Ottawa-
Based on the new regulations announced on Monday, Canadian oil and gas producers will be required to reduce greenhouse gas emissions in the next eight years.
The government plans to establish the cap and trade system, and the Minister of Environment, Stephen, will rewarding producers with less emissions and encourage more polluted producers.
The regulation is still about two years later than the planning stage, but the industry leaders have been disappointed, and the relationship between the Ottawa and the Alberta government is even more nervous.
Alberta’s Prime Minister Daniel Smith called the “unrealistic goal” and said that the government will promptly act in court to claim regulations. She accused Gilbow revenge on Alberta.
For the Liberal Party, the regulation will make an election promise in 2021, forcing the energy division to focus on climate change.
At a press conference in Otaawa, Gilbow said, “We are calling oil and gascector to invest in record -deficit profits in pollution reduction projects. It is a project that can create and maintain good employment.” .
He stated that the oil and gas industries are major emissions, but are not working on reducing emissions than most other departments.
“I think most Canadians, including those who are not my big fans, agree that it is not good that a certain field does not play that role, and it is mainly the purpose of this regulation.” Gilbow said in an interview with Canadian News Agency. Prior to the announcement.
The upstream petroleum and gas business, including production and purification, contributed to about 31 % of the 2022 Canada’s total emissions.
This regulation proposes to force up the oil and gas business to reduce emissions by 35 % from 2030 to 2032 compared to 2019.
The amount of emissions from this department has already decreased by 7 % between 2019 and 2022 (the latest year in which statistics are available) at the same level of production.
This upper limit does not stipulate what companies need to do to achieve the goal, but Gilbow suggests that the government modeling is about half of the reduction in methane reductions. He said there was. Oil -producing countries have installed facilities to prevent leakage of methane, the main source of emissions, and these reductions have already been made.
The rest is divided into various technologies such as carbon dioxide collection and storage. Otowa is expected to spend about $ 12.5 billion in tax deductions for companies to invest in systems in which companies capture carbon dioxide and return to underground storage.
In the proposed cap and trade system, each company gives a discharge frame equivalent to one unit per ton of carbon contamination.
Companies with less contaminated companies can sell the surplus arrow units and make a profit, but companies that have not reduced the amount of emissions need to buy Arrowance Units from other companies to comply with compliance. .
The idea is to have companies invest in carbon reduction technology to reduce emissions without reducing production.
However, the announcement on Monday was skeptical from an industry official who warned that such measures would damage the industry.
The Canadian Oil Producer Association, which represents a three -quarters of Canadian oil and natural gas production, stated that the proposed change would hinder investment and would adversely affect employment in the field.
“Members believe that if the excavation -up restrictions are enforced, investment in the Canadian oil and natural gas project will be highly stopped,” said the association chairman Lisa Biton.
“As a result, the number of productions, exports, decreased employment, decrease in GDP, and reduces the income of governments that provide funds to important infrastructure and social programs depended on Canadian people. ”
Jonathan Wilkinson said that the government modeled it was able to achieve the emission target and to be executed.
“When the first methane regulation was introduced, the industry said,” This is not very good, “but many employments were actually created in technology development and introduction,” said Wilkinson.
“Alberta is currently exporting its technology to other countries around the world, which traces the footsteps of Alberta.”
Gilbow stated that federal government models have shown that even with regulations, oil and gas production will increase 16 % by 2032 compared to 2019. The government stated that the government has decided on an upper limit based on a wide range of discussions on what can be regulated without forcibly reducing production.
He also stated that the only way for Canada oil to maintain competitiveness in a world where the most environmentally friendly options that are available are to reduce the amount of exhaust from oil fields in Canada. .
“In a world where carbon is restricted, people who still require oil will demand oil with less emissions,” he said. “And we cannot compete in this world unless our company and oil and gas categories do the necessary investment for that.”
Conservative party leaders Pierre Poewable stated that it would eliminate the excess limit. The Conservative Party stated in a Monday statement that “the energy cost would increase, and billions of dollars will be sent to overseas dictators.”
However, highly government officials have emphasized that crude oil prices are affected in the global market, and claimed that the demand for Canada oil will increase the demand for crude oil in Canada as the market seeks more clean products.
The regulation is expected to take several months to make the final decision, and the enforcement is expected to be 2026 after the next federal election.
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This report by The Canadian Press was first published Nov. 4, 2024.
