Alberta’s emissions cap is high cost, meagre GHG reduction
Fraser Institute study estimates $250 billion in lost production from 2025 to 2040.
Oil & Gas
greenhouse gas emissions
oil and gas
CALGARY — A Fraser Institute study says capping carbon emissions in Alberta’s oil sands will leave hundreds of billions of dollars in the ground while doing very little to reduce greenhouse gases.
The study estimates the provincial NDP government’s proposed cap of 100 megatonnes of emissions will significantly reduce the industry’s production potential by more than 3 billion barrels of oil between 2025 and 2040 at a cost of more than $250 billion. But the reduction in greenhouse gas emissions by 2040 will be just 0.035%.
The Canadian think tank says current projections show oil sands operations could hit 100 megatonnes of emissions by 2025. Capping will, at most, only reduce carbon emissions by 236 megatonnes at a cost that equals more than $1,000 to abate just one tonne of emissions. BC currently prices carbon emissions at $30 per tonne.
Click here for How Alberta’s Carbon Emission Cap Will Reduce Oil Sands Growth.