Ottawa backs $3-billion of debt for Trans Mountain pipeline

This article was written by Jeffrey Jones and was published in the Globe & Mail on June 2, 2023.

Ottawa has backstopped $3- billion more in debt for Crown-owned Trans Mountain Corp.’s delayed and over budget oil pipeline expansion, but the government maintains its guarantees do not amount to public funding.

According to Export Development Canada’s website, Ottawa is guaranteeing $1.75-billion to $2billion of financing provided by commercial lenders in a transaction finalized at the beginning of May. That followed a guarantee for $750-million to $1-billion of debt in late March. The guarantees are listed within the Canada Account, which includes transactions that are too risky for EDC under its usual course of business because of risks related to deal size, markets, borrowers and financing conditions.

The government approved the loan guarantees after backstopping another $10-billion in financing last year.

In March, Trans Mountain Corp. reported the estimated costs for its expansion had ballooned to $30.9-billion, an increase of more than 300 per cent from the initial $7.4-billion that former owner Kinder Morgan Canada forecast in 2017.

Even before the latest overrun was disclosed, independent analyses, including one a year ago from the Parliamentary Budget Officer, had shown Ottawa would lose money on the project, which it purchased from Kinder Morgan Canada in 2018 for $4.5-billion.

Finance Minister Chrystia Freeland said in 2022 that Ottawa would not plow any more public money into Trans Mountain, which the government has pledged to sell eventually. She said the corporation would secure the funding necessary to complete the project through third-party financing, either in public debt markets or from financial institutions.

The additional government guarantees mean taxpayers are taking on the risk of default. But they are not footing more of the bill to complete the project, Marie-France Faucher, a spokesperson for Ms. Freeland, said in a statement.

“As confirmed in TMC’s first quarter financial statements, TMC continues to secure the necessary third-party financing to complete the project. As part of this process, the Government of Canada has provided a loan guarantee on behalf of the corporation,” Ms. Faucher said. “This is common practice and does not reflect any new public spending. The company is paying a fee to the government for this loan guarantee.”

Trans Mountain is Canada’s only pipeline system for transporting oil to the West Coast. The first phase was completed in 1953, and the line can currently ship 300,000 barrels of oil a day to Burnaby, B.C., from the Edmonton area. Prime Minister Justin Trudeau’s government bought the pipeline after Kinder Morgan Canada shelved plans for the expansion in the face of stiff opposition and court challenges from environmentalists and some Indigenous groups.

The expansion project, which is due to be completed early next year, will nearly triple the pipeline’s throughput to 890,000 barrels a day. Eighty per cent of the capacity of the expanded pipeline has been allocated to 11 Canadian and international producers and refiners, under 15- and 20-year transport contracts.

Energy companies have said for years they are looking to the expansion of the pipeline to boost the value of their oil production, which has at times suffered deep price discounts compared with other international crude types because of tight export capacity and reliance on the United States as the Canadian oil patch’s only sizable customer.

Years of delays and cost increases have raised concerns about the project’s longterm financial viability. Ms. Faucher said the government plans to start the process of divesting itself from the pipeline “in due course.”

“As assessed by BMO Capital Markets and TD Securities, the project remains commercially viable, and there is strong interest from investors in high quality, operational infrastructure assets like the Trans Mountain Expansion Project,” she said.

Several Indigenous groups have expressed interest in buying the pipeline, including Calgary-based Project Reconciliation; Nesika Services, a group that describes itself as an Indigenous-led not-for-profit; and Chinook Pathways, a partnership between Western Indigenous Pipeline Group and Pembina Pipeline Corp. But some would-be bidders have expressed fatigue after waiting years for a formal process to begin.

No relief in sight as wildfires burn across the country

This article was written by Mike Hager and was published in the Globe & Mail on June 2, 2023.

An aircraft, centre, disperses a mix of water and fire retardant over a wildfire near Barrington Lake in Shelburne County, N.S, Wednesday.

With blazes out of control almost everywhere now, provinces need their staff back at home, federal officials say

A severe start to wildfire season has scorched 10 times the average amount of terrain burned during these first weeks over the past decade, leading Ottawa to warn that fires in eight provinces and the Northwest Territories are stretching Canada’s firefighting corps perilously thin with no immediate relief in sight.

