Finance Committee report on pre-budget consultations a win for chemistry industry

The House of Commons Standing Committee on Finance’s report on the pre-budget consultations was released December 10, and includes a number of recommendations directly responsive to CIAC’s requests. Of note is Recommendation 9 (page 40) to, “Work with all other levels of government to align and coordinate efforts to create a competitive investment climate across Canada to attract world-class value-added petrochemical facilities.”

This success is a result of eight months of CIAC engagement with Finance Committee members, which included CIAC’s 2019 Federal Pre-budget Consultation submission and testifying at the pre-budget consultation hearings in October.

Read the full report here.

Industry, government and consumers all play a key role in the circular economy

CIAC and CPIA sponsor a lively discussion on getting to zero plastic waste

In front of a packed house of approximately 70 people at the National Arts Centre in Ottawa CIAC and CPIA held a lively discussion with the Sixth Estate on Breaking the mold: getting to zero plastic waste on December 11.

CIAC’s Executive Vice President, Isabelle Des Chênes, opened the discussion up by framing the issue and giving a brief presentation on the broad issues at play including the benefits of plastic, Canadians’ perceptions on plastic waste and what industry can do to support solutions. “The public in Canada have been up in arms on this subject and rightly so. As manufacturers of plastic resin and plastics, we need to work with governments to educate the public about plastics’ benefits to society and the environment,” said Des Chênes.

Christopher Hilkene, CEO of Pollution Probe, then spoke about what his organization is doing to raise public awareness of the issue of plastic waste and bringing different stakeholders together to discuss solutions.

The Director of Government Relations at NOVA Chemicals, Ken Faulkner, then outlined the work that manufacturers are doing to tackle this issue, such as innovating to make plastic packaging fully recyclable and working with non-profit partners to improve infrastructure to reduce marine plastic debris in Southeast Asia.

Ryan L’Abbe, Vice President Operations, GreenMantra Technologies, brought the important element of innovation to create end markets for recycled products. He pointed out that due to a lack of supply in Canada, his company actually imports materials from the U.S. to have enough post-consumer plastic to recycle into products like asphalt and roof shingles.

Rounding out the discussion, Sean Fraser, Parliamentary Secretary to the Minister of Environment and Climate Change then spoke on the Federal government’s recent efforts to create a framework for a national strategy of reducing plastic waste and what needs to happen in the near and long-term future to tackle the issue.

Watch a full recording of the panel discussion on the Sixth Estate Facebook Live page here.

Le gouvernement fédéral signale sa détermination à assurer la compétitivité du Canada dans son Énoncé économique de l’automne

Information sharing and collaboration at Alberta Chemistry Day 2018

Canada to lose 635,000 jobs, petrochemical industry at ‘serious risk’ due to U.S. tax reform, says PwC report

Last year’s U.S. tax reform poses a substantial risk to the long-term viability of a large portion of Canada’s petrochemical and other chemical industry, as well as the Canadian economy at large, according to a PricewaterhouseCoopers report commissioned by the Business Council of Canada and released on September 12.

The impacts of U.S. tax reform on Canada’s economy, looks at numerous sectors in the Canadian economy. Key findings indicate that the U.S. tax reforms would put 635,000 jobs (3.4 per cent of Canada’s employment) at risk and potentially reduce Canada’s GDP by $85 billion (4.9 per cent of the economy).

The petrochemical sector will be particularly hard hit. The report indicates that with the U.S. tax reform, Canada is falling even further behind the U.S. in terms of competitiveness posing a “serious risk” to petrochemical manufacturing in Canada.

“The relative attractiveness of the U.S. is reflected in the fact that, capital expenditure in chemical manufacturing has decreased by 0.3 per cent in Canada over the past five years, while increasing by 10 per cent in the U.S.,” The report states.

These findings echo the concerns raised in CIAC’s 2019 Federal Pre-Budget Submission. The submission notes that although Canada used to enjoy an advantage through its marginal effective tax rate to help overcome construction, utility, labour and logistics disadvantages, that advantage is now gone with the U.S. tax overhaul. CIAC is calling on the government to take urgent action to ensure the Canadian chemistry sector remains competitive to keep business – and jobs – within Canada.

Read more in CIAC’s 2019 Federal Pre-Budget Submission

Read the full Business Council of Canada report

CIAC hits ground running with new Ontario Government

Last week, CIAC began its first series of meeting with key ministries in the new Ontario Government.

The meetings provided the opportunity to reinforce the important contributions that the chemistry sector plays in Ontario’s economy and outline pressing issues the sector is facing.

President and CEO of CIAC, Bob Masterson, and Director of Government and Stakeholder Relations for Ontario, Don Fusco, met with the Ontario Minister of Finance, Vic Fedeli, Minister of Economic Development Job Creation and Trade, Jim Wilson, and Minister of Municipal Affairs and Housing, Steve Clark.

