EU head says Canada should focus on exporting clean hydrogen ahead of Ontario visit
OTTAWA –
Canada ought to give attention to exporting clear hydrogen to Europe because the continent shifts its gas sources away from Russia, the top of the European Union mentioned forward of her go to to Canada.
“The opportunities are limitless,” European Commission President Ursula von der Leyen mentioned in a written response to questions from The Canadian Press.
“We should definitely expand our co-operation on this energy of the future.”
Von der Leyen was anticipated to reach in Canada late Monday for a short go to to Ottawa and Kingston, Ont., targeted on clear power, commerce and assist for Ukraine.
Ahead of that go to, von der Leyen wrote that Canada may broaden its exports of liquefied pure fuel as an interim step to extra hydrogen exports.
“For me the greatest potential of our energy co-operation lies in renewable hydrogen,” von der Leyen wrote. “It will be great for our security of supply and for the competitiveness of our economies.”
She additionally pushed again on Canada’s objections to new forestry laws and mentioned an present transatlantic commerce deal is a key solution to shore up ties in a turbulent world.
Achim Hurrelmann, co-director of the Centre for European Studies at Carleton University, mentioned he isn’t anticipating main bulletins from the go to. But he mentioned it is essential for von der Leyen to make her first official go to to Canada since she began main the EU in late 2019.
“The main reason that President von der Leyen is travelling to North America is probably meetings in Washington. But because Canada is such has been such a strong partner for the European Union, she is stopping by in Canada as well,” he mentioned.
“There isn’t really anything in the Canada-EU relationship that would make this visit imperative right now,” Hurrelmann mentioned.
Von der Leyen’s go to comes because the EU implements new forestry laws that riled up Canada’s delegation in Brussels.
Last November, Canada’s ambassador to the EU, Ailish Campbell, argued that the brand new guidelines have been “burdensome,” akin to requiring timber imports to have geolocation information that may hint the supply of the bushes.
In a letter obtained by Politico, Campbell sought a delay of the principles or a carve-out for Canada, arguing it is among the many greatest nations for stopping deforestation. The letter didn’t point out the controversial logging of old-growth forest in locations just like the Fairy Creek watershed of Vancouver Island.
Asked about these issues, von der Leyen mentioned the measures include “absolutely no discrimination” since they carry imports as much as the identical requirements held by Europe’s forestry sector.
“These rules will boost trade opportunities for companies and countries with sustainable practices in place,” she wrote, including that they fall in with pledges made ultimately yr’s UN biodiversity summit in Montreal.
Meanwhile, von der Leyen mentioned her go to is supposed to advertise Canada’s commerce with Europe, by means of a commerce deal that has been working in draft type for 5 years.
The Comprehensive Economic and Trade Agreement, referred to as CETA, has boosted two-way commerce by a 3rd, with the alternate of products going up by 66 per cent.
Yet there are nonetheless 10 of the EU’s 27 member states who have not absolutely ratified the settlement. This is essentially attributable to native issues round which mechanisms corporations can use to hunt compensation and rectify disagreements with nationwide, state and provincial governments, referred to as investor-state dispute settlements.
Canadian companies have clashed with the EU’s strict guidelines on meals labelling and sanitation, akin to pesticide residue and genetically modified organisms. And EU nations have been vigilant about protected geographical designations, akin to Champagne solely being offered if it is from the Champagne area of France.
Hurrelmann mentioned CETA supplies mechanisms to resolve these disputes, however the deal nonetheless has unlocked potential for Canada’s small- and medium-sized companies.
“Right now, it seems that the agreement has been benefiting European exporters more than Canadian exporters,” mentioned Hurrelmann, who has taken half in EU delegations in varied provinces aimed toward drawing up extra curiosity in transatlantic commerce.
“Canada will need to try to encourage more companies to take advantage of the agreement,” he mentioned.
For her half, von der Leyen mentioned the deal represents extra than simply commerce, because it entrenches guidelines round sustainability, gender equality and labour rights.
“We worked hard indeed to break down trade barriers, overcome our differences and promote the agreement to our constituencies,” she wrote, including that the EU is dedicated to seeing the deal absolutely carried out.
“With Russia’s war on Ukraine and its global shock waves, it has become a bridge more important than ever, contributing to the resilience of supply chains between two close, like-minded allies.”
To that finish, von der Leyen thanked Canada for its solidarity after Russia restricted exports of gas that Europe has relied on for many years.
“Russia indeed tried to use our dependence on fossil fuels to try and blackmail us. But we have overcome, in part thanks to the support of reliable suppliers and partners like Canada,” she mentioned.
Von der Leyen mentioned Europe is open to importing LNG immediately from Canada, though analysts have mentioned it should take years to create the infrastructure for this to be doable on the Atlantic coast.
“We should keep co-operating on LNG, knowing that some of the facilities could be repurposed for hydrogen trade afterwards,” she mentioned.
For now, Canada has pledged to look into methods of facilitated deliveries of LNG to Europe, akin to by sending fuel to the U.S. to exchange gas despatched from America to the EU. It’s unclear whether or not any of these shipments have been organized.
Natural Resources Minister Jonathan Wilkinson mentioned final August that Canada may ramp up manufacturing of LNG as an interim gas for transitioning economies, and even for use within the manufacturing of what is referred to as blue hydrogen. However, European nations have typically pushed for hydrogen that isn’t created with fossil fuels, dubbed inexperienced hydrogen.
“We are interested obviously, in being part of producing liquid natural gas as part of a transitional fuel,” Wilkinson mentioned in an interview final August.
“At the end of the day, if you can produce hydrogen that has zero, or virtually zero carbon emissions, from my perspective, who cares where it comes from.”
Hurrelmann mentioned it is one of many few areas the place disagreements between Europe and Canada.
“It’s useful to send the signal that Canada and EU are really aligned on everything,” he mentioned.
“I don’t see any major issues where Canada and the EU do not see eye to eye.”
Von der Leyen’s Tuesday go to had been deliberate to happen final fall, however was postponed because of the loss of life of Queen Elizabeth II.
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This report by The Canadian Press was first revealed March 6, 2023. With information from Mia Rabson
