Canada proposes emissions cap on oil and gas sector
OIL & GAS

Canada proposes emissions cap on oil and gas sector

Canada proposed establishing what it said would be one of the world's first greenhouse gas emissions cap-and-trade systems for the oil and gas sector aimed at slashing pollution. The goal of the system, which would be phased in over several years, would be to reduce emissions to 27 % below 2026 levels or 35 % below 2019 levels. The Canadian sector is among the top four producers in the world and is the largest single source of CO2 pollution in Canada, responsible for 31 % of local greenhouse gas emissions in 2022. The government said tackling climate change and meeting its emissions reduction targets required action to curb emissions in the sector. Oil-rich provinces such as Alberta and business groups have already balked at the measures they claim would limit oil and gas production -- which Ottawa rejects. Canada's oil and gas sector accounts for "more than double the combined pollution from all other heavy and light industries," Environment Minister Steven Guilbeault told a news conference. The government's plan "goes after pollution, not production", he said, adding that it incentivizes companies to invest in technically achievable decarbonization using technology such as carbon capture and sequestration. Government modelling showed oil and gas production actually increasing 16 % between 2019 and 2030-2032 under the proposed regulations."No other major oil and gas producer is doing what we're doing -- the United States, the United Kingdom, Norway, the Gulf states. We're the only large oil and gas producer in the world to do this," he said. The proposed rules would apply to upstream oil and gas activities including offshore oil and gas production, Alberta oil sands production and upgrading, and natural gas production and processing, including liquefied natural gas (LNG). Companies would be allocated emissions allowances and if they go over those thresholds they would be permitted to buy allowances from others that have reduced their greenhouse gas emissions. Starting in 2027, large oil and gas sector emitters would be first to report their previous year's annual emissions, followed by smaller operators in 2029. The emissions cap would apply in 2030. The Canadian oil and gas sector, which accounts for 25 % of exports and contributed Can$209 billion (US$150 billion) to the Canadian economy last year, posted record profits of Can$66 billion in 2022, but has also seen a drop in investment. "At a time when Canada's economy is stalling, imposing an oil and gas emissions cap will only make Canadians poorer," the Business Council of Canada said in a statement. "Strong climate action requires a strong economy. This cap will leave us with neither." In an advertising campaign, Alberta province slammed the federal proposal as "reckless and extreme." Environmental groups including the Climate Action Network called the long-sought regulations "a historic first" and "good news."

Canada proposed establishing what it said would be one of the world's first greenhouse gas emissions cap-and-trade systems for the oil and gas sector aimed at slashing pollution. The goal of the system, which would be phased in over several years, would be to reduce emissions to 27 % below 2026 levels or 35 % below 2019 levels. The Canadian sector is among the top four producers in the world and is the largest single source of CO2 pollution in Canada, responsible for 31 % of local greenhouse gas emissions in 2022. The government said tackling climate change and meeting its emissions reduction targets required action to curb emissions in the sector. Oil-rich provinces such as Alberta and business groups have already balked at the measures they claim would limit oil and gas production -- which Ottawa rejects. Canada's oil and gas sector accounts for more than double the combined pollution from all other heavy and light industries, Environment Minister Steven Guilbeault told a news conference. The government's plan goes after pollution, not production, he said, adding that it incentivizes companies to invest in technically achievable decarbonization using technology such as carbon capture and sequestration. Government modelling showed oil and gas production actually increasing 16 % between 2019 and 2030-2032 under the proposed regulations.No other major oil and gas producer is doing what we're doing -- the United States, the United Kingdom, Norway, the Gulf states. We're the only large oil and gas producer in the world to do this, he said. The proposed rules would apply to upstream oil and gas activities including offshore oil and gas production, Alberta oil sands production and upgrading, and natural gas production and processing, including liquefied natural gas (LNG). Companies would be allocated emissions allowances and if they go over those thresholds they would be permitted to buy allowances from others that have reduced their greenhouse gas emissions. Starting in 2027, large oil and gas sector emitters would be first to report their previous year's annual emissions, followed by smaller operators in 2029. The emissions cap would apply in 2030. The Canadian oil and gas sector, which accounts for 25 % of exports and contributed Can$209 billion (US$150 billion) to the Canadian economy last year, posted record profits of Can$66 billion in 2022, but has also seen a drop in investment. At a time when Canada's economy is stalling, imposing an oil and gas emissions cap will only make Canadians poorer, the Business Council of Canada said in a statement. Strong climate action requires a strong economy. This cap will leave us with neither. In an advertising campaign, Alberta province slammed the federal proposal as reckless and extreme. Environmental groups including the Climate Action Network called the long-sought regulations a historic first and good news.

Next Story
Infrastructure Energy

Digital Economy, Renewable Energy to Boost Job Creation: Economic Survey

The Economic Survey 2024-25, presented by Union Finance Minister Nirmala Sitharaman, indicates substantial improvement in India’s labour market, driven by strong post-pandemic recovery and formalisation of the workforce. Key findings include a significant drop in the unemployment rate from 6 per cent in 2017-18 to 3.2 per cent in 2023-24. Additionally, there has been notable growth in female labour force participation, which increased from 23.3 per cent in 2017-18 to 41.7 per cent in 2023-24.Other highlights include:Over 30.51 crore unorganised workers registered on the eShram portal, suppor..

Next Story
Real Estate

Aditya Birla Housing Finance Secures Rs 8.3 Billion from IFC

Aditya Birla Housing Finance Ltd. (ABHFL), a subsidiary of Aditya Birla Capital, has raised Rs 8.3 billion through non-convertible debentures (NCDs) from the International Finance Corporation (IFC). The company stated that the funds will be used to provide housing loans to low- and middle-income groups (LIG and MIG), with a special focus on promoting homeownership among women. Additionally, a portion of the investment will support MSMEs, particularly women-led enterprises, to drive economic growth. The initiative aims to strengthen financial inclusion and uplift underserved communities in the ..

Next Story
Infrastructure Energy

Bihar to Bid Out 2,400 MW Power Plant by March

The Bihar government plans to auction the proposed 2,400 MW coal-based power plant at Pirpainti by March 2025. Part of the state's FY25 budget initiatives, the project is valued at Rs 214 billion, covering multiple power sector developments. Coal for the plant is expected to come from Eastern Coalfields, with fuel and location already determined to streamline the bidding process. Discussions are underway to finalise coal supply under the SHAKTI scheme, with a resolution expected by February. The Central government has also pledged support for fast-tracking environmental clearances to facilit..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000