Oct 5 (Reuters) – Canada has released draft guidelines on how new oil and gas projects should demonstrate “best-in-class” performance on greenhouse gas emissions, following to a government announcement first made in April.
The guidelines, released late Tuesday, are intended to clarify for industry what is expected of projects undergoing federal regulatory assessment, Environment Canada spokesman Oliver Anderson said.
Canada, the world’s fourth-largest oil producer, has pledged to cut its carbon emissions 40-45% below 2005 levels by 2030 and reach net zero emissions by 2050.
Join now for FREE unlimited access to Reuters.com
Prime Minister Justin Trudeau’s Liberal government is trying to balance its climate ambitions with the interests of the oil and gas sector, which accounts for about 5% of Canada’s GDP, but is also the most polluting sector of the economy.
Environment Canada first promised new projects to require best-in-class emissions standards the same day it approved Equinor’s massive Bay du Nord offshore project. At the time, there was uncertainty among industry players about what best-in-class meant. Read more
The draft guidelines outline how companies should identify the best emissions performance of similar projects globally, in different categories, including offshore oil, liquefied natural gas or oil sands upgrading.
Then the company must show regulators how its project will match that top-notch performance, or explain what circumstances would prevent it from doing so. Companies must also demonstrate how they would aim to bring projects to net zero emissions.
“That’s not to say net zero is a standard requirement, but when project approvals are made, what we want to see is a plan to get there, or what circumstances may not make it possible,” Anderson said.
The federal government is also consulting on a separate cap for oil and gas emissions. Read more
Environment Canada is accepting comments on the guidelines until December 3 and expects to release a final version in 2023.
Join now for FREE unlimited access to Reuters.com
Reporting by Nia Williams
Our standards: The Thomson Reuters Trust Principles.