Environment Minister Steven Guilbeault announced Monday the Trudeau Liberals have told oil and gas (LNG) companies to cut 33% of their greenhouse gas emissions before 2033. Prime Minister Justin Trudeau in his 2021 elections campaign promised to force the energy sector to comply with his party’s pollution policies. “Today, the Government of Canada introduced draft regulations to put a clear limit on greenhouse gas pollution from oil and gas production,” wrote the federal government in a press release Monday. “The proposed regulations work by setting a cap on greenhouse gas pollution within the sector, equivalent to 35% below 2019 levels. They would create a cap-and-trade system designed to recognize better-performing companies and incentivize those that are higher polluting to invest in making their production processes cleaner.”The feds insist the regulations “put a limit on pollution, not production,” and are “informed by extensive engagement with industry, indigenous groups, provinces and territories, and other stakeholders.”The federal regulations are staunchly opposed by Alberta Premier Danielle Smith’s Conservative government, which has hit back at the proposed regulations with a “scrap the cap” advertising campaign, which cost $7-million, per the Financial Times. “I think everyone should do their fair share,” Guilbeault told the Canadian Press Monday ahead of the press conference. Guilbeault complained LNG emits too much pollution and has to do more to “fight climate change.”“I think most Canadians — even those that aren’t my biggest fans — would agree that it’s not okay for a sector to not be doing its share, and that’s mostly what this regulation is about,” he said. .According to the Financial Times, upstream (the initial stages of LNG) operations, such as production and refining, contributed 31% of Canada’s total emissions in 2022. Emissions between 2019 and 2022 (the most recent statistics available) fell 7%. The new regulations require upstream LNG operations to fall to 35% less than the 2019 numbers by between 2030 and 2032.“In a carbon-constrained world, people who will still be demanding oil will be demanding low-emitting oil,” said Guilbeault. “And if our companies and our oil and gas sector isn’t making the investments necessary to do that, they won’t be able to compete in this world.”The federal government will spend $12.5 billion on a tax credit to motivate companies to follow the emissions requirements. Guilbeault touted his government’s efforts to impose climate-saving policies in spite of pushback from naysayers. “In this day and age, where climate change has become caught in this culture war that we’re seeing in many parts of the world to be able to continue advancing progressive policies to fight climate change is in and of itself a big victory,” he said.He further warned if the Trudeau Liberal government is toppled through a non-confidence vote, the policy could never see the light of day. Both the Bloc and NDP in that case would have to vote with the Tories to trigger an election. "If they decide to support the Conservative Party of Canada into sending us into an election sooner than the date of October 2025, then they will have to explain to Canadians ... why they prevented us from putting in place one of the most important pieces of regulation to ensure that the oil and gas sector does its fair share when it comes to fighting pollution in Canada," said Guilbeault Monday morning, per the CBC. The Canadian Association of Energy Contractors (CAOEC) rejected the federal government’s proposed emissions cap."At a time when Canadian families are struggling with high energy and food prices, the Trudeau Liberals’ new emissions cap will make everything just a little bit more unaffordable. The Canadian economy is struggling, paychecks are shrinking, and business competitiveness continues to be challenged," it said in a statement."The Trudeau government does not care about Canadian blue-collar, middle-class energy workers who rely on the industry to support their families. It does not care about small, medium, and Indigenous energy service businesses that operate in rural and remote communities across Western Canada. And it certainly does not care about supporting our allies who are desperate for oil and gas from sources other than regimes such as Russia or Iran."
