15 Must-Read Articles About Canada’s Oil & Gas Emissions Cap

15 Must-Read Articles About Canada’s Oil & Gas Emissions Cap

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canada's emissions cap will reduce Canadian energy when the world needs it most - cover image

Canada has announced plans to cap production emissions in the oil and gas sector. Many leaders and organizations see the ill-conceived policy as a de facto production cap on Canada’s job-creating, prosperity-generating oil and gas industry, leading to widespread adverse economic impacts on the Canadian economy at large.

But don’t take our word for it.

Below, we’ve compiled several articles on the oil and gas cap from across the internet, along with a top quote from each. Also see:

steven guilbeault says Canada is the only country in the world to do an oil and gas emissions cap - we wonder why

Former finance minister wonders if Canada should institute emissions cap after Trump victory

“I would question whether putting caps on emissions right now is the right time,” Bill Morneau said in an interview that aired Sunday on CTV’s Question Period, adding he would be “very careful” in thinking about the emissions cap, considering “the context of the broader North American relationship.”

Morneau — who headed up Canada’s finance portfolio during the previous Trump administration and throughout the free trade agreement renegotiations — said a lot has changed geopolitically since Trump’s first term.

“Energy security is going to be critical,” he told host Vassy Kapelos, while also pointing to defence, technology, and the economy, as sectors that will have to be looked at.

CTV News | November 2024

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‘They’re going to come after the industry’ — Oilpatch and province push back against federal emissions cap

Look around the world. No other major oil and gas producer is doing what we’re doing — the United States, Norway, Gulf states. We are the only major oil and gas producers in the world to do this.

Steven Guilbeault - Canada's Minister of Environment & Climate Change 
Calgary Herald | November 2024

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An emissions cap would reduce Canadian energy when the world needs it most

An emissions cap gives industry less—not more—of the certainty needed to make long-term multi-billion-dollar investments that create jobs, economic growth, and tax revenues for all levels of government. It simply makes Canada less competitive resulting in less investments for the oil and gas companies and the many businesses of all sizes that support them.

In this scenario, oil and gas investments, and all the benefits they generate, will go to production outside of Canada, including undemocratic countries lacking the interest or ability to deliver greenhouse gas emissions reductions.

Kendall Dilling - President, Pathways Alliance
The Hub | November 2024

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Emissions cap will make Canadians poorer and harm energy ties with the U.S.

At a time when Canada’s economy is stalling, imposing an oil and gas emissions cap will only make Canadians poorer. Strong climate action requires a strong economy. This cap will leave us with neither.

Today’s announcement ahead of the U.S. presidential election also sends the wrong signal to our most important trading partner that looks to Canada as a secure and reliable source of energy. A de facto cap on oil and gas production would restrict cross-border energy trade and harm our shared economic and security interests.

Goldy Hyder - President & CEO, Business Council of Canada
Business Council of Canada | November 2024

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Stop playing Whac-A-Mole with the oil and gas sector

Lower oil and gas production would be bad for Canada. We desperately need productivity-boosting investment.

Greater investment means more Canadian jobs and higher incomes. Viewed from that perspective, oil and gas is a jewel — one of our most productive sectors, as well as our greatest export by value. We need to export more oil and gas, not less, as Ottawa has in fact tacitly recognized with its backing of the fully operational Trans Mountain Pipeline expansion.

Charles DeLand - Associate Director of Research, C.D. Howe Institute
Financial Post | November 2024

an emissions cap will make canadians poorer, says Goldy Hyder, Business Council of Canada

Canada’s emissions cap short-sighted and punitive

“Believe it or not, I agree with federal Environment Minister Steven Guilbeault. Announcing his updated emissions cap regulations this week, he bragged that “no other major oil and gas producer is doing what we’re doing.” He is right.

But it’s not because countries like Norway and the United States aren’t as “visionary” as our federal government believes itself to be. No, other oil- and gas-producing countries aren’t implementing an emissions cap because they understand the incredible importance of the oil and gas sector to their economies and they’re too smart to shoot themselves in the foot.

Alex Pourbaix - Executive Chair, Cenovus Energy
Edmonton Journal | November 2024

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Capping oil and gas emissions is a bad idea

The government appears set to soon announce the most significant departure from efficient climate policy yet: a cap on emissions from the oil and gas sector.

This is a very bad idea.

