Environmental lawyers available to comment on Canada’s long-awaited cap on oil and gas sector emissions

xʷməθkʷəy̓əm (Musqueam), Skwxwú7mesh (Squamish) & səl̓ilwətaʔɬ (Tsleil-Waututh) Territories/VANCOUVER

Environmental and constitutional law experts at West Coast Environmental Law Association welcome the draft regulations released today by the federal government to cap greenhouse gas (GHG) emissions from the oil and gas sector.

The proposed new federal oil and gas greenhouse gas pollution cap regulations will use a cap-and-trade system to limit pollution from oil and gas facilities and ensure the sector does its fair share to help meet Canada’s climate goals.  

“Capping pollution from the oil and gas sector is a no-brainer,” said Anna Johnston, Staff Lawyer. “The federal government has been regulating air and water pollution for decades under the Canadian Environmental Protection Act, and in the context of climate change, a cap on oil and gas emissions is a logical next step. This move to regulate climate pollution is squarely within the federal government’s jurisdiction, and it’s an essential piece of the policy puzzle when it comes to reducing emissions and meeting Canada’s climate targets.”

The oil and gas sector is Canada’s largest source of emissions, representing 31% of the country’s total emissions. For years, the industry has promised to voluntarily reduce its carbon footprint, but instead oil and gas sector emissions have continued to rise, causing Canada to miss every emissions target it has set.  

“Without a limit on oil and gas pollution, the soaring emissions from this industry are undermining the efforts of other economic sectors and everyday Canadians doing their part to reduce their pollution. Meanwhile, Canadians are increasingly feeling the impacts of severe wildfires, floods, and other climate-driven disasters,” said Staff Lawyer Andrew Gage. “Oil and gas companies have had ample time and resources to take action, yet they have consistently failed to cut their emissions. These proposed regulations will finally require Canada’s biggest polluters to do their fair share.”    

Polling has consistently shown cross-country support for regulating the sector’s emissions. A 2024 poll shows that 70% of Canadians want the federal government to stop letting oil and gas companies delay pollution reduction policies and actions. A majority of Albertans support a nation-wide cap on oil and gas emissions, with support strongest among youth.

Gage says the draft regulations should be strengthened to require oil and gas emitters to pay for the ability to pollute. 

“The government is proposing to make it free for big polluters to enter the system,” says Gage. “Big Oil has gotten a free ride for far too long, as Canadians face the impacts of climate change. Polluters should have to pay for the harm they cause.”

Constitutionality of the oil and gas pollution cap

Regarding the federal government’s jurisdiction to enact this cap on pollution, West Coast lawyers emphasize that the proposed regulations are on solid constitutional ground. In fact, they suggest that the federal government could go even further – contrary to arguments coming from the Alberta government and industry groups.  

“Given the Alberta government’s heated opposition to the emissions cap and other federal climate policies, the federal government has taken a cautious approach. In our legal opinion, the government has jurisdiction to enact stronger regulations to curtail emissions, even if the cap may affect production,” said Johnston.

The original Canadian Environmental Protection Act (CEPA) came into force in 1988 and has numerous regulations respecting pollution from mining, electricity, forestry and other sectors. The Federal Court of Appeal upheld the listing of greenhouse gases as toxic substances under CEPA in 2016.  

Next steps

Following the release of the oil and gas pollution cap, the federal government will collect public feedback on the draft regulations until January 2025. West Coast lawyers urge decision-makers to strengthen the regulations by closing remaining loopholes and ensuring that polluters must pay for the ability to pollute.  

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For more information, please contact:

Anna Johnston | Staff Lawyer    
604-340-2304, ajohnston@wcel.org

Andrew Gage | Staff Lawyer    
604-601-2506, agage@wcel.org