OTTAWA — The government of Prime Minister Mark Carney is planning to amend regulations concerning companies that make environmental claims. The proposed changes would eliminate the requirement for companies to base their evidence on what is termed "internationally recognized" policy. This announcement was made in the federal budget released on November 4, which included details in a recently tabled budget bill.

The government argues that these changes are necessary to reduce "investment uncertainty" and to attract billions in private sector investment by accelerating natural resource development. Carney's first budget aims to modify parts of the Competition Act that were designed to combat misleading environmental claims, often referred to as "greenwashing."

The proposed amendments specifically target the section of the law that governs how companies promote their environmental benefits and their efforts to mitigate climate change. Currently, the law requires that any claims made by companies must be substantiated by adequate evidence that adheres to internationally recognized methodologies. The new budget bill seeks to remove the phrase "internationally recognized methodology" from the law.

Additionally, the bill aims to prevent private parties from bringing claims based on this rule directly to the Competition Tribunal, reversing a previous change made when the greenwashing measures were introduced. Environment Minister Julie Dabrusin did not provide comments, referring inquiries to Industry Minister Melanie Joly's office, which has not yet responded.

Keith Stewart, a senior energy strategist at Greenpeace Canada, expressed concern over the proposed changes. He stated that removing the requirement for scientifically rigorous substantiation could allow companies to create their own definitions and standards. "The risk here is they’re going to let companies make up their own definitions and their own rules, and this is going to result in really weak standards," he said.

In the summer, the Competition Bureau released guidelines indicating that a methodology would be considered "internationally recognized" if it is acknowledged in two or more countries. An example provided was a hypothetical company claiming to achieve net-zero emissions by 2050 without a clear plan or substantiation for that claim.

Keith Brooks, program director at Environmental Defence, noted that while he believes more time is needed to evaluate the impact of the proposed changes, he appreciates that the government intends to keep some provisions in place. "We were concerned that they were going to be scrapping these rules altogether, and instead, I think that they are maintaining most of the substance of the intention of the rules while trying to make it a little bit easier for companies to comply," he said.

The Pathways Alliance, a coalition of oilsands companies, has expressed support for the proposed changes. The group, which aims to achieve net-zero emissions from oilsands production by 2025, had previously removed references to the new greenwashing provisions from its website and social media. Kendall Dilling, the group's president, stated, "Changes to the Competition Act are necessary and the proposed amendments are directionally positive. The current requirements have put Canadian companies at a disadvantage compared to their global counterparts by limiting their ability to speak freely about environmental work."

The Pathways Alliance is also involved in a proposed $16.5 billion carbon capture and storage project, which Carney has identified as a key initiative for his government. Ongoing discussions between Carney and Alberta Premier Danielle Smith may lead to a new federal energy policy, potentially including a new pipeline from Alberta to British Columbia's northern coast and the rollback of certain environmental regulations.

Smith's United Conservative Party government and other stakeholders in the oil and gas sector had opposed the greenwashing provisions when they were first introduced. Green Party Leader Elizabeth May, who recently supported the Liberals' budget, expressed her disapproval of the specific greenwashing provisions, advocating instead for broader truth-in-advertising measures. "I can tell you the many more things that made it hard to vote for the budget," she remarked.