In June, a Canadian oil industry association took action against the federal government by removing all information about emission-cutting efforts from company websites. This decision followed new legislation that could lead to legal consequences for claims deemed as greenwashing. As a result, oil sands producers ceased discussions about emissions, but climate activists continue to call for further reductions.
The Pathways Alliance, which includes companies like Canadian Natural Resources, Cenovus Energy, and Suncor Energy, expressed concerns about the recent amendments to the Competition Act. They stated that these changes create uncertainty for Canadian companies that wish to publicly share their environmental efforts. The alliance added a FAQ section to its website, highlighting their worries about how the new rules will be interpreted. They noted that the vague standards for public disclosure could invite unnecessary lawsuits.
Essentially, the amendments warn the industry not to claim they are reducing emissions unless they can provide solid evidence using recognized methodologies. To avoid potential legal issues, the oil sands industry has opted to stop discussing its transition efforts, which has prompted climate activists to speak out.
In a recent report, the Pembina Institute, a climate think tank, accused oil sands companies of prioritizing investments in oil production over emission reductions. The report indicated that, for the first time since the pandemic, these companies are increasing production while failing to invest significantly in emission-reduction projects. The Pathways Alliance members did not report any new investments in emissions cuts, and their key carbon capture project appears to be stalled in early development.
Matt Dreis, a senior analyst at the Pembina Institute, noted that the new greenwashing legislation does not prevent companies from announcing investments in carbon capture or emissions reduction projects. He emphasized the need for the industry to complete such initiatives if it aims to lead in environmental efforts. However, the report suggests that the Pathways Alliance is more focused on expanding production, capitalizing on two years of record profits.
The oil and gas sector is responsible for a significant portion of Canada’s emissions, accounting for 28% of the total in 2021. The federal government aims to reduce emissions from 171 million tons in 2019 to between 106 and 112 million tons by 2030. The industry opposes this plan, arguing it effectively caps oil production.
Suncor’s CEO, Rich Kruger, expressed support for a carbon price, believing it would foster innovation. However, he raised concerns that an emissions cap might limit production. The government’s emission reduction strategy has sparked protests in Alberta, highlighting the ongoing divide in Canada over climate policies. According to the Pembina Institute, emissions from oil sands production are rising due to increased output, leading climate activists to demand a halt to oil production—something the Pathways Alliance is currently unwilling to consider.
The Pathways Alliance remains committed to its carbon capture project, which aims to capture and store carbon dioxide from oil sands production. Kendall Dilling, the organization’s president, stated that the new law does not alter their goals or initiatives. However, he acknowledged that the changes to the Competition Act complicate public discussions about their work due to the law’s ambiguity.
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