Canada and Alberta reach agreement-in-principle on methane equivalency

OTTAWA, ON , March 25, 2026 /CNW/ – The world is changing rapidly. In response, Canada is transforming its economy to be more resilient, competitive, and prepared for a low-carbon future. A key part of this effort is reducing emissions from the oil and gas sector and ensuring Canadian energy remains a reliable and responsible choice in global markets. By working with provinces and territories, Canada is cutting pollution, driving innovation, and supporting high-paying careers – strengthening its position as a global energy leader. Methane has a warming impact far greater than carbon dioxide, and lowering Canada’s methane emissions is an essential and cost-effective way of reducing greenhouse gases without impacting production. Furthermore, it is an essential part of our plan to strengthen Canada’s position in global energy markets, as global customers prioritise low-carbon oil and gas. That is why, today, the Government of Canada and the Government of Alberta announced an agreement-in-principle to lower emissions of methane in the oil and gas sector. Building on the November 2025 Canada-Alberta Memorandum of Understanding (MOU), this new agreement includes the objective of reducing methane emissions by 75% below 2014 levels by 2035 in Alberta. Under the proposed framework, Alberta would implement a performance-based approach that combines regulations, offset credits, and targeted investments. Canada therefore intends to continue to work with Alberta to develop an equivalency agreement under the Canadian Environmental Protection Act, 1999 , whereby federal methane regulations would be stood down in Alberta, provided that the necessary equivalent emissions reductions are realised. The agreement-in-principle commits to: Develop an outcome-based equivalency agreement with a pathway to the 2035 emissions reduction target. Use an independent, jointly selected third party to conduct methane modelling and assess emissions reductions. Enhance transparency through published information on covered emission sources and Alberta’s approach to reducing methane emissions. Take corrective action if reductions are not achieved as expected. Once Alberta and Canada arrive at an equivalency agreement, it will undergo a 60-day consultation period, with the goal of finalising it by the end of the year and implementing it no later than January 1, 2027, for a 10-year period, subject to legislative amendments. Alberta’s existing equivalency agreement will remain in place until the new agreement is finalised. Reducing methane emissions by the oil and gas sector is one of the most effective ways to achieve near-term climate benefits. Canada’s enhanced methane regulations also reduce air pollutant emissions, which means cleaner air for Canadians living near oil and gas activities. This agreement will provide regulatory certainty while supporting innovation and emissions reductions across the sector. Canada and Alberta continue to … Full story available on Benzinga.com