Compliance through carbon pricing

CNOOC International operates in Canadian jurisdictions where Greenhouse Gas (GHG) emissions are regulated and carbon markets exist:

  • In British Columbia, our shale gas operations are subject to a carbon tax. CNOOC International pays $35 for every tonne emitted from fuel combustion and flaring.
  • Alberta has had carbon pricing since 2007 and has adopted a new carbon tax in 2018. For our oil sands and power plant operations, compliance is met through efficiency improvements, carbon credits earned through our ownership in the Soderglen wind farm, and payment into Alberta’s Climate Change and Emissions Management Fund at $30 per tonne.

CNOOC International’s strategy is to limit GHG compliance costs to our business units amidst increasing regulatory stringency, an ever more competitive marketplace and suppressed commodity prices. We do this by using offset credits and by working closely with governments to provide input on policy that effectively reduces GHG emissions, while maintaining the competitiveness of oil and gas assets.

 

2020 Canadian Sustainability Report

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