GREENHOUSE GASES (GHG)

The federal government has announced large facility emissions targets based on an 18 per cent reduction in intensity from 2006 in 2010, with 2 per cent improvements per year thereafter. Again, companies can make improvements at their facilities, buy Canadian-based and approved credits, or pay into a technology fund.

Unlike Alberta's plan, the federal government intends to phase out the technology fund by 2018.

CAPP supports the basic structure outlined by the federal government. However, we believe the limitations on and phase-out of the Technology Fund in the federal design is a serious shortcoming that undermines the ability of the policy to effectively promote transformative technology and introduces unnecessary and undesirable uncertainty into business planning and compliance.

BC

In May 2007, the BC government announced that it would partner with Western US states in setting provincial and state CO2 emission reduction targets and implementing a "cap and trade" system for large industry. Despite being a relatively low intensity jurisdiction, BC took on the most ambitious reduction target for 2020-33 per cent below 2007.

The details of the cap and trade system for industry, its coverage and how it would fit with the Canadian federal government requirements are unknown at this time.

CAPP STEWARDSHIP GHG DATA

CAPP has collected GHG data from our members on a voluntary basis since 1999. Initially most members submitted GHG data to CAPP, as they were collecting the information for the Voluntary Challenge and Registry (VCR). CAPP GHG data is reported on a company basis and includes GHG emissions from all oil and gas sites-whether it's a large facility, or an individual well site.

Since 2004 it's been clear that Alberta and the federal government would focus on large facilities. Correspondingly, many CAPP members are now focused on collecting high quality GHG emissions data for their large facilities, with less attention to company-wide data.

As a result, the number of members providing GHG data to CAPP has dropped, and it is increasingly difficult to use the Stewardship GHG data to describe industry trends. Once new provincial and federal GHG reporting requirements have solidified, CAPP will update our GHG reporting criteria accordingly. Until then we remain cautious about commenting on industry trends using our Stewardship GHG data.

COMMITTED TO OPERATIONAL EXCELLENCE THROUGH INNOVATION

The difference between the current trend in Canada's GHG emissions in the absence of new policy and our emission objective represents the gap that need to be addressed by policy.

Canada's National Roundtable on the Environment and the Economy predicts that without changes, our CO2 equivalent emissions will be 1300 megatonnes (mT) per year by 2050. The federal government has set a 2050 emission objective of 60 per cent to 70 per cent below current levels, or 225 to 300 mT-a difference of 1000-1075 mT.

So how will we make up this 1000 megatonne gap? No one solution will get us there; we cannot solve our climate change issues simply by eliminating our use of coal, oil and natural gas. We must: improve energy efficiency to slow the rate of growth of energy demand, increase the supply of renewable energy; reduce GHGs emitted in the production and use of hydrocarbons; move to less-carbon intensive fuels; expand CO2 capture and storage; and change our lifestyle and habits to slow the rate of energy demand.

We all have a role to play if we are to meet our climate change goals. We support initiatives of government aimed at providing a clear working framework in which industry can commit to long-term strategies, and which supports the development of technologies focused on reducing GHG emissions.