The Globe and Mail reports in its Thursday edition that Ottawa's long-awaited emissions cap on oil and gas will be imposed through a cap-and-trade system, but require fewer reductions from Canada's heaviest polluting sector than the industry feared. The Globe's Marieke Walsh and Emma Graney writes that it sets up yet another jurisdictional battle between the feds and Alberta over environmental policies.
The new policy will take effect in 2030, requiring a significant cut in emissions that year. At the outset, it will be less stringent than many had expected, given the overall numbers in Ottawa's emissions reduction plan released last year.
However, between 2030 and 2050, the cap will be incrementally lowered as the country moves to a net-zero economy. Alberta has argues such a policy is a de facto production cap.
Oil companies face increasing pressure to reduce emissions and spend more to join the global decarbonization effort.
Comments from Suncor's chief executive officer, Rich Kruger, put the issue in the spotlight over the summer, after he suggested that the company would not prioritize long-term energy transition, instead sticking to the core of its business of pumping out oil for maximum profit.
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