Meeting BC’s Oil and Gas Target
No sector threatens the province’s ability to reach our climate targets more than the oil and gas sector, especially LNG development. Government must ensure this sector does its fair share to reduce emissions by removing subsidies and other preferential treatment for LNG, reducing methane emissions to near-zero by 2030, and implementing the promised provincial oil and gas emissions cap. Strong action is also needed to reduce the spillover effects of this industry, such as better addressing toxic wastewater from hydraulic fracturing, and prioritizing BC’s clean electricity for climate solutions, not oil and gas.
BC has committed to an overarching emissions reduction target of 40% by 2030. To get there, BC’s economy has been broken into four sectors each with their own sectoral target, with the oil and gas industry responsible for a 33-38% reduction by 2030.
However, as of 2023 reporting, the oil and gas sector was not on track to reach its 2030 target. More worrying, our province’s own climate accountability projections are based on outdated assumptions about how many liquified natural gas (LNG) projects might go ahead, further risking BC’s ability to meet our climate targets.
To ensure that the oil and gas sector remains accountable for reducing its emissions, and does not displace resources needed by climate-aligned industries, BC must take action to:
Rapidly implement key policies announced in the CleanBC Roadmap to 2030. Many of the policies and measures announced in the Roadmap that would target oil and gas demand and supply have yet to be enforced. In particular, the provincial oil and gas emissions cap must be finalized as soon as possible, to ensure that the 2030 sectoral target is achieved. Reporting on progress implementing these policies in BC’s Climate Change Accountability Reports will be an important part of following through on the intention of the respective legislation, including information about projected emissions and LNG projects expected to go ahead.
Remove subsidies and preferential tax treatment for the LNG industry. LNG export terminals in BC should be required to demonstrate that they can operate in the market without artificial incentives. If they cannot meet the emissions reduction thresholds needed without subsidies or other supports (like tax breaks, loan guarantees, etc.), the projects should not be propped up by taxpayers.
Accelerate the commitment to reach near-zero methane emissions by 2030 instead of 2035. Recently-finalized provincial regulations are a positive step forward: they include the eventual phase-out of most methane-emitting pneumatic equipment, further restrictions on routine and non-routine venting, and requirements for continuous monitoring devices on production tanks. However, the new regulations still do not cover some important methane sources and some aspects will not apply to existing facilities until 2035, which is much later than national and international best practices. Given the current global momentum on methane reduction from other governments and industry, BC should continue to strengthen its regulations to reach near-zero by 2030.
Introduce additional regulation to address significant wastewater use in hydraulic fracturing. Every year billions of liters of fresh water is extracted by oil and gas companies from rivers and lakes in British Columbia, the vast majority for use in fracking operations. Projections show that with increased fracked gas production to supply potential new LNG terminals, the demand for water could more than double. Currently, companies pay a miniscule fee for water access, and treatment of the wastewater produced is not currently required. This is why we are calling on government to: increase the cost of water to encourage conservation; centralize all water licensing in the Watershed Stewardship & Security Branch; require baseline and ongoing water and soil testing in and around wastewater storage sites and disposal wells; and require the treatment of fracking wastewater.
Prioritize clean electricity for climate solutions, not oil and gas expansion. Many of the policies in CleanBC, from decarbonizing transportation and households to powering up new clean industries, will require electrification. These climate solutions will have to compete for supply of renewable electricity with oil and gas industry projects like LNG terminals. The potential electricity demand from these new oil and gas projects is very large. Analysis shows that electrifying all of BC’s oil and gas sector would require the equivalent of 8.4 times the amount of electricity produced by the Site C Dam. Our province’s clean electricity should be prioritized for people, communities, and climate-aligned industries.
Establishing a credible path to meet the 2030 oil and gas sectoral target prepares us in turn for a credible path to net-zero by 2050. This includes developing pathways for a broader decline in oil and gas production and use across all sectors of the economy.