Today in the BC Legislature I rose during estimate debates for the Office of the Premier to ask the premier how he plans to reconcile a new two to four train LNG facility in Kitimat with the province’s recently announced commitment to reduce greenhouse gas emissions by 40% from 2007 levels by 2030. This task will be particularly onerous in the event that new bottom-up methane fugitive emissions measuring techniques are introduced in the province.

Below I reproduce both the video and text of my exchange with the Premier. As I noted in an earlier post, I believe it isn’t possible to do so.

Video of Exchange

Text of Exchange

A. Weaver: I have three questions for the Premier, concerning government policies on LNG development. Let me please start by saying I’m extremely encouraged by the work underway on developing a truly visionary climate plan, and I’m fully committed to delivering on the opportunity that this minority government has — to finally put a plan together that understands that addressing climate change and meeting our greenhouse gas reduction targets is an economic imperative, yet also an economic opportunity.

This will require hard work, thoughtful and innovative solutions and the engagement of all British Columbians. What we must never again allow is for the stated commitments to reduce emissions to be used as a cover for actions that undermine that commitment. That is what we see playing out federally. I believe this government is sincere in its commitments to meeting its greenhouse gas reduction targets, but they have some work to do in showing how the action they have taken — advancing a major expansion of a fossil fuel industry like LNG — is in line with these commitments.

Please let me explore with you three questions. First, in May 2015, the B.C. Liberal government signed a development deal with Pacific NorthWest LNG, in an aggressive move to spur the Malaysian-led project to become the first major Canadian exporter of LNG.

In response, the Premier, who at the time was the Leader of the Official Opposition, was sharply critical and said the provincial government had put too much on the table for industry. I just want to provide a quote. He said this: “My biggest concern is that we are tying the hands of future governments because a desperate government made commitments that they overpromised on.” He said in Victoria: “And now they want to get a deal at any cost.”

The B.C. NDP argued that the agreements the B.C. Liberals were offering to LNG companies were too one-sided and did not provide sufficient certainty for the owners of the resource, the general public. The NDP at the time charged that this was “a sellout for B.C.,” and they said also: “The LNG tax legislation was written by industry and for industry.”

Hon. Chair, are we not similarly now offering LNG Canada a deal that has been written explicitly for them, while ignoring the costs that this project will incur on British Columbians, including the costs to other sectors of our economy that will be forced to pay to accommodate the massive increase in our greenhouse gas emissions?

Hon. J. Horgan: I thank the member for his participation in the estimates today. I know there will be a series of questions on this issue. It’s one that is of critical importance to him and his colleagues, and also to all British Columbians.

When we formed a government, we were approached by industries — mining, forestry and any number of industries — to find out what the new government’s plan was on taxation and what regulatory regime would be in place for a range of issues.

We established a framework for the LNG industry. The member will know — we talked about this during the election campaign — that we wanted to ensure there was going to be a return to taxpayers for the resource that belonged to them. Ministry of Finance officials worked on the development of the framework to ensure that there would be a benefit to British Columbia’s treasury as a result of any LNG development in British Columbia, and that’s what the framework is designed to do.

We also made a commitment to the public, and reinforced that when I was in Asia talking to potential proponents, that Indigenous participation and meeting our climate action objectives were integral to any approval by the province of British Columbia.

I know the member’s participation in the development of our climate action plan going forward will be absolutely pivotal to our success. I look forward to his interventions.

I just want to say that as we look at the potential of a final investment decision in the north, we want to make sure…. Industry has said to us — leaders of industry — that they welcome this type of private sector investment. I’ve said to them, as I know the member has, that if there’s an increase in emissions as a result of this sector growing, then that means there’s going to need to be a concurrent reduction and more so in other industrial activity. The business community understands that.

We need to make sure that as we develop the plan, in concert with our colleagues here in the Legislature, that we know that industry understands that we need to reduce emissions over time. If we’re going to have a net increase from one project, that means concurrent decreases from other sectors.

A. Weaver: A key reason why I want to ask this question, the previous one and the next two, is that the financial regime that this government has brought forward is described by the Premier’s government as a better deal than what the B.C. Liberals were offering. When this was brought forward earlier this year, it was reported: “The tax breaks would water down LNG taxes enacted by then Premier Christy Clark after the 2013 election. Instead of the provincial treasury receiving an estimated $28 billion in revenue over 40 years if LNG were built, B.C. would take in only $22 billion.”

Put another way, we’re offering a project that would become the single largest source of new greenhouse gas emissions in Canada at a $6 billion discount from what the previous government was willing to offer, not the least of which is also including a reduction in electricity rates, PST and exemptions on carbon tax increase.

Why are we going out of our way to offer a better deal than even the B.C. Liberals were willing to consider to bring an LNG industry to British Columbia, in spite of the commitments we have made to a real climate plan?

Hon. J. Horgan: I thank the member for his questions.

