Canada Concerned By Proposed Green Energy Bill
Legislation Reduces Carbon Emissions To 2006 Levels
Apr 29, 2009
The suggested bill comes up as the two countries discuss how to lower greenhouse gas emissions and may serve to complicate those talks.
Legislation Introduces California-style Measures
The legislation deals specifically with carbon emissions caused by oil production. It would see guidelines established for emission amounts produced by oil refineries during the production process and throughout the fuel’s life cycle. Refineries would be forced to reduce their emissions to 2005 levels by 2022, and a further 5% by 2030.
These measures are styled after California’s recent legislation that sees carbon intensity reduced beginning in 2011. It’s known as the California standard and the initiative is intended to encourage development of hydrogen, electricity, and bio-fuels. By current standards, gas is already made up of 6% ethanol content. Fuel costs in California may rise by $3 billion USD per year, and at the moment gas is selling for approximately $2.35/gallon USD.
Canada, Alberta Concerned over Oil Sands
The Canadian government objections are based around what the proposed legislation will do to the Alberta Oil Sands, which, produce up to 30% more emissions than normal. If passed it could potentially cause problems in terms of trade, and efforts to harmonize environmental regulations.
The ‘Border Adjustment Protocol’ is a clause that would allow American manufacturers to demand their foreign counterparts pay, and account for carbon included in products into the United States. In a letter to California Governor Arnold Schwarzenegger Natural Resources Minister Lisa Raitt raised the objection the clause could be considered an unfair obstacle in trade between Canada and the USA.
In Washington for a climate change conference Environment Minister Jim Prentice added that problems were discussed in terms of implementation. In remarks published on canada.com Prentice questioned how the legislation was going to be enacted: “I think the practicality of it was raised in some detail in terms of rendering it operational.”
Alberta officials are also concerned. Their fears centre on the proposed legislation being a method of discrimination against the oil sands; something echoed in the letter sent by Raitt. The letter was quoted in the Report On Business: “We are concerned that crude oil derived from Canada’s oil sands may be discriminated against as a high (carbon-intensity) crude oil while other crude oils with similar upstream emissions are not singled out.”
Despite the threat to the oil sands Alberta’s Energy Minister Mel Knight insists his province will continue playing a role in reducing carbon emissions. According to the Calgary Herald Knight told of the province’s involvement in California: “We’ve got people there in California. We’ll continue to work with them.”
Canada's goal is to reduce emissions by 20% by 2020, which, will put the country in line with the United States.
