After months of speculation, the federal government is signalling its intention to eliminate the oil and gas emissions cap. But it came with some strings attached.

The budget did not outright say the controversial proposed Trudeau era-climate policy is gone, but it did outline specific conditions for its removal.

The budget said “effective” carbon pricing, enhanced methane regulations and the deployment of carbon capture and storage at scale “would create the circumstances whereby the oil and gas emissions cap would no longer be required as it would have marginal value in reducing emissions.”

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The Carney government delivered that conclusion in “Canada’s Climate Competitiveness Strategy,” which was introduced in the 2025 budget.

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