Path forward includes a vibrant energy sector

Reducing emissions benefits all concerned, Steve Williams writes.

The debate about climate change and carbon policy is intensifying as the world changes around us.

Climate change challenges are shared, and most of us in Canada are committed to doing our part.

At Suncor, we also want thoughtful policy that, yes, reduces emissions, but keeps Canada competitive globally and allows our energy industry to be vibrant for the benefit of Canadians. We will continue to work with diverse groups and with policy-makers and influencers in government and opposition to provide input to the best policies possible.

Canada has so many advantages, including our vast natural resources and some of the best industry practices in the world. We can produce these resources for ourselves and the world while continuing to improve our environmental performance.

Our ambition is to be the preferred source of energy for the world — which faces increased energy demand primarily due to population growth — while contributing to making progress on global climate aspirations. Canada is a leader today and must continue to be if we want to be a key global player.

To achieve this ambition, I think most Canadians would support the following principles:

Energy is needed to increase the global standard of living and lift more people out of poverty;

Canada is a responsible developer of our natural resources and has the opportunity to be an even stronger global player of choice;

We need to take action on climate change and reduce global emissions;

Our natural resources should be sold at global prices to more than one customer;

Aboriginal peoples should share in resource development;

A healthy economy is necessary to ensure a healthy environment, and vice versa;

Canada should be an innovation hub in energy/natural resource technology.

So what is the debate really about? Most of us would agree that doing nothing is not an option. The debate is about how we go about it. How do Canadians demonstrate leadership and contribute to global efforts to combat climate change while also advancing our economy?

At Suncor, we’ve long acknowledged that broadbased carbon policy tools can create an efficient, marketbased approach that addresses both consumption and production challenges. It’s important to remember that about 80 per cent of overall carbon emissions occur at the point of consumption, while only about 20 per cent are generated in production.

Some tools will need to focus on that 80 per cent to make a real difference. We should also target reductions of lowest cost to the economy, whether domestically or internationally.

Carbon policy implementation includes assignment and allocation of any carbon revenues generated. Governments in various jurisdictions have wrestled with this challenge, with varying degrees of success. We believe carbon revenues should not go into general revenues, but should be used to lower taxes or provide credits for good industry performers and incent innovation.

Smart carbon policy must inform our plans about how we spend capital, encouraging companies to invest in technology that lowers our carbon footprint. We’ve already invested in technology at the Fort Hills mine that enables production of a barrel of oil with no more CO2 emissions than the average refined barrel in the U.S. Future technologies hold tremendous promise to make further gains yet, making Canada truly a cost and carbon competitive global powerhouse.

Regardless of the strategy chosen to reduce carbon, implementation really matters. We also think it’s important for investors and other stakeholders that policy is predictable and certain.

Together, let’s openly share our perspectives and collaborate to build the best carbon reduction system for Canada. Our shared energy future, economy and environment deserve no less. We, at Suncor, will work hard to do our part.