A senior federal environment official told MPs a planned cap on oil and gas emissions would have “very minimal impact,” even though the department’s own research shows it could cost thousands of jobs and billions of dollars.Megan Nichols, assistant deputy minister at Environment Canada, testified at the Commons environment committee that the sector would still grow by 16% and GDP by 22% despite the cap. “In terms of GDP growth, it’s an extremely minimal impact,” she said.The proposed rules would cap emissions at 27% below expected 2026 levels. A 140-page cost-benefit analysis published by the department last November estimated the policy would cut oil and gas jobs by 1.6%, equal to roughly 3,400 layoffs out of the 213,000 directly employed. It also projected $3.3 billion in economic losses, plus $219 million in administrative costs.While the analysis claimed $4 billion in “avoided global damage” from reduced emissions, the net benefit was calculated at just $428 million..Department managers sidestepped questions about whether Ottawa will proceed with the cap. Asked by Conservative MP Branden Leslie if the plan was “quietly going to be shelved,” Assistant Deputy Minister Alison McDermott replied: “I don’t think we can comment on the future plans of the government at this point in time.”Liberals objected to calling the proposal a “production cap,” but Conservatives pushed back, warning that any policy restricting emissions will inevitably hit jobs and output. “If it doesn’t have an impact on production, then why is the government reconsidering this policy?” asked Conservative MP Carol Anstey.Nichols would not answer, saying only that political factors were at play.
