Compliance with federal climate change regulations - and, to a lesser extent, Alberta's own program - will soon become a material cost driver for Alberta's energy industry.
In March 2008, Ottawa announced new details in its evolving plan to reduce emissions of greenhouse gases (GSGs).  The government set a national target of an absolute 20 percent reduction in GHGs from 2006 levels by 2020 - a reduction of 330 megatonnes from projected levels - and a 60 to 70 percent reduction in national emissions by 2050.  Further details of the federal strategy are to be released as draft regulations in the fall of 2008, with final regulations to be in force from the start of 2010.  Reprinted with permission from Alberta Oil magazine.