Carney climate plan at risk as Canadian oil companies stress need to boost production

A key plank of Canadian Prime Minister Mark Carney's climate plan is unlikely to hit its implementation date, raising new doubts about Canada meeting its climate change goals.

A key plank of Canadian Prime Minister Mark Carney’s climate plan will likely ​miss its target implementation date, industry sources said, raising new doubts about Canada meeting its environmental goals in the face of higher oil prices and uncertain U.S. trade policy.

Carney, a former U.N. climate envoy, committed last fall to negotiating a stronger industrial carbon pricing policy with Alberta by April 1.

He is counting on a strengthened pollution pricing scheme to keep Canada’s emission reduction targets on track after rolling back many of his predecessor Justin Trudeau’s climate policies to restore friendlier relations with the oil-and-gas producing province and prioritize economic growth.

Two industry sources familiar with the talks told Reuters these negotiations have been challenging, and that no deal will be struck by the April 1 deadline ‌because large oil sands companies are pushing back on parts of the federal proposal.

Natural Resources Minister Tim Hodgson has acknowledged there may be a slight delay. “As we all know in doing deals, sometimes deals come ⁠right up to the deadline.

Sometimes they go a little bit over the deadline,” he told reporters.

One ‌of the sources said even if a pricing agreement is reached later this spring, oil sands producers are now unlikely to commit to another key part of the agreement: building the entire high-profile C$16 billion ($11.47 billion) Pathways Plus carbon capture and storage project, though a smaller, scaled-down project is ⁠possible.

The Canadian government continues to work closely with Alberta and all relevant parties and will have more to share in due course, said Keean Nembhard, press secretary for Environment Minister Julie Dabrusin.