Canada Drafts Oil Emissions Cap with Flexibility

Canada's federal government has introduced draft regulations requiring oil and gas producers to reduce their greenhouse gas emissions by 35% from 2019 levels by 2030. The regulations, part of a cap-and-trade system, allow companies to trade emissions allowances and invest in clean technology, with a decarbonization fund potentially lowering the required reductions to 20-23%. The Alberta government and industry figures criticize the cap, claiming it will unfairly burden Canadian producers compared to global competitors. The regulations are open for consultation until January 2025, with final rules expected in spring 2025. This move has sparked significant concern in the Canadian oil sector, which views the cap as potentially leading to reduced production or increased operational costs.