Never Going to Let You Go: BC's EMA May Allow Creditors to Seek
Recovery from Third Parties for Environmental Remediation Claims
The recent decision from the Supreme Court of British Columbia (the "Court") in Cordy Environmental Inc. v Obsidian Energy Ltd., 2023 BCSC 1198 ("Cordy Environmental") has opened the door for creditors of an insolvent company to recover pre-filing amounts relating to environmental remediation from certain third parties. The main issue in Cordy Environmental was whether a service company that performed remediation work on a pipeline spill could rely on the statutory indemnification provisions under the Environmental Management Act, S.B.C. 2003, c. 53 (the "EMA") to recover unpaid amounts from a prior owner of the pipeline with whom the service company had no contractual relationship.

The trial judge found that, pursuant to EMA s. 47, the prior owner of the pipeline may be jointly and separately liable for the costs of remediation incurred by the service company, and that such liability is independent of any contractual relationship between the parties. Further, the Court held that the prior owner's liability for the costs of remediation continues to operate notwithstanding the insolvency of the party that originally created the obligations owing to the service company for its remediation work. Read the full article by Robyn Gurofsky, Anthony Mersich and Rebecca Barclay Nguinambaye with Fasken Martineau DuMoulin LLP.

Practicing Landscape Fire Management –
Technical Bulletin
As a companion document to its special report, Forest and Fire Management in BC: Toward Landscape Resilience, the Forest Practices Board has produced a technical bulletin to help land managers put Landscape Fire Management into practice. The bulletin describes six key principles for practicing landscape fire management, including:

1. Defining the landscape
2. Understanding current and projected conditions
3. Understanding risks to values
4. Setting complementary wildland fire objectives across land use zones
5. Coordinating intervention
6. Adaptive management

Read the bulletin from the Forest Practices Board.

Legal Challenges Threaten Net-Zero Pledges
The legal risks associated with voluntary climate action to transition to net-zero emissions are becoming real for companies as they face the possibility of prosecution for antitrust violations. To guarantee the effectiveness of their net-zero pledges, firms are now calling for a more stable and predictable legal environment.

According to Net Zero Tracker, almost half of the world's largest firms have set net-zero commitments. Among them are banks, asset owners and insurers. Different net-zero financial alliances were established in the lead-up to COP26 to mobilize the financial sector around the goals of the Paris Agreement. Financial institutions recognized the long-term business risks of climate change and understood the commercial value of collaborating towards net-zero. But we know that pollution is an environmental externality. In the absence of regulatory sticks or financial carrots to reduce emissions, firms are incentivized to emit greenhouse gases without restraint, leading to the everlasting tragedy of the commons. Read the full article by Julien O. Beaulieu in the CBA National magazine.

British Columbia Takes Action on Plastic Waste
On July 14, 2023, the Province of British Columbia published the Single-Use and Plastic Waste Prevention Regulation, which will come into effect on December 20, 2023. This regulation will lead to the phasing-out of oxo-degradable plastic packaging and products, shopping bags, and food service ware and accessories in British Columbia.

The publication of this regulation ends a multi-year consultation process pursuant to the CleanBC Action Plan, which launched in 2019. Read the full article by Mark Youden, Emma Hobbs and Wynona Klemt with Gowling WLG.

International Sustainability Standards Board Releases
Sustainability Disclosure Standards
On June 26, 2023, the International Sustainability Standards Board (ISSB) released the final versions of its first two global sustainability disclosure standards for financial reporting (the ISSB Standards). The ISSB aims to position the ISSB Standards as the global baseline for voluntary sustainability reporting. Canada and British Columbia have indicated strong support for the ISSB Standards, but have refrained from outlining whether they will adopt them, and if they do, to what extent and when. The Canadian Sustainability Standards Board (CSSB), which became fully operational following the release of the ISSB Standards, will guide the implementation of the ISSB Standards in Canada. Read the full article by Erik Coates, Radha Curpen and Sharon Singh with Bennett Jones LLP.

Nuxalk, Kitasoo Xai'xais Guardians Appointed
with Park Ranger Authority
The Kitasoo Xai'xais and Nuxalk First Nations, along with BC Parks, have launched a new pilot program that designates 11 Indigenous guardians with the same legal authorities as park rangers within the parks and protected areas in their ancestral territories.

Six Kitasoo Xai'xais and five Nuxalk guardians recently received park ranger appointments during ceremonies held in Klemtu and Bella Coola to mark the official launch of the Shared Compliance and Enforcement Pilot Program. The pilot is the first project of its kind in B.C. Read the full government news release.

Environmental Appeal Board Decisions
The following Environmental Appeal Board decisions were made recently:

Environmental Management Act

• District of Sicamous v. Director, Environmental Management Act [Dismissal Order – Appeal Dismissed]
• Halcyon Hot Springs Resort Ltd. v. Director, Environmental Management Act [Dismissal Order – Appeal Dismissed]