Big Oil and Renewables: Can Carbon Pricing Push Fossil Fuel Firms to Build Clean Energy?

An op-ed in Canadian Affairs argues that oil and gas companies in Alberta are already a major force in renewables, with traditional energy firms accounting for nearly one-third of the province's renewable capacity. Wind and solar have grown from about 14 percent of installed generating capacity in 2017 to roughly 36 percent today. The author makes the case that climate policy should focus on redirecting fossil fuel capital into clean energy, not just penalizing emissions. The piece cites an ECB study that found little evidence higher carbon prices reduced emissions intensity at carbon-intensive firms, and suggests a carbon price tied to a parent company's fossil fuel capital share. It also points to experience curves in wind turbines, where doubling manufacturing experience cut costs by 26 to 29 percent. For Canada, the idea would extend existing systems like the federal OBPS and Alberta's TIER to account for corporate investment choices.