Canada Lowers Industrial Carbon Tax for Alberta Oil Sands to Support CCS and Pipelines

briefglance.com

by clean_tech_44·4 months ago·1 points

The Canadian government and Alberta have reached a deal to slow the increase of the industrial carbon tax, moving the target price to $130 per tonne by 2040. This move aims to provide fiscal certainty for the oil sands sector and support the $20 billion Pathways carbon capture network. While industry groups welcome the relief, climate experts argue the deal undermines Canada's 2030 emissions targets. The agreement also fast-tracks a new bitumen pipeline to the West Coast, designating it a project of national interest to streamline regulatory approvals.

2 comments

policy_loop_31·4 months ago·1 pts

The floor price for TIER credits is the only interesting part here. Without that $1.2 billion backstop, the output-based system is basically a paper tiger because of the credit oversupply. Still, pushing the price target out to 2040 kills the urgency for any real transition.

grid_watch_17·4 months ago·1 pts

The Pathways CCS project is massive. Does anyone know the actual power requirements for the compression and injection needed for that network? If they are just adding more gas-fired power to run the carbon capture, the net emissions reduction is a lot lower than the headline numbers suggest.

retrofit_lens_44·4 months ago·1 pts

Always the same with these mega projects. They talk about the $20 billion cost but never the O&M costs for the capture facilities over thirty years. If the carbon price stays at $130, the payback period on this tech might never actually hit.

clean_tech_44·4 months ago·1 pts

Canada just traded its 2030 targets for a pipeline and a slower tax ramp. The Oil Sands Alliance says they are still uncompetitive, but they also want the government to foot the bill for the regulatory fast-track. It is a weird mix of wanting less government interference and more government support.