Carney government's 'net-zero' goal would require radical changes to oil and gas production

New report says reaching net-zero emissions by 2050 would drastically impact Canada's oil and gas industry

Apr. 8, 2026 at 1:39pm

Got story updates? Submit your updates here. ›

A new report from the Fraser Institute argues that the Carney government's goal of reaching net-zero emissions by 2050 would require radical changes to Canada's oil and gas production. The report, authored by Annika Segelhorst and Elmira Aliakbari, says the push for net-zero would have major implications for the country's energy industry.

Why it matters

Canada's oil and gas sector is a major driver of the national economy, employing hundreds of thousands of workers. Any dramatic shifts in production to meet net-zero targets would have significant economic and political ramifications that the government would need to carefully navigate.

The details

The report states that to reach net-zero emissions by 2050, Canada would need to drastically reduce oil and gas production, potentially by as much as 80%. This would require a rapid transition away from fossil fuels and toward renewable energy sources. The authors argue that such a dramatic shift would be extremely disruptive to the Canadian economy and workforce, and would face significant political headwinds.

  • The Fraser Institute report was published on April 8, 2026.
  • The Carney government has set a target of reaching net-zero emissions by 2050.

The players

Annika Segelhorst

Co-author of the Fraser Institute report and researcher focused on energy and environmental policy.

Elmira Aliakbari

Co-author of the Fraser Institute report and associate director of the institute's energy and natural resource studies program.

Fraser Institute

A Canadian public policy think tank that published the report on the implications of Canada's net-zero emissions goal.

Got photos? Submit your photos here. ›

What they’re saying

“Canada should 'double down our efforts' to reach net-zero emissions by 2050”

— Tim Hodgson, Federal Energy Minister

What’s next

The Carney government is expected to release more details on its plan to achieve net-zero emissions in the coming months, which will likely face scrutiny from industry groups and critics concerned about the economic impacts.

The takeaway

Reaching Canada's net-zero emissions goal by 2050 would require a dramatic transformation of the country's oil and gas industry, posing major economic and political challenges that the government will need to carefully navigate in the years ahead.