Alberta
Ottawa’s emissions policies will impose huge costs on Albertans
From the Fraser Institute
By Tegan Hill and Elmira Aliakbari
The path Trudeau is forcing us down leads to a much poorer economy (completely cratering Canada’s energy industry while making everything more expensive) and negative environmental benefit (that’s right, it’s worse as developing nations use the energy that’s cheapest). So maybe it’s time to scrap the tax.
The federal NDP recently ended its support for the consumer carbon tax citing its significant cost to everyday Canadians. But Canada’s costly climate change policies extend beyond the carbon tax. Indeed, the Trudeau government has introduced numerous policies in an attempt to reduce greenhouse gas (GHG) emissions, which impose major costs on Albertans.
The consumer carbon tax is perhaps the most widely known GHG reduction policy, which places a price on carbon (currently at $80 per tonne) and is set to rise to $170 per tonne by 2030. However, the Trudeau government has also imposed other regulations and mandates, including clean fuel regulations, electric vehicle mandates, the phase-out of coal-based electrical generation and building efficiency mandates.
The costs? According to a recent study, these GHG policies will shrink the Alberta economy (as measured by GDP) by an estimated 6.0 per cent by 2030. And employment in the province is expected to decline by 0.9 per cent. To put these figures into perspective, a 6.0 per cent contraction in 2024 would have shrunk the provincial economy by $27.7 billion, while a 0.9 per cent decrease in employment would have meant a loss of approximately 22,837 jobs (based on data for August 2024).
While these policies are expected to reduce GHG emissions, they fall short of meeting the government’s national GHG reduction targets. As a result, further economic pain will be required if the federal government implements additional measures to further reduce GHGs emissions.
These findings echo other studies that measure the effects of various climate change policies. According to a report by Deloitte, for instance, Trudeau’s policy to cap GHG emissions in the oil and gas sector (to 35 to 38 per cent below 2019 levels by 2030) will lead to less investment, nearly 70,000 fewer jobs, and a 4.5 per cent decrease in economic output (i.e. GDP) among the provinces by 2040. Unsurprisingly, Alberta is projected to be the hardest hit province.
And here’s the kicker—these huge economic costs come with little to no actual environmental benefit. Even if Canada shut down its entire oil and gas sector by 2030, thus eliminating all GHG emissions from the sector, the resulting reduction would equal four-tenths of 1 per cent of global emissions, which would have an undetectable impact on the climate. Meanwhile, as demand for fossil fuels continues to increase, constraining oil and gas production and exports in Canada merely shifts production to other countries, which have lower environmental and human rights standards such as Iran, Russia and Venezuela.
The Trudeau government’s climate change regulations are imposing huge costs on Albertans with little to no actual environmental benefit. While support for some of these policies—particularly the consumer carbon tax—is waning, federal policymakers should seriously rethink numerous other regulations.
Authors:
Alberta
They never wanted a pipeline! – Deputy Conservative Leader Melissa Lantsman
From Melissa Lantsman
Turns out the anti-development wing of the Liberal Party never stopped running the show.
Today, we’ll see if the Liberals vote for the pipeline they just finished bragging about.
Spoiler: they won’t. Because with the Liberals, the announcements are real, but the results never are.
Alberta
Premier Smith: Canadians support agreement between Alberta and Ottawa and the major economic opportunities it could unlock for the benefit of all
From Energy Now
By Premier Danielle Smith
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If Canada wants to lead global energy security efforts, build out sovereign AI infrastructure, increase funding to social programs and national defence and expand trade to new markets, we must unleash the full potential of our vast natural resources and embrace our role as a global energy superpower.
The Alberta-Ottawa Energy agreement is the first step in accomplishing all of these critical objectives.
Recent polling shows that a majority of Canadians are supportive of this agreement and the major economic opportunities it could unlock for the benefit of all Canadians.
As a nation we must embrace two important realities: First, global demand for oil is increasing and second, Canada needs to generate more revenue to address its fiscal challenges.
Nations around the world — including Korea, Japan, India, Taiwan and China in Asia as well as various European nations — continue to ask for Canadian energy. We are perfectly positioned to meet those needs and lead global energy security efforts.
Our heavy oil is not only abundant, it’s responsibly developed, geopolitically stable and backed by decades of proven supply.
If we want to pay down our debt, increase funding to social programs and meet our NATO defence spending commitments, then we need to generate more revenue. And the best way to do so is to leverage our vast natural resources.
At today’s prices, Alberta’s proven oil and gas reserves represent trillions in value.
It’s not just a number; it’s a generational opportunity for Alberta and Canada to secure prosperity and invest in the future of our communities. But to unlock the full potential of this resource, we need the infrastructure to match our ambition.
There is one nation-building project that stands above all others in its ability to deliver economic benefits to Canada — a new bitumen pipeline to Asian markets.
The energy agreement signed on Nov. 27 includes a clear path to the construction of a one-million-plus barrel-per-day bitumen pipeline, with Indigenous co-ownership, that can ensure our province and country are no longer dependent on just one customer to buy our most valuable resource.
Indigenous co-ownership also provide millions in revenue to communities along the route of the project to the northwest coast, contributing toward long-lasting prosperity for their people.
The agreement also recognizes that we can increase oil and gas production while reducing our emissions.
The removal of the oil and gas emissions cap will allow our energy producers to grow and thrive again and the suspension of the federal net-zero power regulations in Alberta will open to doors to major AI data-centre investment.
It also means that Alberta will be a world leader in the development and implementation of emissions-reduction infrastructure — particularly in carbon capture utilization and storage.
The agreement will see Alberta work together with our federal partners and the Pathways companies to commence and complete the world’s largest carbon capture, utilization and storage infrastructure project.
This would make Alberta heavy oil the lowest intensity barrel on the market and displace millions of barrels of heavier-emitting fuels around the globe.
We’re sending a clear message to investors across the world: Alberta and Canada are leaders, not just in oil and gas, but in the innovation and technologies that are cutting per barrel emissions even as we ramp up production.
Where we are going — and where we intend to go with more frequency — is east, west, north and south, across oceans and around the globe. We have the energy other countries need, and will continue to need, for decades to come.
However, this agreement is just the first step in this journey. There is much hard work ahead of us. Trust must be built and earned in this partnership as we move through the next steps of this process.
But it’s very encouraging that Prime Minister Mark Carney has made it clear he is willing to work with Alberta’s government to accomplish our shared goal of making Canada an energy superpower.
That is something we have not seen from a Canadian prime minister in more than a decade.
Together, in good faith, Alberta and Ottawa have taken the first step towards making Canada a global energy superpower for benefit of all Canadians.
Danielle Smith is the Premier of Alberta
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