Canadian Bill C-59: Strengthening Regulations to Stop Greenwashing

In November 2023, the Canadian government introduced Bill C-59 as part of the Fall Economic Statement, aimed at preventing greenwashing regulations via the Competition Act. This bill passed without amendments on June 19, 2024, and received Royal Assent the following day.

Bill C-59 introduces key amendments to Section 74.01 of the Competition Act ( RSC , 1985, c. C-34) to address "greenwashing".

Canada is taking significant steps to ensure companies avoid greenwashing, referring to false, misleading, or deceptive environmental claims, and instead focus on transparency and making genuine commitments to environmental improvement.

The new regulations under Bill C-59 will significantly impact how companies’ market and promote their products and services. Instead of investing in wasteful PR practices, companies are encouraged to make smart investments to achieve economic benefits while reducing their environmental footprint. Greenwashing can severely damage a company's reputation and consumer trust, especially with the rapid spread of information via the internet and social media.

Claims of net zero, sustainability, and being a ‘green’ building will need to have the numbers and approved methodology to support those claims. The Efficiency Valuation Organization provides internationally accepted Measurement and Verification Plans to support project claims.

Municipalities are stepping up to help reduce greenwashing by mandating buildings to report their utility consumption using verified professionals. Benchmarking the true consumption of large buildings is the first step in understanding where improvements should be focused.

New York City’s local law-97 mandates that buildings over 25,000 SqFt report their Green House Gas (GHG) emissions using a qualified professional or face a harsh fine for not reporting.

Certain buildings are subject to annual greenhouse gas emissions limits established by Local Law 97 of 2019 (LL97). The first compliance reports for buildings covered by LL97 are due by May 1, 2025, and reflect emissions in calendar year 2024.

Toronto followed suit and now requires a Licensed Professional to report energy and water with the provision of a fine for not reporting. Discussions are underway for Emission Performance Standards.

Energy@Work has been a long-time advocate for eliminating greenwash. Our Energy Management Action Plan (E-MAP) is specifically tailored to review real consumption patterns to determine the best strategy for long term improvement. We are pleased to see this positive change in direction.

“If we are going to say it then let’s do it”