Canada asks oil firms to cut emissions by up to 38% in six years

(Reuters, 7 Dec 2023) Canada unveiled a plan on Thursday that would require oil and gas companies to cut emissions by 35% to 38% from 2019 levels in the next six years, in a move aimed at meeting the government's aggressive climate goals

The government is proposing a cap-and-trade system starting in 2026 to help the industry cut pollution without lowering output. Federal Environment Minister Steven Guilbeault said the plan was "ambitious, but practical."

"It considers the global demand for oil and gas, and the importance of the sector in Canada's economy, and sets a limit that is strict, but achievable," Guilbeault said in a statement.

But the long-awaited proposal drew immediate opposition from two of Canada's main oil-producing provinces Alberta and Saskatchewan.

Alberta Premier Danielle Smith said the announcement intentionally attacked Alberta's economy, and that her government will develop a "constitutional shield" in response to the proposal in the coming months. "This proposed cap also undermines the unity of our country," Smith said in a statement.

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Reuters, 7 Dec 2023: Canada asks oil firms to cut emissions by up to 38% in six years