2024 Oil & Gas Emissions Cap POLICY TOOLKIT – 5d. The O&G Emissions Cap Has Effectively Been Dictated by the Oil and Gas Producers

Oil & Gas Cap Policy Toolkit​

5. The Problems With The Framework

Toolkit Contents

  1. EXECUTIVE SUMMARY
  2. BACKGROUND – THE OIL & GAS SECTOR GHG EMISSIONS PROBLEM
    1. Production Emissions
    2. Consumption Emissions
  3. BACKGROUND – A TRICKY JURISDICTIONAL BALANCE
  4. HOW THE O&G EMISSIONS CAP WORKS
    1. Scope of Application
      1. Covered Facilities
      2. Covered Activities
      3. Covered Greenhouse Gasses (GHGs)
    2. The Emissions Cap Level: The Starting Point
    3. The Legal Upper Bound: How Much Can Really Be Emitted
  5. THE PROBLEMS WITH THE FRAMEWORK
    1. The 2030 Cap Level Is Not Ambitious Enough – The Numbers
    2. The Cap Proposed by the Framework Will Make It Almost Impossible to Meet Our Canada-Wide 2030 Target
    3. The Framework’s O&G Emissions Cap Will Do Less Work Than It Appears
    4. The O&G Emissions Cap Has Effectively Been Dictated by the Oil and Gas Producers
    5. The Oil and Gas Industry’s Re-investments to Reduce Emissions Has Been Contemptible
    6. The O&G Emissions Cap is based on O&G Production Increasing by 2030
    7. The “Other Compliance Units” Are Mostly a Very Bad Idea
  6. COMPLIANCE FLEXIBILITIES
    1. Emissions Trading
    2. Multi-Year Compliance Periods
    3. Banking of Emissions Allowances
    4. Making Contributions to a Decarbonization Fund
    5. Domestic Offset Credits
    6. Internationally Transferred Mitigation Outcomes (ITMOs)
    7. Delayed Reporting and Verification
  7. SUGGESTED RESPONSES TO THE FRAMEWORK’S DISCUSSION QUESTIONS
  8. I DON’T HAVE TIME TO READ THIS LONG DOCUMENT. WHAT SUBMISSIONS SHOULD I CONSIDER MAKING?
  9. ACRONYMS & GLOSSARY

d. The O&G Emissions Cap Has Effectively Been Dictated By The Oil & Gas Producers

On 23 July 2022, five days after the Discussion Document was released, CBC News reported:

Pathways Alliance, a group that includes six companies representing 95 percent of Canada’s oilsands production, says it is working to reduce its CO2 emissions by 22 megatonnes by 2030. Ottawa’s plan wants the sector’s total emissions (about 191 megatonnes in 2019) reduced to 110 megatonnes by the end of the decade.

 “By 2032 you might get another two or three megatonnes,” Mark Cameron, vice-president of external relations with the Pathways Alliance, told CBC News…

Cameron added that the 22-megatonne-by-2030 goal could potentially be increased if new technology becomes available or significantly more funding is infused. Either way, hitting the reductions outlined in the federal government’s 2030 plan isn’t feasible under current circumstances, he said.

“We would obviously need more time to get to that level. Whether or not we can achieve that by 2032, or it may take longer than that, is another question.”  [Emphasis added.] [57]

Pathways Alliance states that its “Phase 1” goal of reducing emissions by 22 Mt by 2030 “focuses on building a proposed carbon capture and storage (CCS) network in northeastern Alberta.” [58]

We have seen above that what the Framework proposes will require between 17 Mt and 23 Mt of emissions reductions from the O&G Emissions Cap itself.

Pathways Alliance announced their intention to use CCS to reduce emissions from oil and gas production on 21 October 2021. [59] That was five months before ECC released the ERP, and over eight months before ECCC released the Discussion Document on the proposed O&G Emissions Cap.  Now, fully two years after Pathways Alliance announced their intention, the Framework is not requiring them to do any more than they stated they were going to do anyway.

Citations
  1. Elise von Scheel, “Oil and gas industry could get more time to meet 2030 emissions targets, minister said”, CBC News, 23 July 2022.  Retrieved on 16 December 2023 from https://www.cbc.ca/news/canada/calgary/oil-gas-emissions-reduction-guilbeault-climate-vonscheel-1.6528307?__vfz=medium%3Dsharebar
  2.  Pathways Alliance Website, Retrieved on 11 January 2024 from https://pathwaysalliance.ca/net-zero-initiative/planned-phases/#phase-one
  3.  Retrieved on 11 January 2024 from https://www.newswire.ca/news-releases/oil-sands-pathways-alliance-outlines-three-phase-plan-to-achieve-goal-of-net-zero-emissions-881120319.html