OTTAWA — The Conservative Party is pushing back against the Liberal government's oil and gas emissions cap, which has not yet been fully implemented. Conservative Leader Pierre Poilievre criticized the cap in the House of Commons on Monday, claiming it is deterring private investment in the oil and gas sector, resulting in billions of dollars in lost opportunities.

"It turns out that nobody wants to build a pipeline when the government bans you from producing the oil to put into it," Poilievre stated. He introduced a motion urging Prime Minister Mark Carney to "immediately repeal the oil and gas emissions cap."

The emissions cap, a key promise from the Liberals' 2021 campaign, is designed as a cap-and-trade system that mandates reduction targets for industrial emitters. Draft regulations released last fall propose an initial cap starting in the early 2030s, requiring a 35 percent reduction from 2019 levels. Noncompliance could result in fines of up to $12 million.

Reports indicate that the Carney government is contemplating the possibility of dropping the cap in exchange for commitments to emissions reductions from Alberta and oil and gas companies. Poilievre urged the Liberals to clarify their position. "We’re giving Liberals an opportunity to vote here and now: if they vote to keep their production cap in place, it will be a signal that all the flirtations that the prime minister has done, with the possibility of producing more or building pipelines, were nothing more than an illusion," he said.

The Parliamentary Budget Officer (PBO) estimated in March that the emissions cap could eliminate 54,400 full-time jobs and reduce nominal GDP by $20.5 billion annually by 2032. This report sparked a debate between the PBO and Liberal officials, who accused the PBO of misleading Canadians by not considering "technically achievable" carbon capture improvements.

Corey Hogan, the parliamentary secretary for energy and one of two Liberal MPs from Alberta, responded to the Conservative motion. "I don’t think there’s an environmental regulation the Conservatives don’t think would kill the pipeline industry in Canada, but it is stronger than they think and the chicken little routine is getting a little bit tiresome," Hogan remarked. He expressed disappointment that his colleagues did not share his optimism about Canada's emerging carbon capture technologies.

Energy analyst Heather Exner-Pirot commented that while the Conservative motion is unlikely to pass, it positions the party favorably in the ongoing debate. "This cap was terrible policy from day one, and it now looks to be on its last legs. I guess they want to be on the record saying they did all they could to push it off the table," Exner-Pirot said.

Environment Minister Julie Dabrusin informed reporters earlier this month that her team is still reviewing feedback on the 2024 draft regulations and has not set a timeline for final regulations. "All of that feedback has been gathered and we’re continuing to work through that feedback," Dabrusin stated.