Energy

CLIMATE CHANGE AND PIPELINES – part of a Canadian solution

The world needs energy and climate change needs practical solutions. The Canadian pipeline industry is an important part of how we meet those needs – and transition to a lower emission energy future.

Increasing world population with a growing global economy means that energy demand is rising. While renewable energy production is increasing, forecasts indicate that oil and natural gas will still provide most of the world’s energy in 2040. The Canadian Energy Pipeline Association’s (CEPA) members recognize a key challenge – reducing emissions while ensuring people around the world have access to reliable and affordable energy.

Meeting that energy demand in an environmentally responsible way is something our industry takes pride in. Canada is uniquely positioned to help displace higher emission energy sources with our abundant, cleaner burning natural gas. Natural gas will also help power the transition toward alternative energy options, such as electrification. Electricity producers and consumers can count on natural gas as a back-up fuel for renewables, such as wind and solar, and to help meet power demands in any situation.

Energy needs to be transported to where demand is – and pipelines are the safest, most responsible way to move oil and natural gas. While pipelines account for only about one per cent of Canada’s emissions, we recognize the importance of making that number even smaller.

CEPA members have made, and continue to make, operational improvements to reduce emissions. Examples include more efficient engines for pumps and compression; reducing methane emissions during maintenance; state of the art leak detection and mitigation; and reducing emissions from liquids storage tanks.

CEPA members also invest in technology and innovation, reducing emissions and improving practices that contribute to positive environmental outcomes. Some recent innovations include: • Using waste heat from compressors to generate electricity (TC Energy). • New vapour recovery units at tanker loading facilities (Trans Mountain). • Producing renewable natural gas from wood waste by-products (ATCO). • Investing in low and no-carbon vehicles and transportation infrastructure (FortisBC).

CEPA believes the following should be recognized in Canadian climate change policy: • The dual objective of reducing

GHG emissions while ensuring people and businesses around the world have access to reliable and affordable sources of energy. • Pipelines are critical to meeting domestic and international demand for energy. • As the global energy mix evolves, the need for Canada’s pipelines to safely transport energy products will remain. • Enabling and encouraging collaboration, innovation and technology in the pipeline industry is critical to addressing climate change.

The lives of every Canadian are supported by oil and natural gas. Close to seven million Canadian households use natural gas as their main heating fuel. Oil and natural gas are primary fuels for all forms of transportation. The Canadian energy industry also makes up approximately 11 per cent of Canada’s GDP (worth $230 billion) and employs more than 800,000 people directly and indirectly. In 2018 alone, capital expenditures in Canada’s energy sector totalled $75 billion, creating billions in opportunities for thousands of local and Indigenous businesses.

Canadians also benefit from the tens of billions in government taxes and royalties paid by the energy industry that are used to fund social programs like health care and education. So, it is important that the pipeline network Canadians rely on remains among the best in the world.

To do so, industry must be able to operate efficiently, adapt to market changes and attract investment. Working with government and stakeholders is critical to ensure our industry remains competitive globally.

Canadian climate change policies should recognize that transporting Canadian energy to international and domestic markets is consistent with global climate goals. It is critical that Canada has the right balance of appropriate regulation, while allowing for job creation and economic growth.

CEPA members will continue to work with our stakeholders to develop and implement policy to address emissions reduction in a manner that is efficient, effective and economically viable while helping to drive clarity, certainty and predictability in the regulatory system. Canada must remain competitive.

While alternative energy sources continue to grow, Canadians need reliable and affordable energy. A secure supply of responsibly-produced oil and natural gas, transported safely by pipelines, is vital as we transition towards a lower emission energy future – for us and the world n