Ottawa is proposing to scrap a requirement in Canada’s greenwashing law that companies making environmental claims must base their evidence on “internationally recognized methodology.”The changes — unveiled in the Nov. 4 federal budget — aim to reduce “investment uncertainty” and come as Prime Minister Mark Carney looks to attract billions more in private-sector investment through fast-tracking natural resource development.The National Post reports that this move will roll back parts of the Competition Act amendments which were introduced by former Prime Minister Justin Trudeau and were aimed at cracking down on companies making misleading environmental claims — a practice dubbed “greenwashing.”Under the current law, companies must support claims that their business or products benefit the environment with “internationally recognized methodology.”The proposed changes would remove those words from the law and disallow private parties from taking claims directly to the Competition Tribunal.Critics, such as Keith Stewart, a senior energy strategist at Greenpeace Canada, warn that removing the requirement for companies to substantiate climate claims using “internationally recognized methodology” creates an opening for businesses to cite evidence that may not be “scientifically rigorous.”.Smith says federal ‘greenwashing’ laws kill LNG investment, threatens energy sector future.“The risk here is that they’re going to let companies make up their own definitions and their own rules, and this could result in really weak standards,” he said.Proponents like Keith Brooks, program director at Environmental Defence — an environmental advocacy organization — welcomed the decision that the Prime Minister was prepared to keep provisions in place and retain a requirement for substantiation.“They’re maintaining most of the substance while making it easier for companies to comply,” Brooks said.“We were concerned that they were going to be scrapping these rules altogether, and instead, I think that they are maintaining most of the substance of the intention of the rules while trying to make it a little bit easier for companies to comply.”The oil sands industry, including Pathways Alliance, which previously promoted the ability to reach net-zero emissions production by 2025, scrapped those claims from its website after the new “greenwashing” provisions were introduced and has now embraced the change.Pathways Alliance is currently behind a proposed $16.5 billion carbon capture and storage network that Carney recently named as one of the possible nation-building projects Ottawa wants to see developed.“Changes to the Competition Act are necessary, and the proposed amendments are directionally positive. The current requirements have put Canadian companies at a disadvantage compared to their global counterparts by limiting their ability to speak freely about environmental work,” Kendall Dilling, Pathways Alliance president, said.
