Breadcrumb Path Hyperlinks
Politics Vitality Columnists Enterprise
Article content material
Seize a seat and prepare, the subsequent spherical of the Alberta-Ottawa vitality struggle is about to start.
Commercial 2
Article content material
On the finish of her victory speech Monday, UCP Chief Danielle Smith lobbed just a few verbal grenades towards Ottawa over its contentious vitality insurance policies.
Article content material
The incoming federal emissions cap on the oil and fuel sector and Justin Trudeau’s authorities’s plan for a net-zero electrical energy grid by 2035 are actually squarely throughout the crosshairs of Smith’s newly re-elected authorities.
“As premier, I can not below any circumstances permit these contemplated federal insurance policies to be inflicted upon Albertans. I merely can’t and I received’t,” she declared.
“I invite the prime minister to as a substitute halt the introduction of those dangerous insurance policies and are available to the desk in good religion to work collaboratively with Alberta on an vitality emissions technique.”
These phrases, coming simply moments after defeating the NDP within the 2023 common election, will stake out the subsequent battle strains with the Trudeau authorities on vitality: tips on how to greatest decarbonize oil and fuel manufacturing in Alberta this decade, and tips on how to shift to a net-zero electrical energy system inside a dozen years.
These are vital financial and environmental points for a province that comprises the world’s fourth-largest oil reserves, and an electrical energy system that leans on pure gas-fired technology to maintain the lights on.
Article content material
Commercial 3
Article content material
“It was actually combative and she or he didn’t point out the sovereignty act, however I anticipate that’s going for use in a short time,” stated Mount Royal College political scientist Duane Bratt stated.
“Buckle up.”
The stakes are excessive for either side.
The federal authorities has set a goal to achieve web zero by 2050, however doesn’t have numerous time to achieve its aggressive 2030 objectives.
Its emissions-reduction plan initiatives a 42 per cent lower to grease and fuel sector greenhouse fuel emissions (from 2019 ranges) by the tip of this decade.
Smith argues this is able to successfully turn into a manufacturing lower.
The sector is the most important emitting trade within the nation, though many firms have adopted net-zero targets, together with the most important oilsands producers.
Alberta wants to draw billions of {dollars} of funding into rising areas of decarbonization, and federal and provincial co-operation can be required to make it occur.
Smith began off her victory speech Monday evening by referencing former Progressive Conservative premier Ralph Klein in 1993, declaring: “Welcome to a different miracle on the prairies.”
Commercial 4
Article content material
If we’re going to show to the historical past books, it’s value noting the various scraps that Klein had with the Liberal authorities of Jean Chretien over the Kyoto accord.
But, Klein’s authorities additionally made a deal within the Nineties with the federal authorities to create a brand new tax and royalty regime for the oilsands.
It sparked a wave of funding into the oilsands — an astronomical $262 billion in capital spending between 1996 and 2015 — and ignited a improvement section that has generated billions of {dollars} in royalties and created 1000’s of jobs.
Enterprise Council of Alberta president Adam Legge stated the group is anxious with each the emissions cap and the net-zero electrical energy normal, calling them “flawed public insurance policies.”
“What we’ve been encouraging the federal authorities to do is be versatile,” Legge stated. “If they’re going to be digging of their heels, then I believe we’re (in) for a major battle.”
The following few months will present how extensive the chasm between the 2 sides actually is, as Ottawa strikes ahead with its oilpatch emissions restrict and the incoming Clear Electrical energy Laws.
Commercial 5
Article content material
In Alberta, purely gas-fired technology made up about 60 per cent of the province’s complete put in technology capability final 12 months. Reducing emissions from such services can be crucial — however probably pricey.
Varcoe: Smith warns federal emissions cap will shut-in manufacturing
Varcoe: Canada marches forward with cap on oilpatch emissions
Huge $60B hit for Alberta in a net-zero world if Canada phases out oil and fuel by 2050, examine finds
Oilsands giants warn Canada falling behind U.S. on carbon seize incentives
Take city-owned Enmax Corp., which has about 1,500 megawatts of electrical energy technology capability, with 1,300 MW coming from its gas-fired services.
The native utility is inspecting the feasibility of a carbon seize unit at its Shepard Vitality Centre. It’s additionally monetary help obtainable from the federal authorities to de-risk the expertise.
“If the federal authorities needs to fulfill a coverage goal of 2035, that shouldn’t go on the backs of ratepayers and Calgarians,” Enmax CEO Mark Poweska stated Tuesday after the corporate’s annual assembly.
Commercial 6
Article content material
“We’ll be on the lookout for how will we make it economical for our clients, whereas on the identical time attaining coverage objectives?”
Equally, the oilpatch isn’t on the lookout for a rumble over federal coverage, but it surely needs an open dialogue between trade and each ranges of presidency within the coming months.
“The underside line is, there’s no technical option to meet that cap, the emissions cap, with out chopping manufacturing,” Tamarack Valley Vitality CEO Brian Schmidt stated in an interview.
“I simply assume the cap was introduced with out actually understanding the implications . . . The reply is collaboration.”
There are additionally main vitality initiatives on the drafting board which can be inching forward, however will possible want a joint federal-provincial incentive program to make them financial and aggressive with current U.S. grants.
In Ottawa, federal Pure Sources Minister Jonathan Wilkinson advised reporters he’ll work with Alberta to scale back emissions and construct a powerful financial system.
“I’m not seeking to decide a battle with Alberta or with Nova Scotia or British Columbia, I’m concerned with working collaboratively,” he stated.
The proof will come when the ultimate guidelines and laws on these important insurance policies are launched and put into place.
The day after the election, Smith wasn’t giving an inch.
Talking to QR radio host Shaye Ganam, Smith stated she’d speak with the prime minister later within the day, however indicated Alberta is making ready for a conflict over the net-zero grid requirement and the emissions cap.
“There’s an enormous battle developing,” she stated.
In different phrases, seize a seat.
Chris Varcoe is a Calgary Herald columnist.
cvarcoe@postmedia.com
Feedback
Postmedia is dedicated to sustaining a full of life however civil discussion board for dialogue and encourage all readers to share their views on our articles. Feedback could take as much as an hour for moderation earlier than showing on the positioning. We ask you to maintain your feedback related and respectful. We have now enabled e-mail notifications—you’ll now obtain an e-mail for those who obtain a reply to your remark, there’s an replace to a remark thread you observe or if a consumer you observe feedback. Go to our Group Pointers for extra data and particulars on tips on how to modify your e-mail settings.
Be part of the Dialog