Environment Minister Steven Guilbeault says the oil and gas industry will have to cut emissions more than one-third by 2030.
A framework outlining the cap is being published today with plans to publish draft regulations next spring and get the final regulations in place in 2025.
Guilbeault says the plan is both feasible and constitutional and is critical to lower emissions from Canada’s most carbon-intensive sector.
Oil and gas production accounts for more than a quarter of Canada’s emissions and Guilbeault says capping those emissions is critical to meeting climate targets.
The framework says the sector will have to cut emissions 35 to 38 per cent below 2019 levels by 2030.
However, they can buy offset credits or contribute to a decarbonization fund that would lower that requirement to just 20 to 23 per cent.
This report by The Canadian Press was first published Dec. 7, 2023.