Alberta and the federal government have come to an initial agreement that grants Alberta authority over regulating its methane emissions, with finalized regulations anticipated by the end of this year. The comprehensive accord signed in November covered various energy policy issues, including a commitment to achieve a methane equivalency agreement by April 1 to eliminate overlap between federal and provincial regulations.
Prime Minister Mark Carney stated in a press release on Wednesday, “Canada is strongest when we work together. By collaborating with Alberta on a methane equivalency agreement, we will reduce emissions while safeguarding Canadian jobs and fostering a more competitive and resilient energy sector.”
A draft equivalency agreement is set to be released by both governments later this year for a 60-day public consultation period, with the final agreement expected to be in place by the year’s end. Without this agreement, both federal and provincial rules would apply, leading to increased costs and redundant regulations. The agreement-in-principle specifies that federal methane regulations would be suspended in Alberta, replaced by equivalent provincial regulations.
Premier Danielle Smith expressed, “Albertans have always understood that responsible energy development and strong environmental performance are interconnected. This agreement aligns with that principle, keeps decision-making within Alberta, and builds upon an existing system that is yielding positive outcomes.”
The Memorandum of Understanding (MOU) from November outlined a target of reducing methane emissions by 75% from 2014 levels by 2035, a goal set five years later than the initial draft federal regulations. Methane, a potent greenhouse gas, is over 80 times more powerful than carbon dioxide over a 20-year period, making it a prime target for immediate emissions reduction efforts due to its shorter atmospheric lifespan.
Among the other items in the MOU with an April 1 deadline was a cooperation agreement for simplified project reviews, already agreed upon earlier this month. Pending agreements include industrial carbon pricing and the extensive Pathways carbon capture and storage proposal.
