• The goal of Canada’s oil and gas sector is to lower carbon emissions.
• Environmentalists applaud the ruling but question if the government will be able to achieve its objectives.

New rules have been issued by the Canadian government to reduce emissions from the country’s oil and gas sector.

By 2030, these rules seek to cut carbon emissions by 35% from 2019 levels. Companies in the nation can take advantage of cash incentives and emissions credits to achieve this. Additionally, the strategy calls on them to increase their investments in greener technologies.

The oil and gas sector in Canada, which accounts for one-third of the country’s carbon emissions, quickly opposed these policies. Alberta, the nation’s largest oil-producing province, claims the quota will have an adverse effect on the economy and hinder oil output.

Although the environmentalists agree with the choices, they believe they ought to have been more stringent and implemented sooner. They have expressed disapproval of businesses that contribute to a fund or use “offsets” rather than cutting emissions directly.

Given that the majority of green energy initiatives are funded by oil money, Prime Minister must strike a difficult balance. Although the cap is not expected to drastically cut oil production, some experts argue that the nation must transition away from fossil fuels more quickly in order to be ready for a future in which demand for oil drops.

The practicality of carbon capture technologies and the true cost of obtaining them are still unknown, but the Canadian government is supporting them with tax incentives.

The regulations are currently drafts and could be modified. They are anticipated to go into effect the following year. It is unclear, though, if the current administration would be able to carry them out given the approaching elections.