We have expanded the list of climate policies we assess company engagement with to incorporate land-use related policy, referring to legislative or regulatory measures to enhance and protect ecosystems and land where carbon is being stored. Assessments under this category are currently underweighted in terms of their contribution to the overall company metrics. This weighting will be progressively increased over the next 6 months.
We adjusted the terminology used to describe the queries running down the left-hand side of our scoring matrix and added additional explanatory text to the info-boxes. This has no impact on the scores and methodology. It has been done following user feedback to improve clarity.
Climate Lobbying Overview: The Canadian Association of Petroleum Producers (CAPP) appears to have broadly negative positions on most forms of climate policy. While CAPP has acknowledged the need for climate action, its policy lobbying appears to weaken aspects of ambitious climate regulations at the federal and provincial level in Canada. CAPP continues to strongly advocate for a long-term role for oil and gas in the energy mix and undertakes direct advocacy for incentives, including infrastructure lock-in, for the oil and gas industry.
Top-line Messaging on Climate Policy: CAPP appears to have a generally mixed position on climate action, while maintaining negative positions on climate policies. In a post from CAPP’s blog ‘Context’ in February 2022, it supported the need to reduce emissions in line with the 1.5 Celsius goal; however, in an April 2022 blog post, CAPP’s then President and CEO Tim McMillan appeared to not support climate action and emissions reduction. CAPP’s corporate website, when accessed in July 2022, supported Canada’s commitments in the Paris Agreement. CAPP has also disclosed in the federal lobbying registry in June 2022 that it supports the Article 6 of the Paris Agreement for “international recognition” of Canada’s emissions reduction efforts in order to seek international credits via trade agreements.
CAPP’s response to Canada’s Blue Economy Strategy Engagement Paper appeared to state that climate regulation should only target areas that are “efficient” and should “fairly” consider different sectors and jurisdictions. Further, CAPP’s letter to Canadian Ministers, Steven Guilbeault and Jonathan Wilkinson in March 2022 cited the entity’s support for carbon pricing to oppose other forms of climate regulation.
Engagement with Climate-Related Regulations: CAPP appears to have limited engagement on specific climate policies while demonstrating negative positions. CAPP’s lobbying disclosure in the British Columbia Office of Registrar of Lobbyists in May 2022 revealed that it had advocated to reduce or defer carbon taxes, citing the COVID-19 pandemic in the province. In the federal lobbying registry, CAPP disclosed in June 2022 that it had advocated the Government of Canada to set up a carbon border adjustment tax, however it advocated for expanded carbon leakage protection for EITE industries, thus weakening the overall impact. CAPP’s March 2022 letter to the Canadian Ministers Guilbeault and Wilkinson opposed Canada’s emissions cap on the oil and gas industry. The letter went on to propose that incentives for the oil and gas industry to undertake voluntary initiatives for GHG emissions reductions were sufficient. CAPP is also engaged on methane legislations at the federal level in Canada as disclosed in the federal registry in June 2022, although its position is unclear.
Positioning on Energy Transition: CAPP strongly advocates for increasing oil and gas in the energy mix. In June 2022, CAPP disclosed in the federal registry that it had advocated various departments of the Canadian federal government for increasing fossil fuel infrastructure, including the construction of pipelines between Canada and the US. Similar lobbying activities were reported in 2022 in British Columbia and Ontario through lobbying registries, where CAPP advocated for increased oil and gas development. Further, CAPP’s website, when accessed in July 2022, opposed Canada’s Bill C-69 that had proposed the introduction of stringent impact assessment for infrastructure projects. Recommendations for incentives towards investments in the oil and gas industry were also put forward in CAPP’s response to Canada’s Blue Economy Strategy in June 2021 and in the letter to Canadian Ministers, Guilbeault and Wilkinson, in March 2022.
CAPP advocacy for oil and gas is also directed towards increasing Canada’s role in oil and gas supply in the world. For instance, in July 2022, the corporate website suggested that Canadian fossil gas presents “significant environmental benefit” and that Canadian oil and gas industry should become the “world’s energy supplier of choice”. This includes support for LNG export from Atlantic Canada to markets in Asia. Following the COP26 in Glasgow, CAPP released a joint statement with 8 other industry associations in November 2021, urging policymakers and international financial institutions to finance new fossil gas infrastructure.
Advocacy based on this argument has taken a center stage in CAPP’s communications following the Russia-Ukraine crisis, including through direct engagement with federal policymakers. In June 2022, the new CAPP President and CEO, Lisa Baiton, wrote an opinion piece in the Calgary Herald urging the G7 leaders to seek Canada’s oil and gas to address the energy scarcity following the energy crisis.
CAPP also appears to oppose measures for the decarbonization of the energy mix. A press release from November 2021 expressed concerns over Ontario’s fossil gas phase out plan, and suggested a longer time-frame for achieving the goal.