One more time: can Canada meet its GHG emissions targets if oil and gas continues to expand?

The Canadian government pledged to  exceed 2030 emissions reduction targets and reach net zero carbon emissions by 2050 at COP25 in December 2019, and on January 13, the Minister of Finance announced  pre-Budget consultations  that will include climate change as a “central focus”.    Encouraging as all this sounds, it contrasts with the government’s  2018 purchase of the  Trans Mountain Pipeline (recently critiqued by B.C. economist Robyn Allan, and pictured with new “pipe in the ground” in December), and its mixed signals over whether Cabinet will approve the enormous Teck Frontier oil sands project in February – explained in a Narwhal Backgrounder: “Why the proposed Frontier oilsands mine is a political hot potato”.  (Hint: because it has the potential to produce 260,000 barrels of bitumen every day until 2060).

Recent forecasts for expansion of  oil and gas industry production are also at odds with  Morneau’s “focus on climate change” :

Oil, Gas and the Climate: An Analysis of Oil and Gas Industry Plans for Expansion and Compatibility with Global Emission Limits , published by the Global Gas and Oil Network ( December 2019)  describes how “new oil and gas development in Canada between now and 2050 could unlock an additional 25 GtCO2 , more than doubling cumulative emissions from the sector.”  The report is summarized in a separate WCR post  here .

Canada’s Energy Future 2019: Energy Supply and Demand Projections to 2040 , released in December by Canada Energy Regulator (CER) (formerly the National Energy Board) states “Canada is making progress in transitioning to a low-carbon future” but :

“From 2018 to 2040, crude oil production grows by nearly 50%, to around seven million barrels per day.

Natural gas production increases by about 30%, to over 20 billion cubic feet per day over the next 20 years.

In 2005, wind and solar made up 0.2% of Canada’s total generation. Combined they now make up 5%, and that share grows to nearly 10% by 2040. Over the outlook period, installed capacity of wind nearly doubles, while solar more than doubles. This depends on many factors, including costs of wind and solar power continuing to fall. EF2019 assumes that the cost of wind power falls by 20% and solar by 40% from 2018 to 2040.”

canadas energy future 2019

The  Pembina Institute responded with “Why Canada’s Energy Future report leads us astray”  on January 9th, which states: “How does the government’s long-term decarbonization plan square with its projections for energy production? The simple answer is that it doesn’t. The report’s implication is that Canada will blow past our climate targets as our oil and gas sector effectively continues on a business-as-usual trajectory….The report has real implications for federal planning and decision-making and, perhaps most significantly, the overall vision of the energy sector in this country.”  Canada’s Energy Future 2019: Energy Supply and Demand Projections to 2040 is available in PDF format and in an interactive version .

Amid the distraction of the Christmas season,  the government of Canada released Canada’s GHG Emissions Projections to 2030 , as required by the United Nations Framework Convention on Climate Change (UNFCC) and as part of Canada’s 4th Biennial Report to the UNFCC.  The December 20 press release from the Minister of Environment and Climate Change claims that Canada will achieve an “historic level of emissions reductions” … projected to be 227 million tonnes (Mt) below what was projected in 2015 [italics by WCR]. ” The summary provides details of anticipated reductions by sector in 3 scenarios: 2019 Reference Case (policies currently in place); a 2019 Additional Measures Case, which considers the Reference Case and those that have been announced but not yet fully implemented as of September 2019 (for example, the Clean Fuel Standard); and a Technology Case, an “exploratory scenario that includes more optimistic assumptions about clean technology adoption in a number of sectors.” A summary of the Emissions Projections document is here ; the full details are in the 4th Biennial Report to the UNFCC, in English here   and here in French .

And for an example of how Industry is framing their emissions vs. growth dilemma:

Cenovus Energy issued a press release on January 9 announcing “Bold Sustainability Targets”  which “position us to thrive in the transition to a lower-carbon future”. The company states: ” Cenovus is targeting to reduce its per-barrel GHG emissions by 30% by the end of 2030, using a 2019 baseline, and hold its absolute emissions flat by the end of 2030″, with a “long-term ambition is to reach net zero emissions by 2050.”  This, despite a separate investor release which promises: “Total production increase of 7% compared with 2019 guidance, as Cenovus’s crude-by-rail program, coupled with the Government of Alberta’s Special Production Allowances, positions the company to move to unconstrained production levels.”

 

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