Deputy Prime Minister and Minister of Finance Chrystia Freeland delivers the federal budget in the House of Commons on Parliament Hill in Ottawa, Tuesday, March 28, 2023. Industry watchers say Tuesday's federal budget likely won't be enough to convince Canadian oil and gas companies to pull the trigger on expensive, emissions-reducing carbon capture and storage projects. THE CANADIAN PRESS/Sean Kilpatrick
CALGARY – Industry watchers say Tuesday’s federal budget likely won’t be enough to convince Canadian oil and gas companies to pull the trigger on expensive, emissions-reducing carbon capture and storage projects.
The oil and gas industry believes carbon capture and storage technology is the key to meeting its greenhouse gas emissions reduction targets.
Companies have proposed ambitious projects, such as a $16.5-billion carbon capture and storage transportation line that a group of Canadian oilsands firms wants to build in northern Alberta.
But James Millar, head of a non-profit organization dedicated to advancing carbon capture technology, says Tuesday’s budget didn’t provide the certainty companies need in order to start construction.
He says the industry is looking to the government to remove the risk of investing in pricey emissions-reduction projects by essentially guaranteeing the future price of carbon.
While the government pledged Tuesday to implement a mechanism that would reduce the risk to companies that the federal price on carbon could be lowered or eliminated, Millar says the lack of detail and lengthy consultation timeline mean companies will still be hesitant to invest.
This report by The Canadian Press was first published March 29, 2023.