Firstly, I think we have to look back at the market for natural gas in North America and the precipitous drop-off in prices here for a commodity we have in abundance in the northeast.

When the former government put in place their LNG tax, they had an expectation of higher market prices, which would have led to potentially more revenues coming to the province. But as prices continued to be soft and demand continued to be flat, the prospect of an investment started to fall away. We saw proponent after proponent after proponent leaving the province because with the framework that was in place from the previous government, it wasn’t possible to realize a final investment decision.

Again, working with Finance officials, we took a look at what was possible with tax changes, a repealing of the B.C. Liberal LNG tax and bringing in a tax that would allow us to continue to get revenue to the Crown and also allow the project to proceed.

With respect to electricity, again, the B.C. Liberals created…. Again trying to squeeze more juice out of what was a declining prospect because of prices internationally, they created a new tariff for electricity. We agreed with the industry that if you’re a pulp mill or a mine or any other industrial activity, there’s a tariff that you pay, and that should be the same tariff for an LNG manufacturing plant.

What we have done when it comes to electricity prices is put in place an industrial tariff that exists for all industrial activity. I think that’s a fairness question. On the energy-intensive, trade-exposed industries, I know the member and I have had long discussions about this. He understands the issue very well. If we are going to have a successful climate action plan and a robust economy, we have to keep our energy-intensive, trade-exposed industries in a position of being able to be positive and also meet our climate objectives.

This is not going to be an easy challenge. The member knows that better than anyone else in this Legislature. It’s for that reason that I’m grateful that he’s on board to try and help square this circle. But the investment opportunity is significant. Upstream electrification will help reduce emissions from wellhead to water line. These were issues that we debated in this Legislature when the previous administration brought forward their ideas. I think we’re in a better position now to make the changes that we need.

We’re not focusing on one, two, three, four or ten LNG plants. It’s two trains and a community that is receptive and that has almost complete First Nations participation. I believe that if we work very hard on this, we’ll be able to see a final investment decision by what is a very diverse group of proponents from China, Japan, Korea and Royal Dutch Shell. I think the opportunity is a positive one, but the challenges are significant, and no one knows that better than the member for Oak Bay–Gordon Head.

A. Weaver: Thank you for the answer. I certainly hope government is looking to support from the B.C. Liberals for repealing the LNG Income Tax Act because the B.C. Greens have been quite clear that we will not support the repealing of the LNG Income Tax Act, in light of the fact that the deal that was given by the B.C. Liberals was a rich deal at best, and this rich deal is being made richer. I look forward to the debates ahead as the B.C. Liberals stand in support of government repealing the LNG Income Tax Act that they brought in.

In 2016, the NDP concluded that plans for the $11.4 billion terminal at Lulu Island would generate an unacceptable increase in the province’s greenhouse gas emissions and filed a definitive position against the project with the federal environmental authorities. “The project,” the NDP noted in their March 2016 letter to the Canadian Environmental Assessment Agency, “would increase the province’s entire carbon footprint for industry, transport and residential activity combined by 8.5 percent. The proposal failed to meet the condition of air, land and water protection with respect to both the threat to marine habitat and species as well as to climate, through unacceptable high and inadequately regulated gases, greenhouse gas emissions,” the letter stated. “Until and unless those deficiencies are addressed, we urge you to withhold final recommendation for the approval.” Those are the NDP words.

As was reported in Times Colonist at the time, the key reason the opposition was citing, greenhouse gas emissions, is an issue with all the big LNG plants that have been under consideration in B.C. for the past several years. If the B.C. NDP applies its Pacific NorthWest LNG reasoning to all other proposals, it’s hard to imagine a scenario where the party would support LNG in general. “Unacceptable high emissions cited by the letter are in fact lower than the emissions projected to arise from LNG Canada. According to Pembina’s analysis, LNG Canada would increase our emissions by 14 percent of 2015 levels.”

Furthermore, the same analysis projects that upstream emissions from LNG Canada will be comparable to those outlined as unacceptable in the Canadian Environmental Assessment Agency letter. LNG Canada is about five megatonnes of CO₂ equivalent a year. That’s for two trains — two then four. This would suggest the analysis that led the B.C. NDP to reject Pacific NorthWest LNG on climate grounds would equally, and more so, apply to LNG Canada. Again, I don’t have any philosophical objection to the LNG industry. LNG may be an important local transition fuel to meet our plans for commercial vehicles and other forms.

But what we can’t allow, and what I believe you were arguing yourself, hon. Premier, in the letter you filed with the Canadian Environmental Assessment Agency, was that the LNG industry cannot come at the expense of our commitments to reduce greenhouse gas emissions.

How does the Premier reconcile his strong opposition to Petronas with his support for LNG Canada? I don’t see how you can have it both ways.

