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Don’t laugh, it actually could get worse: Budget 2011 and energy

The 2011 federal budget will be announced tomorrow, amidst ongoing speculation of a Spring election.

I think it’s safe to assume that many reading this blog are familiar with Harper’s track record on climate change (if not, take a look at our climate justice webpage). So am I waiting on baited breath for a signal that our government will reverse course and start us on a path towards an equitable green economy?

The short answer? Not really. But I’ll still be paying close attention to tomorrow’s announcement.

While there are currently more possibilities for effective climate actions locally, it remains our responsibility to monitor and respond to our government and share the message of Harper’s track record on the environment far and wide.  Secondly, while it may seem hard to believe, the budget may spell a turn for the worse.

Based on the main estimates of the federal government’s spending plan released earlier this month, it looks like Environment Canada’s budget may be headed towards a $222 million funding loss. This is 20 per cent of an already small budget. Defence has a budget 20 times larger. Subsidies to the fossil fuel industry are larger than the annual budget of Environment Canada!

I’d crack a joke about how backwards this is, if it weren’t so tragic. The truth is that the climate crisis is unfolding even faster than predicted and the consequences – environmental, social and economic – of inaction are nothing short of disastrous. Refusing to even start to get on the right course simply doesn’t make sense. Expanding renewable energy and increasing conservation and energy efficiency will reduce emissions and generate green jobs – an internal government review confirms this!

Frustrated?

Take a minute and use our action alert responding to news of Environment Canada cuts. Write a letter to the editor, and Tweet, email and call the Prime Minister Harper, Environment Minister Peter Kent and Natural Resources Minister Christian Paradis to share your frustration and disapproval.

Here are some points I’ll be looking for in the federal budget:

Will the EcoENERGY programs set to end this fiscal year be renewed?

These are federal programs that assist in retrofitting buildings and homes, industry, equipment, fleets and support renewable energy. Funding for the programs is set to expire at the end of March unless it is renewed in this budget. Already, the U.S. outspends Canada per capita 8 to 1 on renewable energy, energy efficiency and public transit.

Will this budget finally see the Canadian government phase out fossil fuel subsidies?

In 2009, Harper joined other G-20 leaders in pledging to phase out fossil fuel subsidies which undermine renewable energy development and support our dangerous addiction to fossil fuels. In particular, this requires an end to the Canadian Exploration Expense which allows companies to deduct 100% of their exploration expenses from their income tax each year and the Canadian Development Expense. For more information, read ‘Fuelling the Problem: Why it’s Time to end Tax Breaks to Oil, Coal and Gas Companies in Canada.

Will this budget see Canada repay our climate debt to the Global South?

Developed countries (Global North) are responsible for emitting more than two-thirds of historic greenhouse gas emissions into an atmosphere that all life shares. Meanwhile, developing countries (Global South) are being hit first and hardest by the ecological and social impacts of climate change. Mobilization of finance in the scale of hundreds of billions per year from the Global North to the South is needed to cover the full costs of enabling people to deal with the immediate as well as long term impacts of climate change.

Canada’s pledge last year under the Copenhagen Accord was $400 million. The Third World Network reports that G77 countries and China are calling for Annex 1 countries to commit at least 1.5% of GDP annually toward G77 climate-change mitigation by 2020. Others estimate that global South countries will need up to 6% of Annex 1 countries’ GDP annually to adapt to the effects of climate change. Using these estimates, Canada would need to allocate between $20 and $80billion for Global South Climate Financing.

Will this budget see Canada prioritize green infrastructure spending?

Vastly improving energy conservation and energy efficiency, expanding public and community owned renewable energy and mass public transit are all critical. The federal government should work with provinces, territories, municipalities and First Nations to build public regional grids for renewable power (such as wind, solar and tidal), integrated across provincial borders where synergies exist. Green Decent and Public, a report prepared by the Council of Canadians and Canadian Labour Congress outlines a number of key recommendations for federal, provincial and municipal action.

Will the Canadian government continue to fund false solutions to the climate crisis?

The Harper government often touts nuclear energy and carbon capture and storage as solutions to the climate crisis. They are not.  Budget 2009 and 2010 both saw significant investment in these areas. To know more about our take, see our real and false solutions fact sheets.

Were Harper and his Party committed to seriously responding to the climate crisis, here are five commitments we would see in tomorrow’s budget, and this parliamentary session:

1. Commitment to phase out all subsidies for fossil-fuel based energy production and carbon capture and storage.

2. Commitment to green infrastructure investments of at least $10 billion dollars over each of the next two years to five areas: energy conservation through building retrofits and renewable energy projects, mass transit, passenger rail and affordable housing.

3.Climate debt (climate financing) repayment to the Global South in a transparent and accountable manner. This means funds should be public, additional to other funding commitments, and not reliant on volatile carbon markets.

4. National plan to achieve greenhouse gas emission reductions that responds to the urgency of the climate crisis. The current emission reduction target, when using the standard baseline year of 1990, equates to a 2.5 percent rise in emissions levels by 2020. This is far from the 25 per cent reduction called for in the Climate Change Accountability Act, even further from the 40 to 50 per cent cuts called for by many developing countries and supported by recent climate science.

5. Federal action to repeal the energy provisions of NAFTA and chapter 11, and reject similar energy provisions in any future trade agreement.