Changes Made Since the Last Consultation

The government last consulted on this regulatory proposal in January 2024. You can find our explanation of that previous proposal here: https://climatemessengers.ca/2024-oil-gas-cap/.

Here’s what has changed in the government’s new proposal:

• The cap was originally proposed to be 112 Mt in 2030. The new proposal is a cap in 2030 is estimated to be 127 Mt (to be determined later based on 2026 emissions).

• Originally, the regulations would automatically reduce the emissions cap over time. Under the new proposal, the cap will stay the same until the government makes regulatory amendments to reduce it.

• Under the previous proposal, operators would be able to buy credits to emit an additional 25 Mt per year (~22%), for a total of 137 Mt in 2030. The new proposal would allow the purchase of credits to emit an additional 20%, which, depending on the level of the cap, could be an additional 16 Mt for a total of 143 Mt in 2030[*].

• Since the new cap would be based on 2026 emissions levels, the industry will have an incentive to pollute as much as they can in 2026 to ensure they have a higher emissions cap in following years.