Dear John,

The federal government’s planned cap on greenhouse gas emissions will inevitably reduce oil and gas production in Canada, which will cost the Canadian economy at least $44.8 billion in 2030.

A new study published by the Fraser Institute today finds that despite these huge costs, the cap will generate almost no environmental benefit.

According to the government’s plan, the oil and gas sector must reduce emissions by 31% (below 2005 levels) by 2030. To achieve this level of emissions reduction, the sector must reduce the production of oil and gas, which will result in a significant drop in tax revenue and resource royalties for governments across Canada.

And yet despite these massive costs, the projected environmental benefits are almost non-existent.

For example, if Canada eliminated all greenhouse gas emissions expected from the oil and gas sector in 2030, the reduction would equal only four-tenths of one per cent (0.004%) of global emissions.

Learn more by checking out the full study here, and be sure to spread this one far and wide!

Sincerely,

Niels Veldhuis
President
The Fraser Institute