The federal government under Prime Minister Mark Carney is moving to eliminate a key requirement in Canada's environmental marketing rules that compelled companies to substantiate their climate claims using internationally recognized methodologies.
Budget Bill Proposes Significant Changes
Changes to what are known as the greenwashing provisions, originally introduced under former prime minister Justin Trudeau, were announced in the November 4 federal budget. The detailed implementation plan emerged in the recently tabled budget bill, signaling the government's intention to modify the Competition Act's approach to environmental marketing claims.
The government justified these changes in the budget documents by citing the need to address investment uncertainty, a move that aligns with Carney's broader strategy to attract billions in private sector investment through accelerated natural resource development.
What Exactly is Changing?
The proposed amendments target specific sections of the Competition Act that were designed to combat greenwashing - the practice where companies make false or misleading claims about the environmental benefits of their products or business activities.
Currently, the law prohibits companies from making environmental benefit claims unless they can provide adequate and proper substantiation in accordance with internationally recognized methodology. The budget bill seeks to remove the crucial phrase internationally recognized methodology from the legislation.
Additionally, the government proposes to reverse another significant change by disallowing private parties from bringing greenwashing claims directly to the Competition Tribunal, effectively limiting who can challenge potentially misleading environmental marketing.
Environmental Groups Voice Concerns
Keith Stewart, a senior energy strategist at Greenpeace Canada, expressed serious concerns about the proposed changes. The environmental organization had originally advocated for the Liberals to introduce these greenwashing provisions.
Stewart warned that removing the requirement for companies to use internationally recognized methodology creates a dangerous opening for businesses to cite evidence that may lack scientific rigor. The risk here is they're going to let companies make up their own definitions and their own rules, and this is going to result in really weak standards, Stewart stated.
The response from government officials has been limited. Environment Minister Julie Dabrusin's office referred inquiries to Industry Minister Melanie Joly's office, which had not returned comment requests at the time of reporting.
These regulatory changes come as the Carney government seeks to balance environmental accountability with economic growth objectives, particularly in the natural resource sector where substantial private investment is being sought.
