Canada introduces regulation to cap oil and gas emissions
Though presented as a “cap on pollution, not production”, the regulation seeks to redirect the sector’s record profits towards decarbonisation.
The government of Canada has released a draft regulation that, if adopted, would cap emissions from the oil and gas sector at a level 35% lower than 2019 levels.
The bill is part of Canada’s 2030 Emissions Reduction Plan, a sector-by-sector roadmap to reduce the country’s overall emissions to 40-45% below 2005 levels. It plans to introduce a cap-and-trade system in the oil and gas sector, whereby any excess emissions will have to be compensated by purchasing “compliance units” – a kind of regulated carbon credit.
