The International Energy Agency (IEA) is urging the Canadian government to require “deep decarbonization” in the country’s oil and natural gas industry. 

“Global markets will progressively demand cleaner fuels and will discriminate in favor of more carbon-competitive products,” said the global energy watchdog in a 261-page report.

“Canada is the fourth largest producer of oil and natural gas and home to the world’s third-largest oil reserves,” IEA said. “But simply having those resources will not be enough to compete in rapidly transforming global energy markets.”

Canada Prime Minister Justin Trudeau already has targeted the country’s oil and gas industry for more stringent regulations to reduce emissions. Many initiatives are underway, with industry...