Thank you, Mr. Chair.
Hello and good afternoon, committee members.
TC Energy recognizes the important work this committee is doing to seek out and listen to a wide range of perspectives on the development of an oil and gas emissions cap, and we appreciate the invitation to share our views. With over 65 years of experience, TC Energy is a leader in the responsible development and reliable operation of North American energy infrastructure.
We recognize the importance of addressing climate change and a significant undertaking to transition Canada's economy for a low-carbon future. In October 2021, we announced new targets to reduce the GHG emissions intensity from our own operations by 30% by 2030 and are positioning the company to achieve net-zero emissions from our operations by 2050. We support the goals of the Paris Agreement and are ready to undertake the critical challenge before us as we move to a low-carbon future.
We know a strong climate change policy will take a collective effort amongst industry, government, communities and consumers to achieve meaningful emissions reductions. As government considers the scope for an oil and gas emissions cap, we believe the desired policy intent can be achieved by focusing solely on direct GHG emissions occurring within oil and gas industry operations.
Focusing on scope 1 emissions adheres to the principle of environmental responsibility and liability, which forms the foundation of environmental regimes in Canada and internationally. Moreover, focusing solely on scope 1 emissions will help avoid double counting, regulatory and decarbonization inefficiencies, negative energy security and economic impacts, and implications to cross-jurisdictional collaboration, both interprovincially and internationally. In doing so, government can utilize existing complementary levers, such as carbon pricing, methane regulations, clean electricity standards and clean fuel regulations to achieve the desired emissions reductions objectives in the most efficient and cost-effective way for industry and consumers.
We see numerous opportunities to decarbonize our own pipeline operations in both the near and long term. Asset modernization will help reduce vented and fugitive methane emissions associated with regular operations and maintenance and improve overall operational efficiency. We've already achieved notable operational emissions reductions through turbine retrofits.
To address methane emissions. we recently piloted a field trial of a zero-emissions vacuum compressor during inline inspection. We intend to reduce our carbon footprint by converting gas compressor stations to electric motor drives, and to decarbonize our power consumption by sourcing renewable and low-carbon power. Renewable natural gas and hydrogen blending opportunities will further reduce our emissions profile.
In Quebec, TC Energy has transported renewable natural gas from two landfill sites since 2002 and helped advance the province's standards for biomethane transportation. Through the Alberta carbon grid, TC Energy will play a key role in deploying carbon capture utilization and storage technology. We are actively developing and deploying advanced software and systems to enhance our ability to monitor and track emissions across our systems.
Government must ensure that industry's ability to adhere to an oil and gas emissions cap is achievable and economically efficient. The inability for the oil and gas sector to cost-effectively decarbonize to the levels required by an overly restrictive emissions cap would effectively create a cap on production, with irreversible impacts on energy security, reliability and affordability. This would significantly impact both Canada's economy and balance of trade, while having a negligible impact on global emissions as production moves to jurisdictions with inferior ESG profiles.
For context, the Canadian oil and gas sector provided $105 billion to Canada's GDP while supporting nearly 400,000 jobs in 2020. Commodity price recovery since 2020 will significantly increase this figure in the years following. Inefficient cap implementation would jeopardize the sector's key contribution to both national jobs and GDP, while negatively impacting energy affordability for other industrial sectors and Canadian consumers.
A healthy oil and gas industry is also needed to allow industry to support economic reconciliation priorities and financial opportunities for indigenous groups. At TC Energy, we want the future of Canadian energy development to be more equitable and inclusive for indigenous peoples and communities, and we are taking action to contribute to lasting change through our own reconciliation action plan. Projects like Coastal GasLink are providing significant benefits to indigenous communities, with over $1 billion in contract awards to indigenous businesses or their joint venture partner businesses.
Thank you for providing me the opportunity to provide you with TC Energy's overarching perspective. I'll be glad to address any questions you may have at the appropriate time.