In a report released today by the Pembina Institute, a detailed cost analysis demonstrates that the oilsands industry could be a leader in tackling climate change by slashing greenhouse gas (GHG) pollution. The oilsands are projected to contribute up to 47% of the projected business-as-usual growth in Canada's total emissions between 2003 and 2010, making them the single largest contributor to GHG pollution growth. But the report, entitled Carbon Neutral by 2020: A Leadership Opportunity in Canada's Oilsands, concludes that oilsands companies could achieve "carbon neutral" (no net GHG pollution) production for as little as a few dollars per barrel of oil.
According to Marlo Raynolds, executive director of the Pembina Institute and a co-author of the report, "The world is watching how Canada's oilsands are developed. For as little as US$2.50 per barrel an oilsands company could eliminate 100 per cent of its GHG pollution. To put this in perspective it costs up to US$1.75 per barrel to remove lead from gasoline."
If measures are not taken to curb GHG pollution growth, the oilsands industry may have the lion's share of the responsibility for undermining Canada's international climate change obligations. A variety of solutions are described in the report including energy efficiency, fuel switching, carbon capture and storage, and carbon offsets. A detailed cost analysis was conducted to evaluate the costs of utilizing carbon capture and storage and carbon offsets to achieve carbon neutral oilsands production.
"It is both reasonable and achievable for an oilsands company to become carbon neutral by 2020," says Raynolds. "Last week's Clean Air Act announcement showed the federal government to be a laggard in tackling climate change. But this study indicates that oilsands companies have the opportunity to be leaders on this issue without waiting for governments to act."
The report includes recommendations for how oilsands companies can assume a leadership role in tackling climate change:
- Set a target of becoming carbon neutral by 2020
- Evaluate and apply the best approaches to becoming carbon neutral for their type of operations
- Evaluate all possible GHG pollution reduction options through on-site energy efficiency and fuel-switching measures
- Support immediate action on developing a domestic carbon offset trading system
- Implement carbon capture and storage technologies and invest in GHG pollution offsets that go beyond business-as-usual practices
The report, Carbon Neutral by 2020: A Leadership Opportunity in Canada's Oilsands, includes detailed assumptions, references and calculation. The report and an accompanying fact sheet can be downloaded from www.pembina.org/pubs.
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For more information contact:
Marlo Raynolds, Executive Director
403-607-9427
After 9:00 Mountain/11:00 Eastern
