Canada’s six year old carbon pricing system is facing uncertain times. Recently, 14 oil and gas CEOs and opposition leader Pierre Poilievre have called for its repeal. This raises questions about the future of Canada’s climate policy and the Pathways Alliance carbon capture project.

Calls for Repeal

The carbon pricing system came into the picture in 2019. The system aimed to reduce pollution by incentivizing heavy industries to cut carbon emissions.

As per the current law, industries must pay or buy credits to offset emissions that exceed a certain threshold. Moreover, the pricing system is designed so that it gets progressively stricter. This implies that the carbon price increases periodically.

However, Pierre Poilievre, the Conservative leader, has vowed to repeal the federal carbon pricing system if elected. He believes that individual provinces should decide their carbon regulations. He plans to replace the system with tax credits to encourage companies to reduce pollution without imposing a carbon price.

Potential Impact on the Pathways Alliance Project

The Pathways Alliance, which represents Canada’s six largest oil sands producers, has also criticized the federal carbon pricing scheme. The group proposed a C$16 billion carbon capture and storage project to reduce greenhouse gas emissions from the oil sands industry. However, they argue that the current carbon pricing system makes the project less competitive.

If the federal carbon pricing system is repealed, it could cast doubt on the Pathways Alliance project’s future. Industry leaders believe that a more favorable regulatory environment is needed to grow Canada’s oil sands and reduce emissions.

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The Road Ahead for Canada’s Carbon Policy

Canada is a critical juncture where it needs to balance economic growth with climate goals. Some experts argue for the repeal of the carbon pricing system, and others like newly sworn in Prime Minister Mark Carney stand by the importance of the pricing system to maintain Canada’s competitiveness.

Moreover, the policies and actions taken by other countries is adding on to Canada’s dilemma. For instance, countries like UK re introducing carbon levies. Canada must keep pace with international climate policies. The decision to repeal the pricing system or not will have a big impact on the country’s ability to meet climate goals.

Alfa Laval has secured its first order for the FCM Ammonia fuel supply system, marking its path toward creating sustainable shipping solutions. The firm will deliver the ammonia-fueled fuel system to seven Tianjin Southwest Maritime-owned dual-fuel LPG/ammonia carriers.

A Step Towards Low-Carbon Shipping Solutions

With global shipping projected to nearly double by 2050, the shipping industry aims to cut carbon emissions. Low-carbon fuels hold a critical function in achieving worldwide decarbonization goals. Ammonia has gained attention as a promising alternative due to its low-carbon profile and growing demand.

Alfa Laval, the recognized technology pioneer in the shipping sector, is creating integrated fuel solutions to accelerate the industry’s shift towards cleaner fuels. The FCM Ammonia system is also Alfa Laval’s newest innovative solution to meet the evolving needs of the industry.

Also read: MAN Energy Solutions to deliver first-ever ammonia-fuelled ship engine

Alfa Laval’s Commitment to Decarbonizing the Maritime Sector

Peter Sahlen, Head of Marine Separation, Fuel Supply System & Heat Transfer at Alfa Laval, said, “Through research, product development, and strategic partnerships, we are building the solutions needed for a safe and efficient transition to low-carbon alternative fuels.”

He added, “Our deep experience with fuels like methanol and LPG has given us a head start with ammonia, and this first contract validates our commitment to driving decarbonization in shipping with reliable and innovative solutions.”

The ammonia fuel supply system will be installed at China’s CSSC Huangpu Wenchong shipyard. In addition, the initial phase of the installation will be on three 25,000 cubic meter LPG/ammonia carriers and then four more 41,000 cubic meter carriers. Furthermore, Alfa Laval will supply the first FCM Ammonia unit in 2025, a major milestone in the quest for net-zero emissions in the maritime industry.