The so-called “greenwashing” provisions of the federal government’s Bill C-59 are ill-conceived, lack benefits and have the potential for destructive unintended consequences across the economy. While the best solution is to abandon these provisions and enforce existing laws, there are ways the Competition Tribunal must act to minimize the damage now.
These provisions amend the Competition Act to require that businesses present thorough evidence for any claims they make about environmental benefits. The challenge is that these provisions have a silencing effect, preventing companies in all industries from talking about the good things they do.
This can put them out of sync with financial reporting requirements, restricting their access to capital and may even prevent some companies from investing in innovation; why do it if you can’t tell your investors and customers about it?
Rather than just complain about it, I’ve spent the past three months speaking to Alberta stakeholders across multiple industries to determine how this bill could be improved.
To be clear, the right answer is for the federal government to repeal Bill C-59, as the Competition Act contains sufficient provisions to address misleading claims and greenwashing.
But should the government opt not to repeal the bill, there are some ways it can implement the legislation to mitigate potential negative effects on jobs, capital investment and the overall competitiveness of Alberta’s economy.
Specific definitions
The Competition Bureau should work closely with stakeholders to develop clear, specific definitions of terms and provide detailed guidance on compliance requirements and guidelines. This could include specifying acceptable types of evidence, outlining documentation requirements and defining reasonable time frames for substantiation.
Phased implementation
Adopting a phased implementation of the new legislation would allow companies time to adjust their practices and reporting mechanisms without facing immediate penalties. This would ensure a smoother transition and increase compliance rates.
Industry task force
Creating a joint task force between the Competition Bureau and industry to develop best practices for environmental reporting and claims would ensure that all perspectives are considered and that the resulting guidelines are practical and effective.
Support for small and medium enterprises (SMEs)
The new legislation poses significant challenges for smaller businesses with limited resources. The Competition Bureau or the government should allocate dedicated resources and support systems to help SMEs comply with the upcoming regulations such as government-funded training programs or consultations to assist these companies in developing their environmental claims.
Regular review and adjustment process
The Competition Bureau should conduct a periodic review (e.g., annually) to assess the effect and effectiveness of the legislation, and provide recommendations to the government for amendments. This would allow for adjustments based on real-world implementation and industry feedback, ensuring that the regulations remain relevant and effective over time.
For Bill C-59 to work for, and not against, the business community, there must be reasonable and accessible methods in place for companies to prove environmental claims. There must also be thoughtful collaboration with businesses, ongoing critical evaluation of the legislation, a generous rollout timeline and robust support for SMEs. Without these measures, the legislation risks placing unnecessary strain on Alberta’s businesses.
I have always believed that the best solutions come from collaboration: working across party lines with all orders of government and stakeholders to find solutions. Even where we don’t agree, we need to listen to and understand each other. These last-minute amendments to Bill C-59, combined with the unwillingness of the Alberta government to make things better (they’d rather fight than win), do not serve Albertans and Canadians well.
Naheed Nenshi is the leader of Alberta’s New Democrats.