Canadian Energy Centre
Business leaders blast Ottawa’s ‘unnecessary and unacceptable’ oil and gas emissions cap
From the Canadian Energy Centre
The federal government is proceeding with its plans to cap emissions from the oil and gas industry in a move business leaders say will ultimately hurt Indigenous communities and everyday Canadians.
The Business Council of Canada called the cap part of a “full-on charge against the oil and gas sector.”
The government announced on December 7 that it will implement measures to cap oil and gas emissions in 2030 at 35 to 38 percent below 2019 levels. A similar cap has not been announced for any other industry.
“It all seems punitive and short-sighted,” wrote Business Council of Canada vice-president Michael Gullo and Theo Argitis, managing director of Compass Rose Group.
A cap on production
They don’t put much stock into the government’s claims that the cap is not intended to limit Canada’s oil and gas production.
“That’s semantics. To work, a cap would ultimately need to be severe enough to curtail production if needed, and that would have significant economic consequences,” Gullo and Argitis said, warning of a “direct and immediate” loss of income for Canada’s economy.
“There would be significant indirect costs as well, incurred by every household and business across the nation because Canada relies on income generated by oil and gas companies—totaling $270 billion in 2022 alone—to support social programs like health care, education, and infrastructure,” they wrote.
Already on the path to net zero
On the world’s current trajectory, oil and gas will still account for 46 per cent of world energy needs in 2050, down only moderately from 51 per cent in 2022, according to the International Energy Agency.
Industry leaders argue that Canada’s oil and gas producers are already on the path to net zero emissions without the need for the cap.
According to Environment and Climate Change Canada’s latest report to the United Nations, emissions from so-called “conventional” (non-oil sands) production declined to 26 megatonnes in 2021, from 34 megatonnes in 2019.
Producers in Alberta have already reduced total methane emissions by 45 per cent compared to 2014, hitting the target three years ahead of schedule.
Oil sands emissions did not increase last year despite production growth, and total emissions are expected to start going down before 2025, according to S&P Global.
“Imposing an emissions cap on Canada’s oil and gas producers, who are already achieving significant emissions reductions as shown in the federal government’s own data, is unnecessary and unacceptable,” the Explorers and Producers Association of Canada said in a statement.
A cap on Indigenous opportunity
The Indigenous Resource Network (IRN) – which advocates for Indigenous participation in resource projects – said the cap would be “devastating” for Indigenous communities.
“A pathway to self-determination is being achieved through the ownership of oil and gas projects and involvement in the sector,” said IRN executive director John Desjarlais.
“This would result in a cap on Indigenous opportunity in the oil and gas sector.”
Desjarlais said the IRN is seeking an exemption from the cap for Indigenous communities who are engaged in oil and gas development.
He said the proposed cap directly contradicts the government’s promises on reconciliation and its support for the United Nations Declaration on the Rights of Indigenous People.
Counter–approach to the United States
The approach of capping emissions runs counter to the incentive-based approach being pursued in the United States, the Canadian Association of Energy Contractors (CAOEC) said in a statement.
“There, the Inflation Reduction Act has attracted capital and accelerated low-carbon technology and innovation in the energy sector at the expense of Canadian businesses and workers,” the CAOEC said.
Ottawa has yet to finalize announced investment tax credits to support clean technologies like hydrogen production and carbon capture, utilization and storage (CCUS), the Business Council of Canada noted.
“We have engaged the federal government in good faith over the past two years and have asked them to partner with us to accelerate the deployment of carbon abatement technology. As of today, we have received no support from this government,” said CAOEC president Mark Scholz.
“Stop working against us and start working with us.”
Final regulations on the proposed emissions cap are expected in 2025.
Alberta
Nobel Prize nods to Alberta innovation in carbon capture
From the Canadian Energy Centre
‘We are excited to bring this made-in-Canada innovation to the world’
To the naked eye, it looks about as exciting as baking soda or table salt.
