Latecomers will be able to buy carbon credits, says Guilbeault

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Latecomers will be able to buy carbon credits, says Guilbeault

The Minister of Environment and Climate Change, Steven Guilbeault, believes that oil and gas companies will be forced to meet their GHG emission reduction targets by buying carbon credits. (Archives)

Canada will meet its greenhouse gas emission reduction targets, although oil companies may need more time, minister says of Environment and Climate Change, Steven Guilbeault.

The minister told CBC radio on Saturday that the oil and gas industry may need a little more “flexibility” in meeting interim emission reduction targets. He had not described how Canada would achieve these targets, despite this delay.

Mr. Guilbeault clarified on Monday that the companies concerned would still be obliged to meet the targets by buying carbon credits, during a press conference as part of an announcement on the labeling of carbon. recycled plastic.

“I was overly clear. Companies will have to achieve their goals. What we do is, for a short period of time, we give them access to these market mechanisms.

— Steven Guilbeault, Minister of Environment and Climate Change

The federal government wants to lower emissions from all sectors by 40% to 45% below the 2005 threshold by 2030, with a view to achieving carbon neutrality by 2050 and complying with the Paris Climate Accord.

Industry members, however, say these deadlines are unattainable. Alliance Pathways, a group that includes six companies representing 95% of Canada's oil sands production, projects that it will be able to reduce its CO2 emissions by 22 megatonnes by 2030.

This represents a 27% reduction in emissions from the oil sands sector compared to 2019. However, the federal target calls for a reduction of 38% instead.

The Minister said on Monday that the industry had mentioned that it would take ten years to build the infrastructure needed to meet the 2030 targets.

“That brings us to 2032. If some companies need an additional period to reach their target, it will be possible to use the flexible carbon credit trading mechanisms.

— Steven Guilbeault, Minister of Environment and Climate Change

Although the oil and gas industry accounts for 26% of the country's CO2 emissions Canada in 2019, Mr. Guilbeault asserts that recourse to the carbon market will be very limited in relation to the country's overall emissions. This could represent, because it is not certain that we will need it, 3% of the reduction target for Canada in 2030.

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