Canada to Face Challenge in Remaining Major Oil Power, IEA Warns

(Bloomberg) — Canada will face challenges in retaining its standing as a world oil and gasoline energy in a world transitioning towards internet zero carbon emissions by mid-century, the Worldwide Power Company stated. 

The nation seeks to stay “a significant world oil and gasoline provider” past 2050 at the same time as international locations, together with Canada itself, push towards emission cuts, the company stated in its Canada 2022 Power Coverage Evaluate Thursday. 

Holder of the world’s third-largest oil reserves, Canada’s largest producers pledged to zero out carbon emissions from their operations by the center of the century, primarily by the usage of carbon seize and storage, in a bid to protect the sector. However these targets don’t embody something concerning the a lot bigger volumes of emissions that outcome from burning the gasoline they produce by refineries, factories, automobiles and houses. 

Whereas the IEA lauded Canada’s management in insurance policies to chop emissions, it added the nation “ought to pay shut consideration to shifting demand for oil and gasoline globally.” 

The world-wide struggle in opposition to local weather change is prompting a push by many international locations to considerably curtail the usage of fossil fuels within the coming many years, probably slashing demand for oil and gasoline.

“Canada should deal with considerably carbonizing its and gasoline sectors whereas on the similar time making certain competitiveness in more and more well-supplied world markets,” the company stated.

The nation’s personal oil sands will pose an additional problem at the same time as “Canada scores nicely on total ESG indicators relative to many different oil and gasoline producers,” the IEA stated. In recent times, many funds and banks have pulled funding from the Canadian oil sands sector, the place among the most carbon intensive oil on the earth is extracted.

“The environmental profile of oil sands manufacturing, particularly, will turn into a larger focus for importing international locations and warrants motion,” the IEA stated. 

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