By Amanda Stephenson
CALGARY (Reuters) -Canada’s newly finalized anti-greenwashing rules will make it easier for climate advocacy groups to bring lawsuits against oil and gas companies, an industry group and an activist organization said.
WHY IT’S IMPORTANT
The new guidelines released Thursday by Canada’s Competition Bureau lay out the approach the independent law enforcement agency will take with respect to deceptive environmental claims by businesses. The Competition Bureau developed the guidelines after the Canadian government passed legislation last year aimed at cracking down on corporate greenwashing, a term used to describe the marketing of products and practices as more environmentally sustainable than they really are.
The new guidelines make it easier for the Competition Bureau to take enforcement action against greenwashing, as well as for private parties to legally challenge companies on the basis of their environmental claims. Starting June 20, individuals and third-party organizations will have the ability to directly file an application to the federal competition tribunal alleging deceptive marketing provisions by a business.
QUOTES
Greenpeace Canada on Friday said it intends to make use of the new private right of action, particularly against Canadian oil and gas companies if it can determine they have made misleading environmental statements.
“We will be following oil and gas companies’ public pronouncements very carefully, with an eye to using the new tools in this legislation,” said Greenpeace Canada spokesman Keith Stewart.
CONTEXT
A number of Canadian oil and gas companies and energy industry groups removed content related to environmental performance from their websites last year, when the anti-greenwashing legislation was passed.
The Pathways Alliance, a group of Canada’s biggest oil sands producers, stripped their website of all references to their previously stated goal of reaching net-zero greenhouse gas emissions from oil sands production by 2050.
In the guidelines released this week, the Competition Bureau said businesses must be able to substantiate their environmental claims in accordance with internationally recognized methodology. The guidelines also say claims about future environmental targets must be backed up by verifiable plans as well as proof that concrete steps to achieve the goals are already under way.
REACTION
“We believe the amendments to the Competition Act related to environmental claims should be removed to allow businesses to speak openly and truthfully about what they are doing to improve environmental performance and without fear of meritless litigation by private entities,” Pathways president Kendall Dilling said late Thursday.
(Reporting by Amanda Stephenson in Calgary; editing by Edward Tobin)
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