What do Ottawa's strict new emissions rules mean for N.L.? No one's really sure

The federal government has announced its regulatory framework aimed at capping oil and gas emissions across the country but no one seems to know what that exactly means for Newfoundland and Labrador.

The framework proposes to cap 2030 emissions at 35 to 38 per cent below 2019 levels as part of the national plan to reducecarbon emissions in the sector to net zero by 2050.

It would apply to industries involved in exploration, drilling and extraction of crude oil and natural gas, which includes Newfoundland and Labrador's offshore industry.

Environment and Climate Change Minister Bernard Davis said his staff is reviewingthe federal framework.

"I guess the devil will be in the details to see how that fits with respect to each jurisdiction. It is a national framework, so each jurisdiction is going to be affected slightly differently," Davis told reporters.

"Our staff are working very hard and will be in constant contact with [their] federal colleagues to ensure that Newfoundland and Labrador is treated fairly in that framework."

He also said the province already has the Management of Greenhouse Gas Act, which guides the industry to set baselines for emissions reductions, adding that emissions havefallen over the last four years.

Up in the air

CBC News has asked a number of stakeholders in the oil and gas sector for interviews about how the proposed emissions cap could impact operations.

Energy N.L. declined to speak on what the cap means for its membersuntil it hasmore information.

In an email, Equinor spokesperson Alex Collins said the company is reviewing the documents to understand how the proposed framework could impact its operations.

Similarly, Cenovusand Suncor directed CBC News to a statement from Pathways Alliance president Kendall Dillingthat stated the company would "take the necessary time to analyze the government's emissions cap framework to determine how it may impact oil sands operations."

Not a flipped switch

Econext CEO Kieran Hanley said the framework is still a proposal that will need to be discussed and its exact regulations developed, which will take time.

"But how it impacts Newfoundland and Labrador, it is kind of too early to say," he told CBC News.

Hanley also cautioned against jumping to conclusions on how it could impact the industry.

"Really, these are frameworks the federal government is trying to put in place to really achieve net zero by 2050. So it's not as if a switch is flipped and things change overnight."

In the federal report is an acknowledgement that Newfoundland and Labradoris different from other provinces because it has an offshore oil sector, added Hanley.

"The greenhouse gas emissions total emanating from Newfoundland and Labrador is just a fraction of what occurs in the rest of Canada."

Hanley also suggested the oil produced off the province's coast is more environmentally efficient than what's produced in other parts of the country. It's possible that if the framework rolls out, its impact on Newfoundland and Labradorwon't be as significant as people may fear, he said.

He also said there's potential for economic opportunities in Newfoundland and Labrador to attract investment toward negative greenhouse gas emissions projects.

Close loopholes

Sierra Club Canada head of communications Conor Curtis said while the framework is a good first step, he wanted to see the federal government go further to tackle emissions.

It's also something he'd like to see implemented quickly and come into effect sooner than the phased-in target of 2026.

"This has been something that the Trudeau government has had in its mandate for a long time now. And unfortunately, what we've seen is repeated delays on the emissions cap, in large part because of oil and gas industry lobbying," Curtis told CBC News.

In the framework is the possibility for oil and gas companies to be able to buy carbon offsets from other producers or contribute to a decarbonization fund.

That's something Curtis identified as a loophole that needs to be closed. He says he'd like to hear more specifics about the decarbonization fund and how it will work.

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