Methane mitigation industry poised to drive growth in Canadian jobs, investment and exports

Leadership across Canada in reducing methane emissions from oil and gas production has created a dynamic mitigation sector, with exportable technologies and expertise

May 8, 2025
Media Release
Serious male engineer in protective workwear using laptop while working at oil field against sky during dusk

Photo: iStock

CALGARY — Canada's methane mitigation industry is thriving, with well-paying jobs and investment likely to grow if companies and governments take steps to further reduce the harmful methane emissions that come from oil and gas production, according to a new report commissioned by the Pembina Institute and Environmental Defense Fund.  

Canada’s Methane Opportunity: Innovation, Exports, Jobs, authored by Datu Research, finds 359 locations across Canada where staff are either manufacturing methane mitigation technologies, providing leak detection services, or performing associated tasks (such as sales, equipment repair, and warehouses). In total, there are 97 methane mitigation companies headquartered in Canada, with at least an additional 42 companies that are headquartered elsewhere but operate in Canada.

These companies, most of which are classed as small businesses, are important drivers of economic growth and provide good jobs for skilled workers, many of whom will be able to transfer skills originally developed within the oil and gas sector. Notably, the report finds that median wages in methane mitigation companies range from $20 to $60.58 per hour, depending on job type. By comparison, the pay range for an oil field production worker in Canada is $29 to $66 per hour.

The rapid growth of Canada’s methane mitigation industry – and the development of world-leading technologies such as satellite monitoring and chemical injection systems – is testament to federal and provincial efforts to meet ambitious targets for methane emissions reductions. Robust federal and provincial regulations, combined with important incentive frameworks – such as the provision of carbon pricing offsets in Alberta for some methane mitigation technologies, as well as provincial funding for testing and innovation – have created a hospitable environment for companies to establish their businesses and develop innovative technologies, safe in the knowledge that there is strong domestic demand for their products.

With global methane mitigation efforts continuing to accelerate, Canadian companies are seeing international demand for their products and expertise, signalling that Canada’s methane mitigation industry has strong prospects as a source of export revenue for the country in the years ahead. Demand will likely grow as the energy transition accelerates and more countries seek proven ways to make their oil and gas industries as competitive as possible in a low-carbon world.  

Quotes

“Methane mitigation is a net win for all involved. The oil and gas sector gains a competitive edge by keeping valuable product in the pipeline, supporting energy security goals. This report also identifies the trickle-down impacts of methane mitigation technologies beyond the industries using them: this sector is powering economic growth for Canada. GHGSat is proud to be generating these economic returns for Canadian industry and communities.”  

— Jean-Francois Gauthier, Senior Vice President, Strategy, GHGSAT

 “Reducing methane emissions is not just about the environment, but about creating jobs, growing the economy, and developing the solutions needed by the oil and gas industry in the 21st century. As international markets increasingly demand low methane-intensity imports, Canada can choose to lead in this space or cede the opportunity to others. At the end of the day, everyone wins when methane is kept in the pipe.”

— Jacqueline Peterson, PhD, Chief Climate Officer, Kathairos Solutions

“Because capturing methane ultimately means keeping natural gas in the pipe that can later be sold, we have known for some time that oil and gas companies can reduce their methane emissions at low cost. This is a win-win for the industry and for Canadians, who get the benefits of cleaner air and a safer climate. What we now also know is that methane mitigation has become an economic driver in itself – creating a flourishing industry of world-leading methane abatement professionals that can sell their solutions to oil and gas companies around the world. This has the potential to be an important economic bright spot for Canada, and especially Alberta, in the years ahead – so long as governments continue to support policies, including updated methane regulations, that will give the Canadian methane abatement industry the confidence to keep investing, innovating, and employing more skilled workers.”

— Amanda Bryant, Senior Analyst, Pembina Institute

“This report shows that Canada’s methane mitigation companies are turning wasted gas into a valuable economic commodity while developing green technologies that can be exported worldwide. Cutting back on methane emissions is not just a climate opportunity, it’s a growth opportunity. Strong regulations can help cut energy waste and air pollution, while creating new good jobs and driving Canadian innovation."  

— Ari Pottens, Senior Campaign Manager, Environmental Defense Fund

Quick facts

  • A total of 136 methane mitigation firms are either headquartered in Canada or have sites (such as manufacturing facilities, sales offices, warehouses, repair shops) located in Canada. Of these companies, 55 are service firms and 81 are manufacturers.
  • Most companies (97) are Canadian, while 42 have international headquarters but operate in Canada. Three of these international firms also list Canadian headquarters.
  • Most are small businesses, meaning they have 1 to 99 paid employees.  
  • These companies provide high-quality, well-paying jobs. Dozens of job types are involved in manufacturing and services for mitigating methane, with relevant median wages ranging from $20 to $60.58 per hour depending on job type. By comparison, the pay range for an oil field production worker in Canada is $29 to $66 per hour.  
  • Demand for methane mitigation firms, and for associated workers, is likely to keep growing if governments progressively strengthen regulations to achieve ambitious methane reduction targets.

Methane regulations: state of play

  • In December 2023, the Government of Canada published the first draft of updated federal methane regulations, which aims to facilitate a 75% reduction of oil and gas sector methane emissions by 2030 (from 2012 levels).  
  • The new federal government has an opportunity to quickly follow-through on its campaign commitment to enact “enhanced final oil and gas methane regulations.”
  • British Columbia has already released updated provincial regulations that aim to meet or exceed this federal target.
  • The Government of Alberta has yet to issue strengthened regulations, but in its Emissions Reduction and Energy Development Plan, it committed to “assess potential pathways to achieve a provincial 75 to 80 per cent methane emissions reduction target from the conventional oil and gas sector by 2030 (from 2014 levels).”

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Visit the Pembina Institute’s website to download a copy of Canada’s Methane Opportunity: Innovation, Exports, Jobs.

Contact

Alex Burton

Communications Manager, Pembina Institute

825-994-2558

​​​Background

Blog: Action on methane makes sense now more than ever

Blog: Newly adopted European Union methane regulations are a game-changer

Blog: Achievable and fair amendments to Canada's methane regulations

Blog: Wasted Gas, Wasted Royalties – How Common-Sense Climate Policy Can Put Money Back in People’s Pockets

Blog: New maps detail Canada’s robust and growing methane mitigation industry

Blog: Cutting oil and gas methane is one of Canada’s most affordable climate solutions 

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