just transition” of workers in sectors that will be impacted by the “clean energy” transition, why is a significant amount of funding going to Ontario and Quebec-based projects?
The two examples hitting the news recently are the generous subsidization deals for the Volkswagen and Stellantis and LG Energy Solutions electric vehicle battery plants.
Canada’s own Parliamentary Budget Officer issued a warning that the $13.2 billion price tag affixed to the VW deal is likely short a few billion dollars, and will more realistically come in at $16.3 billion.
Innovation, Science and Industry Minister François-Philippe Champagne bragged that the VW deal will create 3,000 jobs and $200 billion in economic activity, a claim that gives the PBO pause because he questions the veracity of the unsupported economic benefits.
Three thousand jobs for $16.3 billion dollars works out to a government subsidy of $5.43 million per job.
What else could this money do from coast to coast to coast?
The federal government could give 81,500 small businesses – the lifeblood of our nation and our communities – $200,000 expansion grants each with a condition that they hire two people. This would create 163,000 new jobs, or about 55 times the number of jobs that the one subsidized plant will create. Giving a boost to small businesses also decreases the risk from layoffs occurring at one plant in one community. Money given to qualified small businesses would benefit all of Canada.
Surely, the people advising you on the VW deal warned that such a generous subsidy could set a precarious precedent, resulting in others coming cap-in-hand for more of that sweet taxpayer-sponsored money.
Case in point, Stellantis, who was generously given $1 billion in subsidies by the federal and Ontario provincial governments, and who has since halted work on their EV battery plant, threatening to move to another jurisdiction. The dispute is over money.
We know the energy sector will be affected by the net zero decarbonization plans. Will federal government subsidization continue to go to electric vehicle battery plants and the like located in Ontario? Can we expect to see your government encourage corporations to build facilities in Alberta, Saskatchewan, BC, or Newfoundland, the provinces mostly likely to experience consequential job disruption?
What if EV uptake is not embraced as desired by the ECCC ministry? What if battery-powered cars are replaced by another low-emission technology in the future? If the economic benefits do not materialize, are these corporations obligated to provide a refund?
OIL DEMAND FORECASTS
Regardless of the demand for electric vehicles, the demand for oil and gas will undoubtedly continue, as the Sustainable Jobs Plan acknowledges. The International Energy Agency’s (IEA) updated forecasts from their June oil market report anticipate world oil demand will increase another 2.4 million bbls/d to a new record of 102.3 million bbls/d total in 2023. Non-OPEC+ will lead the supply growth and this presents an opportunity for Canada.
The IEA also released data that predicts global oil demand will increase by 5.9 million bbls/d to a total of 105.7 million bbls/d in 2028, the year they once again predict “peak oil”. We have heard these same prognostications from the IEA, along with the fear of stranded assets due to lack of desire for hydrocarbons in favour of renewables, but it is a desire that never quite seems to materialize as predicted.
Energy security remains a top concern. Not only is oil demand at record levels, natural gas production remains near historic highs of 4.13 billion m3. With Canada’s oil and gas industry ranked as a leading ESG performer among major oil-producing countries, there is an opportunity for workers. Let us embrace the energy future and Canada’s role in it!
Considering that 29,000 of the 30,000 consultation responses to the Plan came from five letter-writing campaigns, which happened to support the creation of “sustainable jobs”, it is quite possible that you have a biased sample.
Mr. Trudeau and Mr. Guilbeault, as Alberta’s newly elected Premier, Danielle Smith, said in a statement to you, phasing out the oil and gas industry and its jobs “is non-negotiable.”
Sincerely,
Deidra Garyk
An oil and gas worker
Deidra Garyk has been working in the Canadian energy industry for almost 20 years. She is currently the Manager, ESG & Sustainability at an oilfield service company. Prior to that, she worked in roles of varying seniority at exploration and production companies in joint venture contracts where she was responsible for working collaboratively with stakeholders to negotiate access to pipelines, compressors, plants, and batteries.
Outside of her professional commitments, Deidra is an energy advocate and thought leader who researches, writes, and speaks about energy policy and advocacy to promote balanced, honest, fact-based conversations.
Connect with Deidra on Linkedin
Visit her website: DEIDRA GARYK: Canadian Energy Advocate
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