From the Canadian Energy Centre

By Deborah Jaremko

The federal government’s draft rules to cap emissions – and by credible analysis, production – from Canada’s oil and gas sector will make Canadians poorer, won’t reduce world emissions, and are a “slap in the face” to Indigenous communities.

That’s the view of several leaders in energy and the economy calling out the negative consequences of Ottawa’s new regulations, which were announced on November 4.

Here’s a selection of what they have to say.

Goldy Hyder, CEO, Business Council of Canada

“At a time when Canada’s economy is stalling, imposing an oil and gas emissions cap will only make Canadians poorer. Strong climate action requires a strong economy. This cap will leave us with neither.”

Deborah Yedlin, CEO, Calgary Chamber of Commerce

“Canada would stand as the only country in the world to move forward with a self-imposed emissions cap.

“Given that our economic growth numbers have been underwhelming–and our per-person productivity lags that of the United States by $20,000, one would expect the government to be more focused on supporting sectors that are critical to economic growth rather than passing legislation that will compromise investment and hamper our growth prospects.

“…If the Canadian government wants to reduce emissions, it should follow the private sector’s lead – and strong track record – and withdraw the emissions cap.”

Stephen Buffalo, CEO, Indian Resources Council of Canada

“Over the past four decades, Canadian governments urged and promoted Indigenous peoples to engage in the natural resource economy. We were anxious to break our dependence on government and, even more, to exercise our treaty and Indigenous rights to build our own economies. We jumped in with far more enthusiasm and commitment than most Canadians appreciate.

“And now, in a bid to make Canada look ecologically virtuous on the world stage, the Liberal government imposed further restrictions on the oil and gas sector. This is happening as Indigenous engagement, employment and equity investment are growing and at a time when our communities have had their first taste of real and sustainable prosperity since the newcomers killed off all the buffalo. Thanks for nothing.”

Trevor Tombe, professor of economics, University of Calgary School of Public Policy

“[The emissions cap] is a wedge issue that’s going to be especially popular in Quebec. And I don’t think the [federal government’s] thinking goes much further than that.”

Kendall Dilling, president, Pathways Alliance

“A decrease in Canadian production has no impact on global demand – meaning another country’s oil will simply fill the void and the intended impact of the emissions cap is negated at a global level.

“An emissions cap gives industry less – not more – of the certainty needed to make long-term investments that create jobs, economic growth and tax revenues for all levels of government. It simply makes Canada less competitive.”

Michael Belenkie, CEO, Advantage Energy

“Canada’s emissions profile is not unusual. What’s unusual about Canada and our emissions is we seem to be the only exporting nation of the world that is willing to self-immolate. All we’re doing is we’re shutting ourselves down at our own expense and watching global emissions increase.”

Kevin Krausert, CEO and co-founder, Avatar Innovations

“The emissions cap risks delaying – if not derailing – a whole suite of emissions-reduction technology projects. The reason is simple: it has added yet another layer of uncertainty and complexity on already skinny investment decisions by weakening the most effective mechanism Canada has in place.

“…After nearly 15 years of experimenting in a complicated regulatory system, we’ve finally landed on one of the most globally effective and fungible carbon markets in the world in Alberta, called TIER.

“What the federal emissions cap has done is introduce uncertainty about the future of TIER. That’s because the cap has its own newly created cap-and-trade system. It takes TIER’s 15 years of experience and market knowledge and either duplicates functioning markets or creates a whole new market that may take another 15 years to get right.”

Dennis Darby, CEO, Canadian Manufacturers & Exporters

“The federal government’s announcement of a cap and trade on oil and gas emissions threatens Canada’s energy trade, economic interests, and national unity.”

Adam Legge, president, Business Council of Alberta

“The oil and gas emissions cap is a discriminatory and divisive policy proposal—the epitome of bad public policy. It will likely cap Canadian prosperity—billions of dollars and tens of thousands of jobs lost for no benefit, and the burden will be borne largely in one region and one sector.”

