Ottawa's Emissions Cap for Oil and Gas Sparks Alberta Backlash

Canada's federal government proposes a cap-and-trade system to cut oil and gas emissions by one-third by 2032, prompting legal challenges from Alberta.

Alberta Premier Danielle Smith criticized the federal emissions cap, claiming it violates provincial rights and threatens economic stability.
The proposed regulations aim to reduce emissions from Canada's oil and gas sector by 35% from 2019 levels by 2030-2032, fulfilling a Liberal election promise.
The federal government argues the cap will drive investment in carbon-reduction technologies without cutting production, supported by a $12.5 billion tax credit for carbon capture.
Industry stakeholders warn the cap could harm Canada's competitiveness, reduce jobs, and lower government revenue, while environmental groups praise the move.
The regulations are still in draft form, open for public comment until January 2025, and could face delays if challenged in court.