Oil and gas producers in Canada will be required to cut greenhouse gas emissions by about one-third over the next eight years under new regulations being published today by Environment Minister Steven Guilbeault.
Guilbeault said the oil and gas industry is a major source of emissions, but that it has done less than most other sectors to reduce them in the battle against climate change. Emissions from the sector already fell seven per cent between 2019 and 2022 — the most recent year that statistics are available — with similar levels of production.
“In a carbon-constrained world, people who will still be demanding oil will be demanding low-emitting oil,” he said. “And if our companies and our oil and gas sector isn’t making the investments necessary to do that, they won’t be able to compete in this world.” The draft regulations, which will be open for public comment until January 2025, ultimately picked the lower end of that range. Guilbeault said that was decided after extensive discussions about what was possible to regulate without forcing down production.
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