Alberta slashes emissions while ramping up oil production: report

By Isaac Lamoureux

Alberta has been able to ramp up oil production while also reducing emissions across various industries. 

The province continues to reduce emissions via technological innovation while resisting federal policies seeking to curb production.

A new report released Wednesday shows that overall emissions in Alberta have decreased almost every year since 2015, after peaking in 2014. Emissions fell from 288.5 Mt CO₂ eq. to 263.4 Mt CO₂ eq. in 2023, a nearly nine per cent decrease. 

Emissions have decreased in conventional oil, transportation, and heavy industry since 2015. They have also fallen in natural gas processing, methane, and electricity emissions. 

Despite the significant emission cuts, Alberta has boosted energy production by 20 per cent since 2015.

The province also eliminated emissions from coal-fired electricity more than six years ahead of schedule, after the last coal-fired power plant transitioned to natural gas fuel in June 2024.

“Alberta continues to lead the way in responsible energy development. The 2023 report shows our oil sands sector is producing more energy with fewer emissions per barrel – a clear sign of innovation and commitment that comes from working with producers. This is why countries around the world are looking to us as a responsible producer of choice,” said Alberta Environment Minister Rebecca Schulz. “We don’t need top-down policies from the federal government to do this, and we’ll continue to drive common-sense progress that benefits both our economy and the environment.”

While emissions from oil sands bitumen fell 26 per cent between 2012 and 2023, production increased by 96 per cent — reaching 1.56 million barrels daily as emissions continue to decline.

Alberta had the highest absolute reduction of emissions nationwide between 2022 and 2023, after reducing emissions by 2.1 million tonnes.

“Albertans have always been at the forefront of innovation and produce the most responsible oil in the world. With our vast reserves, we have the ability to bring energy security to North America and our Asian trading partners and continue to fuel our economy for generations to come,” said Alberta’s Energy Minister Brian Jean. 

The report shows that Alberta is also succeeding in decoupling emissions from economic growth. From 2005 to 2023, Alberta’s GDP increased by 41 per cent, while emissions grew just 4.8 per cent. Over that same time, emissions intensity per $1,000 of GDP fell by 26 per cent.

Alberta introduced the first industrial carbon pricing and trading system in North America in 2007. Between its introduction and 2023, 254 million tonnes of emissions have been addressed by compliance measures beyond on-site reductions, including offset credits and technology investment.

Earlier in May, the province froze its industrial carbon tax at $95 per tonne in response to the tariff war. Smith said the freeze came in response to concerns of business and industry leaders who warned that further tax hikes would harm Alberta’s competitiveness and be detrimental to their businesses.

“Alberta remains committed to reducing emissions through the development and implementation of new technologies, not unrealistically high taxes, while responsibly powering the world for decades to come,” said Smith.

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