Canadian Prime Minister to request a 35% reduction in emissions from the oil and gas sector.

Canada's Prime Minister Justin Trudeau will call for a 35% reduction in emissions from the oil and gas industry compared to 2019 levels. Environment Minister Steven Guilbeault announced that the plan will be implemented through a cap-and-trade system that sets a legal limit on sector emissions, allowing companies to buy and sell a limited number of emission allowances. The government will start enforcing the cap on emissions in 2030 and will gradually lower it until the Canadian economy reaches net-zero emissions by 2050. Producers will be allowed to purchase carbon offsets to cover up to 20% of their emissions at each facility or contribute to a decarbonization fund. Major operators will be required to record and report their emissions starting in 2026. The government will analyze the data and set the final cap 27% below the 2026 levels, which is expected to be approximately 35% below the 2019 levels.