Emission management

Canada Releases Draft Guidance on New Oil and Gas Project Emissions

The guidance is intended to clarify for industry what is expected of projects going through federal regulatory assessment.

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The Imperial Strathcona Refinery, which produces petrochemicals, is seen near Edmonton, Alberta, Canada.
Source: Todd Korol/Reuters

Canada has released draft guidelines on how new oil and gas projects should demonstrate "best-in-class" greenhouse gas emissions performance, following up on a government announcement first made in April.

The guidance, released on 4 October, is intended to clarify for industry what is expected of projects going through federal regulatory assessment, said Environment Canada spokesperson Oliver Anderson.

Canada, the world's fourth-largest oil producer, has pledged to cut carbon emissions 4045% below 2005 levels by 2030 and reach net-zero emissions by 2050.

Prime Minister Justin Trudeau's Liberal government is trying to balance its climate ambitions with the interests of the oil and gas sector, which makes up around 5% of Canadian gross domestic product but is also the highest-polluting sector of the economy.

Environment Canada first promised requirements for new projects to demonstrate best-in-class emissions standards on the same day it approved Equinor's huge Bay du Nord offshore project. At the time, there was uncertainty among industry players what best-in-class meant.

    The draft guidance outlines how companies should identify the best emissions performance of similar projects globally, within different categories including offshore oil, liquefied natural gas or oil sands upgrading.

    Read the full story here.

    Find the draft guidance here.