Canada's 2023 emissions edged lower but progress slow, report says

(Reuters) - Canada's carbon emissions declined slightly in 2023 from the previous year but need to fall much faster to meet Ottawa's 2030 climate target, the Canadian Climate Institute think-tank said on Thursday.

WHY IT'S IMPORTANT

Canada is aiming to cut climate-warming carbon emissions 40-45% below 2005 levels by 2030.

But an early estimate of national emissions, released by the institute seven months before the government's official national inventory report, shows slow progress towards the target and that emissions from the oil and gas sector continue to rise.

BY THE NUMBERS

Total 2023 emissions were an estimated 702 million metric tons of carbon, a decrease of 1%, from the previous year. Emissions are now 8% below 2005 levels.

Oil and gas emissions rose 1% year-on-year due to booming production, and are now 12% higher than 2005 levels. The sector accounts for 31% of all Canada's emissions, more than any other industry.

Transportation and agriculture emissions also rose year-on-year, while the electricity and some other sectors recorded declines.

KEY QUOTES

"Our early estimate shows that rising oil and gas and transportation emissions are offsetting gains made in electricity and buildings, slowing Canada's climate progress," said Dave Sawyer, principal economist at the Canadian Climate Institute.

WHAT'S NEXT

Prime Minister Justin Trudeau's Liberal government has proposed an oil and gas emissions cap from 2026 to help rein in the sector's emissions.

However, the policy faces strong resistance from the fossil fuel industry and the opposition Conservative Party. Polls show the Conservatives are likely to beat the Liberals in the next federal election, which will take place by October 2025.

(Reporting by Nia Williams in British Columbia; editing by Diane Craft)