Alberta is taking Ottawa to the province’s Court of Appeal over the federal government’s net-zero electricity regulations, arguing the rules overstep provincial jurisdiction and could drive up costs while increasing the risk of power outages.
The province
announced the legal action during a
press conference on May 1, where Premier Danielle Smith described it as “another step to protect Albertans’ livelihoods” from federal policies the province says “threaten” the reliability of its electrical grid and could increase electricity prices by 35 percent.
“We will not accept the reckless and dangerous policies—policies that will harm our economy, stifle our energy industry, jeopardize the reliability of our electricity grid, and raise electricity prices for Albertans,” Smith said.
The Clean Electricity Regulations are part of Ottawa’s plan to reach net-zero emissions by 2050. They
set limits on carbon dioxide emissions for generation units that use fossil fuels, with the stated aim of achieving a low-carbon economy “at the pace and scale needed to drive clean growth, strengthen our competitiveness and attract more major investments.”
The federal government last December
shifted its target for a fully decarbonized electricity grid from 2035 to 2050, with Smith
calling the move a recognition that the initial target was “unaffordable and unattainable.”
Meanwhile, the current framework, finalized in December 2024, provides interim targets generators must meet by 2035, which Smith has also
called “unreasonable and unattainable,” arguing they “will still make electricity unaffordable for Canadian families.”
Ottawa
says the regulations are needed to protect the environment and human health from the effects of climate change.
“Cutting pollution in communities across the country is good for our climate, economy, health, and well-being,”
said the government in December 2024. “Air pollution is a major contributor to the development of disease and premature death and is a key environmental risk factor to human health in Canada.”
Ottawa has also highlighted the potential economic opportunities it says clean energy could create for Canada.
“Building a clean, affordable, and reliable electricity system is at the foundation of Canada’s efforts to tackle climate change, and a generational opportunity to drive clean economic growth across the country for decades to come,” then-Environment Minister Steven Guilbeault said in a February 2024
press release.
During her May 1 address, Smith cited an
analysis by the Alberta Electric System Operator, which suggests the net-zero electricity regulations would make the province’s electricity system more than 100 times less reliable than the provincial adequacy standard by 2038. The report also suggests the federal regulations “will fail to deliver meaningful reductions in carbon emissions in Alberta.”
Ottawa
says it conducted “extensive engagement” with industry and government representatives, experts, and members of the public to inform the development of its net-zero electricity regulations and “take into account the different circumstances across Canada.”
Participants in the engagements included electric utility companies, provincial and territorial governments, indigenous groups, industry associations, environmental non-governmental organizations, unions, researchers and academics, and the general public, according to the government.
Alberta currently relies on natural gas for 75 percent of its power generation, according to provincial estimates.
The premier has previously
said the province has a “quicker and cheaper” alternative solution to achieve a carbon neutral power grid by 2050, but that it would require Ottawa to give up attempts to “interfere” in Alberta’s governance.
Alberta Justice Minister Mickey Amery
said the Clean Electricity Regulations are “another example of dangerous federal overreach.” The province
has filed multiple court challenges against Ottawa, many of them related to federal climate policies.
“Canada’s constitution is absolutely clear,” Amery said at the May 1 press conference. “The provinces have exclusive jurisdiction over the development, conservation, and management of sites for the generation and production of electrical energy.”
Ottawa
says the regulations are established under the authorities of the Canada Environmental Protection Act, 1999, which
provides legislative basis for certain federal environmental and health protection programs.
Asked why the legal challenge was launched as newly elected Prime Minister Mark Carney has yet to take action in office, Amery said the province had raised concerns about the regulations since early 2024 but “they were ignored.”
In its
updated regulations, Ottawa says it is supporting provinces and territories in transitioning to clean electricity, including through investment tax credits and funding of programs. The province said on May 1 that despite the support, Ottawa’s timeline to achieve net-zero emissions has created economic uncertainty in the province.
Amery added that Carney had expressed support for net-zero emissions policies both before and during the election campaign. The prime minister, who has been a strong
advocate of climate change policies, has
pledged to turn Canada into an “energy superpower” by developing energy projects while reducing emissions.
“We’ve seen no indication that it is going to change,” Amery said, referring to Carney’s advocacy for net-zero policies. “It is our intention now to refer the matter to the Court of Appeal.”
