In the coming months, Ottawa appears intent on destroying the Canadian economy through a cap on oil production to save the world from carbon and show off at the next UN climate summit this November.
Environment Minister Steven Guilbeault expects the draft regulations to be ready for October at the earliest and “definitely” before the Dubai climate conference commencing November 30, as first reported by Bloomberg.
First promised in the Liberal Party’s 2021 election platform, an emissions cap would help Canada meet its climate targets while kneecapping entire industries.
They contend that regulating energy-sector emissions would incite vigorous opposition from conservative, resource-based provinces like Alberta, which produce the vast majority of Canadian oil.
Alberta Premier Danielle Smith said there is no doubt about where her government stands, as she vehemently denounced “an emissions cap that will effectively force energy companies to cap their oil and gas production.”
“We would strongly suggest the federal government refrain from testing our government’s or Albertans’ resolve in this regard,” she said.
Guilbeault initially aimed to publish draft regulations in the spring but delayed the announcement as the feds struggled to reduce emissions without imposing production cuts.
In 2022, the minister tabled an emissions reduction plan that required oil and gas to cut emissions by 42% over the next decade — a target that angered the industry.
Some fossil-fuel companies, like Suncor Energy Inc., are in the midst of reducing their emphasis on long-term ‘green energy’ projects.
In response, the federal government claimed the 42% figure constituted a ‘modelling exercise’ and that each sector’s prerequisite cuts for 2030 would look different.
Since then, Guilbeault has had ‘productive conversations’ with energy companies that he said would procure a mutually acceptable plan.
“It’s no secret, generally speaking, that industry isn’t particularly fond of the government coming up with new regulations,” said Guilbeault on the progress of those talks.
“But I think by and large, the industry understands that we need to tackle emissions, that the world is decarbonizing whether they like it or not, and they can either be part of the solution, or the solution will be imposed upon them.”
Ottawa is betting heavily on carbon capture and storage to meet its climate targets, promising $9.2 billion in tax credits for provinces and industries to utilize the technology through the next decade.
This story is ongoing and will receive updates soon.