The Canadian Association of Petroleum Producers (CAPP) says the roadmap announced Thursday to cap oil and gas will result in a cap on production and risks triggering other consequences like higher energy prices for Canadians.

Lisa Baiton, CAPP President and CEO, released a statement in the wake of the federal government’s announcement and says the unintended consequences of the draft framework of a cap-and-trade system with an interim target of a 35 per cent to 38 per cent emissions reductions below 2019, by 2030, could result in significant curtailments.

The Association says an emissions cap on the upstream oil and natural gas industry is unnecessary, given the longstanding carbon policies which already have Canada well on its way to meet or exceed emission targets.

It also says Canada is a major exporter of hydrocarbons to its western allies who value Canada’s commitment to energy security which operates in tandem with what Baiton describes as one of the most stringent environmental regulatory regimes in the world.

The Assocation also notes that in 2022, Canada’s oil and gas industry contributed over $9 billion in cash taxes to the federal treasury.