Emissions cap detrimental to Canadian competitiveness – without material impact to global emissions

The following statement is attributable to Deborah Yedlin, President and CEO at the Calgary Chamber of Commerce:

“The Calgary Chamber remains deeply concerned with the federal government’s decision to pursue a sector-specific cap on oil and gas emissions, recognizing the significant consequences the proposed regulation would have on the Canadian economy, and Canadians more broadly. As the only jurisdiction globally with a self-imposed cap, the emissions cap would be detrimental to Canada’ competitiveness, and as such, we continue to call on the federal government to withdraw the proposed regulations. While we recognize the sizable challenge climate change poses to our planet and economy, the oil and gas emissions cap – as proposed – is neither an effective nor efficient tool to address this challenge.

“Rather than support investment, the emissions cap – as currently structured – will create more uncertainty, stifle investments aimed at decarbonization in a sector that has already shown significant decreases in per-barrel emissions intensity and risk moving investments to other jurisdictions – ultimately leaving Canada further behind. The data is clear: this cap would lead to one million barrels cut each day according to S&P Global, $28 billion in lost GDP according to Deloitte and up to 150,000 lost jobs according to the Conference Board of Canada.

“Now more than ever, we need to prioritize energy security, economic stability and industry competitiveness – particularly with the U.S. election approaching, which could impact global energy markets, and Canada as the largest supplier of energy to the United States. Further, with trading being limited to within the sector, the emissions cap disincentives collaboration and sharing of technology and ideas needed to decarbonize.

“The emissions cap would also impact the valuation of the Trans Mountain Pipeline, as buyers of the asset need assurances the volumes will be produced to fill the pipe. Any risk that it will not be full will be reflected in the purchase price when the government goes to the market to sell the asset – ultimately creating severe consequences for taxpayers across the country.

“Moreover, regulating emissions under the Canadian Environmental Protection Act (CEPA) adds layers of complexity that could stall progress on efficiently achieving Canada’s climate goals while placing Canadian firms at a competitive disadvantage. The decrease in emissions represented by the cap will have no impact in the context of global emissions but will have a profound impact on Canada’s economy at a time when we are struggling to increase growth and productivity.

“We ask for the withdrawal of the emissions cap, acknowledging the economic consequences and operational realities of Canada’s resource sector. We emphasize the need for solutions that allow for flexibility, innovation and investment in emerging technologies to curb emissions, and align with industry-led pathways to decarbonization. Lastly, we call on the federal government to facilitate emissions reductions through partnerships, programs and regulatory certainty, all of which will be critical to achieve the federal government’s emissions reduction goals."

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About the Calgary Chamber of Commerce 

The Calgary Chamber exists to help businesses reach their potential. As the convenor and catalyst for a vibrant, inclusive and prosperous business community, the Chamber works to build strength and resilience among its members and position Calgary as a magnet for talent, diversification and opportunity. As an independent, non-profit, non-partisan organization founded in 1891, we build on our history to serve and advocate for businesses of all sizes, in all sectors across the city. 

Media Inquiries

Brittany Brander, Manager, Public Relations & Communications

media@calgarychamber.com