Rising risk of regime change blunts reaction to oil and gas emissions cap – by Theo Argitis (Financial Post – December 19, 2023)


After October 2025 at the latest, the Conservatives could be in the position to reverse many of the Liberals’ policies

It’s fair to say that corporate Canada has been less than enthusiastic about Prime Minister Justin Trudeau’s proposed plan to cap greenhouse gas emissions in the nation’s oil and gas sector. Responses to the announcement, which was made Dec. 7, ranged from outright rejection (Canadian Chamber of Commerce) to skeptical (Pathways Alliance) to, at best, silence.

This may or may not have been a surprise to Trudeau and his two top lieutenants driving the policy, Natural Resources Minister Jonathan Wilkinson and Environment Minister Steven Guilbeault.

Clearly, the federal government produced something it believes is balanced and pragmatic. The plan effectively lowers 2030 targets by as much as half for the sector, bringing them to within levels the industry has indicated may be achievable.

There have been media reports of how the plan is a reckoning for the energy industry and how the government is calling the industry’s bluff. But a better question may be whether any of it really matters. There are many good reasons for business to be lukewarm to the plan, starting with how it undermines the federal government’s entire carbon pricing framework. The best reason is that it may never get implemented at all.

For the rest of this article: https://financialpost.com/news/economy/political-uncertainty-over-liberal-climate-policies