(Bloomberg) -- A proposed carbon-capture and storage system designed to slash emissions from Canada’s oil sands is drawing scrutiny from local Indigenous communities, who are requesting that the project be subject to an impact assessment.
A group of eight First Nations in northern Alberta have asked the federal government to subject the project to the Impact Assessment Act because of its potential environmental effects, according to a letter filed by the groups. That designation would subject the project to greater regulatory scrutiny, potentially slowing its rollout and threatening the industry’s goal of cutting emissions by 22 million metric tons by 2030.
The C$16 billion ($11 billion) project would strip carbon dioxide from oil sands sites and transport the gas down a carbon trunk line for injection underground near the Cold Lake area of Alberta. It’s being spearheaded by the Pathways Alliance, a group of Canada’s largest oil sands producers, which recently requested proposals to pipe manufacturers for building the carbon trunk line. Pathways didn’t immediately respond to a request for comment.
Many in the oil industry and Alberta’s government have opposed the Impact Assessment Act, saying it infringes on the province’s jurisdiction over natural resources. Alberta Premier Danielle Smith said last week that she’s taking the federal government to court over revisions to the act that were made after Canada’s Supreme Court partly ruled the original legislation was unconstitutional.
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