Alberta, Canada in Methane Agreement

Alberta and Canada have reached an equivalency agreement that will allow the province’s plan to reduce methane emissions to take precedence over similar rules established by the federal government, Alberta environment minister Jason Nixon said November 5.

It’s the third agreement reached between Canadian provinces and Ottawa. Saskatchewan and BC reached similar agreements earlier this year.

Alberta’s set of rules, which were finalised this past summer, are estimated to cut more methane emissions by 2030 than the federal regulations, and at half the cost to industry, Nixon said.

“Nobody is better positioned to manage Alberta’s emissions than Alberta,” he said. “Reaching a methane equivalency agreement with the federal government is a major step in our continued work to effectively reduce methane emissions, and will help job creators meet our environmental goals while saving money and avoiding unnecessary red tape.”

Under the structure negotiated in the equivalency agreement, Alberta is targeting a 45% reduction in methane emissions, from 2014 levels, by 2025.

“This agreement allows industry to work within a made-in-Alberta framework that avoids duplication, meets environmental outcomes and provides flexibility to reach methane reduction targets in a way that best suits our province,” Alberta energy minister Sonya Savage said. “Having a single set of rules will increase investor confidence in our energy sector while strengthening Alberta’s reputation for innovation and responsible energy development.”

A range of policy tools, technology and research will be employed to achieve those goals, including a recent C$52mn commitment from the provincial government to support methane programs that will cut 1.5mn mt of methane emissions immediately, while also setting the stage for additional emission reductions.