Question Period Note: Oil and Gas Methane

Methane accounts for about 16% of Canada’s GHG emissions, and the oil and gas sector is the source of about half of the total methane emissions in Canada. Most oil and gas methane emissions are generated by unintentional leaks (fugitive emissions) or by deliberate releases (venting).

• Canada was one of the first counties in the world to regulate methane from new and existing oil and gas facilities. Experience shows that methane regulations are a low-cost and effective way to achieve substantial GHG reductions in the oil and gas sector. Canada continues to advance the enhanced methane regulations that cut these emissions even further.
• We are committed to working with the provinces to position Canada as an energy superpower. There is a history of successful federal-provincial collaboration to reduce methane emissions from oil and gas. British Columbia, Alberta, and Saskatchewan have demonstrated leadership through their own methane regulations in place of the federal regime, giving industry clear rules to drive their investment in solutions. This approach has put Canada on track to meet the Government of Canada's 2025 methane reduction target for oil and gas.

• Jurisdictions and energy companies around the world are taking methane emissions seriously because of the threat of climate change. Investing in methane reduction technologies will ensure Canadian oil and gas is competitive in global markets and is produced responsibly. The regulations would also help create demand for Canadian clean technology.

• In December 2023, Environment and Climate Change Canada (ECCC) published draft enhanced methane regulations (EMR) that increase the scope and stringency of Canada’s existing methane regulations for oil and gas. The EMR would deliver significant near-term emission reductions at a relatively low cost and does not overlap with industrial carbon pricing systems.
• The enhanced methane regulations would expand the coverage and stringency of the 2018 methane regulations and include an innovative performance-based pathway that provides industry with greater flexibility in how they choose to meet the regulation’s requirements. This update to the methane regulations would bring Canada’s oil and gas sector in line with advanced methane markets like the European Union. It also positions Canadian oil and gas to compete in Asian and European markets, which are increasingly seeking low methane intensity
• Canada’s 2025 methane target for oil and gas is to reduce emissions to 40-45% below the 2012 level. Analysis published in 2021 found that Canada is on track to achieve that level of emission reductions with equivalency agreements in effect.

Non-applicable