Canada proposes significant emissions reduction plan for the oil and gas industry

【发表时间 2025-01-08 13:40:45】

Recently, the Canadian government proposed a draft regulation for the oil and gas industry, which includes a 35% reduction in greenhouse gas emissions by 2030 compared to 2019. Starting from 2026, emission reporting for producers will become mandatory, and penalties will be imposed on producers who do not comply with emission standards and regulations thereafter.

Canada is the fourth largest oil producing country and the sixth largest natural gas producing country in the world. The Canadian government has made an international commitment to reduce national greenhouse gas emissions by 40% to 45% by 2030. Therefore, it is necessary to increase decarbonization efforts in the oil and gas industry, which has the highest domestic emissions. Regarding the draft, the government will soon listen to opinions from various parties, including industry stakeholders, in accordance with public procedures. It is expected that the final draft will be released next year and implemented on January 8th.

According to the draft, Canada will introduce a quota and emissions trading system. This system will encourage oil and gas companies that have achieved excellent results in emission reduction, while also encouraging companies with large emissions to further reduce emissions. Starting from 2026, manufacturers will be required to report their emissions, with 2030 to 2032 being the first three years for determining whether their emissions are compliant. The government will establish corresponding punishment measures for producers who do not comply with these regulations.

Canadian Minister of Energy and Natural Resources Jonathan Wilkinson stated that most of the emissions reductions will come from reducing methane gas pollution to the air and capturing carbon dioxide from oil sands extraction.