Canadian (bbabo.net), - The Canadian government has unveiled a plan under which the country will rapidly reduce CO2 emissions. Fundamental changes must affect the oil and gas industry. The province of Alberta said it would put up a “constitutional shield.”

Canada is the world's fourth largest oil producer and plans to reduce CO2 emissions by 40-45% by 2030 compared to 2005. A quarter of emissions come from the oil and gas industry, and the Canadian government is proposing to require companies to reduce emissions in their sector by 38% compared to 2019.

Ottawa plans to introduce a cap-and-trade system, Environment Minister Stephen Guilbault said, Reuters reports. Thus, companies will be able to buy permits to exceed the limits, but the cost of raw materials will increase.

“The plan takes into account global demand for oil and gas, as well as the importance of this sector in the Canadian economy, and sets a cap that is strict but achievable,” the minister said.

“The federal government intends to publish draft regulations next year and final ones in 2025. The first compliance period has not yet been determined, but will begin between 2026 and 2030,” reports Reuters. The agency notes that the proposal was criticized by Canada's two main oil-producing provinces, Alberta and Saskatchewan, as well as the federal Conservative opposition.

“This proposed limit also undermines the unity of our country,” said Alberta Premier Danielle Smith. She believes the Canadian government's plan is deliberately targeting Alberta's economy and her government will develop a "constitutional shield."

Alberta is also challenging the federal government's demand for a zero-emissions grid by 2035.

The Pathways Alliance, a consortium of six of Canada's largest oil sands producers, is proposing a capture-and-storage project and believes Canada already has enough regulations in place to achieve net-zero emissions by 2050.

bbabo.Net