The regulations, still only in draft format and about two years behind schedule, could further strain relations between Ottawa and the Alberta government which recently launched a $7-million advertising campaign to"scrap the cap."
"I think most Canadians — even those that aren't my biggest fans — would agree that it's not OK for a sector to not be doing its share, and that's mostly what this regulation is about." Guilbeault said he is aware there will be backlash, but that he is committed to carrying out the Liberal climate goals. The government is also adamant that the regulations can be achieved with existing technology, without cutting production.
The cap does not dictate what companies must do to meet the target, but Guilbeault said the modelling suggests about half the cuts will come from reductions to methane. Those cuts are already happening as oil producers install equipment to prevent the leaks of methane that were a major contributing source of emissions.
Production is likely to be central to the debate as regulations are released Monday. Several economic studies based on the framework plan from December 2023 said the only way to meet goals is through production cuts.