Government of Canada Policy

The Minerals and Metals Policy of the Government of Canada

II. Federal Decisions in Minerals and Metals: Implementing a Sustainable Development Approach

Sustainable Development as the Integration of Environmental, Economic and Social Objectives in Decision-Making

The exploration, development, production, use, re-use, recycling and disposal of minerals and metals inevitably involve the need to integrate environmental, economic and social considerations in decisionmaking. The sustainable development challenge is to ensure that each of these three elements is taken into account fully and as early as possible in the decision-making process.

Principles for Sustainable Development-Based Decision-Making

To ensure that environmental, economic and social considerations are integrated effectively in its decisions on minerals and metals issues, the Government will be guided by the following principles:

A Responsive Public Policy Framework

The minerals and metals industry requires a stable and predictable public policy framework that is responsive to the particular conditions that characterize it, including the risks associated with exploration investment, the long lead times and high costs of bringing a project into production, and the cyclical nature of commodity markets.

As well, the framework should recognize that mining operations can put stresses on the environment, and that they must be undertaken in a cost-effective manner that minimizes or mitigates adverse environmental and social impacts. Consequently, government decisionmakers should incorporate the principles of sustainable development into their respective policy frameworks to ensure that these impacts are addressed in their review and decision-making processes.

The Role of the Market Mechanism

The competitive market mechanism is the most effective means of allocating resources among alternative activities and investments. The Government recognizes that the industry must compete internationally on the basis of production costs. In such an environment, the viability of the minerals and metals industry cannot be maintained through artificial support. Consequently, the Government is of the view that it is primarily the private sector that must assess the risks and marshall the resources for its investment decisions.

The Role of Regulation

Regulatory intervention is sometimes required to ensure that societal objectives are met. Indeed, regulations play a central role in furthering the Government’s efforts to protect the natural environment, and public health and safety. The regulatory framework, however, should:

recognize, in the context of federal-provincial relations, the benefits of, and the need to strive to achieve, harmonization and the avoidance of duplication;
be performance-based rather than prescriptive;
minimize uncertainty, delay and costs to ensure that Canadian resource opportunities can compete in a global marketplace; and
take full account of underlying market forces.

The Role of Non-Regulatory Approaches

Non-regulatory approaches sometimes offer the most efficient means of meeting a desired policy objective, and are thus important to governments and industry as a complement to regulation. These approaches include environmental performance agreements, memoranda of understanding, codes of practice, guidelines, and other voluntary initiatives. Important features are provisions to ensure inclusiveness in policy development processes, transparency of decisions, accountability for results, and recourse in the event of unacceptable performance.

The Importance of Science

Federal policy decisions – in both the domestic and international context – should be based on the best available information and science. The importance of science to proper risk assessment is also acknowledged.

Endorsement of the Concept of Pollution Prevention

The Government’s Pollution Prevention: A Federal Strategy for Action defines pollution prevention as the use of processes, practices, materials, products or energy that avoid or minimize the creation of pollutants and wastes, and reduce the overall risk to human health and the environment. Pollution prevention encourages the kinds of changes that are likely to lead to lower production costs, increased efficiencies and more effective protection of the environment.

Affirmation of the Precautionary Principle

The precautionary principle is an important factor when the Government needs to make a decision in the face of scientific uncertainties about cause and effect, and when the potential environmental consequences are generally considered to be serious or irreversible. This principle was enunciated clearly as Principle 15 in the 1992 Rio Declaration on Environment and Development (the Rio Declaration) of the United Nations Conference on Environment and Development (UNCED), to which Canada is a signatory:

“Where there are threats of serious or irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing cost-effective measures to prevent environmental degradation.”

The principle complements science-based approaches for the management of risks. Its use is premised on the recognition that our scientific understanding of the potential magnitude and consequences of impacts on human health and the environment of the production and uses of some minerals and metals may be incomplete. While there is a need to work toward closing such gaps in our understanding, there is also a requirement, where potential impacts are “serious or irreversible,” to consider a cost-effective precautionary approach.

Recognition of the Polluter Pays Principle

The polluter pays principle, as expressed in Principle 16 of the Rio Declaration, is also an important factor. It provides that:

“National authorities should endeavour to promote the internalization of environmental costs and the use of economic instruments, taking into account the approach that the polluter should, in principle, bear the cost of pollution, with due regard to the public interest and without distorting international trade and investment.”