Canada’s energy transition: is a new oil pipeline good for climate?

John Woodside writes on the National Observer website about the mixed messages in Canada about what is good for the climate.

Head of Carney’s Major Projects Office thinks Trans Mountain is good for climate

Dawn Farrell, the head of the federal government’s Major Projects Office, believes the Trans Mountain oil pipeline helps fight climate change.

Speaking Thursday at the House of Commons environment committee, the former CEO of Trans Mountain who was tapped by Prime Minister Mark Carney to shepherd his major projects agenda, was asked by Bloc Québécois environment critic Patrick Bonin if she believed the pipeline contributes to the fight against climate change.
“The answer is yes,” Farrell said. “Most of the oil is cracked to make naphtha which goes into petrochemicals, which goes into making electric cars, to electrify the grid in Asia.”

The comments were first reported by La Presse.

Farrell, who told the committee she earns about $700,000 per year in her role at the Major Projects Office, did not offer any estimate for how many emissions she believes are avoided by using oil to help produce electric vehicles.

According to the Canadian Centre for Policy Alternatives, by facilitating more oil exports, the Trans Mountain expansion project is expected to add 84 million tonnes of greenhouse gas emissions every year when taking into account both the emissions from producing and consuming the oil.

“Trans Mountain is a financial drain and an environmental disaster, and it’s not reassuring to know that the CEO who finalized the project now heads the Major Projects Office,” Bonin said in a statement.

During Farrell’s term heading up Trans Mountain, costs skyrocketed from $20 billion when she joined to $35.6 billion — according to the latest cost estimates from the Institute for Energy Economics and Financial Analysis.

Farrell has almost 40 years of experience in the energy industry, having held senior roles with TransAlta, the Fording Coal Income Fund, BC Hydro, and others. Carney’s decision to pick an Alberta-based oil and coal executive for the key role is a decision linked to keeping Alberta Premier Danielle Smith from criticizing Ottawa’s objectives, some government insiders previously told Canada’s National Observer.

Bonin said Farrell demonstrated a clear lack of judgement assessing climate impacts of major projects, given she believes an oil sands pipeline contributes to the fight against climate change.

Believing “TMX contributes to the fight against climate change is as bad as saying that smoking cigarettes is good for your health.”

Previously, the Prime Minister’s Office has said the criteria to determine which infrastructure projects will be considered in the national interest includes having “clean growth potential,” among several other vague criteria.

Caroline Brouillette, executive director for Climate Action Network Canada, said that in the context of Asian markets adding renewable electricity to their grids, and Canada coming off the second worst wildfire season on record which scientists have clearly linked to fossil fuels, it is inappropriate for the head of a major Canadian institution to make comments like that.

“I am shocked that she has not been publicly reprimanded by the prime minister for those words,” she said.

Brouillette added that federal Environment and Climate Change Minister Julie Dabrusin has been quiet on the issue, and for the sake of climate action and credible public discourse, it would be helpful if the minister spoke up.

“Where is Minister Dabrusin on this?”

Dabrusin’s office did not provide comment from the minister. Her spokesperson, Keean Nembhard, provided a statement but did not address Farrell’s comments.

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