In December 2023, the federal government released its Regulatory Framework for an Oil and Gas Sector Greenhouse Gas Emissions Cap, which proposes key elements of a cap-and-trade system for oil-and-gas sector emissions.
West Coast supports the decision to proceed with a cap-and-trade regulation, as it has the greatest potential for ensuring that the oil and gas sector’s emissions do not derail Canada’s efforts to do its part on the international stage. However, the regulatory framework falls short of what is needed to ensure the oil and gas sector does its part in reducing Canada’s emissions.
Our recommendations would strengthen the regulation by setting a more stringent cap, making sure it applies more broadly, and removing loopholes that would undermine the effectiveness of the cap.