More coverage.
CALGARY — At least two big carbon emitters have given the thumbs-up to Alberta’s plan to strengthen its greenhouse gas rules over the next 18 months.
Capital Power CEO Brian Vaasjo cheered the changes at a news conference alongside Environment Minister Shannon Phillips on Thursday, saying more green energy investment is likely to result.
“Not only is it the right thing to do, it’s the right time to do it,” said Vaasjo, whose Edmonton-based company generates power from coal, natural gas and renewables.
The basic structure of the Specified Gas Emitters Regulation is staying intact for now, but the reduction targets and carbon price are being hiked starting next year.
The president of Shell Canada, a major oilsands miner, said the government’s announcement “is a clear signal that Alberta is committed to doing its part to address climate change.”
“At Shell Canada, we recognize that economic growth demands environmental leadership more than ever before,” said Lorraine Mitchelmore.
The Canadian Association of Petroleum Producers, the main industry lobby group, said it’s pleased the changes will be phased in gradually and that money raised will continue to fund technology.
But it said with a corporate tax hike to 12 per cent from 10 per cent and the higher carbon levy, the industry could face nearly $800 million in additional costs over the next two years.
“We will continue to work with the Alberta government to protect jobs and investment to keep the industry healthy for all Albertans,” said CAPP president Tim McMillan.
With oil prices continuing to hover in the $60 US a barrel range, it’s not a good time to be raising costs for oilsands players, said Jackie Forrest, vice-president at ARC Financial.
Analysts at Desjardins Capital Markets said they expect the tweaks to be “very manageable,” but they’ll serve as “another overhang on the sector,” along with low oil prices and the royalty review.