CEOs push Carney to scrap emissions cap and restore investor confidence in Canadian energy sector
Thirty-eight Canadian energy CEOs are calling on Prime Minister Mark Carney to repeal industrial carbon pricing and scrap the federal emissions cap for oil and gas producers, as reported by The Canadian Press.
The group sent a letter to Carney congratulating him on his election win and outlining policy proposals they said would support his campaign promise to build the fastest-growing economy in the G7.
“As a major contributor to the Canadian economy, with significant untapped potential, the energy sector must play a pivotal role in your pursuit of this ambition,” the letter states.
The CEOs said Carney’s focus on energy independence and clean technology requires significant sector investment and competitive energy and carbon policies.
They argued that “over the last decade, the layering and complexity of energy policies has resulted in a lack of investor confidence and, consequently, a barrier to investment.”
Among the measures proposed, the CEOs called for a full overhaul of the Impact Assessment Act, which governs environmental reviews of major projects.
They also urged a revision of the Oil Tanker Moratorium Act, which restricts vessels carrying more than 12,500 metric tons of crude oil from docking along certain parts of British Columbia’s coast.
Before the election, Carney pledged to expedite reviews of large energy infrastructure projects.
His proposed “one project, one review” approach would involve recognising assessments conducted by provinces and territories.
The letter also called on Carney to repeal the industrial carbon pricing framework, which he had promised to strengthen after eliminating the consumer carbon tax.
“The current federal price and stringency trajectory results in uncompetitive costs compared to those we compete with to deliver our products to market,” the CEOs wrote.
According to the CEOs, “a solution is to revert to the functioning system where provinces administer the policies and pricing to enable emissions-reduction investments, improve emissions performance, and maintain competitiveness.”
The federal government unveiled draft regulations for an emissions cap late last year. These regulations would require upstream oil and gas operations to cut emissions by 35 percent below 2019 levels by 2030–2032.
Carney had said prior to the election that he would not scrap the regulations.
The CEOs argued that the cap would hamper industry investment.
They stated, “We continue to believe the federal government’s cap on emissions creates uncertainty, is redundant, will limit growth and unnecessarily result in production cuts, and stifle infrastructure investments.”
They concluded the letter by stating that “together, we can drive investment into emissions reductions by simplifying the regulatory regime, establishing an attractive fiscal environment, and ensuring carbon policies protect our export industries.”
