Minister of Environment and Climate Change Steven Guilbeault joins Minister of Energy and Natural Resources Jonathan Wilkinson and fellow colleagues as they hold a press conference in Ottawa on Monday, Nov. 4, 2024. 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 Guilbeault.
For the Liberals, the regulations fulfil a 2021 election promise to force the energy sector to pull its weight in the fight against climate change. Upstream oil and gas operations, including production and refining, contributed about 31 per cent of Canada’s total emissions in 2022. The rest will be divided between various technologies, including carbon capture and storage. Ottawa is expected to spend about $12.5 billion on a tax credit to encourage and assist companies to invest in those systems that trap carbon dioxide and return it to underground storage.
But Monday’s announcement was met with skepticism from industry stakeholders who warned such a measure would harm the sector. Natural Resources Minister Jonathan Wilkinson said the government’s modelling shows the plan is both feasible to hit emission targets, and viable for the sector.
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