441-01800 (Environment)

The Government of Canada is taking action to reduce greenhouse gas (GHG) emissions from the oil and gas sector at a pace and scale necessary to achieve Canada’s 2030 and 2050 climate targets in a way that allows the sector to compete in a global economy that is transitioning to net-zero. Addressing emissions from the oil and gas sector—the largest source of GHG emissions in Canada—is critical to the achievement of Canada’s climate goals and international commitments, and vital to the sustainability and competitiveness of Canada’s energy industry.

In March 2022, the Government of Canada published the 2030 Emissions Reduction Plan, which outlines the measures Canada is taking to reach its Nationally Determined Contribution under the Paris Agreement, a 40-45% economy-wide reduction in GHG emissions below 2005 levels by 2030. A key element of the Government’s plan is to cap and cut GHG emissions from the oil and gas sector at a pace and scale necessary to contribute to Canada’s 2030 climate goals and to achieve net-zero emissions by 2050. This Government of Canada commitment was first announced in November 2021 at the United Nations Climate Change Conference in Glasgow.

Capping and cutting oil and gas sector emissions will send a clear, long-term policy signal to invest in clean technology, low-emissions energy assets, and supporting infrastructure while avoiding investments in oil and gas production that do not incorporate best-in-class technologies and infrastructure. The oil and gas emissions cap will build on other measures in place to reduce emissions from the sector, including carbon pollution pricing and methane regulations. The Government plans to release further details before the end of 2023.