Business and Environmental Leaders Call for Strong Canadian Oil and Gas Methane Regulations

OTTAWA — Canada’s proposed regulations to reduce methane emissions from the oil and gas industry are a positive development — however, to fully deliver their economic and environmental potential, they must be strengthened, according to a diverse group of Canadian stakeholders representing business, environment and labour. The oil and gas industry is Canada’s largest source of human-caused methane pollution.   

Reducing methane from the oil and gas sector is a key aspect of the federal government’s pan-Canadian climate framework. Methane is a highly potent greenhouse gas, responsible for about a quarter of today’s climate warming — and those emissions come mingled with a host of other smog-forming and carcinogenic pollutants.

“Peer-reviewed research shows Canada’s methane emissions are as much as 250 per cent higher than reported by industry and government,” said David Suzuki Foundation science and policy director Ian Bruce. “The responsible course is to move urgently and enact strong regulations to reduce methane emissions from the oil and gas sector and accelerate the transition to a clean energy economy.”

Leaked methane is also a wasted product. In 2015, nearly C$370 million worth of natural gas escaped from Canadian oil and gas fields, enough to supply every household in Edmonton and Calgary for a year.

“Reductions in methane emissions in the oil and gas sector can be not only cost effective, but also achievable with existing technologies and techniques. Implementation of reasonable methane controls will provide investors with confidence that companies are taking necessary action to protect the long-term value of their business and promoting a sustainable global economy,” according to a group of investors, including Interfaith Center on Corporate Responsibility (ICCR), Ceres Investor Network on Climate Risks and Sustainability (INCR), and Shareholder Association for Research and Education (SHARE), with C$89.75 billion under investment.

Curbing oil and gas methane requires little in the way of new capital or fundamental changes in business practices. Many low-cost solutions are available today. Fixing methane leaks is often as easy as tightening valves and repairing equipment.

“Implementing effective methane regulations is one of the cheapest and easiest ways to reduce greenhouse gas pollution while creating good jobs,” said Blue Green Canada program manager Jamie Kirkpatrick. “Innovative Canadian methane management companies are poised for expansion and job growth based on efforts to comply with new methane rules.”

In the U.S., existing and proposed state-level policies aimed at reducing oil and gas emissions cover 25 per cent more production than would be covered by Canada’s proposed national methane rules. Some states, such as Colorado and California, have gone further than others have and are a model for effective methane regulations.

“Twenty-one countries across the world have recognized reducing oil and gas methane as a huge opportunity, while energy-producing states in the U.S. are pushing forward on methane regulations,” said Environmental Defense Fund international affairs director Drew Nelson. “Canada’s methane rules — if strengthened — will help the country catch up to other jurisdictions.”

The group of stakeholders submitted comments independently on the federal draft methane regulations introduced by Environment and Climate Change Minister Catherine McKenna in May. The final federal regulations are expected later this year or early in 2018, with Alberta’s provincial methane rules to be proposed in the coming months.