Page 64 - AIF - English

INDUSTRY CONDITIONS

emissions that will impose further requirements on International Climate Change Agreements

companies operating in the energy industry.
and Treaties
In 2012, the Government of Canada announced that it
A number of statutes, regulations and frameworks are
under development or have been issued by various would not sign up for the second Kyoto Commitment
Period commencing 2013. However, Canada has
provincial regulators that oversee oil sands development,
including the Joint Canada-Alberta Implementation Plan for committed, pursuant to an agreement at the United
Nations Framework Convention on Climate Change
Oil Sands Monitoring, and the Lower Athabasca Regional
Plan (LARP) that implements a land-use regime in the Conference of the Parties (UNFCCC COP) held in
Copenhagen, Denmark, in 2009 (Copenhagen Accord), to
Athabasca oil sands region. These statutes, regulations and
frameworks relate to such issues as tailings management, reducing its GHG emissions by 17% below 2005 levels by
2020, in line with the reduction commitment made by the
water use, air emissions and land use. While the financial
implications of statutes, regulations and frameworks under U.S. The Copenhagen Accord does not contain any binding
commitments for reducing COemissions, nor does it
development are not yet known, the company is 2
committed to working with the appropriate regulatory include any discussion of compliance mechanisms. The
2013 UNFCCC COP, held in Warsaw, Poland, continued to
bodies as they develop new policies, and to fully complying focus on creating a process and plan for all UN members
with all existing and new statutes, regulations and
frameworks as they apply to the company’s operations.
to get to an agreement on 2020 commitments by the
2015 UNFCC COP to be held in Paris. Countries were
In general, there remains uncertainty around the outcomes
asked to either pledge emissions reductions or contribute
and impacts of climate change and environmental laws and financially.
regulations, whether currently in force or enacted in the

future. It is not currently possible to predict the nature of Canadian Federal GHG Regulations
any future requirements or the impact on the company and
The Government of Canada has already implemented
its business, financial condition, results of operations and regulation on two of Canada’s largest sources of emissions,
cash flow. We continue to actively work to mitigate our
being transportation and thermal electricity generated from
environmental impact, including taking action to reduce coal (which includes petroleum coke). In line with the U.S.,
GHG emissions, investing in renewable forms of energy
Canada has adopted a renewable fuels standard,
such as wind power and biofuels, continuing land mandating that 5% of gasoline supply come from
reclamation activities, installing new emissions abatement
renewable sources such as ethanol and that 2% of diesel
equipment, investing in research and development and supply come from bio-diesel. The Canadian federal
working to advance other environmental technologies such
government continues to address emissions of specific
as carbon capture and sequestration.
sectors of the economy and is engaged in negotiations

The scope of recent environmental regulation and initiatives with the Canadian oil and gas industry on proposed
has had an impact on many areas important to Suncor’s regulations for the sector while ensuring the industry

operations, some of which are summarized in the following remains globally competitive. It is expected that provincial
subsections:
governments will enter into equivalency agreements for

their own regulations with regard to a future federal
Climate Change
regulation.

Suncor operates in many jurisdictions that have regulated,
or have proposed to regulate, industrial GHG emissions. Canadian Provincial GHG Regulations

Those jurisdictions that have regulated GHG emissions In the absence of a federal GHG emissions policy, various
generally support policies based on (i) caps on the intensity Canadian provinces have responded with their own GHG

of GHG emissions including absolute GHG emissions limits, emissions reduction targets and passed legislation enabling
(ii) a cap-and-trade system, (iii) a tax, (iv) a hybrid of a tax regulation of large GHG emitters. Suncor is committed to

and a cap-and-trade system, and (v) policies including other fully complying with existing regulations and will continue
measures such as low carbon fuel and renewable fuel to constructively engage the appropriate governmental

standards. Suncor participates in the consultation process bodies in meaningful dialogue in an effort to develop a
for the design of proposed regulations and other efforts to harmonized system which focuses on achieving actual

harmonize regulations across jurisdictions within North reduction goals and sustainable resource development.
America, both directly with government and indirectly
In July 2007, pursuant to the Specified Gas Emitters
through industry associations.
Regulation (SGER) enacted under the Climate Change and

Emissions Management Act (Alberta), facilities in Alberta,
emitting more than 100,000 tonnes of COequivalent
2
(CO2e) per year are subject to intensity limits

62 SUNCOR ENERGY INC. ANNUAL INFORMATION FORM 2014