Unceded Anishinaabe Algonquin Territories [OTTAWA], 4 November, 2024 - Climate Action Network Canada welcomes today’s announcement of draft regulations to cap pollution from the oil and gas sector, a key milestone towards regulating Canada’s highest-emitting industry.
The regulations come after years of rising emissions from oil and gas companies despite record profits and net-zero promises, and as Canadians face escalating impacts of the climate crisis. Polling has consistently shown that Canadians, including in Alberta, support regulating the oil and gas industry.
Charles-Edouard Tetu, Policy analyst – Climate and energy, Équiterre:
“The oil and gas industry has had decades to reduce its emissions, but hasn’t done so, forcing the government to take action for the health and safety of communities around the country. Canada’s new draft regulation gives a good amount of time for the industry to get organized and adapt their operations, which they should have done years ago.”
CAN-Rac applauds the accelerated consultation period, as well as the advocacy of the NDP, Bloc Québecois and Green Party in standing up for regulating big polluters. We encourage all parties to support swift implementation of the regulations, and urge the federal government to set a firm deadline to release the final regulations ahead of the federal budget. Canadians are united in their support for the oil and gas pollution cap: we cannot delay this essential regulation any longer.
Key highlights & analysis of the regulation
Compliance timeline: Under the draft regulations, the first compliance period does not begin until 2030–meaning that there is no guarantee the cap will drive emissions reductions during this critical decade, or that Canada will be able to achieve its 2030 climate target. It is essential that this oversight be addressed in the final regulations by clearly amending the formula to incentivize emissions reductions pre-2030.
Regulatory certainty for industry means that timelines and requirements are clear and predictable which will help spur decarbonization projects, thereby supporting innovation and employment in the sector.
Lack of certainty for workers: the current design of the decarbonization fund does not enforce investments that support workers. The fund needs to include labour conditions on construction and training for operating new infrastructure.
Allocations and compliance flexibilities: while it is positive that Internationally Traded Mitigation Outcomes (ITMOs) have been excluded from the draft regulations, CAN-Rac encourages the government to limit compliance flexibilities that do not meaningfully reduce emissions nor provide energy sector workers with opportunities to reskill. Oil and gas corporations have enough financial and technical resources to reduce their emissions on their own; they should not be given any more loopholes.
Phillip Meintzer, Conservation Specialist, Alberta Wilderness Association
“Despite net-zero commitments, emissions from the oil and gas sector continue to rise. The evidence shows that the oil and gas industry refuses to cut its emissions willingly and this is why a pollution cap is necessary to hold industry accountable to its promises. This pollution cap will help ensure that Canada’s biggest polluter does its fair share.”
Dr. Angele Alook, York University Associate Professor in the School of Gender, Sexuality and Women’s Studies:
“As an Indigenous person from the oil sands region of Canada, I fully support the Oil and Gas Emissions Cap, because I am concerned about the seven generations after us, all the Indigenous and settler children and grandchildren that will come after us, and that will benefit from keeping oil in the ground, and protecting the water and land for future generations. The Government of Alberta could not be more out of touch. How can the Albertan government give advice on what is constitutional, when they are clearly violating Indigenous sovereignty with their unconstitutional Alberta Sovereignty Act? The Chiefs of Treaty 6, Treaty 7 and Treaty 8 all have called out Alberta for being unconstitutional.”
Andrea Koehle Jones, Executive Director, The ChariTree Foundation – La Fondation ChariTree:
“Children everywhere will pay the cost of not acting to reduce carbon pollution in Canada. Just as we can’t negotiate with nature, we can’t negotiate with our children’s future.”
Thomas Green, Senior Climate Policy Adviser, David Suzuki Foundation:
“The fossil fuel industry is largely responsible for driving the climate crisis and we can’t expect to solve it if the sector’s emissions remain unchecked. The federal government is doing the right thing by moving forward with regulations to curb the harmful oil and gas pollution that has contributed to the extreme weather we are facing in Canada.
“The oil and gas industry is Canada’s largest source of emissions — and its emissions are still rising. We need these regulations to come into effect as soon as possible in 2025.
“The world is turning to renewable energy sources and Canada should too. These regulations will help create a healthier, safer environment for current and future generations and finally ensure that all sectors do their share of the climate effort.”
Keith Stewart, senior energy strategist, Greenpeace Canada:
“Politicians who oppose this measure should either say precisely what they would do that could credibly achieve equivalent reductions, or admit they are protecting polluters’ profits over people’s health and safety.”
Sven Biggs, Canadian Oil and Gas Program Director, Stand.earth:
“Oil and gas extraction is Canada’s largest source of climate pollution, totaling a third of all our emissions, and it’s long past time that these glutted-with-cash corporations be required to clean up their acts. The impacts of climate change — unnatural disasters like floods, fires and storms that it intensifies — are already causing massive destruction here and around the globe. However, in spite of the growing human cost, big oil and their highly-paid lobbyists continue to stand in the way of policies, like the emissions cap, that would move us towards a safer climate. We can not wait any longer, which is why we welcome today’s announcement.”
Conor Curtis, Head of Communications, Sierra Club Canada:
“Adaptation simply won’t be enough to address climate change. These are corporations that have made huge profits from inflation while failing to do the bare minimum to cut emissions. It’s deeply sad to see even more taxpayer money wasted by the Alberta government on a misinformation campaign about the cap, money that could have gone to things like wildfire prevention for rural communities.”
Aly Hyder Ali, Oil and Gas Program Manager, Environmental Defence:
“The unchecked rise in oil and gas pollution is driving climate change and increasing costs for Canadians, from higher grocery bills to increased insurance rates. For too long, oil and gas companies have avoided meaningful action. An enforceable pollution cap can finally hold this industry accountable to clean up its mess, and protect our health, economy, and environment.”
