News Release: AWA Applauds Oil and Gas Pollution Cap, but Improvements are Needed

November 5, 2024

FOR IMMEDIATE RELEASE

Alberta Wilderness Association (AWA) appreciates the highly anticipated release of the federal government’s proposed pollution cap regulations for the oil and gas industry.

The government of Canada released its Proposed Oil and Gas Sector Greenhouse Gas Pollution Cap Regulations on Monday, November 4, 2024, following years of crucial work from environmental organizations across the country to hold big polluters accountable.

While the proposed pollution cap is a great first step towards regulating emissions from Canada’s largest polluting sector, the draft regulations require significant improvements to meet the pace and scale of emissions reductions that are necessary to curb carbon pollution in line with Canada’s existing climate commitments.

One major red flag is that the proposed pollution cap does not require emissions reductions to occur until 2030 and beyond. The government of Canada will use the period from 2026 to 2029 to collect necessary data to establish baselines for producers, which will be used to determine their respective reductions from 2030 onward. That means that this pollution cap, as currently proposed, discourages action prior to 2030.

An amended pollution cap should also ensure that incentives are put in place to ensure that the oil and gas industry reduces its emissions during the data collection period from 2026 to 2029. This is needed to prevent a possible scenario whereby a producer maximizes its emissions so that its baseline is artificially inflated when it comes time to reduce emissions in 2030 and beyond.

The proposed pollution cap is: “estimated to align with 35% below 2019 emissions levels” by 2030, however Canada’s nationally determined contribution under the 2015 Paris Agreement is a reduction of 40-45% below 2005 levels by 2030. Other sectors are being asked to do more and Canada’s largest polluter should be required to do its fair share. The final cap must compel greater reductions than are currently proposed, and those reductions should be in line with Canada’s existing commitments.

AWA applauds the federal government on taking this important first step towards capping oil and gas emissions, but we hope to see improvements in the final version. We also encourage the federal government to implement the revised pollution cap as soon as possible, to ensure that these regulations are enshrined in law before a potential election is called.

Quotes:

“Despite net-zero commitments, emissions from the oil and gas sector continue to rise. The evidence shows that the oil and gas industry refuses to cut its emissions willingly and this is why a pollution cap is necessary to hold industry accountable to its promises. This pollution cap will help ensure that Canada’s biggest polluter does its fair share.” – Phillip Meintzer, Conservation Specialist, Alberta Wilderness Association

Media Contacts:

Phillip Meintzer, Conservation Specialist, Alberta Wilderness Association

pmeintzer@abwild.ca, (403) 283-2025

Background:

Human caused greenhouse gas emissions are the main driver of climate change, and the combustion of fossil fuels (such as coal, oil, and gas) are responsible for 90% of those emissions.

Canada is one of the largest emitters in the world, both in terms of total emissions as well as per capita emissions, which is why we need to do more than others if we are going to do our part towards meeting global climate goals and avoid catastrophic warming beyond 1.5 °C.

Since 2005, Canada has only reduced its national emissions by 7.1 percent, far less than the 40 to 45 percent reduction by 2030 agreed under the 2015 Paris Agreement. At COP28, Canada committed to reducing its national emissions by transitioning away from fossil fuels.

The oil and gas industry are responsible for more than 30% of Canada’s emissions. While emissions in other sectors have dropped since 2005, oil and gas emissions have grown by 11%, and oilsands emissions specifically have grown by 142%, but that’s just based on industry-reported numbers. New research found that oil sands emissions could be 6300% higher than reported by industry, and evidence shows that the oil and gas industry refuses to cut its emissions willingly, despite net-zero claims.

While an emissions cap will get things moving in the right direction, it won’t be enough on its own. Current evidence suggests that to achieve our climate targets, Canada must: A) Leave all known fossil fuel reserves in the ground. B) Halt all new and proposed fossil fuel projects, and C) Prematurely close at least half of all existing fossil fuel production facilities. This means that we cannot increase production, or construct new wells, mines, or pipelines if Canada wants to achieve its targets.

The cost of inaction is high, as climate change makes natural disasters like drought, floods, wildfires, hurricanes, and hailstorms more frequent and more severe. Recent findings show that 37% of the area burned across Canada and the United States from 1986 to 2021 were linked to emissions from 88 fossil fuel companies and cement manufacturers. In 2023, Canada had its worst wildfire season on record, and 2024 has officially become the costliest year in Canadian history for insured losses due to severe weather events – costing over $7.7 billion in damages.