Insight
Canada's carbon price to rise to $170/tonne: implications for upstream
Report summary
Canada is one of few major oil and gas producing countries to enact robust carbon price policies. The Federal Government announced plans to increase the fuel levy from Cdn$50/tonne in 2020 to Cdn$170/tonne in 2030. This is on par with even the most progressive European countries. Output-based pricing systems that are already in-place for large industrial emitters, like Alberta's oil sands, will be somewhat shielded from the full $170/tonne carbon price. We detail which projects are expected to face carbon liabilities and the impacts of an increasing price.
Table of contents
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Executive summary
- Canada's emissions in context
- Ensuring pollution is not free
- Assessing the cost impact on oil sands projects
- Alberta TIER regulations
- Projects exposed to carbon liabilities under TIER now see a higher impact under a C$170/tonne price
- Quantifying potential carbon costs across different scenarios
- Clean Fuel Standards
- Comparison to other regimes
Tables and charts
This report includes 7 images and tables including:
- Canada's emissions in context
- Federal Government's proposed carbon price
- Carbon costs under TIER using $50 versus $170/tonne price
- Primrose / Wolf Lake valuations under different carbon pricing scenarios
- Primrose / Wolf Lake 2021 netback waterfall
- Primrose / Wolf Lake 2030 netback waterfall
- Status of carbon price or emissions trading system (ETS) of major hydrocarbon producing countries
What's included
This report contains:
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