Brian Zinchuk is editor and owner of Pipeline Online
Minister of Energy and Resources Jim Reiter at the Lloydminster Heavy Oil Show on Sept. 11. Photo by Brian Zinchuk
Editor’s note: Reaction to federal government’s draft oil and gas emissions cap came in fast and furious on Nov. 4. This is part 1 of the reaction – each piece presented verbatim:
Government of Saskatchewan – Minister of Energy and Resources Jim Reiter
The regulations confirm that this will be a cap on oil and gas production, not just emissions, which will harm Saskatchewan’s economy, jobs, and resource potential. We urge the federal government to abandon this punitive approach and work collaboratively with provinces and industry to continue to achieve cost effective emissions reductions. In the coming days and weeks, we will be meeting again with producers to discuss their response and how we can make strides to reduce emissions.
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CAPP president and CEO Lisa Baiton at SIMSA’s 2024 Energy Forum. Photo by Brian Zinchuk
Canadian Association of Petroleum Producers (CAPP) Lisa Baiton, president and CEO
The Canadian Association of Petroleum Producers (CAPP) released the following statement from President & CEO, Lisa Baiton to address the federal government’s draft emissions cap regulations:
“The draft emissions cap regulations will be an unnecessarily complex layer on top of an already overly complex web of energy and climate regulations across the country. The introduction of this draft regulation comes with the high probability of negative impacts on the Canadian economy and no guarantee of emissions reductions.
Since this plan’s inception, CAPP has expressed serious concerns about the cap’s complexity and potential negative economic impacts, particularly as Canada faces significant economic headwinds. Canada’s policy and regulatory environment is already creating a challenging investment environment for the types of projects we need to create jobs and power our economy.
CAPP and our members believe the draft emissions cap regulations, if implemented, are likely to deter investment into Canadian oil and natural gas projects. The result would be lower production, lower exports, fewer jobs, lower GDP, and lower revenues to governments to fund the critical infrastructure and social programs on which Canadians rely.
Given new federal Competition Act rules introduced in Bill C-59, CAPP is unable to directly discuss the oil and gas industry’s decade-long track record on emissions reductions. Therefore, we invite Canadians to review the federal government’s national inventory data and draw their own conclusions.
CAPP will thoroughly review the draft regulations once they are released to fully understand their impact. From an initial review, we believe the draft emissions cap, if fully implemented, will have serious negative consequences for Canada’s workers and our economic future.”
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CAOEC president and CEO Mark Scholz, at the 2023 State of the Industry event. YouTube/CAOEC
Canadian Association of Energy Contractors (CAOEC) – Mark Scholz, president and CEO
At a time when Canadian families are struggling with high energy and food prices, the Trudeau Liberals’ new emissions cap will make everything just a little bit more unaffordable. The Canadian economy is struggling, paychecks are shrinking, and business competitiveness continues to be challenged.
The Trudeau government does not care about Canadian blue-collar, middle-class energy workers who rely on the industry to support their families. It does not care about small, medium, and Indigenous energy service businesses that operate in rural and remote communities across Western Canada. And it certainly does not care about supporting our allies who are desperate for oil and gas from sources other than regimes such as Russia or Iran.
CAOEC applauds the positions taken by the Governments of Alberta and Saskatchewan. We look forward to working with them to oppose the federal government’s recent policies and encourage the provinces to utilize all available tools to constitutionally block implementation.
Our Association would like to underscore the pivotal role the energy services sector plays in the development of affordable and reliable energy products. Unfortunately, we are unable to share our record due to the Liberals’ restrictive anti-speech amendments to the Competition Act (Bill C-59).
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Environmental Defence – Aly Hyder Ali, Oil and Gas Program Manager
(This was reposted on X by Minister Guilbeault)
Ottawa | Traditional, unceded territory of the Algonquin Anishinaabeg People – We welcome the Government of Canada’s Oil and Gas Greenhouse Gas Pollution Cap draft regulation, which aims to curb pollution from the oil and gas industry. This is a historic step towards holding this industry accountable for its outsized role in driving climate change.
The release of the draft pollution cap rules brings Canada one step closer to being the first nation in the world to put binding limits on oil and gas pollution.
The oil and gas industry is the largest source of emissions in the country, accounting for over 30 per cent of Canada’s emissions. The industry has continued to produce more pollution each year, canceling out efforts made by other parts of the economy. This underscores the need for government intervention.
Oil and gas pollution isn’t just fueling climate change – it’s also raising Canadians’ cost of living. While companies post record profits, Canadians are paying more for essentials like groceries, insurance, and health care as a result of both the climate crisis as well as the affordability crisis driven in part by fossil fuel profits.
The pollution cap shifts the responsibility for addressing pollution back onto an industry that has long profited at Canadians’ expense and forces companies to do their part to clean up their own mess.
However, for the cap to be truly effective, the draft regulations must be strengthened. The rules must take effect sooner than the proposed 2030 timeline, and align with Canada’s climate goal of a 40-45 per cent emissions reduction by 2030. Loopholes which allow companies to avoid having to reduce their own pollution, like offsets and a decarbonization fund, must also be closed.
Collaboration from provincial governments is also crucial to the cap’s success. Climate impacts cross borders, and so must climate action. Provincial support is necessary to reinforcing federal initiatives, as opposition only undermines national goals and puts the health and economic well-being of all people in Canada at risk.
It is essential that the federal government urgently transition from draft to final regulations so pollution reductions can begin. Swift implementation will be crucial for Canada to meet its international climate commitments, while safeguarding the future for Canadians.
Canada has set the stage – now it’s time to act. There is no more time for delay. Canada’s pollution cap can be the benchmark for true accountability and a healthier planet.
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Enserva – Gurpreet Lail, president and CEO
“The government’s proposed emissions cap is a production chokehold in disguise. By imposing these overreaching restrictions, they’re not just capping emissions – they’re capping Canadian energy itself. This approach punishes the very sector that powers our economy, supports Canadian jobs and communities, and funds clean technology advancements.
This cap could put as many as 151,000 jobs at risk and cut billions from Canada’s economy, decimating the livelihoods of families and entire communities that rely on our energy sector. Specifically in rural and Indigenous communities, where energy services jobs sustain families and drive local economies, the impact could be devastating, reversing decades of progress and opportunity.
These regulations threaten our global competitiveness, driving away investment and potentially shifting jobs and production to less regulated, less environmentally responsible jurisdictions.
Canada’s energy sector has made tremendous strides in reducing emissions, investing billions to lead in innovation and sustainability. Yet, the federal government is choosing punitive policies over partnerships for progress.
As the voice of Canada’s energy service, supply, and manufacturing sectors, Enserva is calling on the federal government to rethink this short-sighted approach. Canada deserves policy that protects our energy security, economic stability, and environmental goals, without jeopardizing Canadian livelihoods. We need collaboration, not caps.”
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