The federal government announces oil and gas sector emissions cap

The federal government has announced its long-awaited oil and gas sector emissions cap, which aims to reduce total emissions in the sector by 35-38 percent below 2019 levels by 2030. The cap will be implemented through a national cap-and-trade system, and oil and gas producers will have the option to buy carbon offsets or contribute to a fund promoting decarbonization. The government's cap is seen as a compromise, as it is less aggressive than the target set in the government's emissions reductions plan. However, it does mark progress towards meeting climate change goals.