Natural Resources Minister Tim Hodgson has revealed that the federal government is engaging in talks with Alberta and oil companies regarding oilsands emissions. Recent reports from the Toronto Star and Reuters suggest that Prime Minister Mark Carney’s administration might scrap the proposed federal cap on oil and gas sector emissions if Alberta and oil companies make other environmental concessions.
Hodgson mentioned during a press conference in Winnipeg on Friday that discussions with Alberta and the industry are centered on urging the oil sector to significantly reduce the emissions intensity of the oilsands. He emphasized ongoing deliberations on how to achieve the desired outcomes without confirming if the federal emissions cap could be abandoned.
Environment Minister Julie Dabrusin, also present at the news conference, stated that her department is assessing feedback on the proposed emissions cap to determine the next steps after the public comment period closed in January.
Last November, the federal government introduced regulations aiming to limit emissions in the oil and gas sector to 35% below 2019 levels. The industry, accounting for nearly a third of Canada’s greenhouse gas emissions, would have four years to implement the reductions. The final regulations were expected to be released in the spring, but have not been published yet.
Alberta Premier Danielle Smith expressed strong opposition to the emissions cap proposal, vowing to challenge federal policies that could negatively impact the province. She highlighted concerns about the potential hindrance the emissions cap might pose to new pipeline projects due to restrictions on emissions.
Smith mentioned finding common ground with Prime Minister Carney on energy sector matters, contrasting her experience with former Prime Minister Justin Trudeau. While not confirming the status of the proposed federal emissions cap in negotiations, she commended the government’s decision to delay enforcing a specific minimum threshold for electric vehicle sales, indicating a more practical approach to environmental policy timelines.