But to the scientists in the University of Calgary chemistry lab who have spent more than a decade working on it, this white powder is nothing short of amazing.
That’s because the material they invented is garnering global attention as a new solution to help address climate change.
Known as Calgary Framework-20 (CALF-20 for short), it has “an exceptional capacity to absorb carbon dioxide” and was recognized in connection with the 2025 Nobel Prize in Chemistry.
“It’s basically a molecular sponge that can adsorb CO2 very efficiently,” said Dr. George Shimizu, a UCalgary chemistry professor who leads the research group that first developed CALF-20 in 2013.
The team has been refining its effectiveness ever since.
“CALF-20 is a very exciting compound to work on because it has been a great example of translating basic science into something that works to solve a problem in the real world,” Shimizu said.
Advancing CCS
Carbon capture and storage (CCS) is not a new science in Alberta. Since 2015, operating projects in the province have removed 15 million tonnes of CO2 that would have otherwise been emitted to the atmosphere.
Alberta has nearly 60 proposed facilities for new CCS networks including the Pathways oil sands project, according to the Regina-based International CCS Knowledge Centre.
This year’s Nobel Prize in Chemistry went to three of Shimizu’s colleagues in Japan, Australia and the United States, for developing the earliest versions of materials like CALF-20 between 1989 and 2003.
Custom-built molecules
CALF-20 is in a class called metal-organic frameworks (MOFs) — custom-built molecules that are particularly good at capturing and storing specific substances.
MOFs are leading to new technologies for harvesting water from air in the desert, storing toxic gases, and capturing CO2 from industrial exhaust or directly from the atmosphere.
CALF-20 is one of the few MOF compounds that has advanced to commercial use.
“There has been so much discussion about all the possible uses of MOFs, but there has been a lot of hype versus reality, and CALF-20 is the first to be proven stable and effective enough to be used at an industrial scale,” Shimizu said.
It has been licensed to companies capturing carbon across a range of industries, with the raw material now being produced by the tonne by chemical giant BASF.
Carbon capture filter gigafactory
Svante Inc. has demonstrated its CALF-20-based carbon capture system at a cement plant in British Columbia.
The company recently opened a “gigafactory” in Burnaby equipped to manufacture enough carbon capture and removal filters for up to 10 million tonnes of CO2 annually, equivalent to the emissions of more than 2.3 million cars.
The filters are designed to trap CO2 directly from industrial emissions and the atmosphere, the company says.
Svante chief operating officer Richard Laliberté called the Nobel committee’s recognition “a profound validation” for the entire field of carbon capture and removal.
CALF-20 expansion
Meanwhile, one of Shimizu’s former PhD students helped launch a spinoff company, Existent Sorbents, to further expand the applications of CALF-20.
Existent is working with oil sands producers, a major steel factory and a U.S.-based firm capturing emissions from other point sources, said CEO Adrien Côté.
“The first users of CALF-20 are leaders who took the risk of introducing new technology to industries that are shrewd about their top and bottom lines,” Côté said.
“It has been a long journey, but we are at the point where CALF-20 has proven to be resilient and able to survive in harsh real-world conditions, and we are excited to bring this made-in-Canada innovation to the world.”
Alberta
Busting five myths about the Alberta oil sands
Construction of an oil sands SAGD production well pad in northern Alberta. Photo supplied to the Canadian Energy Centre
From the Canadian Energy Centre
The facts about one of Canada’s biggest industries
Alberta’s oil sands sector is one of Canada’s most important industries — and also one of its most misunderstood.
Here are five common myths, and the facts behind them.
Myth: Oil sands emissions are unchecked
Steam generators at a SAGD oil sands production site in northern Alberta. Photo courtesy Cenovus Energy
Reality: Oil sands emissions are strictly regulated and monitored. Producers are making improvements through innovation and efficiency.
The sector’s average emissions per barrel – already on par with the average oil consumed in the United States, according to S&P Global – continue to go down.
