Canada: Oil sands hit by climate change politics

Industry fears impact of emission targets

Alberta’s oil producers are finding themselves squarely in the cross-hairs of the government’s new climate change regulations, which aim to reduce greenhouse gas emissions by 20 per cent by 2020, even as industry plans to triple oil sands production.

Environment Minister John Baird is due to release targets for large industrial emitters today in Toronto, and the Conservative government is clearly pursuing a tougher line than it announced last fall.
The booming oil sands development represents the fastest growing source of greenhouse gas emissions, and industry analysts suggested the government will be hard-pressed to meet its targets without significant reductions in expected emissions there – either through a reduction in planned growth or through expensive technological solutions.

The Calgary-based Pembina Institute has calculated that greenhouse gas emissions from the oil sands amounted to 25 megatonnes in 2003, and forecasts that figure will jump to as much as 94 megatonnes in 2012, and 142 megatonnes in 2020 under a business-as-usual scenario.

Yesterday, Mr. Baird said the government plan would stabilize the country’s greenhouse gas emissions by 2012, then reduce them by 20 per cent – or 150 megatonnes – by 2020.

Globe and Mail