Winding Down BC's Fossil Fuel Industries: Planning for Climate Justice in a Zero-Carbon Economy

By Marc Lee and Seth Klein - Corporate Mapping Project, March 2020

IMAGINE IT’S 2025 AND BECAUSE OF THE ESCALATING CLIMATE CRISIS, governments in Asia have declared ambitious new climate action plans, including the elimination of metallurgical coal for steel manufacturing within five years, to be replaced by state-of-the-art hydrogen-powered furnaces; and an aggressive transition off of natural gas and toward renewables within a dec-ade. After a short period of time, BC’s fossil fuel exports dry up, workers are laid off and local communities get hit with declines in both public- and private-sector jobs due to falling incomes.

It is this type of scenario that needs to inform planning for BC’s fossil fuel industries (coal, oil and gas). This report’s framework for a managed wind-down aspires to thoughtfully and strategic-ally phase out the extraction and production of fossil fuels in BC, most of which are exported and burned elsewhere.

The BC government’s continued interest in expanding production and export of its fossil fuels suggests little willingness to contemplate a managed wind-down so long as there are external buyers for BC resources. However, there is a risk that market conditions could change abruptly as other jurisdictions implement more aggressive climate policies and importers cut their con-sumption of fossil fuels. Fully phasing out BC’s fossil fuel industries over the next 20 to 30 years may be — for now at least — politically unthinkable. Nonetheless, this report aims to start a necessary conversation in BC. The managed wind-down framework is built on four pillars:

1. Establish carbon budgets and fossil fuel production limits;
2. Invest in the domestic transition from fossil fuels and develop a green industrial strategy;
3. Ensure a just transition for workers and communities;
4. Reform the royalty regime for fossil fuel extraction.

More than half of BC’s gas production is exported to Alberta for oil sands processing, with additional exports to the United States. Only 9 per cent of production is consumed within BC. Virtually all of the province’s coal is exported, with little domestic consumption. The bulk of production is higher-quality metallurgical coal used in steelmaking as opposed to thermal coal used to generate electricity.

Read the report (PDF).

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author.