Minister of Environment Steven Guilbeault confirmed that the oil and gas industry will have to reduce emissions by more than one-third by 2030, and that a framework setting the daily cap will be released with plans to publish draft regulations next spring and implement the final regulations in 2025.

Guilbeault said, "The plan is both feasible and constitutional, and it is necessary to reduce emissions from Canada's most carbon-intensive sector."

Oil and gas production accounts for more than a quarter of emissions in Canada, and Guilbeault says reducing those emissions is critical to achieving climate goals.

The framework explains that the sector will have to reduce emissions by 35 to 38 percent below 2019 levels by 2030.

However, they can purchase offset credits or contribute to a carbon removal fund that would reduce this requirement to only 20 to 23 percent.