Canada could eliminate oil and gas emissions cap, budget plan says

By Maria Cheng

OTTAWA (Reuters) -Canada could scrap a cap on oil and gas emissions if other measures like effective carbon markets, stronger regulations, carbon capture and storage technologies proved successful, the government said in a budget plan unveiled on Tuesday.

The climate plan, disclosed as part of Prime Minister Mark Carney’s first budget, said under those conditions, the cap “would no longer be required as it would have marginal value.”

Reuters reported last month that Canada was in talks with energy companies and the oil-producing province of Alberta about eliminating the emissions cap from the country’s oil and gas sector if the industry and province reduce their carbon footprint in other ways.

Canada’s emissions cap was not enforced through legislation and not scheduled