CPA advocates against federal oil and gas emissions cap proposal

In July, the federal government released a discussion paper on Option to Cap and Cut Oil and Gas Sector Greenhouse Gas Emissions to Achieve 2030 Goals and Net-Zero by 2050. Formal consultation closed on September 30; Environment and Climate Change Canada (ECCC) will communicate decisions on the plan in early 2023.

The discussion paper looks to reduce emissions by 42% from 2019 levels by 2030 for the oil and gas sector. With only eight years to achieve this reduction, the CPA, along with other energy-sector companies and coalitions, have stated that this policy is yet another layer of regulation and is unlikely to reduce global emissions.

The proposal comes at a time when concerns about energy security are increasingly heightened. Instead of further impeding the oil and gas industry, Canada should be looking to be the supplier of choice to replace Russian energy for European markets.

The CPA has stated that midstream and downstream emissions are already captured under the Clean Fuel Regulations, implementing and administering this policy would be particularly challenging from the propane sector’s perspective.

There is strong alignment amongst the Canadian energy sector that this plan is unnecessary and detrimental to emissions reductions targets – a position that has also been echoed by the Indigenous Resource Council. The CPA submitted its feedback to ECCC on September 23, engaged in a roundtable with the Federal Parliamentary Finance Secretary, as well as participated in a lobby day in Ottawa on October 3 with other energy companies and associations advocating against the fundamental mandate and scope of this proposed plan.