Oil and Gas Greenhouse Gas Regulations: The implications of alternative proposals

By David Sawyer, Dale Beugin on May 1, 2013

Canada's oil and gas industry is currently negotiating with the provincial and federal governments over new greenhouse gas regulations that will be rolled out nationally.

Specific proposals are finally emerging that will define the greenhouse gas ambition and costs of nationally important regulations.

In this policy brief, IISD explains the economics behind the proposals and provides one view on their cost and emission reduction implications. We think it is worthwhile to reveal the trade-offs of the proposals to provide a common information base to inform ongoing discussions.

While all proposals on the table will deliver emission reductions at costs that seem reasonable, a 40 per cent intensity standard with a two-tiered price ceiling could strike a good balance. Such a policy could deliver 42 Mt of compliance in 2020, at an average cost of $28 per tonne or $0.42 per barrel of oil produced.

Please visit our Regulating Carbon page for more details.

Report details

Climate Change Mitigation
Regulating Carbon Emissions in Canada
Focus area
IISD, 2013