Pipeline Promises, Climate Risks

Assessing the lifetime climate impacts of the proposed Pacific Link oil pipeline

The proposed Pacific Link pipeline, formerly known as the West Coast Oil Pipeline, is being 
advanced as a major export project that could carry up to one million barrels of bitumen per day 
from Alberta’s oilsands to the west coast. This project was recently designated a Project of 
National Interest by the federal Major Projects Office, despite the requirement that projects 
receiving this designation contribute to clean growth and Canada’s climate objectives.
To date, little has been made of the impact this project would have on Canada’s greenhouse gas
emissions. This report assesses greenhouse gas emissions from Pacific Link construction and
operations, associated marine transport and the upstream production required to fill the 
pipeline and compares it to estimates in the official submission by the Government of Alberta to 
the Major Projects Office. It also compares four upstream scenarios, estimates lifetime 
emissions over a 30-year operating period, and applies the Government of Canada’s social cost 
of carbon. The analysis finds:

  • Upstream production dominates the project’s climate impact. Filling the 
    Pacific Link with one million barrels per day of additional oilsands production would 
    generate approximately 24.81–28.75 Mt CO2e of upstream emissions each year. Pipeline 
    operations and marine transport would generate 0.8 Mt CO2e annually, while
    construction would generate an estimated 1.4–1.5 Mt CO2e. These increases would offset 
    10% of the emissions reductions Canada needs to hit its 2035 emissions reduction target
    of 45–50% below 2005 levels.
  • The Government of Alberta’s Major Projects Office submission likely 
    understates upstream emissions. Its estimate of 15.6–18.2 Mt CO2e per year relies 
    on emissions intensity declining at a rate approximately four times faster than historical 
    trends. The analysis also relies in part on potential global displacement benefits, which 
    are highly uncertain, difficult to measure, and not included in Canada's domestic 
    emissions accounting and climate targets.
  • If built, Pathways reductions do not offset pipeline-enabled growth. Annual 
    oilsands emissions rise significantly after the Pacific Link is built even when the
    Pathways emissions reduction project, as laid out in the Alberta-federal MOU, is fully 
    implemented. By 2050, emissions are 50–66 Mt CO2e higher than under a Pre-MOUs
    scenario, which assumes no new pipeline and stronger, earlier emissions reductions.
  • The Pacific Link pipeline would lock in significant lifetime emissions and 
    costs. Over a 30-year operating life, the project is estimated to add 676–900 Mt CO2e, 
    almost entirely from upstream production. The Pathways project would only offset 18% to 53%, depending on the future scale of the project. Combined, these projects stand to cost over $65 billion predominantly funded with taxpayer dollars.
  • The resulting climate damages are economically material. Applying the 
    Government of Canada’s social cost of carbon, the Pacific Link’s lifetime emissions 
    represent an estimated $219–253 billion in climate damages. These costs are not 
    reflected in the GDP, employment and government-revenue benefits emphasized by 
    project proponents.

Based on the evidence presented in this report, the Pacific Link as currently proposed will 
increase Canada’s emissions by upwards of 738 Mt CO2e over the life of the project, more than 
Canada emitted in 2024. This would exceed the emissions reductions Canada has pledged to 
make as part of its 2035 and 2050 climate commitments. These risks must be considered as the 
project moves through the regulatory process