Supporting strong emissions regulation

for the oil and gas industry

We support this statement

From: Canadian Businesses

Re: The Government of Canada’s Regulatory Framework for an Oil and Gas Sector Greenhouse Gas Emissions Cap

Dear Honourable Minister Guilbeault,

We are a concerned group of Canadian businesses representing various sectors that wish to express our concern regarding the Government of Canada’s Regulatory Framework for the Oil and Gas Sectors, Greenhouse Gas Emissions Cap.

We provide employment opportunities across Canada and many of these businesses are certified B Corps that contribute to innovation in sustainability and social equity in Canada’s business community.

We applaud the federal government’s introduction of a Regulatory Framework for an Oil and Gas Sector Greenhouse Gas Emissions Cap during COP28 in Dubai on December 7, 2023.

With Canada experiencing record-breaking wildfires with devastating impacts on our forests, communities and air quality, it’s imperative that every industrial and business sector in our economy does its fair share in reducing emissions.

As the largest industrial contributor to climate emissions, the fossil fuel sector must take immediate steps to reduce emissions and contribute to our collective efforts to meet our national targets in line with the Paris Agreement.

The Regulatory Framework for an Oil and Gas Sector Greenhouse Gas Emissions Cap is a crucial government policy that will compel and support the transformation needed within the Oil and Gas sector.

Our Recommendations:

• We urge the federal government to move swiftly in introducing regulations this spring that implements and improves on the Regulatory Framework for an Oil and Gas Sector Greenhouse Gas Emissions Cap without any further delay.
• We also call on the federal government to strengthen the emissions cap by:
  1. Increasing the ambition by raising the emissions cap level to 60% by 2030 in line with the recommendation of the International Energy Agency and the 1.5 degree pathway, or at minimum to 40-45% in line with Canada’s national targets.
  2. Eliminate compliance flexibilities that threaten the credibility and effectiveness of the cap by allowing companies to evade real reductions in emissions.
  3. Ensure that the regulations come into effect no later than 2025.
  4. End tax breaks, public financing, tax credits and any other form of current assistance given to the Oil and Gas industry.