Alberta
Canadian energy company produces more energy and less green house gas emissions
It would be interesting to know how many Albertans realize that Canadian energy companies are already producing less green house gas emissions. Furthermore how many people know companies like Cenovus Energy have pledged and are already working toward incredibly aggressive emissions targets? It’s true. It’s already happening. You can learn more about the Cenovus green house gas (ghg) emmissions strategy right here.
From Cenovus Energy
Climate & greenhouse gas (GHG) emissions
- Reduce emissions intensity by 30%(1)
- Hold absolute emissions flat(1)
Cenovus’s long-term ambition is to reach net zero emissions by 2050.
(1) Includes scope 1 and 2 emissions from operated facilities. Uses a 2019 baseline. For more details, see the Definitions section of our ESG targets news release.
At Cenovus, we recognize the growing concerns of people around the world about climate change and we share the goal of reducing GHG emissions.
Governments are supporting the transition to a lower-carbon future by introducing increasingly stringent climate-related policies and creating incentives for emissions-reduction solutions. We believe companies that fail to adapt to this transition will face growing carbon-related risks, while those that act now will position themselves for long-term business resilience. That’s why Cenovus is focused on demonstrating equally strong financial, operational, and environmental, social & governance (ESG) performance.
Cenovus is already one of the lowest emissions producers of oil in Canada with production emissions well below the global average. Building on this, our new GHG emissions targets are among the most ambitious in the world for an upstream exploration and production company.
30% GHG intensity reduction
We plan to reduce our per-barrel GHG emissions by 30% by the end of 2030, using a 2019 baseline, and hold our absolute emissions flat by the end of 2030. In setting our GHG targets, we worked comprehensively with global experts to stress test both the targets and our strategic options for achieving them. And we analyzed scenarios from third parties to assess the resiliency of our business as we further reduce our emissions intensity.
Our GHG emissions strategy includes a number of options to reach our targets. These opportunities are at various stages of development, and include: additional operational optimization, incorporating cogeneration capacity into future oil sands phases, more extensive deployment of solvent technology, further advancement of the methane emissions reduction initiatives already underway at our Deep Basin operations and additional operational efficiencies, including the use of data analytics. Cenovus is also considering other direct and indirect initiatives that generate credible, additional and permanent carbon offsets.
Net zero emissions by 2050
Cenovus’s long-term ambition is to reach net zero emissions by 2050. This is intended to address upstream (scope 1 and scope 2) emissions and will require ongoing focus on technology solutions beyond those that are commercial and economic today. We continue to identify opportunities to participate in longer-term solutions to address emissions from our operations and beyond. This includes extensive collaboration efforts with our peers, academics, other industries and entrepreneurs from around the world.
Air quality
We monitor ambient air quality at our operations to ensure that sulphur dioxide (SO2), hydrogen sulphide (H2S) and nitrogen oxides (NOx) concentrations remain within acceptable levels. To reduce air pollutants such as SO2 and NOx, as well as GHG emissions such as methane, we invest in technologies that help lower energy consumption in our day-to-day operations and processes.
We’ve already made significant progress in reducing methane emissions at Cenovus and we’re continuing to work on projects at our operations to further reduce emissions. Studies have shown that methane is a much more potent GHG than CO2, which means that reducing methane emissions is a critical part of any plan to address climate change.
Quick facts
- Between 2004 and 2019, Cenovus reduced the CO2 emissions intensity of its oil sands operations by about 30%
- NOx emissions at our Christina Lake oil sands facility are about 50% below the regulatory threshold of 400 tonnes per year
Alberta
Alberta government should eliminate corporate welfare to generate benefits for Albertans
From the Fraser Institute
By Spencer Gudewill and Tegan Hill
Last November, Premier Danielle Smith announced that her government will give up to $1.8 billion in subsidies to Dow Chemicals, which plans to expand a petrochemical project northeast of Edmonton. In other words, $1.8 billion in corporate welfare.
And this is just one example of corporate welfare paid for by Albertans.
According to a recent study published by the Fraser Institute, from 2007 to 2021, the latest year of available data, the Alberta government spent $31.0 billion (inflation-adjusted) on subsidies (a.k.a. corporate welfare) to select firms and businesses, purportedly to help Albertans. And this number excludes other forms of government handouts such as loan guarantees, direct investment and regulatory or tax privileges for particular firms and industries. So the total cost of corporate welfare in Alberta is likely much higher.
Why should Albertans care?
First off, there’s little evidence that corporate welfare generates widespread economic growth or jobs. In fact, evidence suggests the contrary—that subsidies result in a net loss to the economy by shifting resources to less productive sectors or locations (what economists call the “substitution effect”) and/or by keeping businesses alive that are otherwise economically unviable (i.e. “zombie companies”). This misallocation of resources leads to a less efficient, less productive and less prosperous Alberta.
And there are other costs to corporate welfare.
For example, between 2007 and 2019 (the latest year of pre-COVID data), every year on average the Alberta government spent 35 cents (out of every dollar of business income tax revenue it collected) on corporate welfare. Given that workers bear the burden of more than half of any business income tax indirectly through lower wages, if the government reduced business income taxes rather than spend money on corporate welfare, workers could benefit.
Moreover, Premier Smith failed in last month’s provincial budget to provide promised personal income tax relief and create a lower tax bracket for incomes below $60,000 to provide $760 in annual savings for Albertans (on average). But in 2019, after adjusting for inflation, the Alberta government spent $2.4 billion on corporate welfare—equivalent to $1,034 per tax filer. Clearly, instead of subsidizing select businesses, the Smith government could have kept its promise to lower personal income taxes.
Finally, there’s the Heritage Fund, which the Alberta government created almost 50 years ago to save a share of the province’s resource wealth for the future.
In her 2024 budget, Premier Smith earmarked $2.0 billion for the Heritage Fund this fiscal year—almost the exact amount spent on corporate welfare each year (on average) between 2007 and 2019. Put another way, the Alberta government could save twice as much in the Heritage Fund in 2024/25 if it ended corporate welfare, which would help Premier Smith keep her promise to build up the Heritage Fund to between $250 billion and $400 billion by 2050.
By eliminating corporate welfare, the Smith government can create fiscal room to reduce personal and business income taxes, or save more in the Heritage Fund. Any of these options will benefit Albertans far more than wasteful billion-dollar subsidies to favoured firms.
Authors:
Alberta
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