Cap on Oil and Gas Emissions: A Framework to Accelerate Emission Reductions

The Canadian government has introduced a framework to place a cap on oil and gas emissions, aiming to accelerate the reduction of emissions in the sector. The framework sets a target for emissions to start declining by drawing a line above 2019 emissions levels. It also incorporates a cap and trade system, allowing companies to trade emissions allowances in an internal market. The focus is on reducing emissions rather than limiting production levels, encouraging the industry to innovate and reduce emissions through methods such as carbon capture utilization and storage technology. While facing criticism from various parties, including climate activists and conservatives, the government argues that the targets are technically achievable and will help Canada reach its ambitious emission reduction goals.