Following the federal government’s announcement of a regulatory framework to cut oil and gas emissions by 35 to 38 percent below 2019 levels, the premiers of Alberta and Saskatchewan have indicated they will fight back against the policy and protect their “constitutional right” to develop their own energy sectors.
“The recent announcement on what they are calling an emissions cap, but today’s announced de facto production cap on Alberta’s oil and gas sector amounts to an intentional attack by the federal government on the economy of Alberta and the financial well-being of millions of Albertans and Canadians,” Alberta Premier Danielle Smith said during a press conference shortly after the Dec. 7 announcement.
“Over the coming months, our cabinet and our caucus will develop constitutional shields in response to this and other recent attacks on our province, by what is fast becoming one of the most damaging federal administrations in Canadian history.”
While the oil and gas emission reduction requirement will be at 35 to 38 percent below 2019 levels, the sector will also be able to buy a limited number of carbon offset credits or contribute to a decarbonization fund, lowering the requirement to 20 to 23 percent.
Environment and Climate Change Minister Steven Guilbeault said putting a cap on emissions was a promise they had made in the 2021 election.
“No one should be allowed unlimited pollution. It harms our health and environment. We put a cap on it,” he said on X after the announcement.
Ms. Smith said Alberta would continue to use investments in emissions-reducing technologies and “practical emission offsets” to implement its own emissions reduction and energy development plan to achieve a carbon-neutral economy by 2050.
Smith Predicts Plan Will Go to Court
Ottawa’s announcement around the oil and gas cap comes as it recently lost two court cases involving its proposed ban on plastics and environmental impact assessment legislation, both of which were deemed to be unconstitutional. When asked about the potential for another court ruling against the new oil and gas cap framework, Mr. Guilbeault said the courts had ruled against them going after production, but said the measures are against pollution.“We can’t impede on provincial jurisdiction, and that’s not what we’re doing. We’re staying in our lane,” he added.
But Ms. Smith told reporters that she believed the oil and gas cap would end up before the Supreme Court, and that Alberta would have a good chance of winning. “I think that that’s where this is headed. But in the meantime, we’re going to make sure that they do not damage the investment climate that we have in Alberta,” she said.
Ms. Smith said if the Clean Electricity Regulations were put in place, the province would begin creating natural gas power generation, and potentially fund it through a Crown corporation.
“That is not symbolic, that is in actual point of fact, the truth,” she said. “We have said we will be the generator of last resort. And you'll just have to watch me if you don’t believe me.”
Saskatchewan Premier Denounces Plan
Saskatchewan Premier Scott Moe also condemned Ottawa’s regulatory framework to cap oil and gas emissions, saying it and other regulations will have “serious economic impacts on Canadians and limit our sustainable Canadian energy products from producing heat and electricity to the world.”The premier also noted that Saskatchewan had taken “significant steps” to reduce emissions in recent years, including cutting methane emissions by 64 percent since 2015, installing the world’s first operational carbon capture and storage system in 2014, and investing billions of dollars in renewable energy sources.
“Saskatchewan remains opposed to the new methane regulations and the oil and gas emissions cap and we will protect our constitutional right to build our economy in accordance with the priorities of Saskatchewanian families and businesses,” he said.
Conservative Leader Pierre Poilievre also criticized the federal government’s announcement, calling it “yet another attack on Canadian workers and Canada’s world-class energy industry,” and claiming it would raise the price of energy, hurt jobs in the energy sector, and “send dollars to dictators by sending energy production overseas.”
