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If the Canadian oil and gas industry has not yet realized it is at war with the current federal government, enactment into law of Bill C-59 last month should open its eyes.

The bill makes significant amendments to the Competition Act, with an eye towards combating so-called “greenwashing,” which Merriam-Webster defines as the practice of “making a product, policy, activity, etc. appear to be more environmentally friendly or less environmentally damaging than it really is.”

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Bill C-59, which should really be called the “Oil & gas company cancellation act,” stipulates that any claims that citizens, advocates, organizations, or businesses make about the environmental benefits of a product or technology must be proven, by the measure of international standards so nebulous as not even to be defined. It is not clear which international standards companies need to measure themselves against or by whom outside of Canada they must be recognized. This does not bode well for oil and gas companies, which have long been demonized in international opinion.

The penalties imposed by the bill are not small. For corporations, the fine for a first offence could be up to $10 million, or three times the benefit gained from the “false advertising.” A second conviction would raise the fine to $15 million. In addition to hefty penalties, beginning next year activist groups can use Bill C-59 to bring their own claims against oil and gas companies, which seems certain to result in costly and time-consuming legal battles.

With this new gag law, the Trudeau government is attempting to stop oil and gas companies from promoting themselves to investors, governments, employees, customers, suppliers and the world in general. Canada already has world-class corporate governance and disclosure systems and standards that ensure accurate information gets to people who are making decisions. Bill C-59 ignores these clear and stringent governance standards and replaces them with vague ones that will be nearly impossible to comply with.

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As someone who has been fighting for Canadian oil and gas, I am not surprised by this law. But I am frightened by it. It is just another weapon in the arsenal of those who want to destroy our natural resource sector. For over a decade, oil and gas companies have been attacked simply for being oil and gas companies. Globally, movements have been calling for banks, university endowment funds, public pension funds and governments to stop investing in hydrocarbon energy.

Shareholder proposals have also been weaponized against oil and gas companies. The stated goal of these activist-offered proposals? To “make producers stop exploring for more oil and gas, “and to “wind down the company’s business in oil and natural gas.” Their asks all focus on the suppression and eventual elimination of oil and gas.

With net-zero plans, emissions caps and other anti-oil and gas policies, governments, regulatory bodies and financial institutions have made this country an inhospitable place for oil and gas companies, investors and advocacy groups. Bill C-59 is one more weapon for activists intent on scuppering Canadian oil and gas.

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What can industry players and their advocates do to fight back? They can start standing up for themselves. Many have recently scrubbed their websites of environmental claims for fear of running afoul of Bill C-59. That’s understandable, but it’s also wrong. Canada’s natural resource sector has made major strides in emissions reduction and strives to be a responsible steward of the environment. It should be proud of its success and willing to fight all the way to the Supreme Court of Canada, if need be, to defend its right to tell Canadians about it.

For years, oil and gas companies and other targets, like banks, have tried to appease the activists. That clearly hasn’t worked. Now is the time to stop cowering and speak up about all the good things that the industry brings to the citizens of the world. The truth may not be an admissible defence under Bill C-59 but, as the saying goes, it shall set you free.

Financial Post

Gina Pappano, executive director of InvestNow, was head of market intelligence at the Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV).

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