Natural Resources Minister Tim Hodgson has revealed ongoing discussions between the federal government, Alberta, and oil companies regarding oilsands emissions. Reports suggest that the federal emissions cap in the oil and gas sector may be removed if Alberta and oil companies agree to other environmental measures. Hodgson emphasized the need for the oil industry to significantly reduce the emissions intensity of the oilsands during a news conference in Winnipeg.
Hodgson refrained from confirming whether the federal emissions cap would be sacrificed in these talks, asserting that negotiations would not be carried out through the media. Environment Minister Julie Dabrusin mentioned that her department was assessing feedback on the proposed emissions cap and determining the next steps following a public comment period that concluded in January.
Last November, the federal government announced regulations to impose a cap on specific activities in the oil and gas sector, aiming to reduce emissions by 35% below 2019 levels over four years. This sector accounts for a significant portion of Canada’s greenhouse gas emissions. The government argued that these regulations would encourage emissions reductions without hindering production. Alberta Premier Danielle Smith criticized the proposal, vowing to oppose federal policies detrimental to the province.
Smith expressed concerns about the emissions cap hindering pipeline development and highlighted her discussions with Prime Minister Carney on energy sector matters. She commended the government’s decision to delay a plan requiring automakers to meet a minimum threshold of electric vehicle sales, praising its pragmatic approach to environmental policy timelines.
The potential removal of the proposed federal emissions cap was not confirmed during the negotiations between Smith and Carney. However, Smith acknowledged the constructive dialogue with the current government compared to her experience with former Prime Minister Justin Trudeau.
