Politicians raise concerns about carbon pricing benefits given to oilsands companies
Federal and Alberta Opposition politicians want the province to be more transparent about a government program supporting profitable oilsands and other energy companies that say carbon pricing hurts their competitiveness.
“We can only make progress on climate change if industrial emitters are paying their fair share,” said Alberta New Democrat environment critic Marlin Schmidt Wednesday.
A government document dated Dec. 3 lists oilsands producers who have benefited from a 2018 program designed to soften the blow of carbon pricing for companies whose competitors don't pay those costs.
Introduced by the previous NDP government, the Compliance Cost Containment Program was part of an overall emissions reduction plan that forced oilsands producers to measure their performance against the best results in the industry. The incoming United Conservative government removed that element of competition but retained the containment program.
The program allows successful applicants to meet reduction targets through a greater emphasis on offsets rather than absolute reductions. It could also allow them to apply for emissions reduction grants or simply emit more carbon.
Companies could be eligible if compliance costs at a particular facility exceed three per cent of its sales or 10 per cent of its profits.
The document shows Canadian Natural Resources Limited successfully applied five times under the program between 2018 and 2020, the only company to benefit in every year. The company declared more than $2 billion in profits in the third quarter of 2021.
Five other companies benefited, although none as often as CNRL. They include Athabasca Oil, Greenfire Oil and Gas, Keyera Energy, West Fraser Mills and Enerkem Biofuels.
The document contains no information on the size or nature of the benefits provided - a lack that damages the credibility of the Alberta government's entire carbon pricing system, Schmidt said.
“Not only are we not seeing reduced carbon emissions, we're also seeing reduced payments into the (carbon levy) fund,” he said.
Schmidt said the province must be more transparent, pointing out the document doesn't say what benefits CNRL received, how big they were, or how they were justified.
“It's not clear what the criteria for exemptions are. Those things really damage the (program's) credibility.”
No one from CNRL or the Alberta government was immediately available for comment.
Federal Environment Minister Steven Guilbeault said his office is aware of the document and is looking into how the program was used to ensure it meets federal requirements on carbon pricing.
“We expect everyone to follow the rules and regulations,” he said. “If they don't, of course there will be consequences.”
Alberta has been exempted from the federal carbon pricing regime because its program was deemed to meet federal requirements.
This report by The Canadian Press was first published Dec. 8, 2021
CTVNews.ca Top Stories
B.C. tenants evicted for landlord's use after refusing large rent increase to take over neighbouring suite
Ashley Dickey and her mother rented part of the same Coquitlam duplex in three different decades under three different landlords.
Mountain guide dies after falling into a crevasse in Banff National Park
A man who fell into a crevasse while leading a backcountry ski group deep in the Canadian Rockies has died.
Expert warns of food consumption habits amid rising prices
A new survey by Dalhousie University's Agri-Food Analytics Lab asked Canadians about their food consumption habits amid rising prices.
MPP Sarah Jama asked to leave Ontario legislature for wearing keffiyeh
MPP Sarah Jama was asked to leave the Legislative Assembly of Ontario by House Speaker Ted Arnott on Thursday for wearing a keffiyeh, a garment which has been banned at Queen’s Park.
Charlie Woods, son of Tiger, shoots 81 in U.S. Open qualifier
Charlie Woods failed to advance in a U.S. Open local qualifying event Thursday, shooting a 9-over 81 at Legacy Golf & Tennis Club.
Ex-tabloid publisher testifies he scooped up possibly damaging tales to shield his old friend Trump
As Donald Trump was running for president in 2016, his old friend at the National Enquirer was scooping up potentially damaging stories about the candidate and paying out tens of thousands of dollars to keep them from the public eye.
Here's why provinces aren't following Saskatchewan's lead on the carbon tax home heating fight
After Prime Minister Justin Trudeau said the federal government would still send Canada Carbon Rebate cheques to Saskatchewan residents, despite Saskatchewan Premier Scott Moe's decision to stop collecting the carbon tax on natural gas or home heating, questions were raised about whether other provinces would follow suit. CTV News reached out across the country and here's what we found out.
Montreal actress calls Weinstein ruling 'discouraging' but not surprising
A Montreal actress, who has previously detailed incidents she had with disgraced Hollywood producer Harvey Weinstein, says a New York Court of Appeals decision overturning his 2020 rape conviction is 'discouraging' but not surprising.
Caleb Williams, Jayden Daniels and Drake Maye make it four NFL drafts with quarterbacks going 1-3
Caleb Williams is heading to the Windy City, aiming to become the franchise quarterback Chicago has sought for decades.