A recent report by Deloitte Canada, commissioned by the Alberta government, shows that the proposed federal oil and gas emissions cap would cut production, deter investment, wipe out jobs, and cost Canada hundreds of billions.
The report estimates that the proposed emissions cap could cut oil production by more than 626,000 barrels per day, costing Canadians $282 billion in lost GDP over the next ten years.
In 2023, the federal government released its proposed regulatory framework for an oil and gas sector emissions cap, which establishes mandatory targets for all upstream oil and gas facilities and liquefied natural gas facilities.
This framework has faced significant criticism from numerous provinces, industry representatives, business groups, and Canadians.
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Rebecca Schulz, Minister of Environment and Protected Areas, said in a press release, “The federal cap will lead to production cuts, lost jobs, reduced income, weakened investment, and less funding for essential services—devastating families and businesses from coast to coast. Let’s scrap the cap and reduce emissions without hurting Canadians.”
Additionally, the report projected that the federal oil and gas emissions cap could result in a 10% reduction in oil production and a 16% reduction in conventional gas production in Alberta by 2030. Similar production decreases are also anticipated in British Columbia, Saskatchewan, Newfoundland, and Labrador.
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Nate Horner, President of the Treasury Board and Minister of Finance, said, “There are ways to reduce emissions without harming our collective well-being, and it’s time to give up on this failed idea.”
He backed the report’s findings, which say the cap would result in 90,000 lost jobs across Canada. By 2040, Alberta’s GDP would be reduced by 4.5%, and the rest of Canada’s GDP would be reduced by 0.4% cumulatively.
