The Canadian government has released regulations to cap greenhouse gas (GHG) emissions produced by the oil and gas sector, aiming for a 35% reduction (compared to 2019 levels) by 2030. The regulations propose a cap-and-trade system to reward companies that perform better in reducing emissions and encourage polluting firms to invest in cleaner production processes, aiming to limit pollution without affecting production. The gas pollution cap is expected to regulate oil and gas facilities, as well as LNG production facilities. The draft regulation will be opened to comments during a formal consultation period from 9 November 2024 to 8 January 2025, before their final version is expected to be published. Along with these regulations, Canada also plans to include financial support for CCS and other clean technologies.
These regulations are aligned with Canada’s 2030 Emissions Reduction Plan, a sector-by-sector roadmap to reduce the country’s GHG emissions to 40%–45% below 2005 levels and to have net-zero emissions by 2050. At the end of 2023, Canada was the world’s fourth-largest producer of oil and the fifth-largest producer of gas.
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