The Canadian province of Alberta, home to the third-largest proven crude oil reserve in the world, has unveiled a sweeping new climate policy that will impose a hard cap on greenhouse gas emissions from its oil-sands and phase out coal-fired power generation by 2030. The carbon price (Notley avoided referring to it as a tax) will be revenue-neutral in that all revenue will be reinvested into measures to reduce emissions including clean research and technology, efficiency programs, and funds to help families and small businesses with the transition.
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“All of Canada’s economy needs the certainty of a plan with respect to our energy infrastructure sooner rather than later”, said Notley, addressing the Alberta media via conference call from Ontario.
Alberta will be phasing in an economy-wide carbon price of $30 per tonne (t) of carbon, beginning at $20/t in January 2017 and moving to $30/t in January 2018.
A 100-megatonne cap on carbon emissions from the oil sands, Canada’s fastest-growing source of emissions, once new rules are adopted.
Environment Minister Glen Murray says the province plans to achieve an 80-percent reduction in emissions over 1990 levels by 2050, with a 15-percent reduction by 2020.
One of the biggest producers in the oilsands, ExxonMobil Corp.-controlled Imperial Oil (TSX:IMO), isn’t ready to endorse the policy. It was only recently that the European Parliament voted to drop the “dirty oil” label on Canadian bitumen under the E.U.’s fuel quality directive, a label that, had it stuck (it very almost did), would have severely curbed any future potential for export growth to European refineries.
While a two-degree target may still be attainable, the globe is already 65 per cent of the way to the associated carbon limit, they said, and global emissions must peak before mid-century. “It means collaborating with our provincial and territorial partners, supporting climate change efforts in developing countries and investing in sustainable economic prosperity”.
Instead of contributing further to global emissions, Alberta chose to promulgate a new plan for the province.
The carbon tax is one of the pillars of Alberta’s new climate change strategy.
“Although there’s still room for improvement, the commitments we’ve seen are important contributions to solving the climate crisis and sets the stage for progressively stronger targets as we aim for a renewable energy economy by 2050”, said Ian Bruce, science and policy manager at the David Suzuki Foundation.
It’s expected to bring in $3 billion a year when fully implemented in 2018.
Analyzing industry databases, environmental think tank Carbon Tracker Initiative (CTI) found the three biggest losers would be Mexico’s Petroleos Mexicanos (PEMEX) [PEMX.UL], with $77 billion in unneeded projects, Royal Dutch Shell, with almost the same, and ExxonMobil with $73 billion in potentially stranded projects.
Why did she need to get out ahead of the meeting with the Prime Minister and Premiers?
She expressed confidence B.C. will maintain its leadership role, noting that the “leadership team” preparing the report includes prominent representatives from both the oil and gas and environmental movement.
He was also less glowing than other premiers about Alberta’s plan, remarking only that it “removes an excuse” used by some critics who have objected to pipelines because western provinces weren’t doing enough to combat climate change.
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Jean also said it’s unclear who will be responsible for the costs of shutting down the province’s coal generation projects.