Trevor Tombe - Professor of Economics, University of Calgary & Research Fellow, The School of Public Policy
The Hub | April 2023

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Prepare to get poorer: An emissions cap on the oil and gas sector will become a prosperity cap for Canadians

What’s being touted as an emissions cap on the oil and gas sector has significant potential to become a prosperity cap for Canadians and Indigenous communities.

The recently released Regulatory Framework for an Oil and Gas Sector Greenhouse Gas Emissions Cap is problematic for two main reasons: the first is that it fails a reasonableness test on sound public policy; but more importantly, it has high potential to create significant unintended consequences on prosperity because instead of capping emissions, it will likely cap prosperity through deterred investment and a potential production cut. Let’s tackle this first.

Adam Legge - President, Business Council of Alberta
Business Council of Alberta | March 2024

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Withdrawing federal emissions cap is non-negotiable as Trump wins office again

Canada would stand as the only country in the world to move forward with a self-imposed emissions cap.

Given that our economic growth numbers have been underwhelming – and our per-person productivity lags that of the United States by $20,000, one would expect the government to be more focused on supporting sectors that are critical to economic growth rather than passing legislation that will compromise investment and hamper our growth prospects.

The numbers speak for themselves.

According to an analysis completed by the Conference Board of Canada earlier this year, this legislation – which the government continues to insist is not a cap on production – could lead to the loss of as many as 150,000 jobs, decrease GDP by $28 billion and require a drop in production of one million barrels a day.

Deborah Yedlin - President & CEO, Calgary Chamber of Commerce
CTV News | November 2024

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'Shutting ourselves down at our own expense': Oilpatch executives slam Ottawa's emissions cap

We’ll be the only (oil and gas exporting) country in the world that’s going to have an artificially higher cost due to the emissions cap and the efforts we’ll need to invest in to reduce emissions to stay inside the cap.

Kevin Neveu - Chief Executive Officer, Precision Drilling
Financial Post | November 2024

Canada's oil and gas emissions cap is the epitome of bad public policy

Canada’s emissions cap: What’s the impact on prosperity?

This would exacerbate Canada’s already-prominent productivity problem, negatively impacting Gross Domestic Product (GDP) and quality of life for Canadians. It also places the nation at a significant competitive disadvantage — Canada has an opportunity to be a global leader in energy production and export, but restrictions put in place by the emissions cap may lead investors to partner with other oil exporting countries who are not subject to the same limitations.

Canada Powered by Women | November 2024

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Oil and gas emissions cap is the wrong policy at the wrong time

The federal government’s proposed emissions cap is the wrong policy. The new regulations couldn’t arrive at a worse time.

Adam Sweet - Director for Western Canada, Clean Prosperity
Clean Prosperity | November 2024

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‘The emissions cap will be costly’: How the natural resource sector has sustained Canada’s middle class

As the… government introduces policies like emissions caps, which are not effective enough in helping these industries, the stability and resilience the resource sector provides are at risk. This underlines the sector’s importance, not only economically but as a bulwark against the broader effects of job displacement, that could otherwise leave many Canadians in low-wage, insecure jobs.

Brian Dijkema - President of Canada, Cardus
The Hub | November 2024

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Canadian Chamber Statement on Oil and Gas Cap Announcement

As Canada’s economy stagnates and concerns over productivity, energy security, and affordability rise, enforcing an emissions cap on the oil and gas sector would only exacerbate the financial burden on Canadians. Effective climate action requires a strong economy—something this cap fundamentally undermines.

Canadian Chamber of Commerce | November 2024

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How Canada’s proposed emissions cap could have an impact on oil production costs

“There is a high probability that some of these products will be competitively encumbered to the point where supply and price will be affected,” he said.

“If the production cost goes up, then the whole cost per barrel of delivery to a refinery goes up … then whatever product they’re making necessarily has to go up.”

As such, it’s “disingenuous to claim conclusively” that an emissions cap wouldn’t affect the price of end use petroleum and natural gas in Canada, he said.

The Globe and Mail | November 2024

Canada's emissions cap will create significant regulatory uncertainty, leaving Canadians further behind

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Canada Needs a Stronger Economy

Oil and natural gas are critical economic sectors that form the bedrock of the Canadian economy. Canada should implement supportive policies to spur much-needed job creation and business investment in our country, not ones that could remove jobs and adversely affect our economic performance.

Global demand for oil and natural gas is projected to grow to new record highs for years to come. Canada should produce these critical energy sources as long as the world needs them, supporting Canadian families and underpinning a strong and prosperous economy for future generations.

Join us to learn more about the positive impacts of natural resources and why you should consider supporting our energy, forestry, mining, and agriculture families today!