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Energy

Ottawa’s emissions cap—all pain, no gain

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From the Fraser Institute

By: Julio Mejía, Elmira Aliakbari and Tegan Hill

According to a recent analysis by the Conference Board of Canada think-tank, the cap could reduce Canada’s GDP by up to $1 trillion between 2030 and 2040, eliminate up to 151,000 jobs by 2030, reduce federal government revenue by up to $151 billion between 2030 and 2040, and reduce Alberta government revenue by up to $127 billion over the same period.

According to an announcements last week by Premier Danielle Smith, the Alberta government will use the Alberta Sovereignty within a United Canada Act to challenge Ottawa’s proposal to cap greenhouse gas emissions from the oil and gas sector at 35 per cent below 2019 levels by 2030.

Premier Smith, who said the cap will harm the economy and represents an overstep of federal authority, also plans to prevent emissions data from individual oil and gas companies from being shared with Ottawa. While the federal government said the cap is necessary to fight climate change, several studies suggest the cap will impose significant costs on Canadians without yielding detectable environmental benefits.

According to a recent report by Deloitte, a leading audit and consulting firm, the cap will force Canadian firms to curtail oil production by 626,000 barrels per day by 2030 or by approximately 10.0 per cent of the expected production—and curtail gas production by approximately 12.0 per cent.

Deloitte estimates that Alberta will be hit hardest, with 3.6 per cent less investment, almost 70,000 fewer jobs, and a 4.5 per cent decrease in the province’s economic output (i.e. GDP) by 2040. Ontario will lose 15,000 jobs and $2.3 billion from its economy by 2040. And Quebec will lose more than 3,000 jobs and $0.4 billion from its economy during the same period.

Overall, the country will experience an economic loss equivalent to 1.0 per cent of the value of the entire economy (GDP), translating into lower wages, the loss of nearly 113,000 jobs and a 1.3 per cent reduction in government tax revenues. Canada’s inflation-adjusted GDP growth in 2023 was a paltry 1.3 per cent, so a 1 per cent reduction would be a significant economic loss.

Deloitte’s findings echo previous studies. According to a recent analysis by the Conference Board of Canada think-tank, the cap could reduce Canada’s GDP by up to $1 trillion between 2030 and 2040, eliminate up to 151,000 jobs by 2030, reduce federal government revenue by up to $151 billion between 2030 and 2040, and reduce Alberta government revenue by up to $127 billion over the same period.

Similarly, another recent study published by the Fraser Institute found that the cap would reduce production and exports, leading to at least $45 billion in lost economic activity in 2030 alone, accompanied by a substantial drop in government revenue.

Crucially, these huge economic costs to Canadians will come without any discernable environmental benefits. Even if Canada entirely shut down its oil and gas industry by 2030, eliminating all GHG emissions from the sector, the resulting reduction in global GHG emissions would amount to a mere four-tenths of one per cent with virtually no impact on the climate or any detectable environmental, health or safety benefits.

Given the demand for fossil fuels, constraining oil and gas production and exports in Canada would likely merely shift production to other countries with lower environmental and human rights standards such as Iran, Russia and Venezuela. Consequently, global GHG emissions would increase, not decrease. No other major oil and gas-producing country has imposed a similar cap on its leading export sector.

The Trudeau government’s proposed cap, which still must pass the House and Senate, would further strain an already struggling Canadian economy, and to make matters worse, do virtually nothing to improve the environment. The government should cancel the cap plan given the economic costs and nonexistent environmental benefits.

Tegan Hill

Director, Alberta Policy, Fraser Institute

Energy

Canada’s debate on energy levelled up in 2025

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From Resource Works

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Compared to last December, Canadians are paying far more attention.

Canada’s energy conversation has changed in a year, not by becoming gentler, but by becoming real. In late 2024, pipelines were still treated as symbols, and most people tuned out. By December 2025, Canadians are arguing about tolls, tariffs, tanker law, carbon pricing, and Indigenous equity in the same breath, because those details now ultimately decide what gets built and what stays in the binder. Prime Minister Mark Carney has gone from a green bureaucrat to an ostensible backer of another pipeline from Alberta to the West Coast.

From hypothetical to live instrument

The pivot began when the Trans Mountain expansion started operating in May 2024, tripling capacity from Alberta to the B.C. coast. The project’s C$34 billion price tag, and the question of who absorbs the overrun, forced a more adult debate than the old slogans ever allowed. With more barrels moving and new Asian cargoes becoming routine, the line stopped being hypothetical and became a live economic instrument, complete with uncomfortable arithmetic about costs, revenues, and taxpayer exposure.

The American election cycle then poured gasoline on the discussion. Talk in Washington about resurrecting Keystone XL, alongside President-elect Donald Trump’s threats of 25 percent tariffs, reminded Canadians how quickly market access can be turned into leverage.

In that context, Trans Mountain is being discussed not just as infrastructure, but as an emergency outlet if U.S. refiners start pricing in new levies.

The world keeps building

Against that backdrop, the world kept building. Global pipeline planning has not paused for Canadian anxieties, with more than 233,000 kilometres of large diameter oil and gas lines announced or advancing for 2024 to 2030. The claim that blocking Canadian projects keeps fossil fuels in the ground sounds thinner when other jurisdictions are plainly racing ahead.

The biggest shift, though, is domestic. Ottawa and Alberta signed a memorandum of understanding in late November 2025 that sketches conditions for a potential new oil pipeline to the West Coast, alongside a strengthened industrial carbon price and a Pathways Alliance carbon capture requirement. One Financial Post column argued the northwest coast fight may be a diversion, because cheaper capacity additions are on the table. Another argued the MOU is effectively a set of investment killers, because tanker ban changes, Indigenous co ownership, B.C. engagement, and CCUS preconditions create multiple points of failure.