Hon. J. Horgan: I thank the member for his question. Our analysis shows that the emission intensity of LNG Canada is significantly lower than the Petronas proposal or Pacific NorthWest LNG — 0.23 versus 0.15 in terms of with emission intensity. Also, LNG Canada proposes their upstream assets are largely in the Montney basin — the southern portion of the Montney basin — which will provide more opportunities for electrification to ensure that emissions at the wellhead are reduced so that the package from wellhead to waterline is significantly greater than the Petronas or the Pacific NorthWest LNG proposal.

I believe that new technologies that are proposed by LNG Canada also assist in reducing their profile, versus Pacific NorthWest LNG. The member will remember that the critical issue when it came to the Pacific NorthWest LNG issue was siting of the plant on Lelu Island, which was contested by the Lax Kw’alaams hereditary leadership as well as many very concerned about one of the most robust salmon rivers in North America at the mouth of the Skeena River. The putting at risk our wild salmon was a significant challenge that I believe Pacific NorthWest LNG wasn’t able to overcome.

When it comes to LNG Canada, they have the full support of the Haisla Nation. They have support virtually from Treaty 8 right through to Kitimat. The city of Kitimat is almost uniformly supportive. I believe that the fiscal framework we’ve put in place will allow a significant return to the people of British Columbia.

The challenge, as the member knows full well, is meeting our climate objectives. We’re going to need a lot of work by a lot of people to do that. Individuals are going to have to reduce their footprint. Industry is going to have to reduce their footprint to make space for this new emerging industry. But it will create significant employment growth, wealth for British Columbians and, I believe, will allow other jurisdictions to reduce their climate emissions by having a transition fuel in place.

I thank the member for his questions.

Today the BC Green and BC NDP caucuses celebrated the one year anniversary of the signing of our historic Confidence and Supply Agreement.

The Premier and I took the opportunity to celebrate the event at the offices of Alacrity Foundation in Victoria. This was a fitting venue since Alacrity represents a stellar example of innovation in the new economy.

Alacrity has helped bring over $225 million to B.C.’s technology ecosystem through its investor readiness program and on April 19, 2018, the Province announced that it was investing more than $711,000 over the next three years in the Alacrity Foundation of B.C.’s Cleantech Scale-Up program.

Below I reproduce the brief remarks I gave at the event as well as our joint press release.

My remarks

I am delighted to be here to celebrate the one year anniversary of the announcement that we had reached a Confidence and Supply Agreement with the BC NDP.

The 2017 election was historic for our Party. We doubled our popular vote count and tripled our seat count.

When the results came in as a minority government, we felt an enormous weight on our shoulders. We took our decision very seriously.

In the end, we decided BC needed a change. It was clear that most British Columbians wanted things to be done differently.

There was a clear desire for bolder, forward-looking policies on a range of important issues:

affordability;
environmental protection;
investments like child care and public education that will give our children the best possible future.

CASA is the result of two distinct parties coming together around shared values.

Ultimately we want the same thing:

to improve the health and wellbeing of British Columbians;
to make government more responsive to the challenges and opportunities they face in their everyday lives;
and to set our province up for success.

There have been ups and downs in the first year, but like any relationship our Agreement has required us to work through our issues and come together to find solutions that we can both support.

This is a special opportunity – under majority governments, a party can get 100% of the power with as little as 39% of the vote and push through its agenda without having to consult or collaborate with any other parties.

This has often left British Columbians feeling disconnected and like their government is not listening to their concerns. In just the first year since signing our agreement, we have worked together to:

ban big money;
reform the lobbying industry;
make historic investments in childcare and public education;
advance key elements of the BC Greens’ economic vision for the province.

And we’re just getting started.

Right now, I am hard at work with Minister Heyman to develop a climate plan that puts a bold vision for BC’s economy centred around innovation at its core.

We have a unique opportunity to make BC a leader again in climate action.

While climate change poses significant risks and challenges, there are opportunities to be had as the world transitions to the low carbon economy.

But the benefits will only flow to those who are leaders – not the last adopters.

BC was once a leader in climate action, providing an example to the world that a strong economy and bold climate action are perfectly compatible.

I am looking forward to unveiling our plan to make BC a leader once again.

There are challenges that lie ahead, but I am deeply encouraged by our ability to come together to work through our differences.

John and I both know that there is more at stake than the future of our two parties – we are united in our love of this province and we want to set it up for the best possible future.

Our caucus remains committed to doing everything we can to work collaboratively to advance more solutions so that we can deliver on our shared commitments to the people of BC

Thank you.

Joint Media Release

Today in Kamloops I had the pleasure of giving a keynote presentation at the 2018 Annual General Meeting of the BC Chamber of Commerce.

I took the opportunity to outline our vision for a thriving, diverse 21^st century economy that builds upon our strategic strengths.

Below I reproduce the text of my speech.

Text of Speech

Introduction

Thank you for inviting me to “the River City” to speak not only about some of the work we’ve been doing over the past year, but also about our vision of economic prosperity for BC.

It’s been almost exactly one year since we signed our confidence and supply agreement with the BC NDP, signalling our commitment to supporting them in a minority government.

