Canada oil firms challenge carbon pricing plan

Canada’s climate strategy led by Prime Minister Mark Carney is facing delays, as negotiations with Alberta over carbon pricing stall amid pushback from major oil producers.

Carney had aimed to finalize a strengthened industrial carbon pricing agreement by April 1, but industry sources say talks are proving difficult, raising concerns about whether Canada can meet its emissions targets, News.Az reports, citing Reuters.

Oil sands companies are resisting parts of the proposal, particularly higher carbon costs, as they focus on expanding production to benefit from rising global demand and higher oil prices. Some firms are also reconsidering full participation in the multi-billion-dollar carbon capture project known as Pathways Plus, potentially scaling back their commitments.

The debate highlights a growing tension between economic growth and environmental goals. Canada exports around 90% of its oil to the United States, but companies are now looking to diversify toward Asian markets while boosting output.

At the same time, analysts warn that Canada is already off track to meet its international climate commitments, including targets under the Paris Agreement. Rising oil prices — with Brent crude nearing $100 per barrel — are further complicating efforts to reduce emissions.

Experts say the government now faces a difficult balancing act: maintaining competitiveness in the global energy market while pushing forward policies aimed at reducing carbon emissions.

News.Az 

By Aysel Mammadzada