Lisa Baiton, CEO, Canadian Association of Petroleum Producers

“The result would be lower production, lower exports, fewer jobs, lower GDP and lower revenues to governments to fund critical infrastructure and social programs on which Canadians rely.”

Statement, Canadian Association of Energy Contractors

“The Trudeau government does not care about Canadian blue-collar, middle-class energy workers who rely on the industry to support their families. It does not care about small, medium and Indigenous energy service businesses that operate in rural and remote communities across Western Canada. And it certainly does not care about supporting our allies who are desperate for oil and gas from sources other than regimes such as Russia or Iran.”

Peter Tertzakian, executive director, ARC Energy Research Institute

“Focusing on a single sector while ignoring others is problematic because each tonne of emissions has the same impact on climate change, regardless of its source. It makes little sense to impose potentially higher economic burdens on one economic sector when you could reduce emissions elsewhere at a lower cost.”

Shannon Joseph, chair, Energy for a Secure Future

“Canada continues to pursue its climate policy in a vacuum, ignoring the big picture of global emissions. This places at risk our international interests, tens of thousands of good paying jobs and important progress on reconciliation.”

Adam Sweet, director for Western Canada, Clean Prosperity

“Layering on a new cap-and-trade system for oil and gas producers adds uncertainty and regulatory complexity that risks undermining investment in emissions reductions just as we’re getting close to landing significant new decarbonization projects here in Alberta.”

Azerbaijani President Ilham Aliyev

From the Daily Caller News Foundation 

By Nick Pope

To accuse us that we have oil is the same like to accuse us that we have more than 250 sunny days a year in Baku.

The president of Azerbaijan, host country of this year’s U.N. climate change conference, defended fossil fuels while slamming the media and climate “hypocrisy” in a Tuesday speech at the event.

Azerbaijani President Ilham Aliyev described fossil fuels as a “gift of God,” slammed the “Western fake news” media for criticizing his country’s emissions and stated that countries like his “should not be blamed” for developing their reserves of natural resources and bringing them to the market. The U.N. conference — also known as COP29 — has attracted tens of thousands of attendees to the Azerbaijani capital Baku to discuss initiatives like so-called “climate finance” for developing countries, standards for carbon credit markets and emissions reduction commitments.

Aliyev rattled off statistics about Azerbaijan’s relatively small contributions to global oil and gas production before criticizing the media, politicians and nonprofits for maligning his country for capitalizing on its natural resources.

“I have to bring these figures to the attention of our audience, because right after Azerbaijan was elected as the host country of COP29, we became a target of a coordinated, well-orchestrated campaign of slander and blackmail,” said Aliyev. “Western fake news media and so-called independent NGOs, as if (they) were competing in spreading disinformation and false information about our country. To accuse us that we have oil is the same like to accuse us that we have more than 250 sunny days a year in Baku.”

Aliyev emphasized his view that there are many criteria by which to judge a country, but a nation’s resources and their sale are not one of them.

“I said it several months ago, and now all those who want, I mean international media, to attack me, just quote me that I said that this is a gift of God. And I want to repeat it today here at this audience, it’s a gift of God,” Aliyev said. “Every natural resource, whether it’s oil, gas, wind, sun, gold, silver, copper, all that are natural resources and countries should not be blamed for having them and should not be blamed for bringing these resources to the market because the market needs them.”

Aliyev attacked those who have criticized his country as a petro-state, though Azerbaijan’s economy is “anchored” by oil and gas, which accounted for nearly half of the nation’s GDP and 92.5% of export revenue in 2022, according to the U.S. International Trade Administration.

“Unfortunately, double standards, a habit to lecture other countries and political hypocrisy became a kind of modus operandi for some politicians, state-controlled NGOs and fake news media in some Western countries,” said Aliyev.

COP29 kicked off on Monday, and the Taliban even managed to send a delegation to the conference. The Biden administration, meanwhile, is still looking to be productive at the summit despite the looming return of President-elect Donald Trump, who has pledged to roll back climate initiatives and spending as well as withdraw from the U.N.’s Paris Climate Accords, according to The New York Times.