Story perspectives

Canada's Emissions Cap: High Costs and Market Risks Ahead

9/10/2025

Summary

Story summary

A CNAPS study warns that Canada's proposed oil and gas emissions cap could increase global emissions, costing up to $289,000 per tonne reduced, far exceeding the previous carbon tax.
The report suggests the cap may deter investment and shift production to regions with lower environmental standards, raising "carbon leakage" concerns.
Crown LNG's Fermeuse Energy project plans to export LNG to Europe by 2030-31, responding to rising demand after the EU's reduction of Russian gas imports.
The project faces financial hurdles, requiring significant private investment despite favorable government policy shifts under Prime Minister Mark Carney.
Analysts foresee a potential LNG surplus by the early 2030s, complicating Canada's market ambitions.

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Story summary

A CNAPS study warns that Canada's proposed oil and gas emissions cap could increase global emissions, costing up to $289,000 per tonne reduced, far exceeding the previous carbon tax.
The report suggests the cap may deter investment and shift production to regions with lower environmental standards, raising "carbon leakage" concerns.
Crown LNG's Fermeuse Energy project plans to export LNG to Europe by 2030-31, responding to rising demand after the EU's reduction of Russian gas imports.
The project faces financial hurdles, requiring significant private investment despite favorable government policy shifts under Prime Minister Mark Carney.
Analysts foresee a potential LNG surplus by the early 2030s, complicating Canada's market ambitions.