By Nia Williams
(Reuters) – Canada plans to unveil a framework for its long-awaited oil and fuel emissions cap on the United Nations COP28 local weather summit in Dubai, the one main only-producing nation growing such a coverage.
Listed here are particulars of what it’s anticipated to ivolve, and what it should imply for the fossil gasoline sector:
WHAT IS THE OIL AND GAS EMISSIONS CAP?
Canadian Prime Minister Justin Trudeau first promised a cap that might restrict oil and fuel emissions throughout his 2021 re-election marketing campaign. It’s a key a part of Canada’s pledge to chop greenhouse fuel 40-45% under 2005 ranges by 2030, and no different sectors of the financial system faces such a cap.
The federal government will desk a framework for the cap at COP28, which runs until Dec. 12, forward of draft rules subsequent yr.
Federal Setting Minister Steven Guilbeault described the framework as a “plain language doc” that might give the primary parts of the rules.
Ottawa plans to set an higher restrict for oil and fuel emissions that can shrink over time, however has not but stated what the restrict might be or how it could be regulated. Pure Assets Minister Jonathan Wilkinson stated final month the federal government needed to realize the most important emissions cuts attainable with out shutting in manufacturing.
However Canada’s major oil province Alberta is strongly against the emissions cap, arguing it could restrict manufacturing.
WHY IS IT IMPORTANT?
Canada is the world’s fourth-largest oil producer and the oil and fuel trade is the nation’s highest-polluting sector, accountable for greater than 1 / 4 of complete emissions.
In 2021, oil and fuel emissions totalled 189 million metric tons, a rise of three% from the earlier yr and 12% from 2005, which undercut decarbonization in different sectors like electrical energy.
Canadian oil producers have ramped up manufacturing in anticipation of elevated export capability when the expanded Trans Mountain pipeline begins up subsequent yr.
Projections from the federal authorities’s Emissions Discount Plan (ERP) suggests oil and fuel emissions would want to drop to 110 million metric tons by the top of this decade for Canada to satisfy its 2030 goal.
Guilbeault instructed Reuters in an interview on Tuesday the emissions cap can be shut to what’s within the ERP.
HOW CAN CANADA CUT OIL AND GAS EMISSIONS?
On Monday, Canada issued draft rules that toughen its requirements on methane emissions. The Canadian Local weather Institute (CCI) think-tank says harder methane guidelines might drive a 3rd of the emissions cuts wanted to get oil and fuel air pollution to the 110-megatonne stage by 2030.
Carbon seize and storage (CCS), electrification and co-generation of energy may contribute to lowering emissions. The CCI stated there are answers out there to make an emissions cap work with out the oil and fuel sector having to chop manufacturing, however authorities and trade ought to transfer quick.
WHY IS IT CONTROVERSIAL?
The Pathways Alliance, a consortium of Canada’s six-largest oil sands producers proposing a C$16.5 billion ($12.14 billion) CCS venture, says it’s involved “impractical and unachievable” timeframes for chopping air pollution targets might drive away funding.
Alberta Premier Danielle Smith cites the emissions cap as one other instance of federal authorities over-reach, and has vowed to disregard it.
The province is battling various Trudeau’s different local weather insurance policies, together with proposed Clear Electrical energy Laws, and lately scored a win when Canada’s Supreme Courtroom stated a federal legislation assessing how main tasks influence the atmosphere was largely unconstitutional.
($1 = 1.3593 Canadian {dollars})
(Reporting by Nia Williams in British Columbia, extra reporting by Gloria Dickie in Dubai; Enhancing by Denny Thomas and Marguerita Choy)
