Shell urges Canada’s oil lobby group to support carbon tax

A new report by Royal Dutch Shell is urging Canada’s largest oil and gas lobby group to start supporting carbon tax policies in Canada.

Shell’s position on climate change is different than about half of the trade associations it’s a part of around the world, including the Canadian Association of Petroleum Producers (CAPP).

The first-of-its-kind report comes within days of the federal carbon tax taking effect in Canada. In addition, a report this week by government scientists said Canada is, on average, experiencing warming at twice the rate of the rest of the world, with Northern Canada heating up at almost three times the global average.

“The publication of this report is a first step to greater transparency around our activities in this area,” Shell said in the report released Tuesday morning. “Shell’s investors, and more broadly civil society, must be confident that we engage constructively with others on climate change.”

Shell is pulling out of the American Fuel and Petrochemical Manufacturers because its climate policies are too misaligned with the company. Shell may also leave nine other trade groups, including CAPP, if further changes aren’t made.

“We will continue to engage further with these industry associations to promote climate-related policies that support the goal of the Paris Agreement,” states the report.

CAPP represents more than 60 energy companies that produce about 80 per cent of the country’s oil and gas.

In its review of the organization, Shell said CAPP does not comment on the Paris climate agreement nor does it publicly support federal and provincial carbon taxes. Meanwhile, Shell supports the goal of the Paris climate agreement and supports carbon taxes.

Shell said it shares some positions with CAPP, including policy to develop low-carbon technology, the importance of natural gas and the need to manage methane emissions.

“Shell has found some differences in climate-related policy positions with CAPP, such as our public support for carbon pricing, and instances where our positions have diverged on specific climate policies. Taking into account the broader value of our membership, we remain a committed member of CAPP. We will continue to engage with the association and closely monitor our alignment on climate-related topics,” the report states.

Shell is based in the Netherlands and its Canadian headquarters is in Calgary.

Shell sold the majority of its oilsands facilities in Alberta for $12.74-billion to Canadian Natural Resources in 2017. The company still has a stake in the oilsands, while also having natural gas, oil, refining and other operations in the province. Shell also leads the consortium of companies behind LNG Canada, which is building Canada’s first liquefied natural gas export facility on B.C.’s coast.

Neither Shell Canada nor CAPP responded to interview requests.