VANCOUVER — British Columbia’s ambitious regulation of methane emissions is providing a substantial economic return, and continued progress to deliver on the province’s existing 2030 and 2035 targets would provide more than a billion dollars in net benefits, according to a new report from the Pembina Institute.
The province’s oil and gas companies cut their methane emissions by 52 per cent below 2014 levels in 2023, two years ahead of schedule. In Staying the Course – The benefits of B.C. delivering on its methane reduction commitments, oil and gas program manager Amanda Bryant describes the real and quantifiable benefits B.C. would realize with sustained action from industry towards the province’s next stated targets of a 75 per cent reduction from 2014 levels by 2030 and a near elimination of industrial methane emissions by 2035.
These include:
- An estimated 1,543 kt of cumulative methane emissions reductions between 2018 and 2035 as methane emissions continue to decline under existing targets and regulations
- Approximately $1.1 billion in net benefits in this same time period, after accounting for compliance costs, the value of conserved gas and avoided climate damages estimated using the social cost of methane, which factors in potential cumulative government royalties of approximately $26 million, with estimated royalties ranging from $16 million to $36 million depending on natural gas prices and royalty rates
- A globally competitive methane intensity that strengthens B.C.’s position as a supplier of lower-methane-intensity natural gas and supports access to markets such as South Korea, Japan, and the European Union that are increasingly focused on emissions performance and carbon border adjustment mechanisms
- Support for high-quality employment in methane mitigation and measurement, including the development and export of B.C.-based technology, services and expertise.
“B.C.’s strong regulatory approach to oil and gas methane emissions, backed by measurement studies, has allowed the province to decouple methane emissions from natural gas production growth. This is a significant achievement,” Bryant said. “The Pembina Institute urges the B.C. government to stay the course with its approach to regulating methane emissions, and for Alberta and Saskatchewan to follow suit.”
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Quick facts
- Methane is 80 times more powerful than carbon dioxide as a greenhouse gas over a 20-year period, but it breaks down more quickly in the atmosphere, making methane mitigation one of the most effective methods of slowing climate change.
- As of 2025, there were 136 methane mitigation firms that are either headquartered in Canada or have sites (such as manufacturing facilities, sales offices, warehouses, repair shops) located in Canada. Most are small businesses, meaning they have 1 to 99 paid employees.
Visit the Pembina Institute’s website to download a copy of Staying the Course – The benefits of B.C. delivering on its methane reduction commitments.
Contact
Benjamin Alldritt
Senior Communications Lead, Oil & Gas
587-328-1955
Background
Reports: Raising the Bar: How targets and measurement are crucial to leadership on oil and gas methane
Canada’s Methane Opportunity
