“Climate activists are sometimes portrayed as dangerous radicals, but the really dangerous radicals are the countries that increase fossil fuel production,” Antonio Guterres said on Monday, as the IPCC warned that total carbon emissions should be reduced to in 2025 and be reduced to 43% by 2030 to prevent global warming from exceeding 1.5 C. “Investing in new fossil fuel infrastructure is moral and economic madness.” For Prime Minister Justin Trindade and former climate activist Steven Gilbo, the IPCC report complicates the balancing act of Canada’s own climate targets while continuing to boost oil and natural gas production. The long-awaited plan presented by Mr Guilbeault last week calls for a 42 per cent reduction in oil and gas emissions from 2019 to 2030. Although not a tough ceiling for oil and gas emissions Promised last year – Ottawa is still working on it – the goal is tantamount to a moonshineing effort to make Canadian oil one of the least carbon-intensive in the world. “Reducing the carbon footprint of Canadian production below the global average is as strong as it’s likely to be increasingly important for Canadian industry to compete in an increasingly limited global market,” says the 2030 Emission Reduction Plan. The Liberals rely on new technology to achieve this. Mr Guilbeault’s plan predicts that by reducing Canada’s carbon intensity below the global average of 50 kilograms of carbon dioxide per barrel, Canada can increase crude production by up to 33 percent by 2030 and further reduce oil and gas emissions to 110 million tonnes from 191 million tonnes. When it comes to zero-emission vehicles, Canada is pursuing the wrong policies Cenovus hits $ 1.4 billion to break out of oil hedges as a sign of strength for company as prices soar Obviously, the increase in oil production implies investment in new fossil fuel infrastructure, the very venture that Mr Guterres and the IPCC so strongly denounce. A decision has been made by Ottawa until next week on whether to approve the offshore oil project of Newfoundland and Labrador’s Bay du Nord. But the bulk of production increases in the coming years will occur in Alberta. Regarding the promising legislative ceiling on emissions in the oil and gas sector, the 2030 Emission Reduction Plan states: “The sector may also need time-limited flexibility, for example by using domestic or international compensation, to achieve a small part of the reductions.” Read on what you can. However, it suggests that production in Canada will only decline in line with falling global oil demand. This may take a while. In interviews last week, Guilbeault insisted that coal capture, use and storage is just one of many tools the oil and gas sector could use to achieve its goals. His unprofitable reliance on this silly technology is likely to have to do with the fact that most of the Liberal climate activists seeking to sue for their emissions reduction plans consider the CCUS a ploy by the oil industry to to keep in drilling. Despite the profit spike this year, the oilpatch wants Ottawa to subsidize most of the cost of CCUS projects. Treasury Secretary Chrystia Freeland is expected to provide more details on the promised federal CCUS investment tax deduction in the federal budget, which will be made public on Thursday. The Liberals are trapped between their desire to be seen as leaders in the climate and the harsh economic and geopolitical realities facing Mrs Freeland and her cabinet colleagues. These oil gains are a reminder to everyone in Ottawa of how much Canada’s economy depends on natural resources. Unexpected tax revenue from higher oil prices will be one of the few bright spots in Mrs Freeland’s budget. Although released this week, the latest IPCC report was completed before Russia invaded Ukraine and Europe began trying to find permanent alternatives to Russian fossil fuels. No matter what Guterres thinks, Canada and other oil and gas-producing democracies have a moral obligation to help Europe achieve that goal, even if it means investing in new fossil fuels. The claim that Europe can replace Russian oil and gas with renewable energy sources in the coming years alone is a fallacy that only empowers Russian President Vladimir Putin and his fellow oil dictators. Unfortunately, the IPCC does not distinguish between fossil fuels of the free world and non-free. This is because all emissions, regardless of their county of origin, are bad for the planet. After all, the atmosphere can not distinguish between democracies and dictatorships. But back to earth, this distinction can not be ignored. Europe is learning this lesson now. So, perhaps, is Mr. Gilbo. Your time is precious. Deliver the Top Business Headlines newsletter to your inbox in the morning or evening. Register today.
