Sask. premier says Ottawa's new emissions framework for oil and gas will hurt province's energy sector

Saskatchewan Premier Scott Moe says Ottawa's newly released oil and gas cap framework to curb emissions is another example of the federal government hurting the province's economy.

The federal government unveiled the regulatory framework on Thursday. The framework proposes to cap 2030 emissions at 35 to 38 per cent below 2019 levels to reach the government's goal of reducing carbon emissions in the sector to net zero by 2050.

Moe said the emissions reductions contained in the framework will be another burden to Saskatchewan's oil and gas sector on top of the carbon tax, clean electricity regulations and methane emissions proposal.

"This is a very, very slippery slope [that] I would say is a dangerous situation that the federal government is venturing into here, where ultimately what they are putting at risk is our Canadian energy security," Moe said Friday in a news conference from the United Nations Climate Change Conference, commonly known as COP28, in Dubai, U.A.E.

Watch| Canada introduces emissions cap for oil and gas industry: 

Canada introduces emissions cap for oil and gas industry

12 months ago

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The federal government has revealed how it will set an upper limit on greenhouse gas emissions through a cap-and-trade system for the country's biggest emitter, the oil and gas industry.

Under the cap-and-trade framework, oil and gas facilities will be given an allowance for each tonne of carbon they emit, with fewer allowances being given out over time. To comply, facilities either have to reduce their emissions or buy allowances from other facilities that have reduced their emissions.

Oil and gas is a heavy emitter: Ottawa

The oil and gas sector is responsible for 28 per cent of Canada's emissions.

"Oil and gas is the largest emitting sector in Canada. And unlike almost every other sector of our economy, pollution from the oil and gas sector is still going up," Federal Environment Minister Steven Guilbeault said Thursday. 

"We owe it to Canadians, and to the rest of the world, to address these emissions as we owe it to our workers and businesses to ensure Canada's well-earned reputation for energy innovation remains our strong suit for the 21st century."

Moe expressed concern about the rate at which the federal government is trying to phase out fossil fuels — which he said has been a focus at COP28.

"It simply isn't possible in the short term," Moe said.

Moe accused the federal government of trying to use COP28 to shut down Saskatchewan's oil and gas industry by "kneecapping" it with additional emissions regulations.

"It makes no sense at all," Moe said in a video posted on X , the social media platform formerly known as Twitter. "It's going to make Canada and other countries even more reliant on oil from afar."

Moe added that imported oil might not be produced with the same environmental protections Saskatchewan has in place.

Federal Energy and Natural Resources Minister Jonathan Wilkinson said that in drafting the framework, the federal government took into account what is technically achievable.

"If you're asking to be done with something that simply can't be done, then what you're going to do is shut down production and simply send it to other countries," Wilkinson said.

"It's important that you found this on what actually can be done and not simply on what you might like to see done."

The federal government said it is publishing the framework now to give the industry and others time to provide input on the forthcoming draft regulations, which it says it will publish in mid-2024.

Sask. looking at constitutional challenge

Moe said the Saskatchewan First Act confirms the province's right to exploration over non-renewable natural resource and an exclusive authority to regulate green-house gas emissions.

"The federal environment minister does not have the jurisdictional authority to sign anything with respect to phasing out or increasing fossil fuel development as energy production," Moe said.

"Natural resource production falls squarely in the jurisdiction of the provinces. "

The Saskatchewan government will be looking at constitutional steps to challenge the framework, according to the province's Justice Minister Brownyn Eyre.

"Saskatchewan remains opposed to the new methane regulations and the oil and gas emissions cap, and we will protect our constitutional right to build our economy in accordance with the priorities of Saskatchewan families and businesses," Moe posted on X on Thursday.