by Tom Sandborn
As Jeff Rubin, former economist for CIBC World Markets and author of a number of books, including The Carbon Bubble and The End of Growth, prepared to speak to a full house of fund managers, bankers and NGO figures interested in responsible investment at a meeting sponsored by the Responsible Investment Association (https://www.riacanada.ca/) early on the morning of June 1, the room was buzzing with excitement and worry about whether Donald Trump would use a speech scheduled for later in the day to announce the US was going to withdraw from the Paris Agreement on Climate Change, also known as COP 21. Trump did make that tragically misguided announcement a few hours later.
But the well known and often controversial energy sector expert Rubin had other things on his mind. In fact, he told the packed ballroom full of fans of responsible investment that the US under Donald Trump was more likely to hit emission reduction goals than Canada under Trudeau!
According to this graphic posted on the Climate Action Tracker website (climateactiontracker.org/), without cuts more serious than those committed to in the Paris Agreement, global temperatures will spiral up to an average of more than two degrees higher than current world averages. Most experts agree that increases that high in global temperatures will lead to catastrophic climate change, melting polar ice with ocean level increases likely to drown many coastal cities.
Rubin said, “I believe that the US, despite Trump pulling out of COP 21, is better positioned to hit their emission targets than Canada.”
Steve Kux, Climate Change and Clean Energy Policy Analyst for the David Suzuki Foundation, told Common Ground on June 5 that Rubin made good points in his Vancouver speech.
“Canada has made some positive moves on climate change,” Kux said, “but we need a cohesive and coherent national policy and our continued subsidies to fossil fuels and approval for pipeline expansion take us in the wrong direction. Given the positive steps being taken by American states and cities on this file, Rubin may well be right about Canada doing worse than the USA on getting emissions down unless we get our priorities straight.”
Meanwhile, Rubin says, BC has become a major conduit for highly polluting thermal coal from the US to Asia, and the recent federal approval of Kinder Morgan pipeline expansion is not only environmentally dangerous, it also makes no sense economically.
Rubin said the often-voiced argument from fans of the fossil fuel industries that Canada needs more pipelines in order to “get a stranded resource to tidewater” for export abroad makes no sense to him as an economist. “It is, frankly, BS,” he said in an interview before his speech.
Most of the petroleum Canada exports is bitumen from the tar sands, he said, and that product is priced well below other oils in both the Asian and European markets, a reality that would leave tar sands bitumen stranded by economics and Canada holding the bag for the environmental and economic costs associated with building more pipeline infrastructure. He said Canada should build no more pipelines.
Kux also agreed with Rubin’s rejection of the argument that Canada has to build more pipelines.
“Tar sands bitumen is not stranded by the lack of pipelines to the coast,” he said. “Every barrel of bitumen exported loses money and more pipelines won’t change that.” j
Tom Sandborn lives in Vancouver and is interested in energy issues. Contact firstname.lastname@example.org
Photo: Wind turbines near Goldendale, Washington.