RBC says Canada can emerge as carbon-management solutions hub as oil, gas investment tops $200 billion
XLE•RBC said Canada could become a carbon-management hub as more than $200 billion in oil and gas projects is planned. It cited low research spending, Alberta’s planned carbon-credit price floor and differing methane estimates.
1. Carbon-management opportunity
RBC said Canada could emerge as a carbon-management hub as more than $200 billion in new oil and gas projects is planned. It estimated Canada’s research and development intensity at 1.6% of GDP in 2024, compared with 2.9% for OECD peers, and called for faster clean-tech research and development.
2. Pricing and emissions
Alberta plans a carbon-credit price floor of $60 a tonne by 2030, while implied carbon-capture costs exceed $300 a tonne. Alberta reported methane emissions were down 52% from 2014 by 2023, while aerial measurements in 2021 were about 1.5 times higher.
3. Foreign project funding
RBC said Ottawa’s Article 6 framework could allow foreign capital to fund Canadian emissions-abatement projects through internationally transferred mitigation outcomes.
