Canada Considers Dropping Oil Emissions Cap Amid Climate Strategy Talks

The Canadian government, led by Prime Minister Mark Carney, is negotiating with Alberta officials and energy companies about potentially removing the planned federal emissions cap on the oil and gas sector. This cap, drafted under former Prime Minister Justin Trudeau but not yet legislated, aimed to reduce emissions by around 37% below 2022 levels by 2030, but has been met with strong opposition from oil producers who argue it would force production cuts. Carney's administration is considering replacing the cap with a broader "climate competitiveness strategy" focused on practical emissions reductions and investments, contingent on Alberta and the industry committing to alternative measures such as the Pathways carbon capture plan. The government aims to balance economic competitiveness, particularly protecting Alberta's oil-dependent economy, with environmental goals to meet Canada's international climate commitments. However, critics warn that without stricter measures, Canada risks missing its 2030 emissions targets as oil sands emissions continue to rise. This shift reflects a significant change in tone from Carney's government, which had previously indicated it would maintain the emissions cap.