TORONTO—The Canadian government said it would use a cap-and-trade system to impose greenhouse gas emission limits on its oil-and-gas industry, making Canada one of the first major global oil producers to impose emissions limits on its energy industry.

Under what the government described Thursday as a “draft framework” that would be finalized in 2025, Canada will issue emissions allowances to oil-and-gas producers, which will be capped at a level between 35% and 38% below 2019 levels, beginning in 2030. The government will then keep lowering allowances in stages until the industry reaches net zero by 2050.