Federal Emergency Preparedness Minister Bill Blair told reporters Thursday that this level of wildfire activity on June 1 is unprecedented, forcing tens of thousands of people to flee their homes and burning the equivalent of five million American football fields, or an area almost five times the size of Prince Edward Island.

“Due to climate change, similar extreme weather events may continue to increase in both frequency and severity across our country,” Mr. Blair said.

When big fires are burning in so many different regions, he added, the government is concerned there won’t be enough people and equipment where and when they are needed.

“There are a limited number of resources,” he said.

Burnout is also an issue, as many firefighters work days on end in extremely harsh conditions.

As the situation in Alberta grew quickly out of control in early May, the Canadian military moved in to help, and the Canadian Interagency Forest Fire Centre also helped commission firefighters from other provinces and other countries.

But federal officials said in a briefing to reporters Thursday that the fire situation is troublesome almost everywhere now, and those provinces need their staff back at home.

The centre’s daily report on the fire situation says demand for firefighting personnel and equipment from other jurisdictions “is extreme,” but the “national availability of resources is limited,” so they’re turning to international partners for help.

More than 300 firefighters from the United States and South Africa are heading here in the coming days, with roughly 100 Americans set to arrive in Nova Scotia by Monday to help knock down out-of-control wildfires that have destroyed at least 200 homes and cottages in the Atlantic province. Another 200 firefighters arriving from South Africa will likely end up in Alberta, though officials said the wildfire situation across the country is fluid.

To date, the centre said 566 firefighters have travelled between provinces this year to help other jurisdictions, and another 443 firefighters and other trained experts have come to Canada from the U.S., Australia and New Zealand. Most of them to date have gone to Alberta, where more than a million hectares burned in May and the province remains under a state of emergency.

Canada also has agreements to share firefighters with Mexico and Costa Rica. Federal officials said Thursday they are in talks with Mexico to bring staff up from that country.

Natural Resources Minister Jonathan Wilkinson said Thursday Canada is moving on the first phase of a Wildfire Training Fund to hire and train Indigenous firefighters in their own communities; 300 new firefighters and another 125 Indigenous fire guardians are being trained this season.

His department is also working to help retrain urban and rural municipal firefighters, who are mostly equipped to battle blazes in buildings, to assist in responding to wildfires as they increasingly encroach on urban areas.

Mr. Wilkinson said six provinces and territories have also already taken advantage of a new $256-million federal fund for wildfire equipment. He said he expects all provinces and territories to use it this year.

Mr. Blair said the government accepted Nova Scotia’s request for federal aid almost immediately Wednesday and the military is already preparing to send in additional help.

As of mid-afternoon Thursday, the Canadian Interagency Forest Fire Centre was reporting 209 active fires burning in eight provinces as well as in the Northwest Territories and 87 of them were out of control.

There are about 28,000 people currently evacuated from their homes, including 18,000 in Nova Scotia alone. There were 25,000 evacuees in Alberta in May, with 4,325 of them still out of their homes owing to six active evacuation orders, according to a provincial update Thursday evening.

Several small communities in northeastern B.C. were under orders to leave their homes Thursday as well.

World must rapidly ditch fossil fuels, Pope Francis says in latest climate appeal

This article was written by Reuters and was published in the Globe & Mail on May 25, 2023.

Pope Francis speaks during the 77th General Assembly of the Italian Bishops’ Conference, in the Vatican, on May 25.FILIPPO MONTEFORTE/AFP/GETTY IMAGES

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The world must rapidly ditch fossil fuels and end “the senseless war against creation”, Pope Francis said on Thursday, in a fresh plea over climate change that called on people to repent for their “ecological sins”.

Francis has made the protection of the environment a cornerstone of his pontificate, noting in his landmark 2015 “Laudato Si” (Praised Be) encyclical that the planet was “beginning to look more and more like an immense pile of filth”.

In a message for the World Day of Prayer for the Care of Creation, he said a UN climate summit meeting in Dubai on Nov. 30-Dec.12 “must listen to science and institute a rapid and equitable transition to end the era of fossil fuel”. “According to the commitments undertaken in the Paris Agreement to restrain global warming, it is absurd to permit the continued exploration and expansion of fossil fuel infrastructures,” he added.

