CIBC Dismisses Feds’ Unrealistic Ambition for Oil and Gas Emissions Cap in 2030

According to analysts, the federal emissions cap on the oil and gas sector will essentially act as a cap on production if implemented. CIBC suggests that Ottawa’s requirement for oil and gas companies to reduce emissions to at least one-third of 2019 levels by 2030 is not only “unrealistically ambitious,” but also poses production risks. The emissions cap plan, unveiled by the federal government, would necessitate a reduction of 35 to 38 percent in emissions below 2019 levels by 2030. This announcement came on the same day that Environment Minister Steven Guilbeault announced the plan at the United Nations Climate Change Conference in Dubai, the United Arab Emirates. The emissions cap will be executed as a cap-and-trade program, allowing the oil and gas sector to purchase a limited number of carbon offset credits or contribute to a decarbonization fund in order to lower the emissions reduction requirement. The climate policies have led to criticism and opposition from Alberta Premier Danielle Smith and Saskatchewan Premier Scott Moe, who argue that the federal policies impede their provinces’ constitutional rights and would have serious economic impacts.



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