The province reports that oil sands emissions per barrel declined by 26 per cent per barrel from 2012 to 2023. At the same time, production increased by 96 per cent.
Analysts with S&P Global call this a “structural change” for the industry where production growth is beginning to rise faster than emissions growth.
The firm continues to anticipate a decrease in total oil sands emissions within the next few years.
The Pathways Alliance — companies representing about 95 per cent of oil sands activity — aims to significantly cut emissions from production through a major carbon capture and storage (CCS) project and other innovations.
Myth: There is no demand for oil sands production
Expanded export capacity at the Trans Mountain Westridge Terminal. Photo courtesy Trans Mountain Corporation
Reality: Demand for Canadian oil – which primarily comes from the oil sands – is strong and rising.
Today, America imports more than 80 per cent more oil from Canada than it did in 2010, according to the U.S. Energy Information Administration (EIA).
New global customers also now have access to Canadian oil thanks to the opening of the Trans Mountain pipeline expansion in 2024.
Exports to countries outside the U.S. increased by 180 per cent since the project went into service, reaching a record 525,000 barrels per day in July 2025, according to the Canada Energy Regulator.
The world’s appetite for oil keeps growing — and it’s not stopping anytime soon.
According to the latest EIA projections, the world will consume about 120 million barrels per day of oil and petroleum liquids in 2050, up from about 104 million barrels per day today.
Myth: Oil sands projects cost too much
Reality: Operating oil sands projects deliver some of the lowest-cost oil in North America, according to Enverus Intelligence Research.
Unlike U.S. shale plays, oil sands production is a long-life, low-decline “manufacturing” process without the treadmill of ongoing investment in new drilling, according to BMO Capital Markets.
Vast oil sands reserves support mining projects with no drilling, and the standard SAGD drilling method involves about 60 per cent fewer wells than the average shale play, BMO says.
After initial investment, Enverus says oil sands projects typically break even at less than US$50 per barrel WTI.
Myth: Indigenous communities don’t support the oil sands
Chief Greg Desjarlais of Frog Lake First Nation signs an agreement in September 2022 whereby 23 First Nations and Métis communities in Alberta acquired an 11.57 per cent ownership interest in seven Enbridge-operated oil sands pipelines for approximately $1 billion. Photo courtesy Enbridge
Reality: Indigenous communities play an important role in the oil sands sector through community agreements, business contracts and, increasingly, project equity ownership.
Oil sands producers spent an average of $1.8 billion per year with 180 Indigenous-affiliated vendors between 2021 and 2023, according to the Canadian Association of Petroleum Producers.
Indigenous communities are now owners of key projects that support the oil sands, including Suncor Energy’s East Tank Farm (49 per cent owned by two communities); the Northern Courier pipeline system (14 per cent owned by eight communities); and the Athabasca Trunkline, seven operating Enbridge oil sands pipelines (~12 per cent owned by 23 communities).
These partnerships strengthen Indigenous communities with long-term revenue, helping build economic reconciliation.
Myth: Oil sands development only benefits people in Alberta
Reality: Oil sands development benefits Canadians across the country through reliable energy supply, jobs, taxes and government revenues that help pay for services like roads, schools and hospitals.
The sector has contributed approximately $1 trillion to the Canadian economy over the past 25 years, according to analysis by the Macdonald-Laurier Institute (MLI).
That reflects total direct spending — including capital investment, operating costs, taxes and royalties — not profits or dividends for shareholders.
More than 2,300 companies outside of Alberta have had direct business with the oilsands, including over 1,300 in Ontario and almost 600 in Quebec, MLI said.
Energy products are by far Canada’s largest export, representing $196 billion, or about one-quarter of Canada’s total trade in 2024, according to Statistics Canada.
Led by the oil sands, Canada’s energy sector directly or indirectly employs more than 445,000 people across the country, according to Natural Resources Canada.
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