CEOs call on Mark Carney to ‘take action’ to support domestic energy sector
Canada’s energy CEOs are calling on Prime Minister Mark Carney to scrap the emissions cap on oil and gas producers and repeal industrial carbon pricing to help bolster the industry.
Thirty-eight CEOs of Canadian energy companies signed a letter congratulating Carney on his election win and pitching policy measures they say would help the prime minister make good on his 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 reads.
“Your focus on fostering energy independence and enhancing Canada’s energy infrastructure and clean technology requires major sector investment and globally competitive energy and carbon policies. 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.”
The CEOs say they want an overhaul of the Impact Assessment Act — which sets out the process for assessing major projects — and of the Oil Tanker Moratorium Act, which bans oil tankers carrying more than 12,500 metric tons of crude from stopping along parts of B.C.’s coastline.
Carney campaigned on expediting reviews of major energy infrastructure projects. He promised before the election to move forward with a “one project, one review” approach by recognizing assessments conducted by the provinces and territories.
The energy CEOs also called on Carney to repeal the industrial carbon pricing system. Carney campaigned on strengthening the policy after he scrapped the consumer carbon price.
“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.
“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 its proposed emissions cap regulations late last year. They would compel upstream oil and gas operations to reduce emissions to 35 per cent below where they were in 2019 by sometime between 2030 and 2032.
Carney said before the election he wouldn’t be scrapping the regulations.
“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,” the CEOs wrote.
“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.”
globalnews
