February 23, 2024

Canada has announced a carbon cap for the oil and gas sector

Canada has announced plans to reduce carbon emissions from its oil and natural gas sectors. The world’s fourth-largest oil and natural gas producer yesterday unveiled plans to cut emissions by 35 to 38 percent from 2019 levels by 2030. Companies are allowed to trade emission certificates for this purpose.

Environment Minister Steven Gielfeldt at the UN in Dubai. He called the plans “ambitious but feasible” on the sidelines of the climate conference. The plan takes into account global demand for oil and gas and the sector’s importance to Canada’s economy, while setting a limit that is “tough but achievable.” However, the target is significantly lower than originally planned. This may decrease further as further consultations are scheduled before commencement.

Environmental protection groups welcomed the cap but criticized its late implementation – it is expected to come into force in 2026. They were also criticized for having lower CO2 reductions than other industries. Meanwhile, the Canadian Association of Petroleum Producers complained that the plans would lead to “significant restrictions” on oil production, despite assurances to the contrary.

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