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Emissions cap costs too much, very little return: Fraser Institute

Fort McMurray, AB, Canada / MIX 103.7
Emissions cap costs too much, very little return: Fraser Institute

The 100 megatonne emissions cap the province is putting on oilsands development will place larges costs on Canadians and do little for emission levels.

So says the Fraser Institute in a report released today.

The report says the government policy has the potential to constrain future oil sands production.

In a scenario based on current emissions intensity levels, the policy could reduce cumulative production between 2025 and 2040 by 3.34 billion barrels of oil.

In a scenario based on reduced emissions, production would be reduced by 2.03 billion barrels of oil.

The policy could cumulatively abate 236 megatonnes of CO2 equivalents, a 0.035 per cent reduction by 2040.

The report estimates the cost to the economy during the same time frame to be in the 250 billion dollar range.

A link to the report is here.

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