The Western provinces are more angry than ever with the Trudeau government after the unveiling of the cap system aimed at reducing approximately a third of emissions from the important Canadian oil and gas sector by 2032.
The draft regulation unveiled Monday does not aim to reduce production, but rather the pollution of petroleum products, insists the Minister of the Environment, Steven Guilbeault.
At a press conference, the minister presented the draft regulation as “insurance” for companies in the sector to respect their climate commitments.
“We are going to hold the industry accountable. She herself is committed to achieving carbon neutrality by 2050, so this system will ensure that we will get there,” declared Mr. Guilbeault.
As presented, the draft regulation provides for a 35% reduction in emissions from the oil sector below 2019 levels. An introduction phase is planned between 2026 and 2029, and final entry into force no later than 2032 .
Prosecutions to be expected
The Premier of Alberta, Danielle Smith, has already announced that she will take Ottawa to court to challenge this policy which according to her “will harm families, businesses and the Canadian economy”.
“We will defend our province, our country and our constitutional rights. Make no mistake, this ceiling violates the constitution of Canada,” she declared on X on Monday.
In an interview with the “Journal” on Sunday, Mr. Guilbeault said he was “fairly certain” that the case would go to court, but remains confident. “I think we did our homework on that,” he said.
But the battle doesn’t just take place in courtrooms.
Ms. Smith, who does not hold Minister Guilbeault in high esteem, recently took out the checkbook to finance a $7 million advertising offensive called “Scrap the Cap” [«À bas le plafond»]. The campaign includes an advertising truck that travels the streets of the federal capital.
Steven Guilbeault, a former environmental activist, clearly reflects the disenchantment with his conservative opponents, both provincially and federally. “They will continue to do stupid things and we will continue to focus on helping Canadians create a robust economy with good jobs and working to protect the environment.”
The ceiling could collapse
The federal ceiling could collapse before it is even installed. Federal officials informed reporters that any regulation can be repealed by a government.
Without saying that it was going to repeal it, the Conservative Party of Pierre Poilievre, far ahead in voting intentions in the country, published a press release to denounce “Trudeau’s radical Minister of the Environment” and his “ideological crusade” against an industry that he wants to “stifle”.
On the other side of the spectrum, the NDP and the Bloc Québécois criticized the delay provided before the capping system comes into force, as well as certain exemptions provided for therein, such as for refineries, for example.
How does the ceiling work?
Companies subject to the regulation will receive a fixed annual number of emissions quotas allowing them to pollute. Those that pollute more than their quota allows them will have to buy quotas from companies that have invested more in decarbonization or contributed to decarbonization programs themselves.
