Environment Committee on Sept. 22nd, 2025

[The Chair, Liberal, Angelo Iacono]

Please give a brief answer.

[Megan Nichols]

The proposal, which was tabled in 2023, projected 13 megatonnes of greenhouse gases between 2030 and 2032. However, as I said, we received a lot of feedback from stakeholders. We are currently reassessing the path forward.

[The Chair, Liberal, Angelo Iacono]

Thank you, Ms. Nichols.

Mr. Leslie, the floor is yours for five minutes.

[Branden Leslie, Conservative, Portage—Lisgar, MB]

That's great. Thank you, Mr. Chair.

I'd like to start by asking about ECCC.

Over the last decade, ECCC has been tasked with rolling out what are deeply unpopular policies, such as the consumer carbon tax that Canadians obviously despised, and which has since been removed; Bill C-69, which has scared away private investment and still continues to scare away private investment and make it impossible to get anything built in this country; an oil and gas emissions cap proposal that is under review and that may be moved; an EV mandate that was in place for next year that is paused and currently under review; and emissions targets that the government is backing away from.

My question to the department is this: After years of implementing these policies and now seeing them repealed by yet the same Liberal government, how is morale inside the department?

[Alison McDermott]

Maybe I can go ahead, but should I turn to to my colleagues...?

I'll just say that the department feels like it has an importance in a world where we have an administration in the U.S. that is not particularly committed to fighting climate change.

We think the work of the department is as important as ever, and although morale is challenged by some of these developments and the fact that the fiscal situation of the government is tight, I think morale still remains good.

[Branden Leslie, Conservative, Portage—Lisgar, MB]

Okay. Thank you for that.

Now, the Liberal government has been quite firm in imposing an emissions cap on Canada's energy sector, which is actually just a production cap. I know that it's not in place yet, but can you confirm whether or not that is still the government's plan, or is it going to be quietly shelved?

[Alison McDermott]

I don't think we can comment on the future plans of the government at this point in time.

[Branden Leslie, Conservative, Portage—Lisgar, MB]

Why not? Are you not involved in those conversations?

[Alison McDermott]

It's not something that we would share with the committee at this point.

[Branden Leslie, Conservative, Portage—Lisgar, MB]

Would you say that the policy is an important part of the government's plan to reduce emissions? I understand that you've got rid of a number of these other policies, and if this one is shelved, is that going to have a major impact on the targets that the minister has already walked back from, those 2030 and 2035 targets? Is that going to further diminish the likelihood of meeting the government's own obligations under the Net-Zero Emissions Accountability Act?

[Megan Nichols]

The oil and gas emissions cap is certainly a potential element of a way to reduce emissions from our highest-emitting sector in the economy, but we do have other measures in place and planned as well, such as regulations on oil and gas and methane, carbon pricing and incentives such as investment tax credits.

In terms of the role of the potential oil and gas emissions cap, based on the draft that was presented in 2023, it was projected to contribute an additional 13 megatonnes of reductions between 2030 and 2032. However, as I have said, we have received extensive feedback, and that is being considered in light of the potential way forward.

[Branden Leslie, Conservative, Portage—Lisgar, MB]

You mentioned projections if the cap is imposed, and I'm sure the department has done modelling on the economic impact, particularly on jobs and investment. Could you share some highlights with us today and/or provide written feedback as to what that modelling looks like?

[Megan Nichols]

I can share that in the draft that was presented previously, the impact on the growth of the sector was considered to be very minimal. The sector would still grow by 16%, and there would be an extremely minimal impact in terms of GDP growth. GDP is expected to still grow over the period by 22%, so it would be very minimal.

[Branden Leslie, Conservative, Portage—Lisgar, MB]

Thank you. Could you please share that? Also, if there have been any revisions since 2023, those would be appreciated.

Are you aware that Minister Dabrusin has publicly walked back the government's 2030 and 2035 emissions target obligations?

[Alison McDermott]

I'm not aware that she has. I don't believe that she has walked those back.

[Branden Leslie, Conservative, Portage—Lisgar, MB]

She certainly has not committed to them.

Does the department have any recent information or modelling that suggests Canada is on track to meet the targets of 2030 or 2035, or is it just an open secret now that the government will not be hitting its targets?

[Alison McDermott]

As I responded to MP Bonin, if you look at our projections as of last December, there was some gap. Of course, where we will end up is to some degree a question of government policy intention. The Prime Minister has announced that the government will be releasing a climate competitiveness strategy in the near term, so there will be more information there on the government's policies.

[The Chair, Liberal, Angelo Iacono]

Thank you, Mr. Leslie.

Mr. St‑Pierre now has the floor for five minutes.

[Eric St-Pierre, Liberal, Honoré-Mercier, QC]

Thank you. I'll be sharing time with my colleagues.

I think that language matters and that being precise is actually important. Call me a lawyer, but I'm a stickler for precise language. There are some out there who like misinformation and disinformation, but I think facts and science and data matter. Some are calling it a production cap on oil and gas. Is the policy called a production cap or is it called an emissions cap, and what's the difference between the two?

In other words, why is it called an emissions cap and not a production cap?

[Megan Nichols]

Indeed, just to confirm, it is an emissions cap and not a production cap.

[Eric St-Pierre, Liberal, Honoré-Mercier, QC]

Can you explain the difference between the two?

[Megan Nichols]

An emissions cap essentially sets a limit on the emissions that the sector can produce, recognizing that there are many opportunities to reduce emissions intensity. By benefiting from reductions in emissions intensity, there is not necessarily a commensurate impact on production.

[The Chair, Liberal, Angelo Iacono]

Mr. Fanjoy is next.

[Bruce Fanjoy, Liberal, Carleton, ON]

Canadians want to know how they can participate in cleaning their sources of energy. We currently do not have, at the federal level, many incentives for them to get involved. Can we anticipate that the government will be engaging Canadians across the country in roles whereby they can help Canada meet its international obligations to reduce greenhouse gases?

[Alison McDermott]

As we've discussed, the government does have quite a broad suite of policies and programs. Some that have been particularly consumer-focused in recent years have included consumer incentives for electric vehicles, the oil to heat pump program, retrofit programs for housing and a number of programs at the municipal and provincial levels to support Canadians' participation in these kinds of activities. We hope to be able to announce more details of programs in the future, but a number of programs are still rolling out based on previous announcements.