441-01435 (Environment)

As the largest source of greenhouse gas emissions and a major contributor to Canada’s economy, the oil and gas sector has a critical role to play in meeting Canada’s climate objectives. The Government of Canada recognizes the oil and gas sector’s significant contributions in creating good jobs, including in Indigenous communities, as well as leading Canadian clean tech investment, and playing a key role in North American and global energy security. The sector will continue to be instrumental throughout Canada’s transition to a low-carbon economy. This is why the Government remains committed to working with industry, provinces, territories, Indigenous peoples, and civil society in decarbonizing this sector while maintaining competitiveness, energy security, affordability, and market access.

Canada’s Emissions Reduction Plan (ERP) includes a “projected sectoral contribution” towards Canada’s 2030 Nationally Determined Contribution representing an emissions reduction of 42 percent below 2019 levels by 2030 for the oil and gas sector. Many steps have been taken to help transform the sector, including establishing federal regulations requiring the oil and gas sector to reduce methane emissions by 40-45 percent below 2012 levels by 2025, proposing clean fuel regulations to reduce the carbon intensity of liquid fossil fuels, and the launch of several investment programs to accelerate the development of technologies needed to get Canada to net-zero emissions by 2050.

The Government has also announced further steps, including a commitment to cap and cut emissions from the oil and gas sector at the pace and scale needed to get to net zero by 2050. Work is ongoing on the design of the cap, but the intention is to establish an ambitious yet achievable cap.

The Government recognizes that inefficient fossil fuel subsidies undermine efforts to deal with climate change, wasteful energy consumption, problems in the market, and barriers to clean energy investment, and has committed to accelerate its G20 commitment to eliminate inefficient fossil fuel subsidies. To this end, it has already taken action to phase out or rationalize nine tax measures supporting the fossil fuel sector.

Earlier this year, the Government released its Sustainable Jobs Plan to enable the creation of good, middle class jobs across Canada. Building a global, net-zero future represents significant opportunities for job creation and economic growth, and the Government is committed to ensuring workers across the country have the supports they need to fully seize this generational economic opportunity. 

The plan complements the Government’s $120B in investments since 2016 to drive sustainable economic growth and will help to create jobs in every sector of the economy, including the conventional energy industry – generating opportunities across every region of the country. Key next steps under the Plan include tabling legislation to ensure a legal framework for accountability, governance and engagement is in place.