It’s somewhat ironic that it’s also been almost exactly one year since the publication of your breakfast keynote speaker (Adam Kahane’s) book Collaborating with the Enemy: How to Work with People You Don’t Agree with or Like or Trust — a book I bought and read last summer.

The last year seems like a year on fast-forward.
The minority government produced by the election – the first in 65 years in BC – led to the BC Greens playing a role we’ve never before played in BC politics.

It provided us an opportunity to champion key aspects of our economic platform in our agreement with the NDP.

To be successful in the 21st century economy, we need to capitalize on our strategic strengths and position ourselves to be leaders in the new economy. Achieving this has been the focus of our efforts in BC’s minority government.

As many of you know, before running for office in 2013 I was a climate scientist at the University of Victoria for 25 years.

Year after year, my students would ask me why so little progress was being made to reduce greenhouse gas emissions given that the science on climate change was so clear.

I told them that if they didn’t like the decisions politicians were making, they should consider finding someone to run or consider running themselves.

In 2012, as I watched the dismantling of Gordon Campbell’s legacy of positioning BC as a leader in the new economy, I realized I had to take my own advice. So, what motivated me to get into politics is fundamentally the same thing that I’m sure motivates a lot of you to do what you do.

I believe we have a responsibility to the next generation.

I believe in British Columbia and want to contribute to building the brightest possible future for our province.

If we want to secure a bright future for BC, we will do ourselves no favours by doubling down on the economy of the last century.

Instead, we must take stock of global trends – climate change, technological innovation, the rise of the knowledge economy – and point ourselves in a clear direction of where we want to go.

This year, the auditor general confirmed BC will miss our legislated 2020 greenhouse gas reduction targets.

Without a plan we will almost certainly miss our recently legislated 2030 targets as well.

Last year, wildfires, which the scientific community agrees will become more extensive, cost our province $750 million. Communities in BC are still recovering from flooding. The effects of global warming are not in some distant future – they are here now. And they will get far worse.

In this context, it’s not acceptable to continue to ignore our greenhouse gas reduction targets, and to continue to expand the fossil fuel infrastructure of the last century thereby pushing our targets further out of reach.

And this isn’t just an environmental issue – It’s critical from a business perspective as well.

The cost of failing to reduce greenhouse emissions will be profound for all sectors of our economy, both here in BC and around the world.

The world is coming together to find innovative solutions to the energy challenges arising from the transition to the low carbon economy. Globally countries like Saudi Arabia, China and Germany are investing billions in alternative energy production to position themselves as leaders of tomorrow.

There are opportunities to be had from transitioning to the low carbon economy, but they will flow to those who lead, not to those who follow.

Climate/LNG

Global investment trends are being driven by the world’s shared Paris commitments, predicated on the fact that keeping global warming under 2 degrees Celsius is far more cost-effective than dealing with the effects of a temperature rise above that level.

In the next two decades, renewable energy sources like wind and solar will comprise almost three-quarters of the US$10.2 trillion in new global investment in power generating technology.

The cost of solar is already on par with coal in Germany, the U.S., Australia, Spain and Italy, and will reach parity in China, India, Mexico, the U.K. and Brazil in 2021, if not sooner.

This shift presents a significant opportunity for B.C.’s economy. Our province is well poised to bolster its leadership in the cleantech sector – Vancouver alone is home to a quarter of Canada’s cleantech companies. And we can thank the leadership of Gordon Campbell for bringing this to fruition.

In 2016, B.C. cleantech generated approximately 13,900 jobs with an average salary of $84,000. We have a strong competitive advantage in the building blocks required to foster a knowledge-based economy.

Natural gas – royalty credits

Despite the new opportunities we’re presented with, in BC today, our government is continuing to pursue the dream of exporting LNG, and is perpetuating a natural gas giveaway.

We have seen massively decreasing revenues to BC from gas extraction.

What the data shows is quite shocking – while gas production has gone from 25 billion cubic metres in 2001 to over 50 billion cubic meters in 2016/17, royalty and land lease revenues to the BC government have gone in the opposite direction, from a record $2.4 billion in 2008/09 down to only $139 million in 2015.

This is partly due to the fact that the B.C. government provides hundreds of millions of dollars every year to subsidize horizontal drilling in the northeast of our province, through the deep-well royalty credit program.

The deep well royalty credit program was originally meant to offset the cost of deep well drilling.

It was later extended to apply to horizontal drilling as well. Now both are common practice, so much so that companies have amassed more credits than they can spend.

The companies earn these credits by drilling qualified wells, and when the wells start to produce gas, the companies apply the credits to reduce or even eliminate provincial royalties that they normally pay on this public resource.

In recent years, the participating companies have amassed credits faster than they can spend them. The balance in their deep-drilling account has increased from $752 million in 2012 to an accumulated $3.2 billion today.

Not only are we not getting paid for this public resource, we are literally paying companies to take it from us.

