CAPP statement on the PBO’s report on the proposed federal oil and gas emissions cap

“The PBO report reaches the same conclusion as CAPP: the government’s proposed regulations to cap greenhouse gas emissions from the oil and gas sector will directly limit Canada’s oil and natural gas production. The assessment also highlights the severe economic impact of the emissions cap, projecting a 0.39% decline in real GDP by 2032, a $20.5 billion reduction in nominal GDP, and the loss of 54,400 jobs—aligning with industry analyses that a cap on production is a cap on prosperity.

As Canada faces the threat of recession and a prolonged recovery compounded by 25% tariffs in our trade relationship with our largest economic partner, it is time to scrap the cap, which is also a significant infringement on provincial jurisdiction. Failing to do so will further erode living standards, government revenues, and affordability. Canadians need policies and market-driven solutions that attract investment and drive economic growth. Now is the moment to focus on the Canadian national interest with decisive leadership, smart reforms, and a renewed commitment to our competitive energy advantage.”