New industrial climate policy will drive improvements despite two-year exemption delaying full action

Pembina Institute reacts to draft climate regulations for large industry

December 6, 2017
Media Release

EDMONTON — Andrew Read, senior policy analyst at the Pembina Institute, made the following statement in response to proposed Carbon Competitiveness Incentive regulations for large industry

"Today’s announcement represents smart policy, consistent with the global trend towards pricing pollution. The policy design rewards the most efficient industrial projects, will drive investments in cleaner technologies, and is specifically designed to protect industry competitiveness.

“Due to weak rules in the past, Alberta’s industry has not been motivated to make substantial improvements in greenhouse gas performance. Rules that reward low-emitting projects and penalize high emitters will help make the industry more environmentally competitive in the global market.

“A two-year phase-in period for the full policy is an unnecessary concession that weakens the immediate benefit of the policy. In 2018, the average carbon levy cost for an in situ oilsands project will only be 22 cents per barrel of bitumen, with the in situ oilsands industry as a whole granted free allowances for 90 per cent of its total carbon pollution.”

Quick facts

  • Average carbon compliance cost in 2018 only represents 0.5 per cent and 0.1 per cent of in situ oilsands and oilsands mining supply costs, respectively.
  • 2018 average costs per barrel are estimated to be 22 cents for in situ oilsands, and nine cents for mined oilsands.
  • 95 per cent of in situ production is estimated to pay less than $1 per barrel in 2018.
  • The in situ oilsands sector will be granted free allowances for 90 per cent of its total carbon pollution in 2018.



Suzy Thompson

Communications Lead, Pembina Institute


Andrew Read

Senior Analyst, Pembina Institute



Blog: Getting it Right: Alberta’s new carbon policy for big emitters

Blog: No, oilsands emissions intensity is not improving, but Alberta’s Climate Leadership Plan can help

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