In 2009, B.C. collected $1.3 billion in natural gas royalties. Last year, we collected a mere $152 million. Measured as a share of the value of oil and gas production in B.C., royalties collected by government has fallen from 44 percent in 2008 to just 4 percent last year.

In 2009, BC earned $39.90 in royalties for every 1000 cubic metres of natural gas. In 2017 it was $2.95.

This is a dismal return on the resources that are being extracted from our province. We are giving away more gas for less money while barrelling past our climate commitments. That’s race for the bottom economics at its finest.

Opportunity/innovation

The future of economic prosperity in BC lies in harnessing our innate potential for innovation and bringing new, more efficient technologies to bear in the resource sector.

BC will never compete in digging dirt out of the ground with jurisdictions that don’t internalize the same social and environmental externalities that we value.

We will excel through being smarter, more efficient, & cleaner.

This means that we not only export the dirt, but we also export the knowledge, technology and value added products associated with resource extraction.

A great example is Vancouver-based MineSense’s technology that saves mines between $20 million to $200 million per site, while also reducing electricity and water consumption by 20 to 25 per cent and tailings by up to 40 per cent.

Through MineSense’s innovation, B.C.’s economy grows by creating the technology that enables others to make this same transition.

Efficiency also means ensuring B.C. is getting the maximum value for our resources. The last two provincial budgets reported job losses in forestry, fisheries, mining and oil and gas.

My caucus and I hear a common theme from resource businesses, industry groups and local governments — the economic value of B.C.’s natural resources does not remain in our communities.

It’s profoundly ironic that many believe that doubling down on the approach of the BC Liberals is somehow good for the resource sector when in fact, the job losses, downturn in the resource sector, and economic troubles in rural BC have occurred precisely under the watch of the BC Liberals over the last six to eight years.

In forestry, sawmills close as raw log exports persist. In fisheries, quotas become concentrated in the hands of a few companies, pricing young fishers out of the market.

Seafood caught in Canadian waters is shipped to Asia, where it is processed, and then shipped back here to be sold.

The Trans Mountain Pipeline expansion seeks to export diluted bitumen, which must be refined abroad before it can be of any use to consumers.

Every time we ship a raw commodity overseas, we forgo opportunities to create well-paying jobs and grow our economy.

There is no need for this — B.C. has a highly educated workforce, a strong entrepreneurial spirit, and world-class research institutions.

Our high school students are consistently top ranked — with the OECD noting that BC is one of the smartest academic jurisdictions in the world. Our high quality of life and beautiful natural environment attract some of the best and brightest from around the globe.

In every corner of the province, innovative British Columbians are using these strengths to generate economic prosperity. After the Midway Mill closed in 2007, the town raised capital to invest in a technological overhaul and reinvigorate the mill.

At the Wood Innovation and Design Centre in Prince George, students learn how to bring design, technology and forestry products together to develop innovative high-performance wood products.

The centre was built using value-added wood products from Structurlam, a highly innovative Penticton-based company whose products have been used in award-winning buildings all over the world.

To get a fair value for our resources that deliver maximum benefits to our communities, we need to get smarter and more strategic when it comes to embracing innovation.

Government’s role

Government should be doing more to support these initiatives and create fertile ground for a sustainable, resilient, and diverse economy.

In our Confidence and Supply Agreement with the NDP, we included two key pieces from our 21st century economy platform to help us seize economic opportunities in the emerging economy.

The first piece is the Emerging Economy Task Force.

We proposed the Emerging Economy Task Force to enable government to adapt and respond to changes on the horizon.

We need to modernize government so that it is considerably more responsive to technological innovation.

In one example, six years since ride hailing attempted to enter our market, Vancouver is still stuck with fewer options than every other major city in North America. This shouldn’t be the case.

The role of the Emerging Economy Task Force is to look to the future, identify emerging trends and advise government on how to maintain our competitiveness and achieve prosperity amidst these changes.

The second item from our platform that we integrated into CASA is the Innovation Commission (now Innovate BC) as well as the appointment of an Innovation Commissioner.

The innovation commissioner was proposed to be an advocate and ambassador on behalf of the B.C. technology sector in Ottawa and abroad, to enable B.C. companies to more easily tap into existing federal programs and build key strategic relationships.

I’m confident that both of these initiatives will bolster key sectors of our economy as we go forward.

We should be using our strategic advantage as a destination of choice to attract industry to BC in highly mobile sectors, like tech, that have difficulty retaining employees in a competitive marketplace.

We should be using our boundless renewable energy resources to attract industry, including the manufacturing sector, that wants to brand itself as sustainable over its entire business cycle, just like Washington and Oregon have done.

We should be setting up seed funding mechanisms to allow the BC-based creative economy sector to leverage venture capital from other jurisdictions to our province.

Too often the only leveraging that is done is the shutting down of BC-based offices and opening of offices in the Silicon Valley.

