The federal government's imposition of greenhouse gas emissions limits in the oil and gas sector could lead to the loss of more than 54,000 jobs, the Parliamentary Budget Office (PBO) has warned.

Energy Minister Jonathan Wilkinson criticized the forecast, saying that experts only analyzed a scenario in which emissions cuts automatically lead to a drop in oil and gas production. The minister argues that emissions cuts do not necessarily lead to production declines and mass layoffs.

Prime Minister Mark Carney has previously said that Canada cannot achieve its carbon neutrality goal without completely eliminating emissions from the oil and gas sector. According to him, emissions in this sector must be “brought to near zero.”

Experts and industry representatives warn that the government should be more careful in tightening climate requirements to avoid serious economic consequences and social unrest.