Reduction of GHG emissions | Subsidies for some major polluters in Quebec

Suncor, Rio Tinto and CRH Canada Group – three of the province’s biggest polluters – are among a small group of companies sharing $20 million in grants to reduce their greenhouse gas (GHG) emissions. The financial assistance from the Legault government raises eyebrows for the holder of the HEC Montréal energy chair Pierre-Olivier Pineau.

“What scandalizes me is not so much the subsidies, but the way in which it happens,” says the professor. We are talking about companies that already benefit from free allocations (rights to pollute). They are given money to reduce their GHG emissions for which they pay next to nothing. »

The money was distributed through decrees – before being announced by press release on Wednesday – and comes from the Assistance measure for the decarbonization of the Quebec industrial sector (MADI), endowed with an envelope of 48 million . They therefore monopolize more than 60% of the budget.

This program is presented by Quebec as a “transitional measure” while their rights to pollute will be reduced in an accelerated manner. It consists of financing a “technico-economic” study to reduce GHG emissions, concrete projects and technological innovation.

“Companies, particularly large emitters subject to carbon market regulations, have a crucial role to play in achieving Quebec’s climate targets,” said Benoît Charette, Minister of the Environment, the Fight Against Climate Change. , Wildlife and Parks, in a statement. This is why our government is working closely with large businesses to support their efforts to reduce their GHG emissions more quickly. »

Questions

If the money is about to be distributed, it was not possible to know, on Wednesday, what were the projects that would be deployed among the companies that will be helped by the Legault government. The latter was unable to offer details and the six companies did not respond to questions from The Press. In the case of Rio Tinto Alcan, it is the carrying out of studies.

For Professor Pineau, the objective of the MADI misses the mark.

“Quebec’s industrial sector emitted more than 13 million tonnes of GHGs in 2013 and it was 23 million in 2021,” he points out. We want to reduce them, but they have increased. We should stop giving gifts to companies that have already had them, but support those that have potential. »

The latter finds it hard to understand how we can help a company like Suncor, which operates a refinery in Montreal, when in the long term, the objective is eventually to stop consuming its products. There is an “absurd side” to the process, believes Mr. Pineau.

The page of the Ministry of the Environment, the Fight against Climate Change, Wildlife and Parks devotes an entire page to the MADI. A section is devoted to “accountability” for companies that will obtain subsidies. However, it will take place between the Ministry and the company.

“It could be more transparent,” said Mr. Pineau. The problem is that there is no independent verification. Everything happens between the company and the Ministry. You need a program with standards and you have to understand the objectives. Who will check if they are not reached? »

In total, 54 companies are eligible for financial assistance from MADI.