Study calls for federal carbon price to win broad support for oil pipelines -

Study calls for federal carbon price to win broad support for oil pipelines


CALGARY – Ontario must push to ensure the benefits of proposed oil pipelines in the province — not just their costs and risks — are spread throughout Canada, says a study released Monday by the Mowat Centre.

“Unless Alberta and the federal government are more prepared to find ways of sharing costs and benefits more equitably, it is unlikely that pipeline projects will reach fruition,” write the report’s authors.

While Ontario would see economic benefits of pipelines in the form of employment and government revenues, the report’s authors argue Alberta and other oil-producing provinces reap a disproportionate share of the bounty.

At the same time, they write, Ontario and other provinces have been doing the heavy lifting when it comes to reducing greenhouse gas emissions, only to be eclipsed by rising emissions from fossil fuel-rich provinces like Alberta.

The most “realistic and reasonable” way to win broad support for pipelines is through a federal price on carbon, the proceeds of which could be invested in research, development and clean technology.

“The Ontario government has made it clear that it sees a national interest in oil and gas development and is committed to supporting Alberta’s ambitions,” the report says.

“But it is now up to the federal government, the Alberta government and the governments of other hydrocarbon-producing provinces to likewise see the national interest and ask how pipeline development produces benefits across the country.”

The report also flags concerns over the impact to Ontario’s natural gas consumers in light of TransCanada Corp.’s proposal to switch part of its west-to-east gas mainline to oil service.

There are two proposals in the works to ship western crude to eastern markets via Ontario: Enbridge Inc.’s (TSX:ENB) Line 9 reversal and TransCanada’s (TSX:TRP) much larger Energy East project.

On a recent visit to Calgary, Ontario Premier Kathleen Wynne expressed support for such projects, provided the environment is protected and First Nations are properly consulted.

The report was authored by Richard Carlson, who worked in the U.K. advising investors and governments on energy policy and environmental issues, and Matthew Mendelsohn, who has served in both the Ontario and federal governments.

The Mowat Centre, located at the University of Toronto’s School of Public Policy and Governance, is a non-partisan public policy research centre.


Study calls for federal carbon price to win broad support for oil pipelines

  1. Yet another tax burden obviously intended to fall upon Alberta, despite the fact that most of the CO2 produced by the oil comes from the tailpipes of Ontarians.

    And as more and more years pass without any sign of the globe warming like it did at the end of the 20th century, more and more people of the 21st century are realizing that CO2 never was the Great Climate Boogeyman that it has been claimed to be.

    • It is clear that you have not been doing your reading, and are completely uneducated on this topic. At this point in the debate, with 97% of world scientists stating with nearly 100% certainty that climate change is human generated…the onus is on you to prove your hyperbole.

      • Anyone still quoting the 97% BS is 100% delusional.

      • The 97% scientist thing was based on a question only 77 scientists responded to. Please do your research before spreading propaganda for the Enviro activists This was quoted back to the senate energy enviro committee a few weeks ago during testimony. Despite that science is about scepticism not consensus:)

      • You really need to stop this line or reasoning its illogical and dishonest. Everyone believed the world was flat and the earth was the centre of the universe at one time to, but a very few individuals did the hard work to challenge the consensus. Good science is skeptical not political.

  2. More blackmail.

  3. So can the rest of the provinces start holding each other ‘s economies hostage?
    The answer is no, since that was one of the reasons Canada became a confederation….