The following op-ed, by ICBA VP-Regional Mike Davis, first ran on EnergeticCity.ca on December 11, 2024.
When a politician’s ideology blinds them to hard economic truth, it’s everyday people who suffer the most. And Premier David Eby is about to deal a hard blow to the many B.C. businesses, workers, and families who depend on oil and gas for their livelihoods.
The B.C. NDP Government’s proposed cap on oil and gas sector emissions is a costly decision that could undermine our province’s economic future, while offering minimal advantages in broader environmental or economic terms. British Columbia, a province dependent on trade and rich in natural resources, needs to find a careful balance between environmental goals and economic competitiveness. However, Eby’s emissions cap will do more harm than good.
Even without the cap, the NDP government’s current policy trajectory is predicted to slow economic growth, with a per-person cost of $4,600 by 2030 due to higher energy costs, stricter regulations, and slower industrial output. This paints a grim picture for the province: lower per capita income and fewer gains in overall economic development.
The NDP’s proposed emissions cap, which aims for a 33-38% reduction from 2007 levels by 2030, will only exacerbate our economic decline. Experts warn that policies targeting specific sectors often lead to higher costs without achieving significant results. This is especially true for B.C.’s oil and gas industry, which already faces higher operating costs than competitors in the U.S. and elsewhere.
Focusing on one industry risks driving even more investment out of B.C., pushing oil and gas production to regions with more welcoming regulatory and taxation environments. This will fracture B.C.’s economy by decreasing investment in the energy sector, which provides critical jobs and economic activity, particularly in northeastern B.C.
Furthermore, B.C. is missing out on a key opportunity in the rising global demand for LNG. As countries seek cleaner energy alternatives from stable democratic allies, B.C.’s natural gas reserves position it as a potential leader in LNG production, which would boost the economy and create jobs. Yet, the proposed emissions cap will stifle the industry’s potential, redirecting investment and growth to other jurisdictions.
With inflation, rising energy costs, and increasingly complex permitting processes already challenging the sector, adding more red tape could further slow growth. Instead of targeting one industry, the NDP should focus on policies that encourage economic growth across all sectors and create opportunities for innovation.
Premier David Eby’s NDP were recently re-elected with a narrow majority, and the closest NDP MLA lives more than 1,300 kilometres away from B.C’s Energetic City, Fort St. John. Decision-makers in Victoria need to visit the north and see firsthand the impact their policies have on the communities that generate the wealth of this province.
ICBA’s submission to the Provincial Government on the proposed B.C Oil and Gas Emissions Cap can be found here.
