Business, Chamber Statement, Policy

FOR IMMEDIATE RELEASE

November 4, 2024 

EDMONTON, AB – The Edmonton Chamber of Commerce is gravely concerned by the Draft Oil and Gas Sector Greenhouse Emissions Cap Regulations published by the Government of Canada on November 4, 2024. If enacted, these regulations would introduce substantial risk and uncertainty to Canada’s oil and gas sector, with severe and far-reaching consequences for Edmonton’s, Alberta’s, and Canada’s economies in both the short and long term.

The emissions cap, the next step in implementing Canada’s Regulatory Framework for an Oil and Gas Sector Greenhouse Gas Emissions Cap that was introduced on December 7, 2023, aims to reduce emissions and drive technology investment in Canada’s energy sector. The draft regulations propose a cap-and-trade system primarily affecting upstream oil and gas producers, including conventional oil, oil sands, and liquefied natural gas (LNG) production.

The oil and gas sector is a major contributor to Canada’s economy. In 2023, the sector employed approximately 700,000 Canadians (3.5% of total employment), generated $209 billion towards our national gross domestic product, and accounted for 25% Canadian exports to the world. While the federal government’s stated goal is to curb emissions, the regulations would undeniably curtail oil and gas production, jeopardize Alberta’s energy sector, and harm Canada’s overall economy.

A Deloitte report prepared for the Government of Alberta in March 2024 highlights the detrimental economic impacts this cap would have on Alberta, estimating a 10% reduction in oil production and a 16% decline in conventional gas production by 2030. The report projects that Alberta’s GDP could fall by 4.5% by 2040, with cumulative losses reaching $191 billion over a decade. This downturn would affect not only the oil and gas sector but also industries reliant on it, such as engineering, construction, and financial services. For Alberta, where oil and gas significantly drive GDP and employment, these impacts would be devastating.

Doug Griffiths, President and CEO of the Edmonton Chamber, emphasized, “The oil and gas emissions cap regulations will undermine Alberta’s economic foundation and weaken Canada’s overall economy. We need policies that support sustainable growth, not measures that risk destabilizing one of our country’s key industries. The Edmonton Chamber will continue to advocate for balanced solutions that address environmental goals without compromising economic stability and job security.”

The Edmonton Chamber of Commerce joins other key stakeholders—including the Government of Alberta, Calgary Chamber of Commerce, Canadian Chamber of Commerce, and Business Council of Alberta—in urging the federal government to withdraw the proposed emissions cap altogether. The Edmonton Chamber views these regulations

as a serious threat to local business competitiveness and economic stability, especially given our city and province’s heavy reliance on the energy sector. At the same time, we remain committed to advocating for balanced solutions that align economic growth with environmental responsibility.

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For further information or to discuss this issue, please contact:

Akanksha Bhatnagar
Director, Communications and Public Relations
Phone: 780-616-7153 | Email: abhatnagar@edmontonchamber.com