Climate Policy Engagement Analysis
Climate Policy Engagement Overview: The Mining Association of Canada (MAC) is strategically engaged on climate policy. It has expressed top-line support for climate policies while advocating for provisions which may weaken their overall climate ambition. MAC also appears to support the decarbonization of Northern Canada mining sites, but continues to support the role of fossil fuels in the wider energy mix.
Top-line Messaging on Climate Policy: MAC has mixed top-line communications on climate policy. On its ‘Climate Change’ webpage, accessed in July 2023, MAC supported the Paris Agreement. MAC also appeared to support achieving net-zero emissions by 2050 in a response to Pre-Budget Consultations in advance of the 2023 Budget in November 2022. While the association has also supported climate change regulations and a price on carbon on its website (as of July 2023), it qualified this support by stating that regulations should not impact the competitiveness of emissions-intensive, trade-exposed (EITE) sectors, including the mining industry. MAC CEO Pierre Graton reiterated this in a witness statement to the Canadian Standing Committee on Industry and Technology in February 2022.
Engagement with Climate-Related Regulations: MAC has expressed top-line support for climate policies while advocating for provisions which may weaken their overall climate ambition. In its June 2023 Annual report, MAC supported the Canadian government’s decision to exempt liquid fuels used for power generation in off-grid mines from the Clean Fuel Regulation (CFR), weakening its reach across emitting fuels. MAC has been consistently unsupportive of the CFR’s application to off-grid mines, stating in its June 2022 Annual Report that the CFR should be implemented via a phased-approach for off-grid mines, suggesting a period of 5 to 10 years.
Further, in its June 2022 Annual report, MAC stated that should a border carbon adjustment tax be pursued in Canada, EITE industries including mining and oil & gas must be protected, and stated that MAC does not support the displacement of EITE protections as negotiated in the EU. In its June 2021 Annual report, MAC also stated that it has successfully engaged with policymakers to weaken Canada’s Output-Based Pricing System (OBPS), including the separation of process emissions from the overall output-based standard.
Positioning on Energy Transition: MAC’s engagement on the energy transition appears to be inconsistent. The association has advocated for the introduction of small modular reactors (SMRs) to off-grid industries in Northern Canada. For example, in its May 2023 ‘The Canadian Mining Story’ report, MAC supported the use of SMRs in off-grid mines, but also supported the use of SMRs to decarbonize oil production - the IPCC states that in pathways that limit warming to 1.5°C, the global use oil in 2050 is projected to decline by 60% compared to 2019. It also supported the use of hydrogen alongside SMRs, but is not clear on its production method or the need to decarbonize hydrogen production. While the association has expressed concern towards the feasibility of moving away from diesel in off-grid Northern mines, it did state in its June 2023 Annual report that “promising emerging technologies like off-grid small modular reactors are all essential to reducing northern reliance on costly and higher-emitting fossil fuels”. In the same report, MAC also supported investments in Northern infrastructure (hydro grids, transmission lines), and advocated for the inclusion of off-grid operations in climate change policies including the Smart Renewables and Electrification Pathways (SREPS) program, to move their operations away from diesel fuel reliance towards renewables.
MAC also extensively advocates in favor of new measures to increase the exploration of minerals and metals necessary for renewable technology supply chains, including solar, wind, and electric vehicles. However, in these statements, the association does not disclose a clear position on the energy transition itself. Further, MAC continues to promote the development of new oil and gas infrastructure - in its March 2022 ‘2021 Facts & Figures’ report, the association supported the completion of the Trans Mountain crude oil Pipeline, improved pipeline capacity across North America, and the continuation of Canada's oil sands industry via the decarbonization of Canadian oil production.