• Canada aims to reduce carbon emissions from its oil and gas industry.
• Environmentalists welcome the decision but doubt whether the government succeeds with its goals.

The Canadian government has announced new regulations to curb emissions from its oil and gas industry.

These regulations aim to reduce carbon emissions by 35% from 2019 levels by 2030. To this end, companies in the country can avail themselves of financial incentives and emissions credits. The plan also includes encouraging them to invest more in cleaner technologies.

Canada's oil and gas industry swiftly responded by opposing these measures, and the industry makes up a third of Canada's carbon emissions. The country's largest oil-producing province, Alberta, says the cap will hamper oil production and impact the economy.

The environmentalists support the decisions but think that they should have been stricter and enacted sooner. They have raised concerns regarding companies using "offsets" or paying into a fund instead of directly reducing emissions.

Prime Minister Trudeau faces a tough balance, as finances used for most green energy projects come from oil revenue. Some experts say that even though the cap does not intend to significantly reduce oil production, the country needs to move away from fossil fuels at a faster pace to be prepared for when the demand for oil declines.

The Canadian government is offering tax credits to support carbon capture technology, but it remains to be seen what the viability of these technologies is and the actual cost involved in acquiring them.

Presently, the regulations are drafts and may change. They are expected to take effect next year. However, with the elections around the corner, it is not clear if the current government will be able to implement them.

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Source: The New York Times