Meeting the emissions cap - A pathway for the oil and gas sector Summary

Meeting Emissions Cap Technical backgrounder Meeting the emissions cap A pathway for the oil and gas sector by Janetta McKenzie and Matt Dreis Summary The proposed federal oil and gas emissions cap aims to reduce emissions and prompt investment in decarbonization from Canada’s highest-emitting sector. [...] Broadly speaking, we find the proposed emissions cap to be a reasonable policy to reduce emissions from Canada’s highest emitting sector.1 The Alberta government and industry representatives have spoken publicly against the emissions cap, citing concerns about the impacts of the cap on the oil and gas sector, on the technical feasibility of reducing emissions by 2030, and on the complexity of addi. [...] 3 The assumptions in our analysis of the emissions reduction pathways in Figures 1 and 3 are described in detail in Appendix A of our submission to the proposed regulatory framework: Janetta McKenzie, Design recommendations for a national oil and gas emissions cap (Pembina Institute, 2024). [...] Measures that could reduce GHG emissions to meet the proposed oil and gas emissions cap framework Production is aligned with the CER’s Canada Net-zero scenario: global market-driven demand for oil and gas results in increased production until 2030 and emissions increase from 171 Mt in 2019 to 199 Mt in 2030. [...] The net-zero economy is being created now, and Canada needs to be prepared Much of the opposition to the proposed cap relies on the assumption that demand for Canada’s oil and gas will continue to increase, even as the world moves away from using fossil fuels and towards renewable energy.