Alberta’s carbon diet – how to lose megatonnes in just three short decades

Solving emissions problem is turning Alberta into a clean-tech powerhouse.

While oil, gas and pipelines took up a lot of oxygen at last week’s Global Energy Canada Show in Calgary, there was also a considerable focus on clean energy, clean-tech and decarbonization.

Alberta’s very survival in a decarbonizing world depends on innovation, best practices and regulations that will allow it to continue to produce oil and gas while trying to meet net zero targets that, like a mirage, appear to move further away the closer we get to them. Necessity being the mother of invention, Wild Rose Country has become rather inventive. It has become something of a clean-tech powerhouse and, as a result, has made some notable progress in its emissions intensity. Alberta’s industrial carbon tax, in place since 2007, and which hit $95 per tonne in 2025, has been used to fund emissions abatement technology and innovation through the Technology Innovation and Emissions Reduction (TIER) program.

According to the Government of Alberta, the province has, to date, achieved:

an 8.7% decline in overall emissions since 2015;
a 52% decline in methane emissions since 2014;
a 26% decline in oil sands emissions intensity since 2012; and
15 million tonnes of CO2 sequestered through carbon capture and storage.

The Pembina Institute, it is worth noting, has taken issue with some of Alberta’s reporting. Based on the federal National Inventory Report, Alberta’s methane emissions have declined by 35% between 2014 and 2023, not 52%.

Information sessions at last week’s conference covered topics like geothermal energy, lithium extraction, methane emissions detection and reduction technology, low-carbon hydrogen production and use, carbon capture and storage, and nuclear power. Alberta’s contributions to the energy transition and decarbonization is, I think, a bit of an untold story.

In the case of carbon capture utilization and storage (CCUS), it’s a story that some environmentalists don’t want to hear, and don’t want anyone else to hear. In 2023, Greenpeace and two other environmental NGOs filed a complaint with the Competition Bureau against the Pathways Alliance, saying its claims of potential emissions reduction through CCUS constituted greenwashing. The Trudeau government responded with an anti-greenwashing bill — C-59 — that puts companies at risk of fines for making claims on emission reductions that are not backed by “adequate and proper” testing and evidence. Basically, companies will need to show their homework before making claims on climate benefits or risk hefty fines.”Some of the things that I’ve said would be illegal for my companies to say under the existing law because it would be called greenwashing,” Premier Danielle Smith said at last week ‘s conference. Green fundamentalists don’t want to hear about climate benefits, if it involves things like carbon capture, which they view as extending the lifetime of fossil fuels. Maybe they didn’t get the memo from the Intergovernmental Panel on Climate Change (IPCC) Working Group 3, which last year pronounced in a special report that carbon sequestration is “unavoidable if net zero CO2 or GHG emissions are to be achieved.”

Alberta’s oil and gas industry understands full well there is a big target on their backs: the oil sands. This energy intensive form of extracting oil generated 86.5 million million tonnes of CO2 equivalent (CO2e) in 2023, according to the Alberta government. That accounts for 33% of Alberta’s total GHG emissions, and is getting perilously close to the federal government’s emission’s cap for oil and gas.

Alberta ingenuity and innovation in extracting oil from sand led Canada to become the world’s fourth largest oil producer, with huge economic benefits for Canada. Alberta is now applying that ingenuity to try to shrink its GHG profile. Alberta has had some of the largest emissions reductions in the power generation sector in Canada recently, thanks to the phasing out of coal power.

Last year, it retired its last coal power plant, meaning the province reached its goal of phasing out coal six years ahead of federal and provincial targets of 2030. As a result, emissions from Alberta’s electricity sector declined 54% between 2015 and 2023, according to the Alberta government. It accomplished this by investing in wind and solar power, backed by firm natural gas power. Alberta now has about twice the amount of installed wind power as B.C. Alberta also reached methane emission reduction targets ahead of schedule. The Alberta government reports a 52% decline in methane intensity between 2014 and 2023, exceeding the target of a 45% decrease by 2025.

According to a recent S&P Global report, the GHG intensity of Alberta’s oil sands has declined 23% since 2009. And since 2019, S&P reports, the pace of oil sands emissions growth has slowed, with a 3% increase in emissions since 2019, despite a 9% growth in oil and gas production. Alberta’s challenge is that, as long as it plans to increase oil and gas production — and it does — reducing its emissions is like draining a bathtub while the faucet is still on. While emissions intensity may go down, absolute emissions could still grow with production growth, and Danielle Smith would like to see Alberta’s oil production double. So, some pretty big gains will be needed if Alberta is to achieve the dual goal of increasing oil production while trying to bring its emissions intensity down to zero by 2050. The only way to do that is through large-scale CCUS, and Alberta has become a global leader in its deployment. Thanks to CCUS, Alberta is poised to become a leading producer of blue hydrogen, ammonia and other “net-zero chemicals.” Through CCUS initiatives like the Alberta Carbon Trunk Line and the Shell Quest CCS project, Alberta has already sequestered 13.5 million tonnes of CO2, according to Emissions Reduction Alberta.