“The unrestrained burning of fossil fuels and the destruction of forests are pushing temperatures higher and leading to massive droughts,” Francis said, also criticizing oil and gas fracking and “unchecked mega-mining projects”.

Francis, an Argentine who is the first pope to hail from the so-called Global South, denounced global inequalities and said that “consumerist greed, fuelled by selfish hearts, is disrupting the planet’s water cycle”.

Through the World Day of Prayer for the Care of Creation, Catholics are urged to offer special prayers for the planet. It is observed on Sept. 1, but it is customary for the papal message linked to it to be released months in advance.

As well as quoting from “Laudato Si”, the document cites previous popes John Paul II and Benedict XVI, indicating that Francis’ pro-environment focus stands in continuity with his more conservative predecessors.

Flirting with collective suicide

We are on the highway to climate hell with our foot still on the accelerator, writes Grant Linney

This opinion was written by Grant Linney and was published in the Hamilton Spectator on May 28, 2023.

Last November, UN Secretary General Antonio Guterres made the following observations about our global climate emergency:

We are in the fight of our lives, and we are losing.

We are on the highway to climate hell with our foot still on the accelerator.

We have a choice: cooperate or perish. It is either a collective solidarity pact or a collective suicide pact.

These warnings are stark and uncompromising. They are repeated by the IPCC, the World Meteorological Association and other science-based and well-credentialed organizations. The frequency, intensity and duration of global extreme weather events continues to increase. Time is running out for us to keep global warming within the critical 1.5 C limit.

So, why do we continue to accept token gestures, broken promises and vacuous rhetoric?

Why are we seemingly reliant on the silent hope that “someone else” and/or some new wonder technology will save the day? Why are we allowing ourselves to get closer and closer to a climate Armageddon?

Several players are complicit in this dangerous path we are taking:

  • Among other things, the federal Liberals continue to heavily subsidize the fossil fuel industry.
  • Since 1990, every country in the G7 has decreased its greenhouse gas emissions … except Canada, which has increased by 21 per cent. In contrast, the U.K. has reduced its emissions 42 per cent.
  • By promising to cancel the carbon tax if they become the government, the federal Conservatives prey on the voter’s dislike of taxes and create doubt about the effectiveness of this measure even though the vast majority of economists say that it is very effective. This is an unconscionable disservice to Canadians.
  • Ontario’s Provincial Conservatives persist in their plans to build more fossil gas power plants. This will significantly increase our greenhouse gas emissions even though there are more environmentally friendly and less expensive alternatives.
  • Canada’s fossil fuel industry is making windfall profits and continuing to heavily lobby the federal government to continue our deadly addiction. Six fossil fuel companies have formed the Pathways Alliance to promote the very costly and decidedly unproven technology of carbon capture while our window for meaningful action increasingly shrinks. The obvious alternative stares us in the face: STOP burning fossil fuels; turn to renewable energy.
  • Canadian banks (led by RBC) are also blinded by quarterly profits as they continue to financially support planet-destroying fossil fuel projects.
  • Enbridge doggedly continues to promote the dangerous myth of “natural” gas. While it has a lower carbon footprint, it remains a fossil fuel that we can no longer afford to poison our atmosphere with. I am amazed at how Enbridge has somehow worked its way into becoming an integral part of the federal government’s Greener Homes Grant. I am equally taken aback by Enbridge being the lead sponsor of the Nature Inspiration Awards at our national Museum of Nature. Finally, I am appalled that McMaster University has bought into this sham of natural gas.
  • Our media are far too timid about making the link between increased extreme weather events and climate change. A recent article in the New York Times is titled ‘Alberta Is on Fire, But Climate Change Is an Election Taboo’.

So, with all of this going on, we feel overwhelmed. Fear and uncertainty over what individuals can do mean that we largely tend to ignore this enormous elephant in the room. Many of us also mindlessly enjoy a highly destructive consumer lifestyle. The stakes are now life or death. It is time for us to stop, speak up and protest … vigorously and massively.

Grant Linney lives in Dundas. climategrant@gmail.com.

