Alberta and Ottawa have forged an agreement-in-principle to place the province in charge of regulating methane emissions, a move aimed at eliminating regulatory overlap and cutting costs for the energy sector. Final rules are expected by the end of 2026.
The deal, part of a broader energy policy accord signed in November 2025, sets a target to reduce methane emissions by 75% from 2014 levels by 2035—a timeline pushed back five years from earlier federal proposals, drawing criticism from environmental groups. Methane, the primary component of natural gas, is over 80 times more potent than carbon dioxide as a greenhouse gas over a 20-year period, making it a critical target for near-term climate action. Canada’s oil and gas industry, the nation’s largest methane emitter, often sees emissions escape through venting, leaks, and inefficient burning.
Under the agreement, federal methane regulations will be suspended in Alberta, replaced by equivalent provincial rules following a 60-day public consultation on a draft later this year. The Alberta government argues that dual regulations would burden industry with unnecessary duplication, while Premier Danielle Smith emphasized that the deal keeps decision-making local and builds on a system already showing results.
“Canada is strongest when we work together,” Prime Minister Mark Carney stated, highlighting the dual focus on emissions cuts and energy sector competitiveness.
The Pembina Institute, a clean energy think-tank, welcomed the inclusion of independent third-party assessments to verify methane reductions, noting that past industry self-reported estimates in Alberta have understated emissions by nearly double, according to measurement studies. Amanda Bryant, manager of the institute’s oil and gas program, called the move a step toward greater accountability.
This agreement follows another recent milestone from the November memorandum of understanding, with an earlier accord on streamlined project reviews announced this month. Still pending are resolutions on industrial carbon pricing and the Pathways carbon capture and storage project, with Smith pushing for clarity by April 1, 2026.
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