The Globe and Mail reports in its Wednesday edition that the Canadian oil and gas sector is ill-prepared to weather a forecast drop in global demand, according to a new report that says governments must take a more active role in developing fiscal policies and bolstering economic diversification. The Globe's Emma Graney writes that the International Institute for Sustainable Development analysis, released Tuesday, found that global economic trends in oil and gas are swiftly departing from business-as-usual, as the world scrambles to reduce greenhouse-gas emissions to avoid the worst effects of climate change. Since the most influential factor affecting the viability of the Canadian oil and gas sector is global demand, it will be impossible to avoid disruption to the industry, the authors conclude. The enormity of that economic challenge is "one of the most important topics in climate policy" and "therefore, one of the most economically important topics Canada can be broaching," said co-author Aaron Cosbey. The report encourages the federal government to continue strengthening climate policies. It suggests Ottawa explore tools within its jurisdiction to prepare for phasing down oil and gas production.