Implement an economy-wide carbon tax, attain “social licence,” score a federal approval for the Kinder Morgan Trans Mountain pipeline.

the Alberta NDP’s rhetoric represents a fundamental misunderstanding of the point of social licence,

“It’s like saying: ‘if I’m good to my neighbour then I can engage in some petty theft of the corner store.’ As opposed to saying: ‘Being good to my neighbour and the environment just means that I’ve learned how to start to do that on an ongoing basis.’ It doesn’t open up the possibility for something else.”

Social Licence Responds to Perceived Flaws in Regulators

The concept of “social licence to operate” was birthed out of the mining sector in the late 1990s.

Jennifer Winter, director of energy and environmental policy at the University of Calgary’s School of Public Policy, says the idea made sense in that particular context, with companies attempting to engage the immediate community with partnerships, Impact and Benefit Agreements (IBAs) and local hiring preferences.

However, Winter notes there’s never been a clear articulation of what social licence even is.

“It’s like any other buzzword,” she says. “It sounds good and you think it has meaning. But what is it? Who grants this licence?”

Szeman agrees that the definition of social licence is indeed murky. But unlike Winter — who suggests the discussion “definitely hasn’t helped in terms of people thinking of the NEB as an effective and neutral regulator” — he says he’s “very glad” that it’s being talked about and that it helpfully attempts to broaden the onus of responsibility beyond what agencies and boards currently require from companies.

“I think it’s this kind of sense that ‘is this a kind of enterprise that is a legitimate one in today’s world given the challenges that the entire society is facing, whether or not our legal description has caught up to it?’,” says Szeman, adding that the Alberta NDP is “abusing the concept” by detaching it from such roots.

‘It’s A Real Stretch For Governments to Claim to Grant Social Licence’

As opposed to corporate social responsibility — which is largely assessed and reported on by the company itself via annual reports and sizable marketing teams — the idea of social licence has been claimed by communities as a pressure point to make up for perceived deficiencies in consultations and environmental assessments conducted by governments and corporations.

Fiona MacPhail and Paul Bowles, both economics professors at the University of Northern British Columbia who were collaboratively interviewed via e-mail, noted that many communities have “co-opted” the term for their own purposes as opposed to the typical co-optation by industry and governments of terms like “empowerment” and “participation.”

“Seeing this, governments are entering the debate too and trying to use the language to support their aims, in this case by arguing that oil pipelines have social licence if they are accompanied by a carbon tax and climate change targets,” they write.

“It’s a real stretch for governments to claim to grant social licence [to themselves] since it’s their failure to ensure that the ‘political licences’ which they grant to resource firms have legitimacy that spurred the move to social licence in the first place.”

#Alberta’s #CarbonTax Doesn’t Equal ‘Social Licence’ for New Pipelines https://t.co/woeYeqDJSs #ableg #bcpoli #cdnpoli #KinderMorgan

— DeSmog Canada (@DeSmogCanada) November 8, 2016

Over Half of Canadians Have Little to No Confidence in the National Energy Board

This notion is especially true in the context of pipelines, which cross many jurisdictions that have distinct interests and concerns (including spills, tanker traffic and greenhouse gas emissions, all of which can result in problems far beyond the scope of provincial or national boundaries).

For instance, what does consent look like when a pipeline crosses dozens of First Nations, municipalities and tracts of private land? Is gaining an “approval” from 51 per cent of impacted citizens enough?

Winter argues that the job of regulators like the National Energy Board (NEB) and Canadian Environmental Assessment Agency (CEAA) isn’t to decide if every person and community is better off by having a pipeline, but if “Canada as a whole is better off.”

This perspective is echoed in the rhetoric of a unitary “Canadian public interest” that the NEB uses to describe its own responsibilities, as well as Notley’s submission to the NEB in support of Kinder Morgan’s proposal: “This important pipeline infrastructure will support an integrated energy economy in Canada that will be more attractive to investors, which in turn will generate more economic activity Canada-wide.”

