A global agreement to transition away from fossil fuels is drawing mixed reaction in Canada, with environmentalists concerned over loopholes they say could worsen climate change and some industry players pleased with the inclusion of technologies like carbon capture. 

The COP28 climate talks concluded in Dubai Wednesday with a deal calling for countries around the world to rapidly shift energy systems away from fossil fuels, with an eye to achieving net-zero gas emissions by 2050. 

The David Suzuki Foundation has flagged concerns with the deal, arguing it is not aligned with the latest climate science – and could potentially worsen the crisis. 

“Loopholes in the final agreement risk expansion of gas production and rely on unproven technology like carbon capture and storage,” Sabaa Khan, director of climate solutions at the David Suzuki Foundation, said in a Wednesday press release. 

“While the final agreement failed to include a clear commitment to phase out all fossil fuels, the pressure for a moratorium on oil and gas production is going to grow as extreme weather events cause more economic and social harm and destruction across all countries.”

Canada is poised to become the world’s largest developer of new oil and gas extraction by 2050, Khan said, noting that it is the only G7 country with rising emissions. 

“We need strong regulations from the federal government to limit the fossil fuel industry’s pollution and we need them in place as soon as possible,” she said. 

INDUSTRY REACTION 

A Canadian oil sands industry group that is proposing a major carbon capture and storage project in Alberta praised the agreement’s inclusion of various technologies. 

Pathways Alliance President Kendall Dilling told BNN Bloomberg that the deal is “ambitious” and will hinge on practical compromises as well as significant investment from both the public and private sectors.  

“We are pleased to see a reaffirmation that technologies such as carbon capture and storage, nuclear and low-carbon hydrogen are essential to meeting global climate commitments,” Dilling said in a Wednesday statement.

"While oil and gas are still needed to meet global demand and energy security, we will remain focused our ambitious goal to achieve significant emissions reductions from our operations by 2030 and net zero from operations by 2050.” 

INVESTOR’S VIEW

Bullish oil investor Eric Nuttall said he considers the agreement “a waste of mental energy.”

"All government targets for decarbonization are going to be deferred and deferred over time as they realize that what voters want is energy affordability, and much of the ‘phase down, phase out’ conversation will lead to the very opposite of that," Nuttall told BNN Bloomberg’s Tara Weber.