Canadian Manufacturing

CAPP calls on Alberta to invest money from emissions charges in cleantech

Alberta must strike the right balance to fight climate change and encourage investment, organization says

October 5, 2015  by Cleantech Canada Staff

CALGARY—Alberta can become both a leader in the fight against climate change and a more competitive place to invest if the province strikes the right balance with its new climate policy, the Canadian Association of Petroleum Producers said.

The organization called on the Alberta government to make clean technology a priority by investing funds from Alberta’s $30 per tonne carbon dioxide emissions charge in new research and development aimed at reducing emissions.

“Alberta can diversify its economy and become the global hub for the development of new emissions-cutting technologies that we can then export to the world’s oil and gas sector,” CAPP president and CEO, Tim McMillan, said. “In our generation, we can make Alberta’s oilpatch the high-tech environmental leader of the world.”

CAPP pointed to 777 different technologies and best practices Canadian oil sands producers are working on to find innovative solutions to reduce greenhouse gases, minimize impact on land, reduce water use and improve tailings management.


“First and foremost, technology is key – it builds on our strength, builds on our track record, and is the key to unlocking the value of Canada’s oil and gas resources while continuing to reduce emissions,” McMillan said.

One recommendation in CAPP’s submission to the Alberta climate change advisory panel is to develop an incremental clean infrastructure royalty credit program. The association said such a program would encourage adoption of technologies that reduce the emissions impact of oil and gas development while protecting the industry’s competitiveness. The province would also benefit through potential incremental royalties from resource development encouraged by the new program, CAPP said.

“We have in Canada the energy the world needs, and developing it creates jobs and prosperity for all Canadians,” McMillan said. “Greenhouse gas reduction is a global issue, so we need to find the right balance to continue producing energy for the world.”

CAPP also proposed the climate panel consider the more immediate impact on emissions while encouraging responsible energy development that re-establishes province’s “competitive edge.”

“If Alberta does not take a balanced approach to setting its targets, price and timelines, it could eliminate the competitiveness of Alberta’s oil and gas industry, putting billions of investment and thousands of jobs at risk,” McMillan said.