Statement on 2023 Federal Budget

CALGARY – March 28, 2023

“The Pathways Alliance is encouraged Budget 2023 signals that more policy certainty is coming to support and incentivize needed investment in clean technologies, including carbon capture, utilization and storage (CCUS) projects, that are critical to meeting Canada’s emissions reduction goals.

“We are pleased to see new details and a clearer legislative timeline for the previously announced Investment Tax Credit (ITC) for CCUS, including the eligibility of dual use equipment for the CCUS ITC.

“The Government of Canada has ambitious goals to reduce emissions from the oil and gas sector, but to meet these goals, there needs to be sufficient co-investment from federal and provincial governments along with industry.

“We look forward to further implementation details on the Canada Growth Fund and a better understanding of the government’s intentions for carbon contracts for difference.

“As an industry that employs hundreds of thousands of Canadians and generates billions of dollars in revenues for governments to help support health care, education and other social programs, we have been working together with government on an ambitious plan to achieve significant absolute emissions reductions from our operations before 2030, and a goal of net zero emissions from operations by 2050, while maintaining our role as a major contributor to Canada’s economy.

“We need to continue to work together constructively to ensure Canada has the right policy levers in place to incent investment in clean technologies like CCUS. Clean technology investments support Canada’s responsibly produced oil and gas, generating jobs and investment in Canada while also meeting the world’s energy security and affordability needs in a net zero world.”