Canada wants energy sector to cut emissions by up to 35% below 2019 levels

Justin Trudeau. (Image by Adam Scotti, Prime Minister’s Office.)

The Canadian government on Monday released draft regulations that would cap emissions of greenhouse gases from the oil and gas sector by 35% from 2019 levels, slightly less than initially envisaged.

The regulations would create a cap-and-trade system designed to recognize better-performing companies and give an incentive to higher-polluting firms to make their production processes cleaner, the environment ministry said in a news release.

The Liberal government had initially said it wanted the energy industry – Canada’s highest-polluting sector – to cut emissions by up to 38% from 2019 levels by 2030. Monday’s news release made no mention of 2030.

The draft rules are designed to put a clear limit on pollution from oil and gas production, Ottawa says.

“The proposed regulations work by setting a cap on greenhouse gas pollution within the sector, equivalent to 35% below 2019 levels,” the release said.

Government ministers will give more details of the regulations at 1 p.m. EST (1800 GMT) on Monday.

The energy industry and oil-producing provinces say the regulations are in effect a production cap that will kill jobs and cut tax revenue.

“The proposed regulations put a limit on pollution, not production … (they) are carefully designed around what is technically achievable within the sector, while allowing continued production growth,” said the release.

Formal consultations on the regulations will run from Nov. 9 until Jan. 8 of next year. The final version will be published in 2025, Ottawa said, but gave no details on timing.

(By David Ljunggren; Editing by Matthew Lewis)

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