CALGARY — Janetta McKenzie, director of the Oil and Gas program at the Pembina Institute, made the following statement in response to the new emissions reduction project signed between the Government of Alberta, Government of Canada and the consortium of Canada’s five largest oil producers.
“This new Memorandum of Understanding reflects a re-commitment to the original Canada–Alberta MOU signed back in November 2025, which was created to balance increased oil production with carbon capture and storage. Unfortunately, the terms of this non-binding agreement mean that once again taxpayers will shoulder additional costs to bolster an industry that has not shown any interest in meaningfully increasing oil production or curbing harmful emissions.
“The Pathways project was a key condition made by the government of Canada as part of the new west coast pipeline project. However, these terms as defined in the framework are neither ambitious enough on the emissions reductions side, as the carbon capture project has shrunk by half from its original proposal, nor do they place enough financial accountability on the side of the oil producers to pay for reducing their own pollution. This is a problematic equation that is once again, left largely on the shoulders of taxpayers.
“Given the generous existing tax credits and grants available to oil sands companies for carbon capture, the commitment in the MOU to further defray the cost of operating the Pathways project represents yet more taxpayer dollars towards cleaning up oilsands emissions.
“At the same time, this agreement includes a commitment to financial incentives for the oil sands companies to increase production. This is a well-established and very profitable industry, particularly as firms have profited from geopolitical instability this year. It should not require financial support, or for Albertans to give up the royalties they are owed. The oil and gas sector does not need further incentives to run or expand their operations, as market drivers should be the basis for these actions.
Contact
Lorena Dexter Chaichian
Communications Manager, Industrial Decarbonization, Pembina Institute
778-261-5005
Background
Report: Not So Grand Bargain
