Canada wants the energy sector to reduce emissions up to 35% from 2019 levels

The Canadian government released on Monday a draft regulation that would limit emissions of greenhouse gasses from the oil and natural gas sector to 35% below 2019 levels. This is a little less than originally anticipated.

In a press release, the Environment Ministry said that the regulations would create a cap and trade system to reward companies with better performance. It will also provide an incentive for polluting firms to improve their production processes.

The Liberal government originally said that it wanted to reduce emissions from the energy sector, Canada's most polluting industry, by 38% by 2030. The news release on Monday did not mention 2030.

Ottawa claims that the draft rules will limit pollution caused by oil and gas production.

The release stated that "the proposed regulations work by establishing a cap on the greenhouse gas pollution within the industry, which is equivalent to 35% lower than 2019 levels."

On Monday, at 1 pm EST (1800 GMT), government ministers will provide more information about the new regulations.

Energy industry and oil producing provinces claim that the regulations will in fact kill jobs and reduce tax revenue.

The release stated that "the proposed regulations limit pollution but not production... they are designed to be as technical feasible within the industry while still allowing for continued production growth."

Consultations on the new regulations will take place from November 9 to January 8 next year. Ottawa stated that the final version would be published by 2025 but did not give any details. Reporting by David Ljunggren, Ottawa Editing by Matthew Lewis

(source: Reuters)