Oil and gas emissions cap at risk if Bloc and NDP trigger early election, Guilbeault warns
As the federal government’s oil and gas emissions cap regulations approach finalization, Environment and Climate Change Minister Steven Guilbeault is warning the NDP and the Bloc Québécois that triggering an early election could jeopardize efforts to reduce emissions from Canada’s largest polluters. The government is set to announce draft regulations on Monday to implement the emissions cap, now rebranded as the “oil and gas pollution cap.”
Canada’s oil and gas sector is the biggest greenhouse gas emitter, responsible for about a third of the country’s emissions. The government’s proposed regulations aim to enforce a hard cap on oil and gas emissions through a cap-and-trade system, with the goal of achieving net-zero emissions by 2050. Oil and gas facilities that reduce their emissions faster can sell excess permits to other companies, creating a trading system to incentivize emissions reductions.
The government’s announcement on Monday reaffirms its commitment to reducing emissions in the oil and gas sector by 35% below 2019 levels by 2030, ultimately reaching net-zero by 2050. The regulations would apply to upstream emissions from oil and gas development, affecting natural gas producers, conventional and offshore oil producers, the oilsands, LNG facilities, and natural gas processors.
While the government’s approach puts a limit on pollution rather than production, industry groups like the Pathways Alliance have raised concerns about the proposed emissions cap. The Alberta government has launched a $7 million advertising campaign against the regulations, arguing that they could lead to significant production cuts and have a negative impact on the province’s GDP.
Despite opposition from industry groups and some provinces, Minister Guilbeault remains optimistic about the proposed regulations. He has expressed willingness to negotiate equivalency agreements with provinces like Alberta to develop their own regulations to drive down emissions in the oil and gas sector.
As the debate over the emissions cap continues, it is clear that the government is committed to taking action to reduce emissions from Canada’s oil and gas sector. The regulations aim to hold companies accountable for their carbon footprint and encourage investments in decarbonization efforts. With the goal of achieving net-zero emissions by 2050, the government’s proposed regulations represent a significant step towards curbing pollution and addressing climate change in Canada.