We should fundamentally change the mandate of BC Hydro. BC Hydro should no longer be the builder of new power capacity.

Rather, it should be the broker of power deals, transmitter of electricity, and leveller of power load through improving British Columbia power storage capacity. Let industry risk their capital, not taxpayer capital, and let the market respond to demands for cheap power.

Similarly, by steadily increasing emissions pricing, we can send a signal to the market that incentivizes innovation and the transition to a low carbon economy. The funding could be transferred to municipalities across the province so that they might have the resources to deal with their aging infrastructure and growing transportation barriers.

Yes, we should be investing in trade skills, as described, for example, under the B.C. jobs plan. But we should also be investing further in education for 21st century industries like biotech, high tech and cleantech. It’s critical that we bring the typically urban-based tech and rural-based resource sectors together.

Natural gas has an important role to play.

But, we should use it to build our domestic market and explore options around using it to power local transport. BC businesses such as Westport Innovations and Vedder Transport have already positioned British Columbia as an innovative global leader in this area.

The digital technology supercluster provides another example of exactly the type of innovation government should be doing everything it can to support. The supercluster is estimated to generate up to 15,000 jobs and $15 billion in economic activity in the coming decade.

It offers an opportunity to bring together the private sector, our post-secondary institutions and government to solve problems and accelerate innovation in key sectors in our province, like health care, forestry and manufacturing.

The companies involved in the supercluster are diverse, innovative and deeply committed to seeing success in British Columbia, and their initiative will help B.C. be more competitive as we respond to changing global trends, and help us get a better return for our resources.

Benefit companies

Finally, I’d like to speak today to a recent initiative our office has undertaken, to have benefit company legislation passed in BC.

This legislation would support companies that choose to integrate economic sustainability and social responsibility into their business mandate, by enabling them to incorporate as benefit companies in BC.

By incorporating as benefit companies, businesses would achieve greater certainty for their directors and investors about their goals and mandate, enabling them to attract capital investment while staying true to their mission as they scale.

Benefit companies are critical because they recognize that in today’s new economy — with triple-bottom-line reporting, providing a workplace where you actually create an environment that is conducive to attracting and retaining employees in a very progressive manner — these are the types of companies that are attracting the millennial generation.

This legislation is an opportunity for B.C. to lead the country in supporting businesses that want to be a bigger part of developing innovative solutions to the challenges of the 21st century.

I am hopeful that government will support this legislation and that we will be the first jurisdiction in Canada to have benefit companies.

Conclusion

We will not solve the challenges of the 21st century by chasing 20th century solutions. In the shadows of the massive challenges that we face, our province needs a new direction.

But we can turn these challenges into opportunities if we have a forward-looking vision, an evidence-based approach to policy and political leadership that thinks beyond a four-year election cycle.

Most importantly, I believe that we must reject politically motivated attempts to pit the environment against the economy. Doing so will only short-change resource-dependent communities by justifying the race-to-the bottom economics of raw commodity exports.
Instead, we need a new direction that offers a realistic and achievable vision grounded in hope and real change.

A new direction that places the interests of the people of British Columbia first and foremost in decision-making. And it’s not only today’s British Columbians that we must think about, it’s also the next generation who are not part of today’s decision-making process.

I am truly excited about the prospects that lie ahead in this minority government. British Columbia has so much to offer and we can and shall be a leader in the new economy.
Thank you all again for having me here today to speak with you.

I look forward to more conversations to come.

Today in Vancouver I met with a group of business leaders in Vancouver to discuss legislation I plan to table next week that would enable us in British Columbia to lead the country in supporting businesses that want to be a bigger part of developing innovative solutions to the challenges of the 21st century.

Over the last few months my legislative staff and I have been working with these and other stakeholders to craft legislation that would enable a new classification of companies in British Columbia — The Benefit Company.

A benefit company is profit driven but gives consideration to the impact it is having on the environment, its workers, the community, suppliers and customers, and can direct profits to the public benefit versus solely to shareholders. This legislation would provide a legal framework for companies that choose to pursue social and environmental goals and operate in a responsible and sustainable manner. By making B.C. the first jurisdiction in Canada to allow businesses to incorporate as benefit companies, we are sending a strong signal about the kind of economy we want for our province. Already, more than 30 states in the US have Benefit Company enabling legislation.

Below I reproduce the press release that we released after the roundtable discussion. I also append my initial speech at the media availability.

Media Release

Andrew Weaver to introduce legislation to support companies that pursue social and environmental goals
For Immediate Release
May 2, 2018

VANCOUVER, B.C. – Andrew Weaver, leader of the B.C. Green Party, announced today that he will introduce legislation that would enable B.C. companies to incorporate as benefit companies. The bill, which Weaver announced following a roundtable with business leaders in Vancouver, would amend the Business Corporations Act to allow companies that choose to incorporate as benefit companies to pursue social and environmental goals, rather than just profit.

