Mr. Speaker, the Government of Canada has committed to cap and reduce greenhouse gas, or GHG, emissions from the oil and gas sector at a pace and scale necessary to contribute to Canada’s 2030 climate goals, to achieve net-zero GHG emissions by 2050, and in a way that allows the sector to compete in the emerging net-zero global economy. As the country’s largest source of GHG emissions and the only major source that continues to grow, decarbonizing the oil and gas sector is critical to achieving Canada’s emission targets. The sector is also an economic powerhouse, proven innovator, and source of good jobs. The emissions cap will help decarbonize oil and gas production to make Canada a highly efficient producer supplying global demand and ensure the sector is on a path to net-zero by 2050. The emissions cap is an integral piece of the Government of Canada’s roadmap to support the decarbonization of oil and gas production.
On July 18, 2022, the government published a discussion paper outlining two regulatory options to cap GHG emissions from the oil and gas sector: a new national GHG emissions cap-and-trade system, and modifications to existing carbon pricing systems. The discussion document sought feedback on the two options, and generated a significant response. Environment and Climate Change Canada, or ECCC, received over 150 submissions from provinces and territories, indigenous organizations, industry, environmental non-governmental organizations, and academics, as well as over 25,000 comments from members of the public. Feedback on the discussion paper has informed the government’s approach on this important policy.
In addition to the formal comment period, the Government of Canada has held a significant number of information webinars and bilateral meetings with various partners and interested parties. Information gathered and feedback received during this engagement has been taken into consideration in the design of the proposed regulatory approach.
On December 7, 2023, the Government of Canada published a regulatory framework to cap and cut emissions in the oil and gas sector for a 60-day public comment period. The government received 107 formal written submissions from provinces and territories, indigenous organizations, industry, environmental non-governmental organizations, and academics, as well as over 35,000 comments from members of the public. Feedback on the regulatory framework is being used to inform the development of proposed regulations.
The Government of Canada plans to publish proposed regulations in 2024 in Part I of the Canada Gazette for a 60-day public comment period. The impacts of the policy will be assessed as part of the regulatory process and published in the regulatory impacts analysis statement that accompanies the proposed regulations. Formal written comments will also be sought on the proposal at that time. Publication of the final regulations is targeted for 2025, with the first reporting obligations starting as early as 2026 and full system requirements phased in between 2026 and 2030.
The Government of Canada has not procured any non-government organizations or outside-of-government entities or actors to raise the subject within the Canadian media sphere. The government has not put in place any contracts to support analysis related to the oil and gas emissions cap.