Overview

• Reuters reports, without official confirmation, that the federal cap could be withdrawn in favor of negotiated, verifiable reductions by the oil sector and Alberta, with a broader climate competitiveness plan under consideration for later this year.
• Natural Resources Minister Tim Hodgson said the government is in the middle of discussions on how to secure a fundamental shift in oilsands emissions intensity, declining to confirm the fate of the cap.
• Environment Minister Julie Dabrusin said officials are reviewing feedback on the proposed regulations and determining next steps after a public comment period closed in January.
• The draft federal plan targets a 35% cut from 2019 levels, aiming to reduce sector emissions from about 171 million tonnes to 106–112 million tonnes by 2030, but final regulations have not been published as previously expected in the spring.
• Alberta remains opposed, with Premier Danielle Smith pledging to fight the measure, while industry leaders argue the cap would constrain production in a sector responsible for roughly 28% of Canada’s emissions.