PM Suggests Policy Could Change Based on Emissions Progress
Prime Minister Mark Carney signaled Friday that his government may reconsider the planned emissions cap on oil and gas producers, saying its future “depends” on other national efforts to cut greenhouse gases — a marked departure from his earlier commitment to keep it in place.
Speaking to reporters in Ottawa, Carney said his government is focused on results, not rigid targets, suggesting that if other sectors make sufficient progress, the oil and gas cap could be reassessed.
“In order to satisfy all those conditions, it depends on what's done. What this government is interested in is results, not objectives,” Carney said.
The emissions cap, set to take effect in 2030, requires upstream oil and gas operations to reduce emissions to 35 per cent below 2019 levels. Draft regulations were tabled last year, two years later than planned.
Balancing Climate Goals and Industry Pressure
Under the Paris Climate Accord, Canada is committed to reducing emissions by 40 per cent below 2005 levels by 2030 and achieving net-zero by 2050.
Carney’s comments represent a more cautious tone, especially as his government faces growing pressure from Alberta’s UCP government and oil executives calling for the repeal of the emissions cap and the tanker ban off B.C.’s coast.
The oil and gas sector accounts for roughly 30 per cent of Canada’s total greenhouse gas emissions and remains the only major sector where emissions have continued to rise.
A recent Canadian Climate Institute report found emissions from oil and gas rose 1.9 per cent last year, offsetting reductions made elsewhere.
‘Grand Bargain’ Talks with Alberta
Carney confirmed he is in ongoing discussions with Alberta Premier Danielle Smith, who has urged Ottawa to repeal environmental restrictions she calls “bad laws.”
The two leaders have been exploring what Smith has described as a “grand bargain” — a potential deal linking Alberta’s desire for a new West Coast pipeline to the completion of the Pathways Alliance carbon capture project.
“This government believes in nation-building projects,” Carney said, adding that any pipeline proposal must have economic benefits, align with climate goals, and support Indigenous participation.
Smith has said she hopes to finalize a framework by mid-November, while Carney hinted that Ottawa remains open to “constructive proposals.”
Interprovincial Tensions Over Resource Development
The debate has reignited tensions between Alberta and British Columbia, as B.C. Premier David Eby warned that repealing the tanker ban could jeopardize community support for future coastal projects.
Eby said the ban helps maintain a “fragile consensus” around sustainable development, while Smith called his comments “un-Canadian and unconstitutional.”
Energy Minister Tim Hodgson told the Senate this week that while Ottawa supports pipeline expansion “in principle,” Alberta and B.C. must find common ground before any new projects can proceed.
Future of the Keystone XL Revival
In a separate development, Carney raised the possibility of reviving the Keystone XL pipeline during his meeting with U.S. President Donald Trump in Washington earlier this week.
The proposal would link the pipeline’s return to U.S. tariff relief on Canadian steel and aluminum, though critics say the plan is unrealistic without changes to the emissions cap.
Conservative MP Andrew Scheer told reporters, “It doesn’t matter if you can build a pipeline if you can’t put anything through it.”
