Prime Minister Mark Carney hinted at a potential shift in the government’s stance on the emissions cap for oil and gas producers, indicating a willingness to reconsider the policy based on efforts to reduce emissions. During a press briefing in Ottawa, Carney discussed the government’s focus on decreasing emissions across various sectors to enhance global competitiveness rather than merely setting objectives.
Carney had previously expressed support for retaining the emissions cap, which mandates a 35% reduction in emissions by 2030 compared to 2019 levels for upstream oil and gas activities. However, he emphasized the importance of achieving tangible results and hinted at exploring alternative strategies to lower emissions.
Canada has committed to slashing emissions by at least 40% below 2005 levels by 2030 under the Paris climate agreement. Carney and his team have avoided direct discussions on meeting the 2030 target, instead emphasizing the country’s ambition to achieve net-zero emissions by 2050. The emissions cap forms a crucial part of Canada’s strategy to meet these goals, especially since the oil and gas sector contributes about 30% of total greenhouse gas emissions.
Despite the government’s intentions, recent data indicates that Canada is currently falling short of its emission reduction targets. Emissions are approximately 8.5% lower than the 2005 baseline, highlighting the need for more effective measures to curb emissions.
Carney is engaged in ongoing discussions with Alberta Premier Danielle Smith, exploring a potential “grand bargain” that could link Alberta’s pipeline aspirations to the completion of the Pathways Alliance carbon capture initiative. Smith has been vocal about repealing the emissions cap and the tanker ban, citing them as impediments to major pipeline projects. The discussions aim to find a middle ground that aligns economic benefits with climate objectives and Indigenous interests in energy projects.
The debate over pipeline projects has intensified, with Enbridge CEO Greg Ebel emphasizing the challenges posed by existing regulations. The clash between Smith and B.C.’s Premier David Eby over pipeline proposals underscores the complex dynamics surrounding resource development and environmental concerns.
In response to inquiries about supporting new pipeline ventures, Carney emphasized the government’s commitment to evaluating proposals that balance economic advantages with environmental sustainability and Indigenous rights. The government’s approach to future pipeline projects is contingent on meeting multiple criteria to ensure alignment with national interests and climate goals.
Despite potential opportunities like reviving the Keystone XL pipeline, critics warn that regulatory hurdles, particularly the emissions cap, could impede progress. Conservative MP Andrew Scheer highlighted the necessity of addressing policy barriers to fully utilize pipeline infrastructure for energy exports.
