Alberta gears up to unveil a groundbreaking carbon capture incentive program in the “coming months.” Will this be the dawn of a new green economic era?
In the "coming months," Alberta, the region in Canada with the highest oil production, is planning to introduce a new program to encourage investments in technologies that reduce emissions, such as carbon capture and storage (CCS), according to the province's energy minister, Brian Jean.
CCS technology is viewed as a crucial solution to decrease the high levels of pollution from Canada's oil and gas sector without reducing production. However, the substantial costs associated with this technology have deterred companies from committing to investments, prompting calls for increased government aid.According to Reuters,
"We're going to make sure we do a robust consultation to get it right," Jean emphasized in a discussion with Reuters. "If we get it right, that means that we're going see another economic boom here in Alberta."
The federal government, led by Liberal Prime Minister Justin Trudeau, has set a goal to achieve net-zero emissions by 2050. Despite being the fourth largest producer globally, Canada faces a significant challenge as its oil producers are also the primary source of pollution in the country.
Several companies, including Enbridge Inc and TC Energy, along with the Pathways Alliance, which comprises the six largest oil sands producers in Canada, have proposed the creation of major CCS storage hubs.
In July, Alberta Premier Danielle Smith directed Jean to develop a program encouraging technologies like CCS, as well as lithium for batteries and geothermal development. Despite sharing the 2050 net-zero target with the federal government, Alberta has had disagreements with Ottawa regarding intermediate goals and a forthcoming cap on oil and gas emissions.
The two governments have been urging each other to allocate more public funds to support CCS technology since last year.
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