PBO Report Confirms Negative Impact of O&G Emissions Cap
Conservatives have been saying since Day One that the government’s proposed Emissions Cap on oil and gas is actually a production cap that will reduce production and exports, cost jobs, hurt businesses that supply the industry, and reduce royalties and taxes paid to all levels of government that support citizen services like schools, health care, social services, national defence and more. The Parliamentary Budget Officer has now released a detailed analysis that confirms those negative outcomes.
The Parliamentary Budget Officer released on March 12 his analysis of the Liberal oil and gas emissions (production) cap. Read the full report here.
Contrary to government claims, he reports this policy will reduce oil and gas production by nearly 5%, cut GDP by $20.5 billion annually, and eliminate 54,400 full-time jobs by 2032.
Canada’s energy sector currently employs nearly one million people (directly and indirectly through suppliers). In 2022, oil and gas contributed $45 billion in revenue to help pay for schools, hospitals, national defence, policing, and other essential services.
There will be no relief from Prime Minister-designate Mark Carney, who has previously said, “You know the oil and gas sector in Canada produces more than a quarter of our emissions, so just, and that’s in the production and transportation of oil and gas, not the actual use of oil and gas, gas in our cars, used to heat some homes and other things. So, we can’t meet our ultimate objectives which is to get to net zero emissions which by the way is what we have to do to prevent the wildfires and the other climatic events from getting worse, what the world has to do, we can’t get there unless we do not just have a cap on emissions, but those emissions are brought effectively to zero”.
Now, as Canada faces new U.S. tariffs that threaten to inflict even more economic damage on Canada, Carney is doubling down on his “keep it in the ground” agenda. Canada should instead be expanding energy and mineral production and securing more diverse global markets for our valuable resources.
That is what a Conservative government would do.