The federal government is reportedly reviewing the policy, which has not yet been enforced through legislation. Under the proposed regulations, oil and gas producers would operate within a cap-and-trade system that effectively forces companies to pay for carbon dioxide emissions over a certain threshold. (Reuters)

Talking point: Dropping the cap would mark a major sign of Ottawa’s willingness to heed the oil and gas industry’s interests. The sector has opposed the cap ever since its details were published in December 2023, and has claimed that the policy would inhibit its ability to invest in emissions-reducing technologies like carbon capture and storage. The Pathways carbon-capture project in northern Alberta is meanwhile among those that Prime Minister Mark Carney’s government has designated in the national interest, according to a list Ottawa released on Thursday.