The Pathways Alliance — a consortium of Alberta’s biggest oil producers — propose a $10 billion to $20 billion investment that includes a large scale-up of CCUS, to decarbonize oil sands production and Alberta’s petrochemical industry. According to Natural Resources Canada, the estimated sequestration of the Pathways project would be 13.9 Mt CO2 captured by 2030 — 4.2 MT per year — and 62 Mt per year by 2050. A buildout of CCUS infrastructure in Alberta’s refining and petrochemical complex in the Edmonton area would capture CO2 from gas combustion. “That then puts them on the road to net-zero aviation fuels, net-zero chemicals, what-have-you,” Chris Bataille, adjunct research fellow at Columbia University’s Center on Global Energy Policy, told me. “If you look at this as a transition, it’s a necessary thing to do, and we have the right geology for it, and these companies know how to do this kind of thing.”

In addition to CCUS, Alberta also now plans to become a nuclear power producer. A company called Energy Alberta plans to deploy existing Canadian nuclear technology — the CANDU reactor. It proposes to build a 1,000 megawatt twin CANDU MONARK reactor north of Peace River, Alberta. It is now in the early stage of a federal Impact Assessment process. If the federal Liberal government is serious about achieving its ambitious climate policy objectives, it needs to either help Alberta with its ambitious decarbonization efforts, which would include some major federal subsidies, or just get out of its way and let Alberta do what it does best, which is innovate.

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Alberta

COWBOY UP! Pierre Poilievre Promises to Fight for Oil and Gas, a Stronger Military and the Interests of Western Canada

Published on July 7, 2025

Government of Alberta

Fr0m Energy Now

By Maureen McCall

As Calgarians take a break from the incessant news of tariff threat deadlines and global economic challenges to celebrate the annual Stampede, Conservative party leader Pierre Poilievre gave them even more to celebrate.

Poilievre returned to Calgary, his hometown, to outline his plan to amplify the legitimate demands of Western Canada and not only fight for oil and gas, but also fight for the interests of farmers, for low taxes, for decentralization, a stronger military and a smaller federal government.

Speaking at the annual Conservative party BBQ at Heritage Park in Calgary (a place Poilievre often visited on school trips growing up), he was reminded of the challenges his family experienced during the years when Trudeau senior was Prime Minister and the disastrous effect of his economic policies.

“I was born in ’79,” Poilievre said. “and only a few years later, Pierre Elliott Trudeau would attack our province with the National Energy Program. There are still a few that remember it. At the same time, he hammered the entire country with money printing deficits that gave us the worst inflation and interest rates in our history. Our family actually lost our home, and we had to scrimp and save and get help from extended family in order to get our little place in Shaughnessy, which my mother still lives in.”

This very personal story resonated with many in the crowd who are now experiencing an affordability crisis that leaves families struggling and young adults unable to afford their first house or condo. Poilievre said that the experience was a powerful motivator for his entry into politics. He wasted no time in proposing a solution – build alliances with other provinces with mutual interests, and he emphasized the importance of advocating for provincial needs.

“Let’s build an alliance with British Columbians who want to ship liquefied natural gas out of the Pacific Coast to Asia, and with Saskatchewanians, Newfoundlanders and Labradorians who want to develop their oil and gas and aren’t interested in having anyone in Ottawa cap how much they can produce. Let’s build alliances with Manitobans who want to ship oil in the port of Churchill… with Quebec and other provinces that want to decentralize our country and get Ottawa out of our business so that provinces and people can make their own decisions.”

Poilievre heavily criticized the federal government’s spending and policies of the last decade, including the increase in government costs, and he highlighted the negative impact of those policies on economic stability and warned of the dangers of high inflation and debt. He advocated strongly for a free-market economy, advocating for less government intervention, where businesses compete to impress customers rather than impress politicians. He also addressed the decade-long practice of blocking and then subsidizing certain industries. Poilievre referred to a famous quote from Ronald Reagan as the modus operandi of the current federal regime.

“The Government’s view of the economy could be summed up in a few short phrases. If anything moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”

The practice of blocking and then subsidizing is merely a ploy to grab power, according to Poilievre, making industry far too reliant on government control.

“By blocking you from doing something and then making you ask the government to help you do it, it makes you reliant. It puts them at the center of all power, and that is their mission…a full government takeover of our economy. There’s a core difference between an economy controlled by the government and one controlled by the free market. Businesses have to clamour to please politicians and bureaucrats. In a free market (which we favour), businesses clamour to impress customers. The idea is to put people in charge of their economic lives by letting them have free exchange of work for wages, product for payment and investment for interest.”

Poilievre also said he plans to oppose any ban on gas-powered vehicles, saying, “You should be in the driver’s seat and have the freedom to decide.” This is in reference to the Trudeau-era plan to ban the sale of gas-powered cars by 2035, which the Carney government has said they have no intention to change, even though automakers are indicating that the targets cannot be met. He also intends to oppose the Industrial Carbon tax, Bill C-69 the Impact Assessment Act, Bill C-48 the Oil tanker ban, the proposed emissions cap which will cap energy production, as well as the single-use plastics ban and Bill C-11, also known as the Online Streaming Act and the proposed “Online Harms Act,” also known as Bill C-63. Poilievre closed with rallying thoughts that had a distinctive Western flavour.

