Canadian Environment Minister Steven Guilbeault recently unveiled the federal government’s ambitious emissions cap on the oil and gas sector, aiming to slash emissions by at least one-third by 2030. Speaking from the United Nations Climate Change Conference (COP28) in Dubai, Guilbeault stressed the goal of reaching carbon neutrality in Canada by 2050. He emphasized the significant economic and environmental benefits that will result from reducing pollution from this sector. According to the minister, Canada is ahead of its 2030 emissions targets, thanks to the collective efforts of its citizens.
In addition, Ottawa plans to finalize regulations to ensure that 100 percent of new cars sold in Canada are zero-emissions vehicles by 2035. Natural Resources Minister Jonathan Wilkinson confirmed that the government intends to establish an oil and gas cap at 35 to 38 percent below 2019 levels in 2030, in accordance with the broader goal of reducing emissions across the economy by 40 to 45 percent by the same year.
The announcement garnered significant backlash from Alberta Premier Danielle Smith, who condemned it as an “intentional attack” on the province’s economy and the financial well-being of its residents. Smith declared that Alberta has the constitutional right to manage its resources, framing the federal regulations as harmful to investments, social programs, and jobs in the region. She vowed to develop a “constitutional shield” to respond to this and other perceived threats from the federal government.
Earlier measures had aimed to reduce emissions from Canada’s oil and gas sector by 40 to 45 percent below 2005 levels by 2030, setting the stage for net-zero emissions by 2050. These initiatives resulted from months of consultations with Canadians and involved substantial investments in clean energy technologies and measures. The federal government also presented plans to accelerate the reduction of methane emitted by the oil and gas sector by at least 75 percent by 2030, prompting further backlash from Alberta, which deemed the new rules as unilateral and unconstitutional.
Most recently, Alberta invoked its new sovereignty act for the first time in response to Ottawa’s proposal for a net-zero electricity grid by 2035. The province contended that this initiative would impact the stability of the energy supply and raise costs, warning that it would leverage every available tool to block the implementation of these “absurd” federal regulations. Despite the controversial nature of these events, the Environment Minister stressed that the federal government would not legally challenge Alberta’s use of the sovereignty act, recognizing it as a symbolic gesture.