Ottawa’s Emissions Cap Will in Effect Become a Production Cap, Says CIBC Analysis

The analysts say requiring the oil and gas industry to cut emissions by 35 to 38 percent below 2019 levels by 2030 is ‘unrealistically ambitious.’

Minister of Environment and Climate Change Steven Guilbeault speaks to members of the media at the COP28 U.N. Climate Summit in Dubai on Dec. 8, 2023. AP Photo/Peter Dejong

Ottawa’s push to have oil and gas companies cut emissions by at least one-third of 2019 levels by 2030 is not only “unrealistically ambitious” but also risks curtailing production, CIBC says.

“The timing of the cap remains unrealistically ambitious, and hence would make it onerous if implemented,” wrote CIBC Capital Markets analysts Shaz Merwat and Dennis Fong in a Dec. 7 note to clients, as reported by Yahoo Finance.