“Fighting for these values is never easy. Change, as we’ve seen, is not easy. Nothing worth doing is easy… Making Alberta was hard. Making Canada, the country we love, was even harder. But we don’t back down, and we don’t run away. When things get hard, we dust ourselves off, we get back in the saddle, and we gallop forward to the fight.”

Cowboy up, Mr. Poilievre.

Maureen McCall is an energy professional who writes on issues affecting the energy industry.

Alberta

Alberta and Ontario sign agreements to drive oil and gas pipelines, energy corridors, and repeal investment blocking federal policies

Published on July 7, 2025

Government of Alberta

Alberta-Ontario MOUs fuel more pipelines and trade

Alberta Premier Danielle Smith and Ontario Premier Doug Ford have signed two memorandums of understanding (MOUs) during Premier Ford’s visit to the Calgary Stampede, outlining their commitment to strengthen interprovincial trade, drive major infrastructure development, and grow Canada’s global competitiveness by building new pipelines, rail lines and other energy and trade infrastructure.

The two provinces agree on the need for the federal government to address the underlying conditions that have harmed the energy industry in Canada. This includes significantly amending or repealing the Impact Assessment Act, as well as repealing the Oil Tanker Moratorium Act, Clean Electricity Regulations, the Oil and Gas Sector Greenhouse Gas Emissions Cap, and all other federal initiatives that discriminately impact the energy sector, as well as sectors such as mining and manufacturing. Taking action will ensure Alberta and Ontario can attract the investment and project partners needed to get shovels in the ground, grow industries and create jobs.

The first MOU focuses on developing strategic trade corridors and energy infrastructure to connect Alberta and Ontario’s oil, gas and critical minerals to global markets. This includes support for new oil and gas pipeline projects, enhanced rail and port infrastructure at sites in James Bay and southern Ontario, as well as end-to-end supply chain development for refining and processing of Alberta’s energy exports. The two provinces will also collaborate on nuclear energy development to help meet growing electricity demands while ensuring reliable and affordable power.

The second MOU outlines Alberta’s commitment to explore prioritizing made-in-Canada vehicle purchases for its government fleet. It also includes a joint commitment to reduce barriers and improve the interprovincial trade of liquor products.

“Alberta and Ontario are joining forces to get shovels in the ground and resources to market. These MOUs are about building pipelines and boosting trade that connects Canadian energy and products to the world, while advocating for the right conditions to get it done. Government must get out of the way, partner with industry and support the projects this country needs to grow. I look forward to working with Premier Doug Ford to unleash the full potential of our economy and build the future that people across Alberta and across the country have been waiting far too long for.”

Danielle Smith, Premier of Alberta

“In the face of President Trump’s tariffs and ongoing economic uncertainty, Canadians need to work together to build the infrastructure that will diversify our trading partners and end our dependence on the United States. By building pipelines, rail lines and the energy and trade infrastructure that connects our country, we will build a more competitive, more resilient and more self-reliant economy and country. Together, we are building the infrastructure we need to protect Canada, our workers, businesses and communities. Let’s build Canada.”

Doug Ford, Premier of Ontario

These agreements build on Alberta and Ontario’s shared commitment to free enterprise, economic growth and nation-building. The provinces will continue engaging with Indigenous partners, industry and other governments to move key projects forward.

“Never before has it been more important for Canada to unite on developing energy infrastructure. Alberta’s oil, natural gas, and know-how will allow Canada to be an energy superpower and that will make all Canadians more prosperous. To do so, we need to continue these important energy infrastructure discussions and have more agreements like this one with Ontario.”

Brian Jean, Minister of Energy and Minerals

“These MOUs with Ontario build on the work Alberta has already done with Saskatchewan, Manitoba, Northwest Territories and the Port of Prince Rupert. We’re proving that by working together, we can get pipelines built, open new rail and port routes, and break down the barriers that hold back opportunities in Canada.”

Devin Dreeshen, Minister of Transportation and Economic Corridors

“Canada’s economy has an opportunity to become stronger thanks to leadership and steps taken by provincial governments like Alberta and Ontario. Removing interprovincial trade barriers, increasing labour mobility and attracting investment are absolutely crucial to Canada’s future economic prosperity.”

Joseph Schow, Minister of Jobs, Economy, Trade and Immigration

Together, Alberta and Ontario are demonstrating the shared benefits and opportunities that result from collaborative partnerships, and what it takes to keep Canada competitive in a changing world.

Quick facts

Steering committees with Alberta and Ontario government officials will be struck to facilitate work and cooperation under the agreements.
Alberta and Ontario will work collaboratively to launch a preliminary joint feasibility study in 2025 to help move private sector led investments in rail, pipeline(s) and port(s) projects forward.
These latest agreements follow an earlier MOU Premiers Danielle Smith and Doug Ford signed on June 1, 2025, to open up trade between the provinces and advance shared priorities within the Canadian federation.