Canada proposes emissions cap for oil and gas sector to cut greenhouse gases

The Canadian government has introduced draft regulations to limit greenhouse gas emissions from oil and gas companies. The proposed cap aims to reduce emissions by one-third from 2019 levels over the next eight years, targeting the sector responsible for 31% of Canada’s total emissions. In 2022, the oil and gas sector emitted 256 million tonnes of carbon dioxide, roughly the same as in 2007. The government believes companies can meet the new regulations without cutting production, using a cap-and-trade system to manage emissions allowances. Industry reactions are mixed. The Canadian Association of Petroleum Producers expressed concerns that the cap could deter investment and reduce jobs. Environmental groups support the regulations but urge for quicker implementation and stricter rules on offset credits.