Alberta’s government and the Government of Canada have worked in partnership to reach an agreement-in-principle that would allow the province to continue regulating methane under its existing system while achieving a 75 per cent reduction from 2014 levels by 2035.

Methane emissions in Alberta have dropped more than 50 per cent from 2014 levels, driven by strong provincial rules, world-leading measurement and monitoring and made-in-Alberta technology. This agreement-in-principle builds on that progress by setting a clear path to further reductions while keeping the system practical, cost-effective and tailored to Alberta’s economy.

“Albertans have long known that responsible energy development and strong environmental performance go hand in hand. This agreement reflects that approach, keeps decision-making here in Alberta and builds on a system that is already delivering results. We will keep lowering emissions while supporting the energy sector that drives our province forward.”

Danielle Smith, Premier

“Canada is strongest when we work together. By partnering with Alberta on a methane equivalency agreement, we will cut emissions while ensuring we protect Canadian jobs and build a more competitive and resilient energy sector. This is how we build a stronger, more sustainable and more independent Canadian economy – by driving innovation, reducing pollution and positioning Canada as the world’s supplier of choice for responsibly produced energy.”

Mark Carney, Prime Minister of Canada

Implementation would occur through an outcome-based equivalency agreement under the federal Environmental Protection Act. Alberta’s methane regulations are expected to remain in place for the next decade while achieving the 2035 target. Without an equivalency agreement, both federal and provincial rules would apply, increasing costs, creating duplication and undermining Alberta’s competitiveness. Modelling and emissions reduction assessments will be completed by an independent third party, agreed upon by both federal and provincial parties.

To support the agreement-in-principle, a roadmap, or pathway, has been developed that outlines how the province plans to achieve the 75 per cent reduction target through existing and planned regulations, as well as complementary measures. The roadmap sets clear data standards based on industry reports instead of estimates, commits to targeted regulatory updates where they will deliver the most emissions reductions, and builds on proven methane measures already working in Alberta.

“Alberta has a proven track record of achieving practical, affordable emissions reductions while supporting competitiveness and economic growth. This agreement recognizes that leadership reduces red tape by keeping methane regulation in provincial hands and builds on Alberta’s strengths with the flexibility needed to reduce emissions in a way that works for our economy.”

Grant Hunter, Minister of Environment and Protected Areas

A draft equivalency agreement is expected to be released for a 60-day public comment period later this year, with finalization targeted by the end of 2026.

This approach builds on recent progress between the Government of Alberta and the Government of Canada to improve project approvals and strengthen cooperation on energy development. It is the second of four agreements due to be completed in April under the Alberta-Canada memorandum of understanding, with the remaining two agreements targeted for completion in the coming weeks, ensuring Alberta remains a global leader in responsible resource production.

“Methane regulations are most effective when developed within the jurisdictions where companies operate, and Alberta is well-positioned to deliver an approach that reflects the province's operational realities. Leveraging credible data and recognizing industry's leadership in reducing methane emissions under the Canada-Alberta MOU supports a step forward in enhancing the competitiveness of Canada's natural gas industry. Tourmaline is pleased to continue advancing efforts to enhance the world-leading performance of the Canadian natural gas industry in mitigating methane emissions.”

Mike Rose, president, chief executive officer and chairman, Tourmaline Oil Corp.

Quick facts

  • The agreement-in-principle would be implemented through provincial regulations overseen by the Alberta Energy Regulator.
  • New rules will take effect on Jan. 1, 2030.
  • The agreement will replace the current Alberta-Canada methane equivalency agreement set to expire in October 2030.
  • The federal government will begin its formal process, including posting in Gazette I followed by final publication of the agreement in Gazette II.
    • Timing is determined by the Government of Canada.
  • Alberta was the first jurisdiction in Canada to set a methane reduction target and achieved its 45 per cent reduction from 2014 levels early in 2022.
  • Alberta has invested about $172 million in methane reduction technology since 2019.
  • More than 58,000 low- or no-bleed devices have been installed through Alberta’s carbon offset system.

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