EDF Celebrates Finalization of Canada’s Oil and Gas Methane Regulations

(BURNABY, BC) Today the Canadian Government announced the finalization of its long-awaited oil and gas methane regulation. The regulations are designed to achieve a 72% reduction in oil and gas methane emissions by 2030 and are a critical step to delivering on Canada’s climate agenda.  

Today’s announcement is a welcome development following last month’s memorandum of understanding between the federal government and Alberta that created uncertainty about the nation’s climate targets. Oil & gas methane emissions are a key opportunity for Canada to hit climate targets and create as many as 34,000 jobs. 

“While we look forward to reviewing the final regulations, today’s announcement is a watershed moment for Canada and the world as the nation finalizes the strongest oil and gas methane standards anywhere around the globe. There is still work to do to make sure that federal and provincial governments follow through with strong regional regulations, but these new rules have the potential to help Canada cut its carbon output while creating tens of thousands of jobs. We’re excited to enter the new year with an ambitious target and a path forward.” 

-Ari Pottens, Senior Campaign Manager, Canada 

It is expected that the regulation requires more frequent leak inspections, places strong limits on venting and flaring of natural gas and works to phase out high-polluting pneumatic devices.  

The federal regulation will need to be implemented through equivalency agreements that will be negotiated with major oil-and-gas-producing provinces. In the past, some provinces’ rules have not ended up being as stringent as the federal regulations. Going forward, the federal government must ensure effectiveness and full transparency and accountability before allowing these provinces to override the federal rules.  

Nonetheless, today’s regulations are another step in the right direction for Canadian methane leadership. In June, Canada joined the EU as a co-convenor of the Global Methane Pledge and recently made statements with Mexico and Japan to help improve transparency over methane emissions in the oil and gas supply chain.  

Background: Methane is a potent greenhouse gas that drives nearly 30% of current global warming. Methane is also the main component of natural gas, making it an important energy resource.  

Canada is the fourth largest oil producing country in the world and the fifth largest natural gas producer. ECCC estimates that industry is responsible for about half of the country’s methane emissions. While efforts have been made to create a more accurate federal inventory, multiple peer-reviewed studies indicate that companies’ methane emissions are much higher than what they report.  

In 2021, Canada became the first country to set a target of reducing oil and gas methane emissions by 75% from 2012 levels by 2030. An EDF-commissioned report from Dunsky Energy + Climate found that the 75% reduction target can be achieved at an average cost of $11/tCO2e. 

A 2025 report from EDF and the Pembina Institute found that 81 manufacturing firms and 55 service firms provide oil and gas operators across Canada with the equipment and services they need to directly reduce methane emissions. A new analysis from EDF economists' estimates that the most recent version of the regulations would create approximately 34,000 total jobs between 2027 and 2040, distributed throughout western Canada and Ontario and Quebec.  

Improving Canadian production methods will also lead to more captured, sellable product creating more royalties and corporate tax revenue for provincial governments. EDF analysis has found that the oil and gas sector wastes an estimated $17.24 CAD worth of natural gas every second, for a total of $2.2 billion CAD and counting since the regulations were announced in 2021. In Alberta alone, an EDF analysis found $413 million worth of wasted methane in 2021 and $671 million in 2022, which would have provided the province with an extra $47 million in revenue in 2021 and $121 million in 2022.