Need for national energy strategy as strong as ever
Need for national energy strategy as strong as ever
[ http://calgaryherald.com/business/energ ... -this-week ]
Deborah Yedlin, Calgary Herald Published on: July 14, 2015 | Last Updated: July 14, 2015 11:04 AM MDT
Word has it there will be progress made on advancing a Canadian energy strategy when the premiers meet in St. John’s, N.L., later this week.
If that’s the case, it will be a fitting coda to the conversations that took place amidst the corporate functions during Calgary Stampede week, which finished on Sunday.
The top five topics discussed over the last 10 days not only included Alberta-specific issues such as the royalty review and climate change panels, but also the need for market diversification, the importance of putting a credible price on carbon and resolving First Nations issues.
There was also some commentary focused on how to move the conversation on energy to a national level that engages Canadians, closes the energy literacy gap and potentially makes the lack of progress on energy infrastructure an issue in the coming federal election.
All this is particularly top of mind given the dramatic percentage drop in oil prices since this time last year and the growing oil production from shale formations south of the border. The fact Saudi Arabia announced on Monday that it is on track to surpass Russia as the world’s largest oil producer, as well as the heightened likelihood of an agreement with Iran that will end sanctions and allow that country to move toward increasing its oil production, once again underscores the importance of getting a world price for Alberta’s oil production; a made-in-North-America price is in the best interest of neither the province nor the country.
Low oil prices aside, the future growth of Canada’s energy sector is inextricably tied to achieving market access, which requires reconciling the carbon emissions associated with that growth. And contrary to what many might think, it’s as much a national issue as a continental one.
In the absence of a coherent plan put forward by the federal government, the provinces have pushed ahead with various systems ranging from a carbon tax in British Columbia, to an intensity-based levy on large emitters in Alberta, to a cap-and-trade system in Quebec, which Ontario is about to implement as well.
According to a paper released on Monday by the Canada West Foundation entitled Patchwork Pollution Solution — Stitching Together a Canadian Climate Plan, when Ontario’s system links with Quebec, 75 per cent of the country will be under a carbon price. That the systems are different reflects the diverse nature of provincial economies as well as the energy sources each use for the purposes of generating electricity.
The fact that Alberta and Saskatchewan account for 45 per cent of Canada’s emissions but represent no more than 15 per cent of the population is indicative of the fact a one-size-fits-all approach to carbon management is neither practical nor feasible.
But it is also inefficient on all levels — from the perspective of governmental administrative challenges to the lack of consistency amongst the various jurisdictions across the country — and drives up costs to companies.
This week’s meetings present the opportunity for what Trevor McLeod, director of the Centre for Natural Resources Policy at the CWF, calls a grand bargain for a credible quid pro quo amongst the provinces to advance a national carbon strategy that, in return, breaks the logjam on an issue such as market access.
MORE:
[ http://calgaryherald.com/business/energ ... -this-week ]
[ http://calgaryherald.com/business/energ ... -this-week ]
Deborah Yedlin, Calgary Herald Published on: July 14, 2015 | Last Updated: July 14, 2015 11:04 AM MDT
Word has it there will be progress made on advancing a Canadian energy strategy when the premiers meet in St. John’s, N.L., later this week.
If that’s the case, it will be a fitting coda to the conversations that took place amidst the corporate functions during Calgary Stampede week, which finished on Sunday.
The top five topics discussed over the last 10 days not only included Alberta-specific issues such as the royalty review and climate change panels, but also the need for market diversification, the importance of putting a credible price on carbon and resolving First Nations issues.
There was also some commentary focused on how to move the conversation on energy to a national level that engages Canadians, closes the energy literacy gap and potentially makes the lack of progress on energy infrastructure an issue in the coming federal election.
All this is particularly top of mind given the dramatic percentage drop in oil prices since this time last year and the growing oil production from shale formations south of the border. The fact Saudi Arabia announced on Monday that it is on track to surpass Russia as the world’s largest oil producer, as well as the heightened likelihood of an agreement with Iran that will end sanctions and allow that country to move toward increasing its oil production, once again underscores the importance of getting a world price for Alberta’s oil production; a made-in-North-America price is in the best interest of neither the province nor the country.
Low oil prices aside, the future growth of Canada’s energy sector is inextricably tied to achieving market access, which requires reconciling the carbon emissions associated with that growth. And contrary to what many might think, it’s as much a national issue as a continental one.
In the absence of a coherent plan put forward by the federal government, the provinces have pushed ahead with various systems ranging from a carbon tax in British Columbia, to an intensity-based levy on large emitters in Alberta, to a cap-and-trade system in Quebec, which Ontario is about to implement as well.
According to a paper released on Monday by the Canada West Foundation entitled Patchwork Pollution Solution — Stitching Together a Canadian Climate Plan, when Ontario’s system links with Quebec, 75 per cent of the country will be under a carbon price. That the systems are different reflects the diverse nature of provincial economies as well as the energy sources each use for the purposes of generating electricity.
The fact that Alberta and Saskatchewan account for 45 per cent of Canada’s emissions but represent no more than 15 per cent of the population is indicative of the fact a one-size-fits-all approach to carbon management is neither practical nor feasible.
But it is also inefficient on all levels — from the perspective of governmental administrative challenges to the lack of consistency amongst the various jurisdictions across the country — and drives up costs to companies.
This week’s meetings present the opportunity for what Trevor McLeod, director of the Centre for Natural Resources Policy at the CWF, calls a grand bargain for a credible quid pro quo amongst the provinces to advance a national carbon strategy that, in return, breaks the logjam on an issue such as market access.
MORE:
[ http://calgaryherald.com/business/energ ... -this-week ]