“We were able to engage in substantive dialogue on how to improve the operating and investment environment for the Ontario chemistry industry and we were pleased that we were met with very well-informed and receptive responses. This is due in part to our past relationships and briefings when the ministers were opposition critics, but also because officials have done a great job briefing up on our materials,” said Mr. Masterson.

“I was very pleased at the degree to which the new Ontario Government seems to be hitting the ground running with us. We look forward to working with the new Ontario Government to promote its ‘open for business’ mandate in our sector.”

CIAC will continue to work with the new government and provide recommendations in the spirit of continuous improvement aligned to our Responsible Care® principles. We will also work to support the Ontario Government’s effort to deliver a practical and pragmatic regulatory framework ensuring the citizens of Ontario can enjoy a sustainable future where both the environment is safeguarded and the economy prospers.

l’ACIC félicite Elysis pour son nouveau procédé de production d’aluminium sans carbone (article en anglais)

Congratulations to Canadian aluminum sector leaders Alcoa, Alcana and Apple who, with the support of the Federal and Quebec Governments, have developed a new carbon-free aluminum production process that will eventually result in annual greenhouse gas reductions of more than six million tons in Canada alone.

“The process relies upon decades of research in totally new chemical reactions from those associated with carbon-based production methods,” said Vincent Christ, CEO of Elysis, the new joint venture.

This success illustrates that by working together, the resource, manufacturing and chemistry sectors can point the way to a more sustainable future while growing the economy, here in Canada, while at the same time reducing emissions. The new venture will be in Quebec and export the technology throughout the rest of the world.

Alcoa and Rio Tinto announce world’s first carbon-free aluminum Smelting Process

$558 million investment project will create and maintain thousands of jobs in Canada

Renforcer la compétitivité et les forces de regroupement auprès des députés progressistes-conservateurs de l’Ontario

On May 2, CIAC and Canadian Fuels Association met with local Ontario Progressive Conservative MPPs Bob Bailey (Sarnia-Lambton) and Monte McNaughton (Lambton—Kent—Middlesex and Critic for Economic Development and Growth) to reinforce competitiveness and the strength of the integrated refining and chemistry sector in Sarnia-Lambton, Ontario.

In the lead up to the June 7, provincial election, CIAC has been active with elected and government officials to provide input to assist in the development of public policy that improves Ontario’s competitiveness and supports more investment while maintaining robust environmental, health and safety requirements and other public interest protections.

L’ACIC comparaît devant le comité sénatorial qui étudie le projet de loi C-74 pour discuter de la législation sur le prix du carbone

Isabelle Des Chênes, CIAC Executive Vice-President, and Shannon Watt, Director of Environment and Health Policy, appeared before the Senate Committee on Energy, the Environment and Natural Resources on May 3, 2018. Senators are conducting a pre-study of the provisions of Bill C-74, the budget implementation bill, that deal with the government’s plan to price greenhouse gas emissions.

CIAC and its members support efforts to reduce global carbon emissions and have worked collaboratively with both provincial and federal officials to ensure that carbon policies and pricing mechanisms improve environmental performance, avoid double-regulation and maintain Canada’s competitiveness.

Ms. Des Chênes noted that “Canada should support a carbon policy that recognizes emission-intensive, trade-exposed sectors and encourages investments in the Canadian chemistry sector. Additionally, given the incredible investments in innovations and technologies to improve performance around air emissions and climate change, Canada’s proposed output-based allocation process should focus on benchmarking Canadian chemistry operations and performance against global competitors.”

Additionally, Ms. Watt reinforced the point that government needs to provide a comprehensive analysis of the cumulative impacts of the suite of climate change policies including the proposed Clean Fuel Standard.

Watch the CPAC recording: Fuel Suppliers Discuss the Carbon Tax

Les panélistes discutent de l’avenir à faible teneur en carbone du Canada lors du séminaire de printemps de l’Association des utilisateurs de gaz industriels

CIAC President and CEO Bob Masterson gave a brief overview of chemistry’s role in Canada’s transition to the low-carbon energy future at a panel for the Industrial Gas Users Association Spring Seminar in Montebello, Quebec on Tuesday, May 15.

The topic of the seminar panel was Heavy Industry is Necessary in Canada’s Low Carbon Future. Speakers touched on topics such as the Paris Accord, the Pan-Canadian Framework, as well as near-term and long-term targets.

“Demand for chemistry products are forecast to triple in the next 20 years. And it isn’t hard to see why: the products our members make enable our modern, more sustainable way of life,” Mr. Masterson told the crowd.

“We all need sound policies from our government that encourage growth while meeting the needs of our global commitments to sustainability. The world truly needs more good chemistry – made-in-Canada chemistry – to meet our low-carbon goals.”

The invitation only, two-day event included key natural gas stakeholders including users, pipelines and utilities, marketers, regulators and policy makers. Other participants in the panel discussion included the Mining Association of Canada, the Forest Products Association of Canada and the Canadian Steel Producers Association.