Canada’s New Greenwashing Regulations: What You Need to Know

ARC ENERGY IDEAS

On June 20, 2024, Bill C-59 received Royal Assent and officially became law, implementing its provisions into Canadian legislation. The Bill, along with Bill C-69, which was passed on the same day, introduced new subsidies to encourage investment in clean energy in Canada. Bill C-59 established the Clean Technology Investment Tax Credit and Carbon Capture, Utilization, and Storage Tax Credit. Bill C-69 created the Federal Indigenous Loan Guarantee, the Clean Technology Manufacturing Investment Tax Credit, and the Clean Hydrogen Investment Tax Credit.
However, the positive impact of these new subsidies was overshadowed by the greenwashing regulations added late in the process for Bill C-59. The new greenwashing rules amend the Competition Act to require that claims made by companies about environmental, ecological, or climate change benefits can be verified. Because of the ambiguity of what is needed to comply with the rules, many energy companies have deleted all GHG emissions and other sustainability content from their websites, including annual sustainability reports and commitments to improve environmental performance in the future.
This week on the podcast, our guest, Kaeleigh Kuzma, a Partner at Osler in the Competition, Trade, and Foreign Investment Group, explained the new greenwashing rules.
Here are some of the questions Peter and Jackie asked Kaeleigh: Why is greenwashing included in the Competition Act? Can you explain the provisions? What does “proper substantiation in accordance with internationally recognized methodology” mean? Why are the rules so vague, and what is the process for clarity? Do these rules only affect oil and gas and other heavy-emitting companies, or do they also apply to clean energy companies? What is the process for filing a complaint against a company to the Competition Bureau? What are the methods of enforcement?
Other content referenced in this podcast:

• Osler’s detailed multi-part guide on the Competition Act amendments, with a specific section on deceptive marketing practices and greenwashing, here.
• Text of Bill C-59, see 74.01 (1), including (b.1) and (b.2)
• Form to provide feedback to the Competition Bureau on the amendments to the Act
• Kevin Krausert opinion “Ottawa’s anti-greenwashing bill will cripple cleantech innovation” (June 20, 2024)

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