Feds in discussions with Alberta, oil companies about 'emissions intensity' of oilsands

Natural Resources Minister Tim Hodgson says the federal government is in discussions with Alberta and oil companies about oilsands emissions, amid reports the federal emissions cap could be on the chopping block.

According to the Toronto Star and Reuters, Prime Minister Mark Carney's government could eliminate the proposed federal cap on oil and gas sector emissions if Alberta and oil companies agree to other environmental concessions.

"In the conversations that have been going on with Alberta and with the industry, what we agree on is for the oil industry to make a fundamental change in the emissions intensity of the oilsands," Hodgson said at a Friday news conference in Winnipeg.

"We are in the middle of discussions around how we get to the results."

Hodgson did not confirm whether a federal emissions cap could be a casualty of those discussions, adding he would not be conducting negotiations through the media.

Speaking at the same news conference, Environment Minister Julie Dabrusin said her department was reviewing feedback on the proposed emissions cap and "checking where we go from there."

A public comment period about the emissions cap closed in January.

Last November, the federal government announced the regulations that impose a cap on certain activities in the oil and gas sector with the goal of limiting emissions to 35 per cent below 2019 levels.

The sector, which is responsible for nearly a third of Canada's greenhouse gas emissions, would have four years to phase in the reduction.

At the time, the government argued the regulations would incentivize emissions reductions without sacrificing production. It expected to publish the final regulations this past spring, though it has not yet done so.

Alberta Premier Danielle Smith railed against the proposal, saying she would "use all means at her disposal" to fight federal policies that hurt the province.