Oilpatch leaders concern 'reckless' transfer as Trudeau commits to emissions cap on sector

[ad_1]

The federal authorities should work co-operatively with trade because it appears to be like to draft an emissions cap for the oil and fuel sector, Alberta enterprise leaders mentioned Monday, or danger far-reaching penalties for the Canadian economic system.

In an interview Monday, Grant Fagerheim, chief govt of Calgary-based oil firm Whitecap Sources Inc., warned of the risks posed by a federal authorities that he believes is setting formidable local weather targets that it would not know easy methods to obtain.

“Setting out virtue-signaling commitments with no actual agency targets is harmful, and it is reckless as a result of on the finish of the day, that is in regards to the issues that we won’t stay with out — meals, warmth, clothes and transportation.”

At COP26, the UN local weather convention in Scotland on Monday, Prime Minister Justin Trudeau formally dedicated to a cap on greenhouse fuel emissions produced by Canada’s oil and fuel trade.

Such a cap had been promised within the Liberals’ latest election platform, with plans to drive emissions down till they hit internet zero in 2050.

Potential impacts

A scarcity of rules for the sector has lengthy been a sore spot between environmental teams and Ottawa.

Newly named Atmosphere Minister Steven Guilbeault together with Pure Sources Minister Jonathan Wilkinson despatched a letter to the federal government’s net-zero advisory physique Monday asking for its assist to develop coverage to help the brand new plan.

• WATCH | Atmosphere minister discusses cap on oil and fuel emissions 

Atmosphere minister discusses cap on oil and fuel emissions

Steven Guilbeault, Canada’s surroundings minister, says Canada acquired worldwide reward for Prime Minister Justin Trudeau’s announcement on the COP26 summit that Canada is placing a cap on oil and fuel emissions. 0:32

However Fagerheim mentioned the oil and fuel trade is fearful that politicians have “massively overestimated” the tempo and scale at which the worldwide economic system can transfer away from fossil fuels.

He mentioned the federal government should sit down to speak with trade leaders about what’s reasonable.

Whereas the trade has made enormous strides lately on lowering emissions depth (precise emissions from Canada’s oil and fuel sector have truly elevated over time because of elevated manufacturing), Fagerheim mentioned hobbling the trade with unachievable targets will end in increased costs for Canadian shoppers.

He added it should additionally imply fewer earnings for vitality firms to funnel into emission-reduction applied sciences and renewables initiatives.

Adam Legge, president of the Enterprise Council of Alberta, mentioned he believes oil and fuel firms already perceive the necessity to cut back emissions.

He pointed to the Oil Sands Pathway Alliance, an initiative of Canada’s 5 largest oilsands producers which have dedicated to reaching net-zero greenhouse fuel emissions by 2050.

However Legge mentioned components like obtainable expertise, the prices of implementing that expertise, and the implications for Canadians by way of vitality availability and value all should be thought-about earlier than selecting a selected cap.

“If accomplished incorrect, it has various potential impacts, together with an incredible quantity of misplaced jobs, misplaced financial exercise — and this isn’t simply Alberta, that is Canada-wide,” Legge mentioned.

‘We must be companions on this’

Alberta already has a provincially legislated 100 megatonne cap on oilsands emissions, applied below former NDP premier Rachel Notley.

United Conservative Premier Jason Kenney advised reporters Monday that his authorities has proposed that restrict as an appropriate quantity for a federal cap, however mentioned thus far, the Trudeau authorities has not engaged with Alberta on the subject.

“The federal government of Canada has zero probability of reaching its greenhouse fuel discount targets with out Alberta’s oil and fuel trade,” Kenney mentioned. “We must be companions on this.”

Kenney mentioned slightly than “throw out massive numbers at worldwide conferences,” the Trudeau authorities needs to be aiding Alberta firms which might be investing in emissions reductions applied sciences.

“The only most necessary method the prime minister may assist us can be placing actual assets behind an enormous growth of Alberta’s carbon seize and storage expertise,” Kenney mentioned.

Pledge falls brief, local weather change activists say

However local weather change activists mentioned Trudeau’s pledge Monday fell brief, by specializing in emissions from oil and fuel manufacturing and never general manufacturing ranges.

“[This] will enable oil and fuel firms to maintain placing ahead false options, reminiscent of carbon seize and storage, fossil-based hydrogen, and far-off internet zero plans, all whereas pumping out increasingly more atmosphere-destroying fossil fuels,” mentioned Dale Marshall, nationwide local weather program supervisor with Environmental Defence in a press release.

“We can’t go from local weather laggard to even the center of the pack with out curbing oil and fuel manufacturing, beginning now.”

The Canadian Affiliation of Petroleum Producers warned Monday that nations that lack reasonably priced and dependable entry to vitality shall be compelled to show to much more carbon-intensive sources, reminiscent of coal.

In a press release, CAPP president Tim McMillan mentioned Canada — below the appropriate coverage surroundings — can place itself as a “most well-liked provider” of “decrease emission” pure fuel and oil.

“It will likely be extremely necessary for the federal authorities and the pure fuel and oil trade to work collaboratively to make sure we meet our environmental and social outcomes,” McMillan added in an e mail.

[ad_2]

Source link