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The Calgary Chamber of Commerce is warning Ottawa that its proposed cap on emissions from the oil and fuel sector might compromise the valuation of the Trans Mountain pipeline.
Canada’s oil trade has been combating tooth-and-nail in opposition to the promised cap, which the federal authorities has mentioned it expects to finalize later this 12 months.
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The federal government has mentioned that beneath its proposed plan, the oil and fuel trade must minimize emissions by greater than one-third by 2030 or purchase offset credit.
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It has mentioned the cap is supposed to cap air pollution, not manufacturing, however the trade has warned the cap may have “unintended penalties” that might trigger corporations to curtail their output.
The Calgary Chamber of Commerce says any perceived threat to Canada’s oil output might create the notion that the Trans Mountain pipeline won’t have the ability to depend on a gradual and predictable circulate of oil. It says that may lead to a decrease valuation by buyers and a cheaper price obtained when it’s bought.
The Trans Mountain pipeline enlargement undertaking, which is owned by the federal authorities, is greater than 98 per cent full. The federal government has lengthy mentioned it doesn’t intend to be the long-term proprietor of the pipeline and has launched talks with Indigenous teams who could also be enthusiastic about buying a stake within the asset.
This report by The Canadian Press was first revealed March 27, 2024.
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