(Bloomberg)
Carbon capture, where the carbon dioxide from oil and gas production facilities is sequestered and injected back into the ground, is economically unsound and has a “terrible track record” of delivering emissions reductions, the Canadian academics and scientists said in their letter to Chrystia Freeland.
The money would amount to a subsidy for the fossil fuel industry that would be better spent on renewable energy, electrification and energy efficiency.
“The introduction of this tax credit would contradict the promise made by your government to Canadians during the election period to eliminate fossil fuel subsidies by 2023 as well as our international commitments under the Paris Agreement,” the group said in the letter.
Such efforts would have little impact on the crude oil they produce and ship to refineries for making fuel. The combustion of fuel accounts for 80% of emissions stemming from oil and gas, which the industry’s plan doesn’t address, Jason MacLean, a University of New Brunswick law professor who co-signed the letter, said by phone.
“The danger of using further public money to support oil and gas production is that it will prolong and expand oil and gas production,” he said. What’s more, if oil consumption plummets as the world moves aggressively to decarbonize, the investment in carbon capture infrastructure could create “stranded assets” as oil production in Canada declines.
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