Net-zero by 2050 commitment not currently possible because of Bill C-59, says Pathways Alliance

A scaled-back version of the website for the Pathways Alliance, a consortium of Canada’s largest oilsands companies, is back online, weeks after content was pulled down in response to Bill C-59.

Bill C-59, which includes amendments to the Competition Act, became law in June. The new rules require companies be able to prove their environmental claims.

The Pathways Alliance — Canadian Natural Resources Ltd., Cenovus Energy Inc., ConocoPhillips Canada, Imperial Oil Ltd., MEG Energy Corp. and Suncor Energy Inc. — has run a large advertising campaign across Canada, which included a pledge to cut greenhouse gas emissions from oilsands to net-zero by 2050.

But in June, the consortium removed all of its content from its website, social media and other public communications, replacing it with a notice that indicated its concern with the Competition Act amendments.

A number of its member companies also reacted. Imperial Oil displayed a disclaimer on some pages, writing that “archived information [was] provided solely for historical information and reference purposes.” That notice remained as of Wednesday.

The Canadian Association of Petroleum Producers (CAPP) also removed online material. A spokesperson with the industry lobby group said Wednesday its website and digital platforms remain unchanged since June.

Pathways website back online

The Pathways Alliance website is back online but has been significantly scaled back.

The previous website included in-depth sections tied to the consortium’s net-zero plan and proposed carbon capture and storage network in northeast Alberta, among others.

As of Wednesday, it hosted three sections: a landing page, a page tied to Canada’s Oil Sands Innovation Alliance — a long-standing organization focused on technological innovation in the oilsands — as well as a page with frequently asked questions tied to the amendments in the Competition Act.

On that page, one of the questions posed is whether Pathways is still committed to reaching net-zero by 2050.

The consortium doesn’t provide a direct yes or no answer to that question.

“Our work has not stopped because of the changes to the Competition Act, but the changes do affect our ability to publicly discuss the work,” the website reads.

In response to a followup inquiry from CBC News as to why a definitive commitment wasn’t included, a spokesperson with Pathways said it was “indicative of the problem with the changes to the Competition Act.”

“Being subject to an ambiguous, undefined standard makes it very difficult to make certain statements because there is no clear definition against which to measure accuracy,” the spokesperson wrote.

The clean energy think-tank Pembina Institute doubts Pathways’ path to its 2050 goals. 

It has said its research and analysis has identified “significant gaps” between emissions reductions promises Pathways made in 2021 and their actions taken to date that would allow them to deliver on their goals.

“I think it’s a fairer representation of what the companies and the Alliance know at this point in time,” said MC Bouchard, oil and gas program director at the institute.

Kendall Dilling, president of the Pathways Alliance, wrote in a statement that the consortium agrees with the need for accurate public communication and has “no issue with the establishment of clear criteria to ensure that industry is meeting that expectation.”

“However, the amendments to the Competition Act in Bill C-59 offer no way to measure compliance, other than a reference to ‘internationally recognized methodologies’ that have not been specifically identified and may not exist for certain kinds of representations,” his statement reads.

Dilling went on to say that despite the uncertainty, the group would “remain committed” to continuing to communicate on behalf of the industry.

“Therefore, we are gradually restoring information to our website that we have carefully reviewed and which we believe is fully compliant with the amended Competition Act,” he said.

In June, the Alberta government said it would “actively explore” the use of every legal option, including a constitutional challenge or the use of the Alberta Sovereignty Act, to push back against Bill C-59. A spokesperson for Alberta Premier Danielle Smith reiterated the same position on Wednesday.

In a statement, Environmental Minister Steven Guilbeault said “ensuring all companies are held to a high standard when it comes to making truthful claims about their business practices” was “good news for Canadians.”

“I expect that these measures will help restore Canadians’ trust in the many environmental claims made in the energy sector,” Guilbeault said. 

“Canadians want to see oil and gas companies delivering on their promises to direct their record profits into projects that will cut emissions and create good paying jobs.”

Competition Bureau launches consultation

The Competition Bureau has said it had received a “large number of requests” for guidance on “the interpretation of new provisions aimed at greenwashing.”

That prompted a public consultation, which launched last week. It will inform the development of enforcement guidance about environmental claims, according to the bureau.

“Through our consultation on these new provisions, we will provide guidance that will offer transparency and predictability for Canadians,” wrote Matthew Boswell, the commissioner of Competition, in a release.

The consultation is set to wrap up on Sept. 27.

Net-zero by 2050?

Bouchard, the oil and gas program director at Pembina, said what has unfolded has potentially helped to “clarify” the situation.

“[Pathways is], obviously, focused on lobbying the federal government and marketing and advertising,” Bouchard said.

“It really clarifies what the Pathways Alliance can or cannot say, or can and cannot do. What happens next is the CEOs themselves, the companies themselves, take action.”

Bouchard said Pembina has always been supportive of the projects Pathways has described but has doubted whether the consortium was truly aligned with its net-zero by 2050 goals.

Richard Masson is an executive fellow at the University of Calgary’s School of Public Policy and chair of the World Petroleum Council Canada, which hosted the World Petroleum Congress in Calgary last summer. 

He said the federal government has undertaken a number of initiatives simultaneously, including its proposed emissions cap. 

“Until all the rules are understood, and how they’re going to work together, and how they’re making sure they’re not at cross purposes, it’s going to be very difficult for companies to approve big projects,” Masson said.

“The next election’s coming. We get into a zone where it’s difficult for governments to do anything before an election. How are we going to get the rules clarified in time for companies to move forward?”