The Trudeau government is introducing a cap-and-trade system for greenhouse gas emissions in the oil and gas sector that will force reductions of 35 to 38 percent starting in 2030 compared to the high levels of 2019.
Given the 171 megatons of CO2 released in 2019, Ottawa wants to increase the amount to 106 or 112 megatons and reserve another 25 megatons for “compliance flexibility.”
The cap was one of the Liberals’ promises at COP26 in Glasgow and will be an important milestone for Canada on the path to carbon neutrality by 2050.
The oil and gas sector, one of the richest in Canada, is also one of the most polluting. Ministers invited to present the new framework on Thursday were careful to emphasize that the industry should not be afraid of the announcement.
“The framework allows for some flexibility, but what matters is that the level of pollution goes down,” Environment and Climate Change Minister Steven Guilbeault said via video conference from Dubai.
“This cap aims to reduce emissions. “This is not a production cap,” said Randy Boissonnault, Labor Minister and, most importantly, MP for Edmonton Center in Alberta.
The framework also offers companies “the opportunity to transfer national offset credits or participate in a financing program for decarbonization measures to cover a limited part of their greenhouse gas emissions.”
PERCENTAGE OF TOTAL greenhouse gas emissions by economic sector in the country*
- oil and gas 28%
- transport 22%
- Building 13%
- Heavy industry 11%
- Agriculture 10%
- electricity 8th %
- waste and others 7%
* Data for 2021
Source: Auditor General of Canada
- Listen to the interview Gabriel Giguère, political analyst at MEI on QUB Radio:
What they said
“At a time when we are experiencing a severe affordability crisis, the federal government risks restricting the energy on which Canadians depend and the jobs and revenue that the energy sector brings to Canada.”
–The Canadian Association of Petroleum Producers (CAPP)
“This is not the ambitious emissions cap we need to get on the path to a complete, rapid and fair phase-out of fossil fuels.”
–Patrick Bonin, Greenpeace Canada
“Justin Trudeau announced an energy cap that represents another attack on Canadian workers and Canada’s world-class energy industry.”
–Pierre Poilievre, leader of the Conservative Party of Canada
“Canada continues to tell oil companies, ‘If you reduce your greenhouse gas emissions, you can continue to increase your production.’ And the whole problem concerns the oil companies. We want to continue increasing our production at all costs. And that is immediately unacceptable.”
–Yves-François Blanchet, leader of the Bloc Québécois
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Originally posted 2023-12-09 08:32:59.