ICBA Opposes Federal Oil and Gas Emissions Cap: ‘A Harmful Policy for Canada’s Economy’

The Independent Contractors and Businesses Association (ICBA) has submitted a formal letter to the federal government expressing strong opposition to the proposed oil and gas emissions cap. This policy, which seeks to reduce greenhouse gas (GHG) emissions from Canada’s largest export industry by 35% by 2030-32, risks devastating economic consequences while offering limited environmental benefits.

The oil and gas sector accounts for 20-25% of Canada’s annual merchandise exports and supports thousands of high-paying jobs across the energy supply chain. However, experts like Deloitte and the Conference Board of Canada estimate that meeting the cap will require significant production cuts, resulting in tens of billions of dollars in lost economic output, job losses, and a substantial reduction in government revenues.

The cap is not only economically harmful but also unnecessary. Canada already has over 70 climate-related policies in place, including carbon pricing, clean fuel standards, and provincial regulatory measures. Adding this emissions cap will increase costs and complexity for producers while doing little to reduce emissions in a cost-effective, economy-wide manner.

Furthermore, the policy faces significant constitutional challenges, as the provinces—not Ottawa—have jurisdiction over natural resource management. Alberta has already announced plans to mount a legal challenge.

At ICBA, we support practical, balanced climate policies. However, the federal emissions cap fails to meet this standard and jeopardizes one of Canada’s most productive industries. We urge the government to reconsider and focus on solutions that support both the environment and the economy.

Read more here.