“This legislation is an opportunity for B.C. to lead the country in supporting businesses that want to be a bigger part of developing innovative solutions to the challenges of the 21st century,” said Weaver.

“The world is experiencing tectonic shifts – from climate change to automation, we need to think differently in order to turn these challenges into opportunities. Government and individuals cannot solve these problems alone. Businesses play a huge role in our society and they are part of the solution. Companies that pursue a triple bottom line are on the cutting edge of rethinking the role of business in the 21st century. They know that acting in the best interests of people and the planet is the best way to build a thriving economy for the long-term.

“This legislation would provide a legal framework for companies that choose to pursue social and environmental goals and operate in a responsible and sustainable manner. By making B.C. the first jurisdiction in Canada to allow businesses to incorporate as benefit companies, we are sending a strong signal about the kind of economy we want for our province.”

Weaver’s bill is his caucus’ first bill to be put through the official legislative drafting process, making it possible that this could be the first Private Member’s Bill in B.C.’s history to be passed into law.

Quotes:

“With so many diverse and innovative companies doing great work, B.C. is a fantastic place to invest. Companies that incorporate environmental and social considerations into their business models demonstrate that they have a long-term vision for their role in the province. Enacting Benefit Company legislation sends a signal to the business community that government supports companies that want to use their business as a force for good.”

• Joel Solomon, Chair & Co-Founder, Renewal Funds

“The values of social and environmental responsibility inform everything we do at Keela. Building a company on these values sends a clear signal to our clients about what we stand for and demonstrates that our company is built to last. This legislation will encourage more BC companies to incorporate these values into their own business, empowering them to promote social and environmental change in our province.”

• Nejeed Kassam, CEO, Keela

“The proposed legislation will surely be welcomed by the growing community of impact investors in British Columbia. Benefit corporation status will give these investors additional confidence that social and environmental outcomes will be an integral and protected part of business decision-making.”

• Norm Tasevski, Co-founder, Purpose Capital

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Media contact

Jillian Oliver, Press Secretary
+1 778-650-0597 | jillian.oliver@leg.bc.ca

Backgrounder

• A benefit company is profit driven but is committed to environmental sustainability and social responsibility in addition to profit
• Corporations are able to incorporate as a benefit company in over 30 US states
  • According to the non-profit B Lab, more than 5,000 companies have chosen to become benefit companies where legislation exists, and they’ve raised nearly $2 billion in capital
  • Notable benefit companies include Patagonia, Method Home Products, Plum Organics, Kickstarter, and Laureate Education
• The choice to become a benefit company is voluntary and there are no tax benefits or impacts on other companies
• The proposed amendment to the Business Corporations Act will create a new part that enables companies to become benefit companies under the Act. These companies will have to meet certain requirements, including:
  • Committing to operate in a socially responsible and environmentally sustainable manner, and to promote specific public benefits
  • Reporting publicly against a 3rd party standard
• If this legislation passes, BC would be the first jurisdiction in Canada to allow companies to incorporate as benefit companies

Jillian Oliver | Press Secretary
Room 028 Parliament Buildings
Victoria, BC V8V 1X4
Phone: (250) 882-6187 | Fax: (250) 387-833

Initial Statement to the Media

Introduction

Thank you all for coming. And thank you Bernie for the introduction.

I’ve just had a roundtable with a group of inspiring business leaders. These people have chosen to use their business as a force for good.

They are running successful companies, creating jobs and contributing to our strong economy. But what sets these businesses apart is their commitment to not only seeking profits, not only creating financial value for their shareholders, but also their commitment to pursuing social and environmental benefits as part of their work.

I think that government should do more to support and empower companies like these ones that pursue a triple bottom line of people, planet, and profit.

Announcing legislation

That’s why I am happy to announce today that I will be introducing legislation this session to support sustainable and responsible businesses. This bill would amend the Business Corporations Act.

It would add a new Part to the Act, giving companies an option to incorporate as “benefit companies”.

It would allow companies that choose to become benefit companies to pursue social and environmental goals, rather than just profit.

The bill will include some requirements that benefit companies would need to adhere to. These include putting their public benefit commitments in their articles, and meeting standards of transparency and reporting by reporting progress against an independent third party standard.

This bill will also protect companies that choose to prioritize social and environmental purpose as part of their mandate. It will provide clarity and certainty for companies and their shareholders about the company’s goals and mandate. And companies will need a shareholder majority to become or stop being a benefit company.

Why this legislation

This legislation is an opportunity for BC to lead the country in supporting businesses that want to be a bigger part of developing innovative solutions to the challenges of the 21st century.

This legislation is common elsewhere. In the US, over 30 states have this type of legislation. And successful companies of all sizes have signed on.

I believe that becoming the first jurisdiction in Canada to champion benefit corporations is a huge opportunity to position the province as a leader.

We are struggling to adjust and respond to massive technological, social, and environmental shifts. From climate change to automation, we need to think differently in order to turn these challenges into opportunities. Government and the non-profit sector cannot respond to these changes alone.

