Alberta’s environment minister isn’t worried about the move to methane tariffs

WASHINGTON — Alberta’s environment minister expressed little concern that European countries are moving to set tariffs on imported natural gas associated with high methane emissions, as he touted the province’s role as an energy ally in Washington.

Rebecca Schulz said there were only a few conversations about the emerging issue of exports while she visited the US capital this week.

“It wasn’t really an issue that was specifically raised,” Schulz said in an interview with The Canadian Press on Thursday.

European Union countries approved a law earlier this year to impose methane emission limits on oil and gas imports starting in 2030. Importers who fail to meet the limit could face a financial penalty.

Some experts say the new European regulations are a sign of things to come for the global energy market and should send a message to producers to get more serious about cutting methane.

Methane is called a climate “super pollutant” and other jurisdictions, including the US, are moving towards stricter targets and imposing limits on the methane intensity of gas imports. This could affect the Alberta market going forward.

The Biden administration has taken ambitious steps to limit greenhouse gas emissions, announcing a plan to cut methane at a global climate conference. President Joe Biden has also pledged to decarbonize the electricity sector by 2035 and the entire economy by 2050.

The United States is Alberta’s largest trading partner. In 2023, Alberta exported more than $156 billion in goods to the United States.

Still, Schulz said she’s not worried about changing energy market regulations, promoting Alberta’s environmental action. She said Alberta has cut emissions by 45 percent, hitting that target three years ahead of schedule.

“We did that by working with the industry and making sure we had policies, regulations and incentives in place,” Schulz said.

How Alberta measures methane emissions reductions has come under scrutiny, with several studies concluding that industry projections of emissions are underestimated by 50 to 150 per cent.

Schulz agrees with the numbers.

“We are very confident in our methodology.”

This report by The Canadian Press was first published on June 20, 2024.

— With files from the Associated Press

Kelly Geraldine Malone, Canadian Press