Obama’s pragmatist side wins out in Keystone comments – by John Ivison (National Post – June 26, 2013)

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Barack Obama downplayed any thoughts that his new climate change action plan is a straight choice between “the health of our children and the health of the economy.”

But it wasn’t just the 33 degree heat that made him wipe his brow continually. This was a defining moment in his presidency — a speech where he made clear he is a firm believer in man-made climate change and intends to match his lofty rhetoric with regulatory action.

What to make of Mr. Obama’s plan from a Canadian perspective? The president was as inscrutable as providence when he talked about whether or not he plans to approve the Keystone pipeline that would carry Canadian crude from the oil sands to refineries on the Gulf Coast.

Mr. Obama made it clear he intends to take on the coal-generated power station industry, which accounts for 40% of the greenhouse gases produced in the United States. He said there are currently no limits to how much carbon dioxide power plants can emit — “It’s not right, not safe and it needs to stop,” he said. This is the president’s big target: four coal-fired power stations in the U.S. owned by one company generate 60% more CO2 than the entire oil sands.

But, contrary to suggestions he might not speak directly to Keystone, Mr. Obama sent out messages that both advocates and opponents of the 1,800-kilometre pipeline were able to claim as evidence he’s on their side.

The president said the State Department is in the final stages of assessing whether Keystone should go ahead. “The national interest will be served only if it does not significantly exacerbate the problem of carbon pollution. The net effect on climate will be critical to determining if this project goes forward,” he said.

Proponents pointed out that the State Department has already ruled that Keystone will have little impact on the growth of the oil sands because the crude will find a way to market, with or without the project. Joe Oliver, the Natural Resources Minister, said that Canadian crude would have the same, or lower, emissions than the heavy crude from Venezuela that it may replace.

Opponents claimed that scientists have concluded Keystone will increase greenhouse gas emissions, and so the project is bound to have an impact on climate change. “This is encouraging news,” said Bill McKibben, founder of 350.org.

When in doubt, look at where the clever money is going. Yet in this case, investors seemed as stumped as political analysts and TransCanada Corp.’s stock price was becalmed, moving ahead slightly in line with the broader market.

For the rest of this column, click here: http://fullcomment.nationalpost.com/2013/06/25/john-ivison-obamas-pragmatist-side-wins-out-in-keystone-comments/