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Canada: Controversial plan to limit oil emissions

Ottawa unveils its plan to cap oil industry emissions by 2026, despite environmentalists' criticism of its timetable and targets.

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The Canadian government recently announced an ambitious plan to cap emissions from its oil and gas sector from 2026. As the world’s fourth-largest oil producer, Canada is committed to reducing emissions from this sector by 35% to 38% below 2019 levels by 2030. This initiative comes at a time when industry is responsible for almost a third of Canadian emissions, a significant proportion that does not include emissions linked to the final consumption of these hydrocarbons.

Objectives and limits

Although the reduction target is significant, it remains below initial expectations for a sector that has a considerable impact on the environment. Steven Guilbeault, Canada’s Minister of the Environment, stressed the importance of limiting pollution while ensuring the sector’s competitiveness on the world market. The plan provides for the trading of carbon credits and a degree of flexibility for producers, enabling some to exceed the set threshold.

Application mechanism and reactions

The mechanism will apply mainly to oil and liquefied natural gas producers, as well as upstream sectors responsible for the majority of emissions. However, the federal government has not set a limit on the volume of hydrocarbon production. This lack of restrictions has provoked mixed reactions: the province of Alberta, the main oil producer, and several industry associations have criticized the framework as unnecessary and unacceptable.

Potential Impact on Oil Production

Key industry players, such as Lisa Baiton, President of the Canadian Association of Petroleum Producers, fear that this system could lead to significant cuts in oil production. This prospect raises concerns about the balance between environmental imperatives and the sector’s economic needs.

Reactions from the Ecologist Groups

Environmental groups, while welcoming the capping initiative, have expressed their reservations. They point the finger at the late implementation of the plan and the many loopholes it contains, particularly where offset credits are concerned. Caroline Brouillette, Executive Director of Climate Action Network Canada, stressed the urgency of taking action without waiting another three years.

Evaluation by independent experts

The Climate Institute of Canada, an independent research organization, assessed the plan as “reasonable and necessary”, while stressing the need for more rapid action on the part of the government. The plan is seen as complementary to the methane regulations introduced earlier by Ottawa, aimed at reducing methane emissions by at least 75% below 2012 levels by 2030.

Canada’s plan to cap emissions from the oil and gas sector represents a crucial step in the fight against climate change. However, its effectiveness and implementation raise important questions, highlighting the challenge of reconciling environmental imperatives with economic and industrial interests.

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