Top-emitting Alberta oilsands site got government relief from pollution payments, Reuters reports
CBC
For three straight years, Alberta's government granted Canada's most emissions-intense oilsands facility reductions in payments that polluters are required to make for generating higher emissions than most of the industry, a government document obtained by Reuters shows.
From 2018 to 2020, Alberta lowered Canadian Natural Resources Ltd.'s costs for its oil-producing Peace River site to comply with provincial emissions requirements, Reuters reported Wednesday. Peace River's per-barrel emissions are triple that of the already-high oilsands average.
CNRL, which is Canada's biggest oil producer and made $2.1 billion adjusted profit in the third quarter, is one of six companies to receive financial relief under Alberta's compliance cost containment program, which launched in 2018.
Alberta requires high-emitting facilities that pollute more than the industry benchmark to comply, either by buying emissions credits or offsets from better-performing facilities, or by paying into a government fund at the going rate for carbon emissions, currently $40 per tonne.
The province's cost containment program, however, eases the financial pain for facilities whose compliance costs are greater than three per cent of their sales or more than 10 per cent of their profits, to prevent "economic hardship."
Alberta's Environment Department provided, at the request of Reuters, a list of companies that benefited from the program. Spokesman Tom McMillan said it would not disclose the amounts of the cost relief the companies received, calling them "commercially sensitive."
Greenfire Oil and Gas Limited and Athabasca Oil Corp , which run the second- and eighth-most emissions-intense Alberta oilsands sites, according to government records, also received cost reductions.
Alberta's government also lowered CNRL's compliance cost for its Hays gas plant in 2018 and 2019.
CNRL did not respond to Reuters when asked the financial value of the carbon cost relief it received.
"As we advance technologies to reduce our carbon footprint at all of our facilities, we will continue providing local jobs and economic benefits," CNRL said in a statement.
Countries that produce fossil fuels face the challenge of cutting emissions without damaging their economies. But Alberta's policies are "particularly egregious" for prolonging the life of high-emitting facilities, said Dale Marshall, national climate manager at Environmental Defence.
Emissions-intense, outdated oil facilities continue to operate despite government attempts to curb emissions.
Environment Minister Jason Nixon defended Alberta's efforts.
"It is a made-for-Alberta system that works with, not against, our key industries."
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