The cap on energy-sector emissions is a longstanding promise from Canada’s Liberal government. The Business Council of Canada said the cap would pose a headwind for an economy struggling to record growth.

The Trudeau government has focused on the oil and gas production industries because the large amounts of energy they use make them the country’s largest source of greenhouse gases.

Alberta Premier Danielle Smith and Canadian oil and gas producers came out swinging today in response to a new draft federal oil and gas emissions cap for oil and gas production that is unlikely to survive,

The Canadian government released draft regulations on Monday that would cap emissions of greenhouse gases from the oil and gas sector at 35% below 2019 levels by 2030, drawing condemnation from the industry that said it will force a production cut.

In the plan expected to be published in details later on Monday, the government would be seeking to force oil and gas producers to have their emissions decline by 35% compared to 2019 levels

The Government of Canada has announced draft regulations to cap greenhouse gas emissions from the oil and gas sector, aiming for a 35% reduction from 2019 levels by 2030. This move is part of Canada's broader strategy to combat climate change while ensuring the continued growth of the oil and gas industry.

Oil and gas producers in Canada will be required to cut greenhouse gas emissions by about one-third over the next eight years under new regulations published Monday. The government is also going to establish a cap-and-trade system that Environment Minister Steven Guilbeault said will reward lower-emitting producers and incentivize higher-polluting ones to do more.

Oil and gas producers in Canada will be required to reduce carbon emissions by 35% from 2019 levels over the next eight years under new regulations published Monday by Prime Minister Trudeau's government.