Study showing carbon-reduction projects stimulate economy a ‘farce’: Independent MLA

The province’s economy has enjoyed a significant economic boost from the four-year-old Pacific Carbon Trust, according to two studies commissioned by the controversial organization.

But a longtime critic of the trust dismissed the findings of both studies, which cost nearly $70,000. Independent MLA Bob Simpson said that the trust is desperately trying to build a case to justify its continued operations with these reports.

PricewaterhouseCoopers calculated a $317-million boost to the provincial economy by crediting the trust with private investment funds that went into 31 greenhouse gas-reduction projects in B.C. between 2008-2012.

Those projects included the upgrading of pulp mills, sawmills, greenhouses, gas drilling rigs and hotels throughout the province.

A Deloitte study also released on Thursday concluded there is opportunity for B.C. to sell carbon reductions – called carbon offsets – in the global market. The study did not quantify the opportunity for B.C.

“From our perspective, I think the economic study shows that progressive environmental policies and healthy economic development can go hand in hand,” said Pacific Carbon Trust CEO Scott MacDonald.

But Simpson said many of the projects listed by PwC would have gone ahead without money from the trust, and questioned the legitimacy of both studies’ analysis.

He noted projects such as Interfor’s Adams Lake sawmill bioenergy project were already complete by the time they received money from the trust.

“The trust money was a Christmas gift to companies,” said Simpson. “So, I think it’s a complete farce for the trust to then turn around … to suggest their money created these projects and therefore they can take credit for them,” he said.

PwC noted its analysis was not a program review, and therefore did not consider whether the projects would have proceeded without trust funding, whether financing was helped by government funding, or whether the projects themselves were valid.

The Pacific Carbon Trust’s contribution to the projects was a fraction of the total private investment, often less than five per cent, the trust has said.

On Thursday, the trust would not say how much was paid to private companies between 2008-2012, the period covered by PwC’s analysis.

The trust pays private companies for their greenhouse gas reductions from a pool of money it receives through emissions taxes on hospitals, long-term care homes, universities and colleges.

Under B.C. law, these public institutions have to purchase greenhouse gas offsets to bring their emission footprints down to zero.

The B.C. Liberal government has used the scheme to declare its public-sector operations to be carbon neutral. But it has faced criticism from the School Trustees Association and other public-sector organizations for this transfer of public money to the private sector via the Pacific Carbon Trust.

The B.C. auditor-general is examining the carbon offset system brokered by the trust.

The Canadian Taxpayer Federation has called for the trust to be scrapped.

A Vancouver Sun investigation published in April found that 22 of 25 emission-reduction projects were already underway when they were given millions of dollars in incentives by the trust.

James Tansey, the CEO of carbon-trading development company Offsetters, told The Vancouver Sun editorial board this week that the trust has helped build a fledgling carbon economy in B.C. and should now get out of the carbon brokering business, allowing the private sector take over.

“It’s time to get out of the way,” said Tansey, also a professor at the Sauder School of Business at the University of B.C.

He noted that his company could sell carbon reductions to universities and hospitals below $15 per tonne, much less than the $25 they are paying to the Pacific Carbon Trust.