Canada’s new climate strategy calls for a 42% reduction of emissions from the oil and gas industry

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Canada’s 2030 emissions reduction goal includes a 42% reduction of oil and gas emissions by Justin Trudeaus government, Prime Minister Justin Trudeaus.

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Trudeaus plan promises to make the carbon-capture tax credit available for the industry by 2022. More details will be released soon. It does not contain details on the emissions cap the government will impose upon the fossil-fuel industry, which accounts roughly tenth of Canadas economic output.

The document was presented Tuesday in parliament by Steven Guilbeault, Environment Minister. It promises an additional C$9.1 Billion ($7.3 Billion) in new spending to help Canada meet its climate targets. The government plans to reduce emissions by more than 40% from 2005 levels by 2030.

Guilbeault stated that the country is on track to reduce its emissions by 36% through existing policies. These include phasing out coal-fired power generation and adopting a national tax on carbon. He stated that getting to the 40% threshold would require a lot more work.

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It will not be cheap. According to a Royal Bank of Canada Report last fall, Canada’s total spending for the next 30 years to reach net zero is C$2 Trillion. Given current technologies, that amounts to C$60 billion per year.

Tuesday’s plan states that the government will reduce oil and gas methane at least 75% by 2030 and support clean technologies to decarbonize the sector.

It provides support for electric vehicles and mandates that no less than 20% of all new light-duty cars sold by 2026 have zero emission. The government previously stated that it aims to reach 100% by 2035 in this category.

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Canada Infrastructure Bank will spend C$500 Million on electric vehicle charging infrastructure. Additionally, the government will provide an additional C$400 Million for charging stations.

Canada’s greenhouse gas emissions totaled 730 megatons of carbon dioxide equivalent in 2019. About 26% of these emissions are from oil and gas extraction. To ensure that the sector meets its goals, the government will heavily rely on the carbon capture credit and the emissions cap.

The government announced Tuesday that a discussion paper on the emissions cap will be published in spring. This will be followed by consultations between provinces, Indigenous partners and industry. The government stated that it doesn’t intend to use the cap to reduce production if this is not due to a decline in global demand.

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Trudeau, during last year’s election campaign, promised that his Liberals would force oil companies to set five-year goals to reduce their carbon emissions. His goal is to achieve net zero emissions by 2050. The program is expected to start in 2025. This plan includes a C$2Billion fund to create green jobs within oil-producing regions.

Canada is the only member of the Group of Seven that has seen its harmful emissions rise between 2015-2019.

Trudeau has blamed Canada’s record on emissions on the previous Conservative government. The former Conservative government withdrew from Kyoto Protocol in 2011, a precursor to 2015 Paris agreement. The prime minister also said that Canada was held back by Donald Trump’s four-year-old climate skepticism.