But Szeman suggests that such nationalistic rhetoric is no longer sufficient.

“I find it very interesting the degree to which quite a large segment of the Canadian public don’t find the claims made on behalf of pipeline projects to have the proper amount of legitimacy,” he says. “Not because they don’t understand that it might lead to jobs and profits, but because they don’t buy the long-standing argument that the thing that matters above all else is jobs and profits.”

Commitments to Indigenous Rights and Climate Targets Currently Ignored

If the responsibilities and actions of the NEB and CEAA reflected an acknowledgement of the inability for Canada to both build new pipelines and meet international climate commitments, for instance, then perhaps it would be a different story.

Or if projects only proceeded with the guarantee of “free, prior and informed consent” as outlined in the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP), then social licence might “not exist” as many conservative commentators insist.

But the overhaul of the NEB and CEAA hasn’t been completed in time to impact the review of the new Kinder Morgan pipeline, contradicting Prime Minister Justin Trudeau’s pledge during the federal election to the Dogwood Institute’s Kai Nagata.

The project is still opposed by the mayors of Vancouver and Burnaby, the chief of Tsleil-Waututh Nation and the Treaty Alliance Against Tarsands Expansion, which features more than 50 signatories. On Oct. 24, 99 people received trespassing citations outside Parliament Hill while protesting the Kinder Morgan expansion; two weeks later, 15 people occupied the constituency office of Minister of Natural Resources Jim Carr for the same reason.

Alberta’s climate plan and Canada’s review of its environmental assessment process hasn’t done nearly enough to satisfy concerns about new pipelines that will allow for the further expansion of the oilsands.

But as indicated in Notley’s Oct. 3 speech, the Alberta NDP seems to assume that the battle for hearts and minds has been concluded, and that social licence has been attained.

Winter says there’s a lot banked on that assumption.

“I think it would be really politically costly for the Alberta NDP if the federal government decides not to approve Trans Mountain,” she says. “The issue is that I’m not convinced that Alberta implementing a carbon tax is really going to change opinions on whether or not the oilsands are bad. I don’t think that moving to a broad-based carbon tax really buys that much more.”

Image: Alberta Premier Rachel Notley. Photo: Premier of Alberta via Flickr

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The days of infinite growth in Alberta’s oilsands are over with the Alberta government’s blockbuster climate change announcement on Sunday, which attracted broad support from industry and civil society.

“This is the day that we start to mobilize capital and resources to create green jobs, green energy, green infrastructure and a strong, environmentally responsible, sustainable and visionary Alberta energy industry with a great future,” Premier Rachel Notley said. “This is the day we stop denying there is an issue, and this is the day we do our part.”

Notley and Environment & Parks Minister Shannon Phillips released a 97-page climate change policy plan, which includes five key pillars.

1) Carbon will be priced economy-wide at $30/tonne by 2018.

2) Coal-fired power plants will be phased out by 2030.

3) Oilsands emissions will be capped at 100 megatonnes (Mt) per year (recent Environment Canada figures predicted a 2020 output of 103 Mt from the sector), which amounts to allowing current construction to go ahead, but that’s it. That means to expand production beyond current projects, per barrel emissions will need to be reduced.

4) Methane emissions from oil and gas operations will be cut by 45 per cent in 2025.

5) 30 per cent of all electricity will be generated by renewables by 2030.

It is a staggeringly significant proposal, one that far surpasses anything the former Progressive Conservative government imagined in the course of its 43-year reign. The announcement — delivered at Edmonton’s Telus World of Science — was benefitted by appearances from CEOs of Suncor, Canadian Natural Resource Ltd. (CNRL), Shell and Cenovus, something far-right activist Ezra Levant dismissed by alleging the massive energy companies “don't represent the industry.”

Environmental groups such as the Pembina Institute and Clean Energy Canada were also on stage. Getting all of those players in support of one climate strategy is a huge testament to the leadership of University of Alberta energy economist Andrew Leach, who chaired the climate change panel.

