Methane

The Government of Canada and the Government of Alberta have announced an Agreement-in-Principle to lower methane emissions in the oil and gas sector by 75% below 2014 levels by 2035 in Alberta. The Agreement-in-Principle builds on the Canada-Alberta Memorandum of Understanding (see our earlier bulletin here) and follows the recently published draft Co-operation Agreement between Alberta and Canada on Environmental and Impact Assessment. Under the proposed framework, Alberta would implement a performance-based approach to reduce methane emissions that combines regulations, offset credits, and targeted investments. This bulletin briefly summarizes the key commitments set out in the Agreement-in-Principle. Commitments. Alberta and Canada commit to: develop an outcome-based equivalency agreement (the Agreement) under the Canadian Environmental Protection Act, 1999 (CEPA), whereby Canada’s Enhanced Methane Regulations would be stood down in Alberta, in recognition of final provincial regulations and a provincial approach that delivers, over the term of the Agreement, 75% methane emissions reductions by 2035; act reasonably in adjusting the Agreement, if required, in the face of a force majeure event; jointly select and rely on an independent third party, contracted on an equal cost-shared basis, to conduct methane modelling, analysis of emissions reductions, and to assess methane reduction results; and agree that Alberta will publish information explaining the covered sources of methane and the province’s approach to meet its emissions reduction targets. Next Steps. Once Alberta and Canada agree on the terms of the Agreement, it will undergo a 60-day consultation period, with the goal of finalizing it by the end of the year and implementing it no later than January 1, 2027, for a 10-year period, subject to the amendments to CEPA contained in the federal Budget 2025 Implementation Act. Alberta’s existing equivalency agreement will remain in place until the Agreement is finalized. For further information or to discuss the contents of this bulletin, please contact Lisa DeMarco at lisa@resilientllp.com.

The United States and China announced renewed commitment to enhance cooperation to address the climate crisis in the Sunnylands Statement released on November 14, 2023 (the Statement). Both countries indicated their commitment to the effective implementation of the UNFCCC and the Paris Agreement, including the Glasgow Climate Pact and the Sharm el-Sheikh Implementation Plan, and to further the effective and sustained implementation of the U.S.-China Joint Statement Addressing the Climate Crisis and the U.S.-China Joint Glasgow Declaration on Enhancing Climate Action in the 2020s. This bulletin provides key details of the new and renewed commitments in the Statement. COP 28. The countries indicated that the consensus Global Stocktake decision expected to come out of COP 28 should, among other things: reflect that substantially more ambition and implementation on action and support will be needed to achieve the Paris Agreement’s goals; send signals with respect to the energy transition (renewable energy, coal/oil/gas), carbon sinks including forests, non-CO2 greenhouse gases (GHGs) including methane, and low-carbon technologies; encourage economy-wide 2035 Nationally Determined Contributions (NDCs) covering all GHGs; note the expectation of developed countries that the $100B climate finance goal will be met in 2023; welcome the recommendations of the Transitional Committee with respect to establishing funding arrangements to address loss and damage, including the establishment of a fund; and emphasize the important role of international cooperation. 2035 NDCs. The U.S. and China both affirmed that their 2035 NDCs under the Paris Agreement will be economy-wide, include all GHGs, and reflect emission reductions aligned with the Paris Agreement temperature goals. Energy Transition. The Statement provides important commitments related to the energy transition, including: support for the G20 Leaders Declaration to pursue efforts to triple renewable energy capacity globally by 2030 and sufficiently accelerate renewable energy deployment through 2030 from 2020 levels to accelerate the…

Canada and Alberta Reach Agreement-in-Principle on Methane Equivalency

U.S. and China Release Sunnylands Statement Ahead of COP 28