This is where Margareta Dovgal deserves credit. Writing about the Commons vote where Conservatives tabled a motion echoing the Liberals’ own MOU language, she captured the new mood. Canadians are no longer impressed by politicians who talk like builders and vote like blockers. Symbolic yeses and procedural noes are now obvious, and voters are keeping score.

Skills for a new era

The same sharper attention is landing on carbon capture, once a technocratic sidebar. Under the MOU, a new bitumen corridor is tied to Pathways Alliance scale carbon management, and that linkage is already shaping labour planning. A Calgary based training initiative backed by federal funding aims to prepare more than 1,000 workers for carbon capture and storage roles, a sign that contested policy is producing concrete demand for skills.

British Columbia is no longer watching from the bleachers. It flared again at Carney’s December 18 virtual meeting, after Environment Minister Steven Guilbeault resigned from cabinet over it. Premier David Eby has attacked the Alberta Ottawa agreement as unacceptable, and Prime Minister Mark Carney has been forced into talks with premiers amid trade uncertainty. Polling suggests the public mood is shifting, too, with a slim majority of Canadians, and of British Columbians, saying they would support a new Alberta to West Coast pipeline even if the B.C. government opposed it, and similar support for lifting the tanker ban.

None of this guarantees a new line, or even an expanded one. But compared with last year’s tired trench warfare, the argument now has stakes, participants, and facts. Canadians have woken up to the reality that energy policy is not a culture war accessory. It is industrial policy, trade policy, and national unity policy, all at once.

Resource Works News

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Energy

New Poll Shows Ontarians See Oil & Gas as Key to Jobs, Economy, and Trade

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From Canada Action

By Cody Battershill 

A new Ontario-wide survey conducted by Nanos Research on behalf of Canada Action finds strong public consensus that Canadian oil and gas revenues are critical to jobs, economic growth, and trade – and that Canada should lean into its energy advantage at home and abroad.

“Our polling feedback shows that a majority of Ontarians recognize the vital, irreplaceable role oil and gas has to play in our national economy. Canadians are telling us they want to see more support for the oil and gas sector, which is foundational to our standard of living and economy at large,” said Canada Action spokesperson, Cody Battershill.

The online survey of 1,000 Ontarians shows that more than four in five (84 per cent) respondents believe oil and gas revenues are important for creating jobs for Canadians and building a stronger economy. Additionally, four-in-five (80 per cent) support Canada developing a strategy to become a preferred oil supplier to countries, while Ontarians are more than eight times as likely to support as to oppose Canada supplying oil and gas, provided it remains a major source of energy worldwide.

POLL - more than four in five (84 per cent) of Ontarians believe oil and gas revenues are important for creating jobs for Canadians

“Building new trade infrastructure, including pipelines to the coasts that would get our oil and gas resources to international markets, can help Canadians diversify our trading partners, maximize the value of our resources, and secure a strong and prosperous future for our families,” Battershill said.

Also, nearly four-in-five (79 per cent) of Ontarians say oil and gas revenues are important for keeping energy costs manageable for Canadians.

“Our poll is just one of many in Canada since the start of 2025 that show a majority of Canadians are supportive of oil and gas development. It’s time we get moving forward on these projects without delay and learn from the lessons of our past, where we saw multiple pipelines cancelled to the detriment of Canada’s long-term economic success.”

80 per cent of Ontarians support Canada developing a strategy to become a preferred oil supplier to the world

Additional findings include:

  • Four-in-five (80 per cent) of Ontarians support Canada supplying oil and gas, provided it remains a major source of energy worldwide.
  • Four-in five (80 per cent) of Ontarians believe oil and gas revenues are important when it comes to building stronger trading partnerships.
  • Nearly four-in-five (79 per cent) of Ontarians say oil and gas revenues are important for keeping energy costs manageable for Canadians.
  • Nearly four-in-five (78 per cent) of Ontarians support Canada stepping up to provide our key NATO allies with secure energy sources.
  • Nearly four-in-five (78 per cent) of Ontarians support Canada increasing oil and gas exports around the world, about six and a half times more likely than to oppose.
  • Nearly four-in-five (77 per cent) of Ontarians support Canada providing Asia and Europe with oil and gas so that they are less reliant on authoritarian suppliers.
  • Nearly three-in-four (74 per cent) of Ontarians support Canada increasing oil and gas exports around the world, five times more likely than to oppose.
  • Nearly three-in-four (74 per cent) of Ontarians say oil and gas revenues are important to reducing taxes for Canadians.
  • More than seven-in-ten (71 per cent) of Ontarians support building new energy infrastructure projects without reducing environmental protections and safety.
  • More than six-in-ten (63 per cent) of Canadians say they are important for paying for social programs, including health care, education, and other public services.
  • Respondents were nine times more likely to say the government approval process for energy infrastructure projects is too slow (46 per cent) rather than too fast (5 per cent).

80 per cent of Ontarians support Canada supplying oil and gas to the world as long as it continues to be a major source of energy79 per cent of Ontarians say oil and gas revenues are important for keeping energy costs manageable for Canadians78 per cent of Ontarians support Canada stepping up to provide our key NATO allies with secure energy sources78 per cent of Ontarians support increasing oil and gas exports around the world, 6x more than those who oppose this

About the survey

The survey was conducted by Nanos Research for Canada Action using a representative non-probability online panel of 1,000 Ontarians aged 18 and older between December 10 and 12, 2025.

While a margin of error cannot be calculated for non-probability samples, a probability sample of 1,000 respondents would have a margin of error of ±3.1 percentage points, 19 times out of 20.

SOURCE: Canada Action Coalition

Cody Battershill – [email protected]

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