Record-breaking heat hits China

This article was written by James Griffiths and was published in the Globe & Mail on June 1, 2023.

A local uses their jacket to protect themselves from the sun during a walk on the Bund in Shanghai on May 15. The World Meteorological Organization warns that the world will most likely breach a limit of 1.5 C of warming above preindustrial levels in the next four years.

Greenpeace says country has approved more coal projects this year than it did in all of 2021

Cities across southern and eastern China are experiencing record-breaking heat that could be just a preview of the summer ahead.

Hundreds of weather stations have recorded all-time highs in May, with parts of southwestern Yunnan province topping 43 C. Even the region’s capital, Kunming, which at an elevation of 1,900 metres is known as the “City of Eternal Spring” for its year-round balmy climate, has sweltered in temperatures close to 30 C for much of May.

“It’s unimaginable,” said Zhang Chen, a primary school headteacher, adding that at least she can shelter inside, where it’s air-conditioned. Growing up in Kunming, she said, days in the high 20s were considered extremely hot.

Both Shanghai and Guangzhou, two of China’s largest and most important cities, have seen record highs this week, and dozens of smaller municipalities have issued extreme heat warnings, restricting the amount of work that can be done outdoors.

Some of this can be put down to weather conditions, with Typhoon Mawar driving a wave of heat in front of it as it barrels west across the Pacific. But the length and severity of heat waves have increased in China and other parts of Asia in recent years as global temperatures rise.

Last month, the World Meteorological Organization, a United Nations body, warned that the world will most likely breach a limit of 1.5 C of warming above preindustrial levels – a limit climate scientists say is necessary to avoid the worst effects of climate change – in the next four years. This is due to El Niño, a naturally occurring weather phenomenon, further driving up temperatures that have already been increased as a result of carbon emissions. The effects will be particularly powerful in parts of Asia, including China.

“China is very vulnerable to the consequences of climate change,” said Chen Gang, a senior research fellow and expert on environmental governance at the National University of Singapore.

A recent study published in Nature warned that Beijing, with 22 million people the most populous national capital in the world, is particularly at risk of a “high-impact heat wave” that could lead to thousands of excess deaths. Last summer, China suffered its most severe heat wave on record, with drought and blackouts across large swaths of the country. Dr. Chen said similar conditions this year could have “huge consequences.”

The China Electricity Council, a government-backed think tank, has predicted that this summer’s electricity load will hit 1.37 billion kilowatts, up 80 million over 2022. According to state media, power plants across the country are already ramping up to deal with the expected surge in demand. But more often than not, despite China’s massive investment in green energy, this involves relying on fossil fuels – particularly coal.

According to Greenpeace, China has already approved more coal projects this year than it did in all of 2021, when pandemic restrictions were still having an effect on the economy. More often than not, this is done in the name of improving energy security and avoiding blackouts, the NGO said in a recent report.

“Summer is around the corner, and there’s a long list of energy infrastructure fixes needed all around China, but throwing more coal at the wall isn’t one of them,” said Greenpeace East Asia climate and energy campaigner Xie Wenwen. “China’s electric grid doesn’t lack generation capacity. The grid lacks adequate flexibility and responsiveness. These problems will continue to inhibit electricity transfer and storage until we face them head on.”

Carbon Brief, a U.K.-based research publication, said China’s emissions hit a record high in the first quarter of this year, partly owing to an economic rebound after the lifting of pandemic restrictions. However, while coal projects are on the rise, the country also saw record expansion of wind and solar capacity and increased investments in nuclear energy.

For some, the increasing heat and frequency of disasters such as droughts and flooding have underlined the growing effects of climate change on the world’s worst polluter.

Ms. Zhang said climate change “used to be more of a vague concept” for her, but now seems increasingly urgent. She said she has taught her students about environmental issues and hopes the next generation will be more mindful of them.

But Dr. Chen said there is still limited awareness of climate change in China, as the country lacks the independent environmental NGOs that drive the conversation elsewhere in the world. “I do not see any huge pressure from the public when it comes to cutting carbon emissions,” he said. “Although China is threatened by the consequences of climate change, most people don’t realize how vulnerable they are.”

Evacuating amid smoke and flames

Wildfires threaten homes, pets, lives near Halifax

This article was written by Steve McKinley and was published in the Toronto Star on May 31, 2023.

As of Tuesday, at least 200 homes and structures had been damaged by the wildfire in Tantallon, N.S., near Halifax. That number was expected to grow pending surveys of the burned areas.

In the midst of her vows on Sunday, Ellen MacPhee looked up to a hot pink sun and an unearthly and smoky sky, and to the black ash falling onto her white wedding dress.

“It was just a surreal feeling — I kept on saying that,” she said Tuesday. “It’s like you’re seeing this different world. I just kept thinking it’s like I’m in a dream and I’m going to wake up and tell my husband, ‘I just had the craziest dream about our wedding.’ ”

The smoke, the ash and the psychedelic sun were all courtesy of the wildfire that, at that moment, was rapidly scorching the area around Tantallon, 23 kilometres northwest of Halifax. Flames that spread to encompass 788 hectares would eventually cause some 16,000 residents of subdivisions in the area to flee their homes amid three separate evacuation orders.

As of Tuesday, at least 200 homes and structures had been damaged by the fire. That number was expected to grow pending surveys of the burned areas.

An emergency alert sounded in the midst of the ceremony.

The reception was cancelled and MacPhee, her two-month-old son and her guests became evacuees.

“I’m just so thankful that nothing happened,” MacPhee said. “So thankful that the fire didn’t reach the farm when we had all those guests there … I couldn’t even imagine that.

“I just feel so bad for the people who have lost their homes. We lost a wedding. That’s fine. We can always do that again.”

For some evacuees — like the Brousseau family — the homes they hurriedly left behind now exist in a kind of Schrödinger’s cat box, hypothetically in two states simultaneously — untouched and razed to the ground — while they await a phone call from authorities with news good or bad.

The Brousseaus’ Sunday began with church and then a trip to the park on with their 10-month-old bull mastiff puppy, Mya. “We had a beautiful day. Mya went in the water. We enjoyed the sun,” Michelle Brousseau said.

In the early afternoon, they headed home. Sean, her husband, noticed some smoke as they approached their subdivision in Hammonds Plains and at one point they had to pull over for a speeding fire truck, but they didn’t think too much about it.

After some time though, she said, she noticed the sky looked strange outside her window.

“I looked outside and the sun was blood red,” Michelle said. “And then my son called me … he’d heard about the fire in Tantallon and wanted to make sure we were OK.”

As she spoke to her son, an emergency alert came across her phone.

“It was getting dark and smoky and ashes were flying, coming down and everybody was leaving their homes and the panic was just incredible,” Michelle said.

“You don’t think that you’re not going to come back to your home, right? You think that you’re going to come back. You don’t realize that (you might not come back) at all. And my heart goes out to the people who don’t have a home to go to.”

They know, from conversations with their neighbours, of streets around their house that are completely gone.

But the fate of their own home remained in the balance, waiting for the call to tell them.

Grace Smith has gotten that call. When the number came up private on her caller ID, her heart sank. She was sure it meant that her home had been destroyed and her two parrots, Captain Marty III Esq. and Major Theodore Spaghetti along with it.

On police advice, Smith called 911 and told them she had pets in the evacuation zone. But as they waited on the side of the road, as the hours wore on and as they watched the sky go dark with smoke and the sun turn red, hope turned to a feeling of loss.

“I really broke down at that point. I didn’t think I was ever going to see them again. And they’re my whole life,” Smith said.

When the call came for Smith, however, it was police asking how they could get in to rescue her parrots.

“When they called back that second time, I heard Theo screaming his head off in the background,” said Smith. “And I’ve never been so happy to hear him scream like that in my entire life because I knew he was alive.”

A few hours after speaking with the Star, Michelle and Sean Brousseau got their call, too.

“Just found out nothing damaged on Northwood Road!” Michelle texted.

‘‘ You think that you’re going to come back. You don’t realize that (you might not come back) at all. And my heart goes out to the people who don’t have a home to go to.

MICHELLE BROUSSEAU WHO WAS EVACUATED

Wildfires flare up in three provinces, evacuations affect thousands

This article was written by Frederik-Xavier Duhamel and was published in the Globe & Mail on May 29, 2023.

