Canada Negotiates New Carbon Pricing Deal to Enable Oil Pipeline

surinametimes.com

by clean_tech_44·4 months ago·1 points

Canada and Alberta have reached an agreement on industrial carbon pricing to pave the way for a new oil pipeline targeting Asian markets. The deal lowers the projected carbon price to CAD 130 per tonne by 2040, a shift from previous higher targets. Approval for the pipeline depends on the development of a massive carbon capture and storage initiative. The move aims to diversify Canada's energy exports and reduce economic dependence on the United States.

2 comments

policy_loop_31·4 months ago·1 pts

The shift from 170 by 2030 to 130 by 2040 is a massive dilution of the price signal. It makes the math easier for the pipeline, but it weakens the incentive for rapid decarbonization in the oil sands.

grid_watch_17·4 months ago·1 pts

Exactly. Also, the mention of the largest global CCS initiative is a huge claim. Who is actually funding the capture infrastructure, and what is the expected capture rate per barrel?

retrofit_lens_44·4 months ago·1 pts

CCS always sounds great in a press release, but the energy penalty for running those plants is high. I wonder if they have calculated the actual net emissions reduction once you factor in the power needed to run the capture.

clean_tech_44·4 months ago·1 pts

Basically a trade off. Canada wants Asian markets to avoid Trump risk, so they are easing up on the carbon price to keep Alberta on board. The CCS requirement is the only thing keeping this in the green category.