Challenges in Federal Policy
Canadian Paint and Coatings Association
Advocating for Sustainable Practices, Economic Growth and Industry Innovation Since 1913.
Increased Regulations Under the New Canadian Environmental Protection Act
Many industry groups have discussed the challenges in dealing with current federal policy related to increased environmental regulation for industry under the?Canadian Environment Protection Act.? Many of those changes were tabled in the unelected Senate of Canada and debated there over several months. And, in only 13 hours of debate, the Senate passing most of the proposed 62 amendments. While doing so they publicly acknowledged they really had little knowledge of what they were passing given the short time to fully get briefed and understand all the implications, before sending it to the House of Commons where most of the amendments were passed by the elected members in Parliament.
Officials are carefully considering those amendments over the next 15 months to ensure the intent of the legislation is reflected properly in new regulations. Some of those amendments are unclear and many would argue unnecessary such as a ‘watch list’ of chemicals likely to become toxic sometime in the future, either years or decades. However, despite the fact that these?fully regulated chemicals?in products now used every day will be put on a ‘naughty list’ at the full discretion of the Minister, they?will be outside the rigorous prioritization process for actual ‘chemicals of concern,’?which has been done collaboratively?to date?by industry and government.?
This will likely cause a frenzy of activity by some attempting to raise awareness of the Government’s ‘concern’ over such products?being identified as ‘maybe’ of concern. This will only ensure consumers leave those products on the shelf?even though they are perfectly safe as?already?determined by Government regulation. If this proceeds as expected it will only negatively?impact competition, which will reduce jobs, drive up inflation, and ultimately worsen productivity in Canada. Of course, that also leaves the federal budget short when it comes to funding real priorities?for Canadians.
A New Right to a Healthy Environment in Canada
Another new initiative under CEPA is also concerning, the Right to a Healthy Environment (RTHE), which is now the subject of a frenzy of activity in defining?what it is. This started with a 25-page document,?linked to numerous?backgrounders, focused on ensuring it captures every possible approach supporting that right when chemicals are risk-assessed for potential regulation. This is the case whether such consideration will be grounded in evidence-based data and the science to which all such assessments of chemicals?of concern have been subject?to for decades. Of course, industry groups have and will always be an integral part of that very costly and time-consuming process.
New Law on Environmental Racism to Advance Environmental Justice
The Senate has just passed into law new?approaches for elected members in the House of Commons related to the environment, that is,?Environmental Racism to Advance Environmental Justice?under Bill C-226. They are now sitting to map out a strategy for the Government’s consideration of such ‘racism’ that will include, among other things, “an examination of the link between race, socio-economic status, and environmental risk.” Of course, there has always been a section of CEPA that is?concerned with the impact on vulnerable populations, and that will continue to be the case. It would be logical to conclude that all ‘vulnerable’ populations no matter race, creed, or colour would be captured under that requirement, but it seems not.?New concepts seem to be popping up everywhere, all at once and all the time! In addition, the strategy must consider the following in terms of ‘more’ regulations flowing from this Bill vis-à-vis concerns under CEPA,?such as:?
This recently passed law it will certainly mean more regulation for industries relying on chemicals in the production of thousands of formulated products.?
End Result
In the final analysis, it will mean more regulations in Canada,?which is?already grappling with economic challenges across the supply chain?and decreasing productivity.?The new provisions under CEPA will only add more uncertainty, which could drive up costs of production, lead to less competition for products no longer produced in Canada, thereby increasing inflation with fewer good paying jobs, and finally a smaller tax base for Government budgets already unable to get to balance.
This new syndrome, if one can call it that, seems to align with recent conclusions by McGill’s highly acclaimed?Sustainable Growth?for?ESG-related public policy:
“Paradoxically, however, the actual daily experience of breathlessness, noise, and chatter is also caused by a?flurry of activities, pronouncements, declarations, policies, codes of conduct, standards, and ratings?— some of which are being elaborated with good intent. As a veritable flurry of public and private norm production contributes to the thickening of the ‘alphabet soup’ of competing, overlapping, complementing, or conflicting ESG standards, the present situation can easily prove disheartening for seasoned policymakers, regulators and activists alike… the involvement of today’s stunning variety of?institutional actors, organizations, governments, supra-national norm creators as well as investors, unions, social and environmental movements, and activist groups?in climate change governance which makes the field unruly, unstable and vulnerable.”
Could it be greenwashing works both ways and is created by all the players caught up in the proverbial alphabet soup,?especially in the federal Government?