NEIA welcomes $75 million commitment from Government of Canada to help reduce emissions from offshore oil and gas industry

For Immediate Release
April 20, 2020

The Newfoundland and Labrador Environmental Industry Association (NEIA) is welcoming a commitment from the Government of Canada to help address greenhouse gas emissions emanating from the province’s offshore oil and gas industry.

“As the global urgency to curb climate change intensifies, as does pressure on Canada’s natural resources industries to take action,” said Kieran Hanley, NEIA’s Executive Director. “The oil and gas industry has a crucial role to play in being part of the solution towards reducing global greenhouse gas emissions.” Hanley said that jurisdictions that excel in this regard will gain a competitive advantage, “and it is incumbent on us to ensure we are among the best in the world.”

On Friday, the Federal Government announced a new repayable loan program to work with oil and gas companies to reduce their greenhouse gas emissions. This is in response to the crushing effects that the COVID-19 pandemic has had on the industry. $75 million is specifically allocated to the offshore sector, with a portion being convertible to grants.

Hanley said that a strategic focus on continuous improvement in environmental performance in the industry presents the province with new economic growth potential. “The development and application of clean technology products and services within offshore oil and gas is an opportunity for the growth and diversification of our supply chain here in Newfoundland and Labrador.”

“We are starting from an excellent position,” said Hanley, noting that from a greenhouse gas perspective the province performs well internationally. “We also have a world-class cluster of firms here in Newfoundland and Labrador with leading edge technologies that assist in the characterization and monitoring of the environment.” Hanley said these are important building blocks from which the province can build to become a global leader in the research, development, and commercialization of products and services that contribute to a more sustainable offshore oil and gas industry.

“Our offshore operations are vital to our economy right now, and the past couple of months have been devastating,” said Hanley. “The industry needs support and, from NEIA’s perspective, using some of that support to drive activity and innovation from a greenhouse gas perspective will help ensure that the industry is a sustainable one for Newfoundland and Labrador for years to come.”

NEIA is a not-for-profit association of businesses that promotes the development of clean technology and the growth of the green economy in Newfoundland and Labrador. NEIA has over 200 members. More information can be found at https://neia.org.