Caroline Brouillette, Executive Director of Climate Action Network Canada :
“A year after the world agreed at COP28 to finally tackle the harms of the fossil fuel industry, Canada is delivering draft regulations to reduce oil and gas pollution at home, it is a long-awaited but historic first, and comes after years of advocacy from civil society to hold Canada’s biggest polluters accountable. The cap on pollution is good news for the environment, for people and for jobs, and must be implemented as soon as possible.“But leaving compliance until 2030 is like waiting until the second period of a hockey game to start keeping score. Let’s not forget the reason why it is so delayed and far from oil and gas’ fair share of the national climate effort: these billionaire companies and their political lackeys have spent millions in lobbying and disinformation campaigns. Despite rising oil and gas pollution being directly responsible for disasters, deaths, the loss of homes, farms and cherished areas, these massive corporations have continuously sought to avoid any accountability whatsoever.“They may have the money, but we have the people power. And we will continue to advocate for a cap that holds oil and gas accountable for their outsized share of pollution, without further delay.”
Cathy Orlando, National Director, Citizens’ Climate Lobby Canada:
“Time and again, essential climate policies are weakened by industry influence and undermined by persistent misinformation. Meanwhile, our climate systems continue to deteriorate. For the sake of a livable future, Canadians must see through the anti-climate policy propaganda—like the ‘scrap-the-cap’ campaign—and rally behind a strong, effective cap on emissions in the oil and gas sector, along with all the hard-won climate policies enacted in recent years.”
Anna Johnston, Staff Lawyer, West Coast Environmental Law:
“Capping pollution from the oil and gas sector is a no-brainer. The federal government has been regulating air and water pollution for decades under the Canadian Environmental Protection Act, and in the context of climate change, a cap on oil and gas emissions is a logical next step. This move to regulate climate pollution is squarely within the federal government’s jurisdiction and is an essential piece of the policy puzzle when it comes to reducing emissions and meeting Canada’s climate targets.”
Thomas Arnason McNeil, Senior Energy Coordinator, Ecology Action Centre:
“Nova Scotians understand that our economic opportunities are no longer in oil and gas. A new next generation of workers in our province recognize that the transition to renewable energy sources like solar and wind – both onshore and offshore – offers immense economic opportunities for our province. These opportunities include over 34,000 direct jobs in offshore wind alone, and thousands more in ongoing operations and maintenance. Nova Scotians want reliable, sustainable jobs close to home. An emissions cap will help to ensure that Canada is investing in a sustainable economy instead of doubling-down on investments in oil and gas, which pose a fundamental threat to coastal communities already endangered by the impacts of climate change.”
Isabel Siu-Zmuidzinas, Climate Campaigner, Wilderness Committee:
“For far too long, the oil and gas sector has pocketed huge profits while sidestepping their responsibility to cut emissions. Meanwhile, our communities have paid the price– from devastating climate disasters to increased public health and safety risks. An emissions cap is an important step to finally having some accountability for the oil and gas sector and we urge the government to finalize the draft legislation without delay and continue to take decisive climate action, as we can’t afford to keep stalling.”
Kate Hodgson, Digital Campaigner, Leadnow:
“For two years, Canadians have fought tooth and nail to make an emissions cap a reality — even as Big Oil and their Conservative allies spent millions to try and kill it. Now, for the first time, the fossil fuel industry could be forced to do its fair share and reduce its emissions. With the election countdown ticking, the government needs to act fast to close industry loopholes and pass the emissions cap into law without delay.”
France Pomminville, Executive Director, The Climate Reality Project Canada:
“Canadians across the country are calling for concrete action, that’s what we’re hearing on the ground. They want to see polluters take responsibility for their actions, and they are tired of seeing their tax dollars go to disinformation campaigns that cause confusion, when the science and the research about what we urgently need to get done are clear.”
Dr. Joe Vipond, a Calgary-based emergency physician and CAPE past president:
“As a physician, I’m relieved to see the federal government finally stepping up with this emissions cap on oil and gas pollution. Today’s announcement is a major win for public health and a powerful message to big polluters that their emissions must come down.
“More needs to be done, but this is a step in the right direction for health and climate safety and in reaching Canada’s climate goals.
“CAPE continues to support and urge the government to act quickly to close remaining loopholes and turn this draft into enforceable regulation. Canadians are already doing their part to reduce emissions. We need oil and gas companies to step up and do theirs.”
Atiya Jaffar, Campaigns Manager, 350 Canada:
“The fossil fuel industry has spent decades pillaging our planet for their profit. While they get richer, our communities are faced with the climate disasters driven by their operations. We welcome today’s pollution cap as a step toward accountability, but it falls short. Canada must swiftly transition to decarbonization by phasing out fossil fuels and taxing corporate profits to fund green housing, renewable energy, public transit, and social services to protect our communities.”
Maryo Wahba, Climate Justice Policy Analyst, Citizens for Public Justice:
“Citizens for Public Justice commends the Canadian government’s initiative to cap emissions in the oil and gas sector, marking a significant step toward climate justice. However, to ensure the effectiveness of this policy, it’s imperative to strengthen the cap by minimizing reliance on carbon offsets. We also strongly urge the government to finalize and pass these regulations by early spring, without delay, to meet our climate commitments and ensure fairness among Canada’s sectors in reducing emissions.”
Fraser Thomson, Interim Climate Director, Ecojustice:
“Securing a safe and climate-stable future is only possible if we have strong emissions reduction targets backed by strong laws. These draft regulations are a critical step towards ensuring that Canada’s oil and gas sector’s emissions targets have the force of law and that everyday Canadians are protected from the growing costs and dangers of runaway climate change.”
