News Analysis
A federal government discussion paper on the “next steps” to reduce greenhouse gas emissions in the energy sector threatens to burden the industry with increased complexity, analysts say, while ignoring the potential for Canadian exports to indirectly reduce emissions elsewhere.
Released July 18, the paper proposes either a cap-and-trade system under the Canadian Environmental Protection Act to set limits on emissions from the energy sector, or increasing the carbon pricing for heavy emitters to drive emissions down to federal targets.
Kevin Birn, an analyst for S&P Global Commodity Insights, says the industry can cut emissions further, but it has already made substantial progress….