Oil sands pushing Canada further from Kyoto, WWF and UK think-tank warn

The report reveals that under the recently proposed intensity-based regulations, emissions generated through oil sands production will double by 2012, and are already exceeding both proportional Kyoto requirements and the Albertan government’s proposed GDP-based targets. WWF is calling for a halt on further oil sands project approvals until the companies can institute effective emissions reduction strategies.

James Leaton, WWF-UK’s Oil and Gas Policy Officer said: “As the G8+5 meet this week, the reason Canada is failing to deliver on its Kyoto commitments will be plain; oil sands production generates three times as much global warming pollution as conventional oil and is Canada’s fastest growing source of greenhouse gas emissions. Responsible governments should be setting and delivering low-carbon strategies, not increasing carbon footprints.”

The Canadian Government has proposed mandatory CO2 intensity reduction targets for oil sands, calling for a 15 per cent reduction in emissions per unit of production from a 2006 baseline by 2012. The Tyndall analysis shows that in complying with this regime, greenhouse gas emissions (GHGs) from oil sands production will more than double during this period. The report shows that modest on-site efficiency improvements such as co-generation could allow companies to both exceed their targets and create emission credits valued at between $300-700 million Cdn.

Julia Langer, Director of WWF-Canada’s Climate Change Program, said: “Intensity-based targets reward companies for business as usual expansion. It is completely unacceptable for the oil sands companies to go on business as usual, increase emissions substantially, inhibit progress on Kyoto, and get a profit bonus on top by selling credits.”

Another element of the Government’s plan is a Climate Change Technology Fund, which companies can pay into if they don’t meet the intensity targets. The $15-20 Cdn charge per tonne of carbon would only result in an insignificant $0.05 Cdn cost per barrel of oil. (Oil is currently trading at over $60 Cdn per barrel). With the weak targets not being a challenge to meet, there is not likely to be significant funds, yet the problem of climate change will be far from solved.

James Leaton concluded: “The intensity target proposals from the Canadian government do not reach the targets necessary and are the latest example of the failure to adequately regulate this sector.”