Ottawa to announce stricter methane regulations

OTTAWA — The federal government will implement stricter methane regulations on both the oil and gas and landfill sectors in an initial batch of more severe environmental policies to be implemented by the Carney government. 

The stricter regulations will be phased in beginning in 2028 and will provide onshore oil and gas producers and transformers with two options to reduce methane emissions, according to a draft press release provided to National Post.

The first will be to prohibit the practice of burning off excess natural gas (called “venting”) and require companies to set an inspection schedule to find and repair leaks, a key source of methane emissions. 

The second option offers much more latitude to industry by allowing operators to “design their own approaches to controlling methane” on the condition that facilities meet emission thresholds “that are on par with standards from leading international voluntary certification programs.” But industry has argued in the past that these alternative approaches don’t yet exist.

Environment Minister Julie Dabrusin is excepted to announced details of the changes in Vancouver late Tuesday afternoon.

The changes to existing methane regulations, first reported by CBC News, are the first stricter environmental measures implemented by Prime Minister Mark Carney since taking the reins of government in March.

His government has undone many such policies implemented by his predecessor Justin Trudeau, including eliminating the consumer carbon tax, largely neutering the industrial emissions cap and signing an agreement with the Alberta government that paves the way for new pipeline development.

The changes are likely to frustrate large oil and gas companies, which have argued that they agree with Canada’s commitment to reduce methane emissions by 75 per cent of 2012 levels but want to draw their own path to get there.

The government press release also says the new regulations aim to clamp down on methane released from landfills, which accounted for 17 per cent of such emissions in Canada in 2023.

“Owners and operators of regulated landfills will be required to monitor the landfill surface, landfill gas recovery wells, and equipment used to control landfill methane emissions,” reads the statement.

In its press release, the government says the new regulations will reduce methane emissions “significantly,” including as a byproduct of increasing oil and gas production. 

The press release estimates the measures will reduce greenhouse gas emissions by a cumulative 304 million tons of carbon dioxide equivalent by 2040. 

But it also admits that it will slightly slow the projected growth of Canada’s oil and gas production in B.C., Alberta and Saskatchewan, as well as the country’s GDP.  

According to the government’s estimates, production will be roughly 0.2 per cent, or roughly 500 petajoules, lower over the next 10 years under the new regulations when compared to the current estimates. It will also impact GDP by 0.01 per cent by 2035. 

“The Enhanced Methane Regulations will help ensure that our oil and gas sector remains competitive by preparing it for a future where markets are shifting toward lower-emission sources,” reads the draft press release. 

The government says the measures are expected to cost the oil and gas industry $48 per tonne of carbon dioxide equivalent reduced, arguing that its “one of the lowest cost opportunities to drive significant progress on our climate goals.” It also argues that the costs will not be passed down to consumers.

But industry is likely to disagree with that figure, as Environment and Climate Change Canada (ECCC) and the oil and gas sector are rarely on the same page when it comes to the cost of complying with environmental measures.

More to come.

National Post

cnardi@postmedia.com

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