What committed to Net Zero means
Canada’s oil and gas producers are committed to environmental excellence, including reaching net zero greenhouse gas emissions in the oil sands.
Aligning with the goals of the Paris climate agreement, major oil sands producers have committed that by 2050, any emissions from production will be balanced by emissions removed from the atmosphere. This means that the industry will produce the equivalent of zero emissions.
Canada is already a world leader in reducing the emissions intensity of oil production. According to BMO Capital Markets, since 2013 the average reported oil sands emissions per barrel have decreased by 27 per cent, compared to just a 13 per cent reduction from other major oil-producers globally. Several oil sands projects now have emissions intensity that is lower than the global average.
“Canada, at least among the major oil and gas producing countries in the world, is doing more than most to actually abate their emissions,” says BMO analyst Jared Dziuba.
Further reductions are expected with broader application of carbon capture, utilization and storage (CCUS) and new technologies like solvent co-injection at drilling projects, expanded use of cogeneration supporting low carbon oil and power, and broader adoption of paraffinic froth treatment technology in oil sands mining, BMO found.
Potential future game changers include waterless mining and tailings reduction, blue hydrogen, and molten carbonate fuel cells to produce low-carbon electricity.
Canada’s oil and gas industry spends more on energy cleantech R&D than any other sector in the country, reaching a record $1.9 billion in 2019.
Overall, Canadian oil and gas companies have made great strides on environmental, social and governance (ESG) performance and are demonstrating their commitment to operate at the highest standard.
ESG measures performance in areas like safety, emissions reduction, freshwater use, Indigenous opportunities, diversity and inclusion.
Toronto-based lawyers with Torys LLP wrote in March that, “The strong commitment from the Canadian energy sector to achieve world class ESG standards, paired with Canada’s abundant natural resources, positions Canadian energy companies to be a responsible global energy supplier of choice.”
This material is distributed by Copithorne & Blakely on behalf of the Canadian Energy Centre pursuant to the Foreign Agents Registration Act (FARA).
Image: Shell Canada