>
Trudeau to Order Oil, Gas Producers to Cut Emissions by 35%
Trudeau to Order Oil, Gas Producers to Cut Emissions by 35%
Ottawa Mandate Aims to Accelerate Climate Action
New Regulations Target Scope 1 and Scope 2 Emissions
Prime Minister Justin Trudeau announced today that the federal government will require oil and gas producers to reduce their emissions by 35% below 2005 levels by 2030. The new regulations will apply to both Scope 1 and Scope 2 emissions, which include direct emissions from production and indirect emissions from purchased electricity.
The move is part of the government's broader climate plan, which aims to reduce Canada's greenhouse gas emissions by 40% below 2005 levels by 2030. The oil and gas sector is a major source of emissions in Canada, accounting for about 26% of the country's total greenhouse gas output.
The new regulations will be implemented through a combination of measures, including a carbon tax, performance standards, and technology mandates. The government will also provide financial support to help oil and gas companies transition to cleaner technologies.
The regulations are expected to have a significant impact on the oil and gas industry. The Canadian Association of Petroleum Producers (CAPP) has estimated that the new regulations will cost the industry $70 billion over the next decade.
However, the government believes that the regulations are necessary to meet Canada's climate goals. Environment Minister Steven Guilbeault said that the regulations will “help us reduce emissions, create jobs, and build a clean energy future for Canada.”
Reaction from the Industry
The oil and gas industry has expressed mixed reactions to the new regulations. Some companies have welcomed the regulations, saying that they provide clarity and certainty for the industry. Others have expressed concern about the costs and the potential impact on jobs.
CAPP has said that it is “disappointed” with the new regulations, but that it will work with the government to implement them in a way that minimizes the impact on the industry.
Next Steps
The government will now begin the process of developing the detailed regulations. The regulations are expected to be finalized by the end of the year.
Once the regulations are in place, the government will work with oil and gas companies to help them meet the new targets. The government has said that it will provide financial support to help companies transition to cleaner technologies, and that it will work with companies to develop and implement emissions reduction plans.