Today, the Honourable Julie Dabrusin, Minister of the Environment, Climate Change and Nature, announced final regulations to reduce methane emissions from the oil and gas sector and landfills across Canada, marking a major step forward in driving down emissions and building a strong economy. The suite of regulations announced today is a key pillar of Budget 2025's Climate Competitiveness Strategy, which is designed to provide certainty for investors, reduce emissions, and drive investment in clean energy and technology.
Investing in a clean future is both a moral imperative and the greatest economic opportunity of our time. As global markets accelerate toward cleaner energy production, taking action to reduce methane emissions will solidify Canada's commitment to address climate change and help define its leadership on the world stage.
Reducing oil and gas methane emissions
Reducing methane emissions is one of the fastest, most cost-effective ways to cut pollution and strengthen our economy. It is also an opportunity to create a thriving environment for the clean tech industry. Since Canada's first oil and gas methane regulations came into force in 2018, we have seen significant growth in the clean tech industry.
The Enhanced Methane Regulations send a clear signal for clean technology investments to reduce methane emissions, supporting over 130 methane abatement companies across Canada. These companies provide jobs in many communities, and they accelerate the use of measurement technologies, including continuous monitors, ground-based measurement vehicles, and aerial and satellite-based sensors. Various skilled clean tech workers have wages that are on par with petroleum engineers. An independent estimate suggests that actions companies take to comply with the regulations could create approximately 34,000 jobs in Canada between 2027 and 2040.
These enhanced regulations will also help protect and strengthen our communities by significantly reducing emissions that contribute to climate change, harm human health, and negatively impact our environment. The Government of Canada estimates that between 2028, when the regulations begin taking effect and 2040, we will realize a cumulative greenhouse gas emissions reduction of 304 megatonnes of carbon dioxide equivalent (Mt CO2e) and 1,593 kilotonnes (kt) of volatile organic compound (VOC), helping to avoid $36.3 billion in climate change impacts while providing $257 million in health benefits for Canadians.
The Enhanced Methane Regulations apply to onshore oil and gas production, gas processing plants, liquefied natural gas (LNG), and transmission facilities. They build on Canada's 2018 methane regulations by establishing stronger requirements to reduce methane emissions, including strengthening leak detection and repair requirements and controlling venting. These new measures will deliver significant emissions reductions in the years ahead and will help to further Canada's standing as an energy superpower by reducing the methane intensity of oil and gas while production continues to grow.
Reducing landfill methane emissions
With landfills accounting for 17% of Canada's methane emissions and 3% of its greenhouse gas emissions in 2023, the Landfill Methane Regulations provide a consistent approach to reducing landfill methane emissions in publicly and privately owned municipal solid waste landfills. Owners and operators of regulated landfills will be required to monitor the landfill surface, landfill gas recovery wells, and equipment used to control landfill methane emissions. This will allow for early detection of methane emissions and leaks that must be repaired within specified timelines.
Overall, from 2026 to 2040, the regulations are expected to reduce greenhouse gas emissions by 100 megatonnes of carbon dioxide equivalent in support of Canada's goal to achieve net-zero emissions.
Investing in Canada's clean tech industry
As part of today's announcement, Minister Dabrusin also announced, on behalf of the Honourable Tim Hodgson, Minister of Energy and Natural Resources, nearly $16 million in funding for investment in methane emissions reduction technologies across Canada. This targeted investment will help advance innovative methane reduction solutions and contribute to Canada's broader climate and competitiveness objectives.
The eight projects announced today will receive funding through the Energy Innovation Program's Methane Measurement and Mitigation call for proposals, launched in 2024 in support of Canada's Methane Centre of Excellence. This call commits to investing in Canadian expertise to accelerate knowledge and technologies for methane measurement, reporting, and mitigation.
In addition, further funding through the Energy Innovation Program will provide continued support to Carleton University's development of measurement-based inventories of methane emissions in the midstream oil and gas sector, first announced in May 2024.
