Overview

• 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.