Government in discussions
Natural Resources Minister Tim Hodgson says the federal government is talking with Alberta and oil companies about oilsands emissions.
Reports suggest the federal emissions cap could be scrapped if Alberta and the industry agree to other environmental measures.
Hodgson told reporters Friday in Winnipeg:
“In the conversations that have been going on with Alberta and with the industry, what we agree on is for the oil industry to make a fundamental change in the emissions intensity of the oilsands. We are in the middle of discussions around how we get to the results.”
Emissions cap under review
Environment Minister Julie Dabrusin said her department is reviewing feedback on the proposed cap and evaluating next steps.
The public comment period for the emissions cap ended in January.
The federal plan would limit certain oil and gas sector emissions to 35% below 2019 levels, giving companies four years to comply. The sector contributes nearly a third of Canada’s greenhouse gas emissions.
Alberta pushback
Alberta Premier Danielle Smith criticized the proposal, saying she would fight federal policies she views as harmful to the province.
“The prime minister knows that I have a problem with nine of his laws, and the emissions cap is one of the big problems that we have,” Smith told CBC.
She added that the cap could discourage companies from backing new pipelines:
“You won’t have proponents willing to step up and pledge barrels to a new pipeline if you have an emissions cap that makes them shut it in the ground.”
Finding common ground
Despite her opposition, Smith said she’s finding a “surprising amount of common ground” with Prime Minister Mark Carney on the energy sector.
She contrasted this with her experience working with former Prime Minister Justin Trudeau.
The premier did not confirm whether removing the federal emissions cap is part of current negotiations.