Climate Change Policy Plan Garners Broad Support

With the exception of the rabidly conservative Wildrose Party and former deputy premier Thomas Lukaszuk, it seemed every serious player in politics and industry celebrated the announcement. The NDP-affiliated Broadbent Institute, headquartered in Toronto, concluded: “On a public policy Richter scale, Alberta’s new Climate Leadership Plan is an 11.”

Shell Canada announced that “these measures provide predictability and certainty and will help ensure that producers can responsibly develop and grow this significant Canadian resource while also addressing global concerns about climate change.”

Prime Minister Justin Trudeau congratulated Notley in a tweet now favourited over 1,300 times as “a very positive step in the fight against climate change.”  Political blogger Dave Cournoyer accurately dubbed it a “pigs fly” situation.

All of this means a whole lot given the impending Paris Climate Change Conference (COP 21).

Canada ranks 15th out of 17th countries for greenhouse gas emissions according to the Conference Board of Canada, with Alberta contributing 36 per cent of national emissions in 2013 despite only accounting for 11 per cent of the country’s population.

The expected spike in oilsands expansion was widely expected to nullify all other sources of emissions reductions in the Canada. The fact that Alberta, and by extension Canada, is now going into COP 21 with a detailed plan to address the province’s largest source of emissions – oilsands development and coal-fired power plants – speaks volumes about the desire to be taken seriously on the world stage.

Climate Plan May Increase Social Licence for Oilsands Operations

Another component that ostensibly drove oil execs to hop on the green bandwagon was the need to accrue “social licence,” or the support required to build pipelines to export its products. The veto of TransCanada’s Keystone XL pipeline represents what happens when such social licence isn’t secured.

By addressing runaway emissions, Alberta-based companies might actually stand a chance to build infrastructure like the Energy East pipeline, which would transport 1.1 million barrels of diluted bitumen from Alberta to Quebec and New Brunswick every day.

“The province’s climate strategy may allow our sector to invest more aggressively in technologies to further reduce per barrel emissions in our sector and do our part to tackle climate change,” said Tim McMillan, Canadian Association of Petroleum Producers’ president and chief executive officer, in a statement.

“We encourage the province to follow a balanced approach, recognizing that our sector can only become a global supplier of responsibly produced oil and natural gas if we are competitive on the world stage.”

The fight over pipelines is unlikely to dissipate. While Sunday’s announcement was a giant step in the right direction, it’s still not enough to avoid catastrophic global warming, according to a statement from Greenpeace.

“These policies are important first steps, but much bigger emission reductions will be needed for Alberta to do its part to keep global warming below 2 degrees Celsius,” Alberta climate and energy campaigner Mike Hudema said.

Hudema also noted that the province still has no short or long-term emission reduction targets.

“Targets give an important signal to business, let the world know where Alberta is headed, and help ensure that direction leads to the reductions that science and equity demand,” he said.

The Pembina Institute has historically supported a higher carbon tax than what was proposed on Sunday – with $40/tonne in 2016, $50/tonne in 2017 and $60/tonne in 2018 — but the plan is an indisputably major upgrade from the Specified Gas Emitters Regulation (SGER), which taxed Alberta’s largest emitters (103 at last count) at the equivalent of $1.80/tonne.

George Hoberg, professor in the forest department at the University of British Columbia, notes there’s still plenty of work to be done but that: “Today is a day for celebration. Alberta has bent its carbon emissions curve, and provided a lever to Canada to show real climate leadership.”

Ultimately, the future of Canada’s environmental reputation may rely on the work that Trudeau and Environment and Climate Change Minister Catherine McKenna complete during and after the Paris conference. But Sunday’s announcement out of Alberta sets quite the standard.

The Narwhal’s reporters are telling environment stories you won’t read about anywhere else. Stay in the loop by signing up for our free weekly dose of independent journalism.