Prime Minister Mark Carney's government proposes removing the “internationally recognized” evidence requirement from the law targeting companies with environmental claims.

The federal budget, announced Nov. 4, introduced changes to the “greenwashing” provisions enacted under former prime minister Justin Trudeau, with further details provided in the recently tabled budget bill.

The government claims budget changes are needed to curb “investment uncertainty” as Carney seeks billions in private sector funds by fast-tracking natural resource development.

"The Big Tobacco moment has finally arrived for Big Oil," he says, introducing a bill that would make it illegal to "falsely promote the burning of fossil fuels as a benefit to the public." - NDP MP Charlie Angus.https://t.co/jvF8CGs3rE pic.twitter.com/C3WSkx4JcR

— Rebel News Canada (@RebelNews_CA) February 7, 2024

Carney's first budget pledged to reverse certain amendments to the Competition Act intended to stop companies from making false or misleading environmental claims — a practice environmental groups call “greenwashing.”

An amendment to the Competition Act, effective June 20, 2024, via C-59, broadly regulates environmental claims (“greenwashing”) by businesses and individuals beyond consumer protection. The McDonald-Laurier Institute claimed the initial amendments caused investor uncertainty, leading the Canadian Chamber of Commerce to urge their repeal.

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The budget bill will eliminate “internationally recognized methodology” (used by two or more countries) from the law, blocking private claims based on this rule from going directly to the Competition Tribunal. This reverses changes made by Bills C-59 and C-372.

Environment Minister Julie Dabrusin and Industry Minister Melanie Joly have not commented on the matter, which also involved Dabrusin's predecessor, Heritage Minister Steven Guilbeault.

The oilsands group Pathways Alliance, which seeks ‘net-zero’ production emissions by 2025, removed website content following new “greenwashing” provisions. 

Although Pathways supports removing the “internationally recognized methodology” clause, it argues that retained rules for substantiated environmental claims hurt Canadian companies by limiting their environmental discussions.

Cenovus and Enbridge, the former a member of the group, faced an August “greenwashing” complaint to Alberta's securities watchdog, alleging it misled investors in environmental disclosures.

On June 5, the Competition Bureau issued final guidelines for environmental claims, requiring them to be truthful, tested, specific, non-exaggerated, clear, and substantiated, including a clear pathway to achieving ‘net-zero’ by 2050. Those in contravention could face significant fines worth millions.

“We will need to review the changes as they appear in the legislation before offering any further comment,” said Kendall Dilling, the group’s president. 

The Pathways Alliance leads a $16.5 billion federally-backed carbon capture network, a key part of ongoing federal energy policy negotiations between Carney and Alberta Premier Danielle Smith. This support is crucial, as it could allow for a new Alberta-to-B.C. bitumen pipeline and the removal of impeding environmental policies.

Smith's UCP government opposed the “greenwashing” provisions, citing “significant uncertainty” for Canadian companies sharing their environmental performance.

Despite backing the Liberal budget after Carney's climate pledges, Green Party Leader Elizabeth May surprisingly opposed adding “greenwashing” clauses to competition law, favouring general truth-in-advertising measures instead.

The legislation procuring the “greenwashing” amendments was sponsored by then-NDP MP Charlie Angus. “Big Oil has always relied on the big tobacco playbook of delay and disinformation,” Angus said in February 2024.

Canada banned tobacco advertising in 1989 and added health warning labels to cigarette packaging in 2012. He concluded, “The big tobacco moment has arrived for Big Oil.”