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by
Seneca ESG
- June 21, 2023
In line with Canada’s 40% to 45% reduction in emissions by 2030 and net zero goal by 2050, the Canadian government has presented the new sustainable jobs bill, designed to prepare, and train workers for a future green economy. The new legislation is expected to hold future governments to account over the structures, guidelines, and accountability mechanisms put in place and in relation to supporting Canadian workers. [1]
Within the new sustainable jobs bill, there are three key developments being implemented. First, the creation of a partnership council that will advise the government on strategies, policies, and programs, collection of data, evaluation of effectiveness, engagement of stakeholders, and addressing referred matters. The council will consist of up to 15 members, including co-chairs, and will be appointed based on diversity and expertise. Members will receive remuneration and expenses, and they are considered part of the federal public administration. The council will also play a key role in shaping key policies such as the development of the wind and solar energy sectors to support the growth in sustainable jobs and ensure proper coordination between different stakeholders.
As the world’s fourth-largest oil producer and sixth-largest natural gas producer, the new bill is expected to attract significant investment and create a skilled energy workforce. The Canadian Renewable Energy Association (CanREA) predicts that the growth in wind and solar energy sectors in Canada will accommodate the expected influx of skilled sustainable energy workers. In 2022, these sectors experienced substantial growth, resulting in Canada’s installed capacity of over 19GW of utility-scale wind and solar energy, with 1.8GW added in the same year. [2]
Second, within the new sustainable job bill, the implementation of an action-plan will require the Canadian government to publish an action plan every five years. [3] The plan is aimed at facilitating economic growth, creating sustainable jobs, and supporting workers and communities in their transition to a net-zero economy. The plan’s contents include outlining the strategies and measures to be implemented by the federal government, specified ministers, and other relevant federal ministers over the next five years.
Moreover, the plan will also include milestones for federal entities and describe how the measures will be implemented, while providing a summary of available data related to economic growth and the labor market in a net-zero economy. The action plans will serve as a roadmap for achieving the government’s goals in this area. [4]
Third, the creation of a sustainable job secretariat will ensure coherence in policies across different federal departments. This coordination extends to national and regional levels, focusing on areas such as skills development, the labor market, worker’s rights, economic development, and emissions reductions. The secretariat will also play a functional role in assisting in the preparation of the sustainable jobs action plans and monitoring progress towards their goals. [4]
With the rapidly changing dynamic of the global economy, it is vital Canada’s workers have access to the resources and support to transition into green sector jobs. The trillions of dollars’ worth in opportunities for assets aligned with a net-zero future is huge. Canada possesses both the necessary natural resources and skilled workforce to capitalize on these opportunities.
To deliver on the new developments being implemented as part of the sustainable jobs plan, effective collaboration between governments, labor partners, and industries will be essential to support Canadian workers in every region. The Regional Energy and Resource Tables alone serves as an effective platform for the government to engage with provincial and territorial partners, focusing on economic opportunities throughout Canada. [5]
Weaknesses within the bill.
The sustainable jobs bill also recognizes the significance of creating employment opportunities for underrepresented groups in the labor market. It recognizes the rights of marginalized communities, such as women, persons with disabilities, and indigenous people. However, while these mentions of multi-stakeholder inclusivity are a step in the right direction, there are areas for improvement.
One critical concern is the absence of a clear plan for implementing Indigenous rights, including the right to free, prior, and informed consent regarding projects on their territories. This exclusion of information in the bill undermines the alignment with the UN Declaration of the Rights of Indigenous Peoples and the “Sustainable Jobs Plan.” Canada being the ethnically diverse country that it is, it is important Indigenous communities are represented and their participation is included in decision-making processes.
In fact, as the importance of indigenous matters in Canada continues to grow, there is a growing discussion on how indigenous issues can be integrated into ESG standards and ratings.
Typically, ESG frameworks which have been developed to assess factors like greenhouse gas emissions or diversity. In the case of indigenous issues many aspects of a company’s record of dealing with Indigenous issues are relationship-driven and qualitative, and hence difficult to measure by means of a typical ESG ratings framework. Furthermore, the implementation of ESG solution services which can track and monitor accurately different metrics and share data and insights across an organization, institution or business could significantly help with the inclusion of indigenous peoples. [6]
It is therefore crucial that the sustainable jobs bill considers a meaningful collaboration with stakeholders such as the indigenous peoples of Canada. Doing so will guarantee a more lasting, meaningful, and inclusive relationship in Canada’s transition to green energy.
Another notable weakness lies in the bill’s lack of ambition and concrete targets for social and economic transformation and emissions reductions. Without clear goals, the bill risks perpetuating the business-as-usual approach that has contributed to the current environmental crisis. Therefore, it is essential to set ambitious targets that drive the necessary transformation and provide a roadmap for achieving sustainability. [7]
Moreover, while the bill expresses support for creating good-paying, high-quality jobs and protecting workers’ rights, it falls short in providing a clear plan for economic transition in the post-carbon economy. This absence raises questions about how and when job creation will occur. A comprehensive strategy is crucial to ensure the timely and just creation of sustainable jobs. [7]
Overall, the sustainable jobs bill sets the groundwork for Canada’s transition to a net-zero carbon economy by 2050. However, it is important that alongside the new developments being implemented it addresses the areas of concern such as guaranteeing inclusivity for all stakeholders involved in the projects that will come.
Sources
https://www.ebmag.com/canadas-wind-and-solar-energy-sectors-grew-significantly-in-2022/
https://www.parl.ca/DocumentViewer/en/44-1/bill/C-50/first-reading
https://www.canada.ca/en/services/jobs/training/initiatives/sustainable-jobs/plan.html
https://canadians.org/analysis/sustainable-jobs-bill-shows-us-we-need-to-ramp-up-our-organizing/
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