Canada’s Oil and Gas Emissions Cap Framework is a Welcome Step Forward, but Not Enough to Meet Climate Goals

The International Institute for Sustainable Development (IISD) views Canada's new oil and gas emissions cap framework as a necessary foundation for a sector-specific cap-and-trade system, but warns that the proposed 2030 reduction target of 16-20% relative to 2005 levels is insufficient compared to the broader economy-wide goal of 40-45%. The IISD expresses concern over compliance flexibilities, such as carbon offsets and decarbonization fund payments, which it argues may undermine actual emissions reductions. To align with the 2022 Emissions Reduction Plan, the IISD recommends strengthening the 2030 target toward a 40% reduction and minimizing the use of offsets.

• The proposed oil and gas emissions cap framework establishes a foundation for a cap-and-trade system designed to mandate emissions reductions by 2030 and achieve net-zero by 2050, aiming to halt the sector's projected emissions increase by 2030.
• The framework's proposed 2030 emissions reduction target of 16-20% relative to 2005 levels (or 35-38% relative to 2019) is significantly lower than Canada's economy-wide target of 40-45% and the 31% reduction specified in the Emissions Reduction Plan.
• The IISD criticizes the inclusion of compliance flexibilities, stating that carbon offsets are often ineffective and that payments into a decarbonization fund do not constitute actual emissions reductions.
• To meet national climate targets, the IISD recommends that the federal government strengthen the 2030 target to as close to 40% below 2005 levels as possible and limit the role of offsets and decarbonization funds.

APA

International Institute for Sustainable Development (2023). Canada’s Oil and Gas Emissions Cap Framework is a Welcome Step Forward, but Not Enough to Meet Climate Goals. https://www.iisd.org/articles/statement/canadas-oil-gas-emissions-cap-framework

Chicago

International Institute for Sustainable Development. Canada’s Oil and Gas Emissions Cap Framework is a Welcome Step Forward, but Not Enough to Meet Climate Goals. 2023. https://www.iisd.org/articles/statement/canadas-oil-gas-emissions-cap-framework.

Wikipedia

{{cite press release |author=International Institute for Sustainable Development |title=Canada’s Oil and Gas Emissions Cap Framework is a Welcome Step Forward, but Not Enough to Meet Climate Goals |date=7 December 2023 |url=https://www.iisd.org/articles/statement/canadas-oil-gas-emissions-cap-framework |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{internationalinstituteforsustainabledevelopment2023canadas, author = {{International Institute for Sustainable Development}}, title = {{Canada’s Oil and Gas Emissions Cap Framework is a Welcome Step Forward, but Not Enough to Meet Climate Goals}}, publisher = {International Institute for Sustainable Development}, year = {2023}, month = dec, url = {https://www.iisd.org/articles/statement/canadas-oil-gas-emissions-cap-framework}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }