Canada makes move to limit costs of Kyoto Protocol
The Canadian government is considering limiting the costs borne by energy companies under the country's anticipated acceptance of the Kyoto Protocol on Climate Change by Dec. 31.
By OGJ editors
HOUSTON, Dec. 10 -- The Canadian government is considering limiting the costs borne by energy companies under the country's anticipated acceptance of the Kyoto Protocol on Climate Change by Dec. 31.
As a ratifying party to the protocol, Canada would be required to reduce carbon dioxide emissions by 6% from 1990 levels by 2012.
"Absent curtailment, the country is expected to produce 33% more in 2010 than in 1990," said Tyler Dann, Houston-based analyst with Banc of America Securities.
Herb Dhaliwal, Canada's Natural Resource Minister, has said that the industry would only have to pay as much as $15 million (Can.)/tonne to reduce costs to meet the Kyoto standards, Dann said. The remaining cost reportedly would come from taxpayers.
"The news is a slight positive, bearing in mind that the current expected range of costs is $5-10 million (Can.)/tonne, below the ceiling anyway," Dann said.
Dann added that Canadian companies Suncor Inc. and Petro-Canada would be among those that would benefit most from the cost-saving efforts, as both firms have significant exposure to oil sands projects in that country.