2022 Reports 1 to 5 of the Commissioner of the Environment and Sustainable Development to the Parliament of Canada—Transition to a low-carbon economy shows insufficient government preparation to support affected workers and communities

2022 Reports 1 to 5 of the Commissioner of the Environment and Sustainable Development to the Parliament of CanadaTransition to a low-carbon economy shows insufficient government preparation to support affected workers and communities

Ottawa, 26 April 2022—A report released today by the Commissioner of the Environment and Sustainable Development Jerry V. DeMarco concludes that Natural Resources Canada, Employment and Social Development Canada and other partners acting on behalf of the federal government were not prepared to support workers and communities through a just transition to a low-carbon economy. The audit found that there was no federal implementation plan, formal governance structure, or monitoring and reporting system in place to support a just transition and that supporting legislation has been delayed.

“When it comes to supporting a just transition to a low-carbon economy, the government has been unprepared and slow off the mark,” said Mr. DeMarco. “We found that as Canada shifts its focus to low-carbon alternatives, the government is not prepared to provide appropriate support to more than 50 communities and 170,000 workers in the fossil fuels sector.”

The audit found that in the case of the coal phase-out, the transition was being handled on a business-as-usual basis, relying on existing program mechanisms such as the employment insurance program to deliver support. The report concludes these existing programs were not always sufficient to meet the needs of workers or the communities in which they live. In addition, many support programs did not measure, monitor or report on outcomes. This makes it difficult for the department to understand and report on progress for a just transition to a low‑carbon economy.

“As the coal phase‑out is the first of several transitions to a low-carbon economy facing Canadian workers, communities, and governments, there is an opportunity for the federal government to learn from this initial experience to inform future policies and programs,” said Mr. DeMarco.

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The 2022 Reports of the Commissioner of the Environment and Sustainable Development, Report 1—Just Transition to a Low-Carbon Economy is available on the Office of the Auditor General of Canada website.

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