Letter from Canada: Federal government attempts emissions strategy
Federal carbon pricing options may allow the central government to outflank provincial opposition
The Trudeau government surprised the Canadian oil and gas sector in the middle of July. As part of its consultation process to impose hard emission caps on the sector, the federal government offered a choice of two carbon pricing options: a sector-specific cap-and-trade system, or a modified carbon pricing system. The ultimate goal of these two options appears to be to force a reduction in Canadian oil and gas production, while avoiding a successful constitutional challenge from the producing provinces. The provinces have jurisdiction over resource development, but the federal government has the right to impose carbon taxes to combat climate change, based on a Canadian Supreme Court decision

Also in this section
13 June 2025
US policies may have lasting effects in sectors such as energy, that rely on predictable rules and long-term planning
13 June 2025
The two oil heavyweights’ diverging fiscal considerations are straining unity within the group
13 June 2025
CEO argues the upstream potential remains huge as analysts question future oil production for Canadian province’s offshore industry
13 June 2025
The country is facing energy shortfalls this summer amid reduced Iranian gas imports and difficulties leasing an FSRU