Natural Resources Minister Tim Hodgson said the federal government could address climate policies gradually, but stopped short of committing to eliminate the oil and gas emissions cap.
Alberta’s Rebecca Schultz and Ontario’s Todd J. McCarthy last week sent a public letter demanding Ottawa withdraw the emissions cap alongside the Impact Assessment Act and electricity regulations. The provincial ministers contend these measures will damage economic competitiveness and unfairly burden energy-producing regions.
“We need to move quickly. What the… One Canadian Economy Act does is allows us to move quickly under this framework,” Hodgson said during a Calgary visit.
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Ottawa released preliminary cap regulations last November targeting a 35% reduction in sector emissions from 2019 levels by the early 2030s, with final rules scheduled for publication this year.
The oil and gas industry argues the cap will curtail production, while climate advocates maintain it’s crucial for meeting national emission targets.
Alberta Premier Danielle Smith continues advocating for pipeline infrastructure to British Columbia ports. Hodgson confirmed ongoing discussions about such projects, describing them as actively under consideration.
Prime Minister Mark Carney has previously expressed support for maintaining the emissions cap while providing industry assistance through carbon capture technology. Recent ministerial statements have emphasized project streamlining rather than policy reversal.
Parliament fast-tracked the C-5 major projects bill through both chambers in June, with federal officials planning six months of provincial negotiations to establish single environmental assessments for major developments.
Read: Liberals, Conservatives Pass ‘One Canadian Economy Act’ Despite Environmental, Indigenous Opposition
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