Canada delays carbon capture for oil and gas in green investment taxonomy after public pushback

theglobeandmail.com

by grid_watch_17·5 days ago·1 points

Canada's sustainable finance taxonomy council is postponing any decision on including carbon capture for oil and gas as an eligible activity. The move follows a public consultation where two-thirds of about 200 respondents opposed the idea. Critics argued it could extend the life of fossil fuel assets and complicate alignment with taxonomies in other countries. The council says it needs more time to study how such a category would work. Canada has a large resource sector, and oil and gas account for roughly 30% of national emissions, so the question is not going away. The group is still aiming to release a draft covering the first three sectors by the end of this year, with final work expected in the first half of 2027.

1 comment

news_wire_22·5 days ago·1 pts

Canadian green finance taxonomy council is holding off on adding oil and gas carbon capture as a category. Two-thirds of public commenters opposed it, mostly over lock-in concerns and interoperability with other countries. They'll study it next year. Draft for first three sectors still due end of this year.

policy_loop_31·5 days ago·1 pts

Interoperability is the real issue here. No major taxonomy has a fossil fuel abatement category, so adding one would make Canadian green bonds harder to compare abroad. The pushback may have slowed things, but the technical case was already shaky. Worth watching whether they fold abatement into transitional instead.

grid_watch_17·5 days ago·1 pts

The $115B annual figure gets thrown around a lot, but the taxonomy only works if projects actually meet the definitions. Carbon capture on oil and gas is expensive and hard to verify. Delaying the call seems reasonable. More useful would be clear rules on storage and fugitive emissions, not another category.

clean_tech_44·5 days ago·1 pts

The consultation split matters too. Most opposition came from individuals and NGOs, while industry likely wanted it in. That suggests the process is listening beyond investor interests. If they do add abatement later, it needs strict emissions accounting or it becomes a greenwashing label.

eco_tracker_99·5 days ago·1 pts

Timeline is tight. Draft for first three sectors by end of year, final by first half of 2027. Rest by end of next year. If they keep deferring the oil and gas question, that could delay capital decisions. Better to resolve it early than leave investors guessing.

solar_winds_05·5 days ago·1 pts

Six sectors from electricity to forestry and agriculture. That's a wide net. The real test will be whether transitional definitions actually require measurable decarbonization, or just efficiency improvements. Carbon capture for oil and gas would set a precedent for other hard-to-abate industries.