Minister of Environment and Climate Change Steven Guilbeault joins Minister of Energy and Natural Resources Jonathan Wilkinson and fellow colleagues as they hold a press conference in Ottawa on Nov. 4.Kevin Krausert is the chief executive officer and co-founder of Avatar Innovations Inc., Canada’s first energy transition corporate venture studio.
Regardless of politics or technological advances, Canadian energy companies are facing an investor-driven mandate to reduce emissions. Global capital markets are driving a transformational wave of major The emissions cap risks delaying – if not derailing – a whole suite of emissions-reduction technology projects. The reason is simple: It has added yet another layer of uncertainty and complexity on already skinny investment decisions by weakening the most effective mechanism Canada has in place.
It has been a bumpy ride. But after nearly 15 years of experimenting in a complicated regulatory system, we’ve finally landed on one of the most globally effective and fungible carbon markets in the world in Alberta, called TIER. While far from perfect, it currently provides the majority of Canadian oil and gas production with price certainty on a per-tonne basis and a verified offset market that ensures emissions removed are verified.