Thick plumes of smoke fill the sky over Halifax as an out-of-control fire in a suburb quickly spreads on Sunday. An RCMP officer said at least 10 homes had burned in the fire, but the evacuation of several subdivisions was proceeding smoothly.

Wildfires continued to rage on both ends of the country Sunday, burning homes in Nova Scotia and keeping thousands of Albertans under evacuation orders.

Hundreds of people were evacuated from Upper Tantallon, a Halifax suburb, because of an out-of-control fire Sunday afternoon.

“The entire area of Westwood Hill subdivision is being evacuated. The fire is out of control at this time and it’s wind-driven,” said Halifax fire district chief Robert Hebb.

“We’ve got multiple resources, a couple of dozen crews up there now working on it, trying to get some means of containment, but it’s going to be a long event,” he said, adding that two helicopters were brought in to fight the fire.

A second emergency alert was sent out shortly after 6 p.m. local time. The alert said the fire had spread farther, and the evacuation order had been expanded to include several other subdivisions in the area.

A third emergency alert, issued just before 8 p.m. local time, called for evacuations in Haliburton Hills, Glen Arbour, Pockwood Road, Lucasville Road and the White Hills subdivision.

Corporal Chris Marshall of the RCMP said at least 10 homes had burned in the fire, but that the evacuation was proceeding smoothly. He said he could not provide an exact number of evacuees but that it was at least a few hundred.

Both he and Mr. Hebb said they were not aware of any injuries related to the fire.

In the province’s southwest, another out-of-control fire nearly doubled in size in a matter of hours Sunday.

Officials with the province’s Department of Natural Resources said the Shelburne County fire is now burning across more than 1,350 hectares, and dry, hot and windy weather is hampering the effort to contain it. They said the fire “escaped containment” on Saturday night around Barrington Lake, about an hour southeast of Yarmouth.

Officials said there are now 35 provincial firefighters and 50 volunteer firefighters on the ground. They are being supported by two helicopters, six air tankers from New Brunswick, heavy equipment and an incident management team. Officials said nearby homes have been evacuated and local police, Red Cross, and ground search and rescue officials are helping evacuees.

In British Columbia, the Peace River Regional District issued a new evacuation order and an alert on Sunday in response to two wildfires burning in the province’s northeast.

The district warned that the Donnie Creek and Tommy Lakes wildfires pose an immediate risk and urged everyone to leave the area that is primarily used by industry.

The evacuation order spans a remote area east of Highway 97, with the lower-level alert covering an area to the south.

In Alberta, meanwhile, where wildfires have been burning for weeks after an unseasonably warm and dry spring, people continued to be allowed back into their homes this past weekend, but officials warned that fireprone conditions in the coming days could trigger even more wildfires.

Bre Hutchinson, the executive director of the Alberta Emergency Management Agency, said 5,257 people were still under evacuation order.

Melissa Story, a spokesperson for Alberta Wildfire, said 57 wildfires were still burning, 17 of them out of control.

“So far this year we’ve responded to 532 wildfires burning more than 1,063,000 hectares. This is almost twice the size of Prince Edward Island,” she said.

Alberta is well on its way to having the worst fire season on record and exceeding 1981, when about 1.36 million hectares were burned.

Climate hazards, including heat waves and wildfire activity, have already intensified across North America and are projected to continue, according to the Intergovernmental Panel on Climate Change, an international body of hundreds of climate scientists.

Ms. Story said hot and dry weather increased fire activity over the weekend, and that windier conditions in the northern parts of the province are expected into Monday, potentially fuelling more fires.

Federal Emergency Preparedness Minister Bill Blair said in a tweet Saturday that an extension for the deployment of Canadian Armed Forces personnel to assist in firefighting efforts has been approved.

Ms. Story said firefighters from New Zealand were welcomed to the province Friday and that nearly 200 firefighters and support staff from Australia were also arriving this past weekend.

Alberta remains under a provincewide state of emergency, although some bans on fires, ATVs and off-highway vehicles have been relaxed in recent days.

She said close to 2,700 wildfire personnel were responding to the fires this past weekend.