Introduction

The oil sector remains a key voice in Canada’s challenge of reducing carbon emissions, and oil and gas companies are often scrutinized in this regard. Many governments have begun enforcing stricter regulations on these companies, and international agreements now demand a shift from fossil fuels to low-carbon energy. Some prominent Canadian oil companies have even pledged to reach net-zero carbon emissions. However, most reports find that they are falling short on these pledges.

Oil Company Positions on Low-Carbon Initiatives

InfluenceMap’s Report Findings

InfluenceMap is a NGO established after the Paris Agreement. InfluenceMap’s primary focus is on environmental policies and the roles of corporations and government in addressing climate issues. Their report, The Canadian Oil and Gas Industry and Climate Policy, finds that Canadian oil companies’ policy actions often contradict their net-zero pledges. The data shows an overall negative engagement, with most companies resisting the Paris Agreement and pursuing strategies that suggest “greenwashing” tactics—using environmental promises that contrast sharply with actual policy directions.

The below summaries under this sub-section are all derived from the InfluenceMap source.

Pledges and Engagement

Many leading Canadian oil and gas companies, represented by the Canadian Association of Petroleum Producers (CAPP), have made net-zero pledges by 2050. Suncor and Enbridge, in particular, show some progress on these pledges. However, despite these commitments, data reveals that emissions continue to rise, suggesting a disconnect between their pledges towards reducing carbon emissions and actual emissions trends.

Oil Company Advocacy and Arguments

CAPP and its member companies advocate for policies they claim are essential to maintaining energy stability and reducing negative economic impact. Their main shared positions include:

• Investment in Canadian Oil: CAPP argues that reducing domestic oil production could increase coal use, which they claim would worsen climate outcomes. According to CAPP, investing in Canadian oil avoids support for less-regulated foreign energy industries and maintains Canadian energy jobs.
• Fossil Gas as Clean Energy: CAPP has lobbied for fossil gas to be recognized as clean energy and against fossil fuel subsidy divestment, suggesting that subsidies are crucial for industry policy. They further argue for the importance of Carbon Capture, Utilization, and Storage (CCUS) as an essential subsidy to manage emissions.
• Emissions Caps and Economic Impact: CAPP and companies like TC Energy oppose the government’s proposed emissions caps, citing economic concerns for the energy sector. They also point to emissions contributions from other sectors that remain unregulated, supporting only targeted methane regulation policies.
• Pipeline Support and Opposition Criminalization: Enbridge asserts that fossil gas cannot be entirely phased out and has advocated for pipeline expansion in collaboration with the United States. Enbridge is also seeking the criminalization of opposition toward pipeline projects.

Divergences of Company Positions

Suncor and Enbridge have adopted mixed stances on climate policies. They have supported decarbonization policies in the past. However, they also maintain support for the continued use of fossil fuels.

Other companies (Cenovus, Canadian Natural, Imperial Oil, TC Energy) have actively opposed and negatively engaged against climate policies.