FortisBC's Biomethane Claims Under Scrutiny Amid Greenwashing Allegations

FortisBC, a key player in the natural gas market, faces growing scrutiny over its claims regarding biomethane. According to recent findings, only a mere 15% of the gas labeled as biomethane by the company originates from British Columbia.

The remainder, primarily fossil gas, is designated as renewable due to the purchase of environmental credits from U.S. renewable gas producers. Critics argue that this practice could mislead consumers and constitutes a form of greenwashing. Sunil Singal, a climate campaigner with Stand.earth, has expressed concern that FortisBC is leveraging its limited supply of renewable gas to justify the expansion of its fossil gas operations.

In a notable development, the BC Utilities Commission (BCUC), which regulates FortisBC, has launched an investigation into the company’s practices. The inquiry arises from reports indicating that FortisBC may not be adequately ensuring that the credits it acquires genuinely contribute to emissions reduction.

Political science professor Kathryn Harrison warns that if the offsets lack authenticity, they could lead to higher overall emissions. The BCUC's scrutiny was prompted by deficiencies in FortisBC’s accountability reports, which are essential in assessing the environmental impact of the company’s gas offerings.

When FortisBC initially sought approval to use these credits, it was mandated to obtain signed assurances from the projects selling them, ensuring that the environmental benefits were not double-counted. However, the commission has discovered that FortisBC frequently fails to secure these critical certificates, raising questions about the integrity of its renewable gas claims. Furthermore, the commission found that some credits purchased by FortisBC were drawn from the same pool utilized for compliance with local climate regulations, complicating matters of genuine emissions reduction.

Stand.earth's complaint emphasizes the absence of a standardized accounting system to validate environmental credits across provincial and international lines. This gap complicates the verification of whether FortisBC's renewable gas program is effectively mitigating emissions. Kate Harland, a research lead at the Canadian Climate Institute, stresses the necessity for transparency and robust oversight to prevent the double counting of emissions.

In response to the inquiry, FortisBC maintains that all its renewable gas acquisitions undergo rigorous review and comply with existing regulations set by the BCUC. Nevertheless, the inquiry comes at a time when the natural gas industry is battling against municipal bans on fossil gas usage in new buildings, positioning the promotion of renewable natural gas as a strategy to counteract these restrictions.

As cities increasingly recognize electricity as a cleaner and more cost-effective heating solution, the future of natural gas remains contentious. Harland asserts that renewable natural gas should be reserved for specific industrial applications with unique energy needs, underscoring the importance of ensuring its renewability. Ultimately, the imperative is clear: British Columbians must be assured that their investments in renewable gas credits translate into tangible emissions reductions.