Nor should we have to.

Businesses play a huge role in our society and they are part of the solution. Companies that pursue a triple bottom line are on the cutting edge of rethinking the role of business in the 21st century. They know that acting in the best interests of people and the planet is the best way to build a thriving economy for the long-term.

Conclusion/opportunity

In drafting this bill, we have taken government up on their decision to make legislative drafters available to all private members. We have been working with a legislative drafter to ensure that this legislation is legally correct, and that it works with other pieces of legislation in BC.

I’m committed to seeing this bill will be called for debate in the house.

Ultimately, I believe it’s a bill that both the BC NDP and the BC Liberals can support.

Our hope is that, if government passes this bill, that we can encourage more BC companies to incorporate social and environmental values into their own business, empowering them to promote social and environmental change in our province.

Thank you.

Today in the legislature I took the opportunity during Question Period to ask the Minister of Jobs, Trade and Technology about what his Ministry is doing to encourage integration between BC’s tech and mining sectors.

British Columbia is blessed with a wealth of natural resources, and many communities rely on these resources for their livelihoods. But British Columbia will never compete head to head in digging dirt out of the ground with other jurisdictions that don’t internalize the social and environmental externalities that are so important us to. We have to be smarter, more efficient and innovative. In doing so, we’re not only able to sell our resources, but we’re also able to sell the knowledge and value-added products that arise from them.

Rather than adopting a race-for-the-bottom approach to deregulation, we have an incredible opportunity here in British Columbia to integrate our tech sector and our extractive resource industries.

Below I reproduce the video and text of our exchange.

Video of Exchange

Question

A. Weaver: British Columbia is blessed with a wealth of natural resources, and many communities rely on these resources for their livelihoods. But British Columbia will never compete head to head in digging dirt out of the ground with other jurisdictions that don’t internalize the social and environmental externalities that are so important us to. We have to be smarter, more efficient and innovative. In doing so, we’re not only able to sell our resources, but we’re also able to sell the knowledge and value-added products that arise from them.

Rather than adopting a race-for-the-bottom approach to deregulation, we have an incredible opportunity here in British Columbia to integrate our tech sector and our extractive resource industries. B.C.-based companies like MineSense, a company that creates digital mining technology, exemplifies such innovation.

To the Minister of Jobs, Trade and Technology. Partnering our resource industries with B.C. innovation is an easy choice with obvious returns. What is this minister doing to encourage these partnerships?

Answer

Hon. B. Ralston: I share the member’s optimism about the power of technological discovery and innovation to transform very traditional resource industries. And in fact, that’s what we’re doing by appointing the innovation commissioner and expanding the mandate of Innovate B.C. to support emerging technologies that will assist in transforming our resource industries.

MineSense is a very good example that illustrates the point, I think, extremely effectively. MineSense is a company which won an award as one of the world’s top-100 new clean-tech companies. What is does is it’s a technology which assists in sorting mining ore through a sensor system, which makes the process more efficient and therefore more profitable, but it also reduces the use of water, reagents and other aspects of the mining process, and it reduces CO2 emissions, therefore making the entire process more energy-efficient and, in effect, greener.

That’s the kind of transformation that’s coming about in the sector, and that’s what the innovation commissioner and the innovation commission are setting out to continue and to enhance, building future prosperity here in British Columbia.

Supplementary Question

A. Weaver: For far too long, government has ignored the potential for innovation within the resource sector. A race-for-the-bottom approach to resource extraction may benefit a few corporate elite, but it’s not in the best interest of communities across our province struggling to attract and retain well-paying, long-term jobs.

It’s not our raw resources that can be profitable in the global markets; it’s our innovation too. Rimex, for example, is a B.C-based company that designs and manufactures innovative, cutting-edge industrial tires. Their products are efficient and reduce risk, and they’re also a prime example of B.C. innovation that’s gone global. The manufacturing base and corporate headquarters for Rimex are both located in the Lower Mainland, and there are over 200 Rimex employees in British Columbia.

My question to the Minister of Jobs, Trade and Technology is this: what is the minister doing to foster the growth of B.C. mining sector innovation in this global marketplace?

Answer

Hon. B. Ralston: Again, I thank the member for the question. The government, the Minister of Energy and Mines, has appointed a mining task force, and those issues that the member raises are precisely some of the issues that that task force will raise — how to integrate British Columbia’s leading innovation and technology sector with the traditional resource industries in order to make sure that they can compete globally.

Another example of a B.C. company that is transforming the mining sector is LlamaZOO, which by using data analytics and visualization technology, enables those proposing a mine to create a digital double of the mine and to plan the extraction of the ore in a more efficient way. That technology has attracted wide interest in the mining sector, and that company is, understandably, doing very well.

That’s just one example of what innovation and the support that’s given to it by the government of British Columbia will do to transform the mining sector and enable it to continue to be a world-leading sector here in British Columbia.