Page 4 - NorthAmOil Week 07 2022

NorthAmOil COMMENTARY NorthAmOil

Alberta reportedly planning

to toughen oil sands

emissions standards

The Alberta government is reportedly planning to close a loophole

that allowed oil sands miners to claim millions of dollars’ worth of
credit for their emissions

ALBERTA THE provincial government of Alberta is report- major emitters may no longer be appropriate.
edly planning to toughen its greenhouse gas
WHAT: (GHG) emissions standards for oil sands mines. Changes
The Alberta government The move would close a loophole that allowed Alberta is in the process of updating indus-
is reportedly planning some of the highest-emissions facilities to claim try benchmarks that set emissions reduction
to close a loophole for millions of dollars’ worth of tradeable credits. It requirements for oil sands mines and upgraders.
emissions from oil sands comes as scrutiny of Canada’s oil industry and its The province has already increased the strin-
mines. record on emissions continues, with the oil sands gency of facility-based benchmarks.
in particular under pressure to decarbonise. The move was reported by Reuters, and the
WHY: At the same time, Canada’s federal carbon Alberta Ministry of Environment confirmed it
The emissions system tax, which has been described as being among to the news service this week. Two sources with
was not intended to the most ambitious such schemes in the world, knowledge of the changes were cited as saying
provide credits to oil is set to continue rising over the coming years. Alberta’s emissions system, known as the Tech-
sands mines according to Against that backdrop, it is not surprising that nology Innovation and Emissions Reduction
sources familiar with the provincial governments support emissions-in- Regulation (TIER), had not been intended to
matter. tensive industries such as the oil sands that make provide credits to oil sands mines.
major contributions to the economy to help Mines and upgraders collectively generated
WHAT NEXT: them remain competitive. However, as decar- 2.4mn emissions performance credits in 2020
The move comes as bonisation efforts take on a greater urgency in and were required to pay for 700,000. The
Canada’s oil sands the face of looming climate and emissions tar- remaining 1.7mn of credits are estimated to have
industry is lowering gets, the argument is increasingly being made been worth around CAD54.4mn ($42.7mn),
emissions intensity but that credits and other forms of support for based on a trade value of around CAD32 ($25)
absolute emissions are
rising.

P4 www. NEWSBASE .com Week 07 17•February•2022