Ottawa announces oilpatch emissions cap amid prairie opposition – West Central Online
Nov 05 2024
On Monday, the Trudeau government introduced draft regulations for an emissions cap on Canada’s oil and gas sector, aiming to cut emissions by 35% from 2019 levels by the decade’s end. This policy, expected to stir a new chapter in the ongoing debate between Ottawa and the Prairie provinces, seeks to cap greenhouse gas emissions while allowing the industry to continue production growth.
At the heart of the plan is a proposed cap-and-trade system, a mechanism the Liberals initially promised during their 2021 election campaign. Under the system, Ottawa will set an emissions quota for the sector, with companies receiving free allowances that decrease over time, pushing them toward cleaner operations. The cap doesn’t limit oil production directly, but it is intended to spur reductions by incentivizing companies to innovate and lower their emissions.
