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Canada’s oil and gas companies are failing to meet environmental commitments: reportTAZAA News

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Despite historically high profits and low capital costs, most of Canada’s oil producers have made little progress in their goal to decarbonize the sector, a new report says.

A report from the Pembina Institute says members of the Pathways Alliance, an industry group that accounts for 95 percent of the nation’s oil sands producers, have done too little to meet their commitment to net-zero greenhouse gas emissions by 2050.

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Last year, six of Canada’s largest oilsands producers and two existing oilsands companies pledged to meet Canada’s climate needs under the Pathways Alliance.

Pathways Alliance President Kendall Dilling said in a statement that the pledge includes a 22 million ton annual reduction in the oil sands sector by 2030 and goals to reach net-zero emissions by 2050.

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Dilling said the Pathways Alliance “recognizes that it has a major role to play in helping Canada meet its climate goals.”

“The Pembina Institute’s expectations that Pathways Alliance companies will make the final investment decisions on these multibillion-dollar projects while governments finalize regulatory frameworks to support them are unrealistic.”

John Gorski, director of the Pembina Institute’s oil and gas program, said several initiatives have been implemented or are being implemented by the Alberta government, including the incoming investment tax credit, the finalization of green fuel regulations, a carbon pricing system and a cap on the oilsands. emissions.

“There’s a lot more on the table now than when Pathways was announced,” Gorski said.

To date, the Pathways Alliance has incorporated the Oil Sands Innovation Alliance of Canada and the Oil Sands Community Alliance into their organization to further efforts to reduce the environmental impact of the oilsands, Dailing said.

However, the report’s authors would like to see more detailed plans on carbon capture projects and how investment in such projects will contribute to emissions reductions.


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The report also says Canada’s oil and gas sector could generate $152 billion in profits by 2022. However, the boom in profit has not been invested in decarbonisation efforts or in significant expansion of jobs in the sector.

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“Jobs are likely to be created through these decarbonization projects,” Gorski said.

Instead of environmental initiatives, Pathway Alliance companies are investing in share repurchases and dividend payments, the report said.

Pathways Alliance members include Suncor, Cenovus, ConocoPhillips, Canadian Natural Resources, Imperial Oil and MEG Energy.

© 2022 Canadian Press

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