CAPP: Canada's options to implement the Kyoto Protocol will not work

The Canadian Association of Petroleum Producers (CAPP) argues that none of the four options laid out in Canada's Federal Discussion Paper on Climate Change adequately address key issues.

June 25, 2002

2 min read

By OGJ editors

HOUSTON, June 25 -- The Canadian Association of Petroleum Producers (CAPP) argues that none of the four options laid out in Canada's Federal Discussion Paper on Climate Change adequately address key issues.

These issues include competitiveness, investment confidence, regional and industry sector fairness, achievability of the Kyoto targets, and consumer impacts, CAPP said.

During a federal government's stakeholder sessions on climate change policy in Calgary on June 14, CAPP provided a technical overview of its key arguments.

"With this type of detailed work, we are getting into specifics on policy," said CAPP Pres. Pierre Alvarez. "Our input explains the flaws in the government's proposed plan and presents technical arguments that refute many of the assumptions that underpin the federal options.

"It leads us to the point that, if the government cannot design a workable or acceptable plan under the Kyoto framework, Canada can make an important contribution to reducing greenhouse gas (GHG) emissions in ways that are better suited to our particular circumstances."

CAPP planned to complete a more formal submission to the federal government by early July.

In a technical 13-page background paper written for the June 14 meeting, CAPP said, "The upstream oil and natural gas industry believes that Canada should do its part of the global effort to prevent climate change. For years, our members have been actively pursing greenhouse gas emission reductions in their operations."

Objectives, form of GHG policies
But the objectives for industry sector emissions and the form of polices are critical, CAPP said.

"Any policies adopted to encourage (GHG emissions) improvement must avoid undermining industry competitiveness by being based on what is achievable using best practice technology, taking into account the Canadian resource base, and the timing of capital stock turnover," CAPP said.

It called for the stated objectives and form of GHG policies to include:
-- A clear statement of what policies are intended to accomplish in terms of industry efficiency, economic structure, end-use consumption, and cost distribution.
-- An explanation of how objectives fit with other government priorities.
-- How the policies evaluated would achieve those objectives.