Canada proposes draft regulations to cap oil and gas emissions at 35% below 2019 levels

The Canadian government has released draft regulations to cap greenhouse gas emissions from the oil and gas sector at 35% below 2019 levels. This is a slight reduction from the previously proposed 38% target. The new rules will establish a cap-and-trade system to reward companies that perform better and encourage higher-polluting firms to reduce emissions. Consultations on the draft regulations will take place from November 9 to January 8, 2025, with a final version expected later that year. The government emphasizes that the regulations focus on limiting pollution, not production.