Saskatchewan Was Kept in the Dark on Feds’ Emissions Cap Announcement in Dubai, Says Moe

Saskatchewan Premier Scott Moe speaks during a press conference in Regina, on Oct. 25, 2023. (The Canadian Press/Heywood Yu)

Saskatchewan Premier Scott Moe says his province was kept in the dark about Ottawa’s emissions cap announcement at the United Nations Climate Change Conference (COP28) in Dubai on Dec. 7.

In a video clip posted on social media on Dec. 9, Mr. Moe said no details about the policy or announcement were shared with his energy minister when he spoke with federal Environment Minister Steven Guilbeault on the Liberal government’s plans for the oil and gas industry.

“Our energy minister had a five-minute phone call with [Mr. Guilbeault’s] counterpart. [They] would not only share none of the details with respect to the policy that was coming forward but wouldn’t even share the date or the time on when they were going to announce,” Mr. Moe said from Dubai.

Mr. Moe was responding to a reporter who asked why he was “not trying to work harder” with the Liberal government. The premier argued it is the federal government that is being uncooperative.

“The minister of environment is not only refusing to support Canadians in the policy development that he’s bringing forward, but refusing to work with the provinces,” he said.

‘Needed to Sign an NDA’

On Dec. 8, Alberta’s Environment Minister Rebecca Schulz said she was asked to sign a non-disclosure agreement (NDA) before Mr. Guilbeault would discuss Ottawa’s oil and gas emission cap plans with her.

“A few days ago in Dubai at #COP28, I asked Minister [Guilbeault] to hold bilateral talks on any emission cap plans the federal government had forthcoming,” she said in her post on platform X. “He wouldn’t talk about his plans or entertain any discussions unless Alberta signed an NDA.”

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In a video that accompanied her post, Ms. Schulz included a clip explaining the interaction in Dubai.

“He refused to tell me when they would be announcing this emissions cap, what would be included. His words were that we needed to sign an NDA,” she said.

Mr. Guilbeault’s office told The Epoch Times that it is “not unusual” for the federal government to ask provincial and territorial governments to sign NDAs before sharing specific information before a formal announcement.

“The Government of Canada has engaged extensively with provinces, territories, Indigenous organizations and stakeholders on the development of the approach for the oil and gas emissions cap including through bilateral and multilateral engagement, and the publication of a discussion paper for comment in July 2022,” spokesperson Hannah Boonstra said in an email statement on Dec. 12.

“It continues to do so, with the publication of the Regulatory Framework initiating the latest phase of engagement.”

Mr. Guilbeault unveiled Ottawa’s plans at COP28 on Dec. 7. The plans require the oil and gas sector to cut emissions by 35 to 38 percent below 2019 levels by 2030.

In his speech, the minister said “pollution from the oil and gas sector is still going up” and that the emissions cap would “establish a pathway to carbon neutrality by 2050.”

At the announcement, Natural Resources Minister Jonathan Wilkinson said the oil and gas cap is an “important part of Canada achieving its goal of a 40 to 45 percent reduction across the economy by 2030.”

‘Cap on Production’

The emissions cap would take the form of a cap-and-trade system. The oil and gas sector will also be able to buy a limited number of carbon offset credits or contribute to a decarbonization fund to lower the requirement to cut emissions to between 20 and 23 percent.

The new emissions plan was met with resistance from oil and gas companies. On Dec. 7, the Canadian Association of Petroleum Producers, the country’s largest oil and gas industry group, warned that Ottawa’s emissions cap framework could result in significant production curtailments by companies and higher energy prices for consumers.

“At a time when the country’s citizens are experiencing a substantial affordability crisis, coincident with record budget deficits, the federal government risks curtailing the energy Canadians rely on, along with jobs and government revenues the energy sector contributes to Canada,'' said the association in a news release.

The Liberal government aims to cut 20 megatonnes of emissions from oilsands operations by 2030, with methane expected to receive the largest slash (37 megatonnes) by then, according to the regulatory framework released on Dec. 7.

An analysis conducted by CIBC says the Liberals’ push to cap the emissions is “simply unrealistic” without slashing production.

“It is simply unrealistic in our view to expect 20 megatonnes of carbon capture to come online in five years given the scale and operational learnings required,” wrote CIBC Capital Markets analysts Shaz Merwat and Dennis Fong in a Dec. 7 note to clients, as reported by Yahoo Finance.

“In that sense, achieving the emissions target, as stated, would in effect become a cap on production.”

Chandra Philip and The Canadian Press contributed to this report.