Most of Canada’s oilsands producers have made little progress on their purpose to decarbonize the sector regardless of traditionally excessive income and low capital expenditures, a brand new report mentioned.
A report from the Pembina Institute mentioned little has been carried out by members of the Pathways Alliance, an business group that accounts for 95 per cent of the nation’s oilsands producers, to satisfy its dedication to net-zero greenhouse fuel emissions by 2050.
Final 12 months, Canada’s six largest oilsands producers and two present oilsands organizations, pledged to satisfy Canada’s local weather imperatives beneath the Pathways Alliance.
The pledge contains targets for the oil sands sector to attain a 22-million-ton annual discount by 2030 and a purpose of reaching net-zero emission by 2050, mentioned Pathways Alliance president Kendall Diling in a press release.
Pathways Alliance “acknowledges it has a significant function to play in serving to Canada meet its local weather objectives,” mentioned Diling.
“Expectations by the Pembina Institute that Pathways Alliance corporations make ultimate funding choices on these multi billion-dollar tasks earlier than governments have finalized regulatory frameworks to help them are unrealistic.”
A number of initiatives have been put in place or are underway by the Authorities of Alberta, mentioned director of Pembina Institute’s oil and fuel program Jan Gorski, together with the incoming Funding Tax Credit score, finalization of inexperienced gas rules, the carbon pricing system and the cap on oilsands emissions.
“There’s truly much more on the desk now than when Pathways was introduced,” mentioned Gorski.
So far, Pathways Alliance has built-in Canada’s Oil Sands Innovation Alliance and the Oil Sands Neighborhood Alliance into their group to additional efforts to scale back the environmental influence of oilsands, mentioned Diling.
Nonetheless, the report’s authors wish to see extra detailed plans on carbon seize tasks and what funding in such tasks will contribute towards emissions discount.
The report additionally notes that Canada’s oil and fuel sector is estimated to earn a revenue of $152 billion in 2022. Nonetheless, the growth in revenue has not been invested in decarbonization efforts nor a major enlargement of jobs within the sector.
“There’s a possibility to create jobs by means of these decarbonization tasks,” mentioned Gorski.
As an alternative of environmental initiatives, the report mentioned that Pathway Alliance’s corporations are investing in share repurchases and dividend funds.
Pathways Alliance members embody Suncor, Cenovus, Conoco Phillips, Canadian Pure Assets, Imperial Oil and MEG Vitality.
This report by The Canadian Press was first printed Sept. 23, 2022.
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Caitlin Yardley, The Canadian Press