Brian Jean, the MLA for Fort McMurray-Lac La Biche, and also the provincial minister of Energy and Minerals, says the federal government’s oil and gas sector greenhouse gas emissions cap could devastate the oil and gas industry that powers the communities in his constituency, across the province — and further.
“The emissions cap will drive away investment and hobble Alberta’s economy – this seems to be Ottawa’s plan,” Jean told Lakeland This Week.
The federal government introduced a proposed framework to cap pollution from Canada’s oil and gas sector on Dec. 7. According to a press release issued by Environment and Climate Change Canada, the greenhouse gas pollution cap has been designed to ensure a decline in greenhouse gas emissions from the sector, while providing compliance flexibilities to respond to global demand for oil and gas.
The initiative proposes to cap emissions at 35 to 38 per cent below 2019 levels by the year 2030, while providing compliance flexibilities to emit up to a level about 20 to 23 percent below 2019 levels.
Jean says the oil and gas industry, as well as revenues from the sale of the resources provide the funds needed to maintain infrastructure, healthcare, social services, and education. He says the people and groups driving this policy are not interested in Alberta’s achievements regarding the lowering of emissions.
Already part of the job
According to Jean, Alberta has dramatically lowered methane emissions well ahead of schedule, adding that the province has significantly lowered emissions per barrel of oil produced in the oil sands. He said Alberta is already a global leader in carbon capture utilization and storage (CCUS), having already removed millions of tons of C02 from the atmosphere.
“Our carbon capture incentive program will help build more CCUS capacity,” he said. “We are also a leader in hydrogen production – and are stepping-up that industry.”
Jean spoke of an S&P (Standard and Poor) Global report which estimated that Canada’s oil sands will likely have to cut up to 1.3 million barrels a day of possible production to meet the federal cap, killing nearly 10,000 jobs.
“We know Alberta will take the brunt of these job losses and cuts to production,” Jean stated, adding that because of this, a ripple effect will be felt across the country.
Jean said the province is considering using the Sovereignty Act to defend against what he calls ‘unconstitutional overreach.’
“We plan to fight the unconstitutional emissions cap in court,” he said.
On Dec. 7, Alberta Premier Danielle Smith and Minister of Environment and Protected Areas Rebecca Schulz issued a joint statement in response to the federal emissions cap.
“This 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,” Smith said, adding that under the Constitution of Canada, Alberta owns its resources, meaning the province has the exclusive jurisdiction to develop and manage them. “The federal government must stay out of our province’s constitutional jurisdiction and instead work with us to align their emissions-reduction efforts with our effective made-in-Alberta plan."
Provincial officials say the Alberta government has already put several initiatives into place to fight emissions, including setting a price on carbon as far back as 2007, developing a carbon offset and trading program (TIER), investing billions in commercial scale carbon capture, and by establishing a clear framework for reaching carbon neutrality across the entire provincial economy by 2050.
According to Smith and Schulz, the Alberta government will continue to implement its Emissions Reduction and Energy Development Plan to achieve a carbon-neutral economy by 2050 through a combination of investments in emission-reducing technologies combined with practical emission offsets, while continuing the development of Alberta’s energy resources for Canada and the world.
“With their pronouncement singling out the oil and gas sector alone for punitive federal treatment, Prime Minister Justin Trudeau and his eco-extremist Minister of the Environment and Climate Change Steven Guilbeault are risking hundreds of billions of dollars of investments in Alberta’s and Canada’s economies and core social programs. (They) are devaluing the retirement investments of millions of Canadians, and are threatening the jobs of hundreds of thousands of Albertans,” Smith stated.
Schulz says there is irony in the federal government's stance, as the cap would also significantly undercut global emissions-reduction efforts by effectively de-incentivizing capital investment by the oil and gas sector in emission-reducing technologies and fuels that the world needs Alberta to develop and share.
She says the proposed cap also undermines the unity of Canada and is something Albertans will not tolerate.
“Our province is simply done with what amounts to a steady stream of economic sanctions and punitive measures thrown upon our citizens and businesses to intentionally damage their livelihoods and the economic engine that disproportionally powers our national economy and the programs that Canadians rely on,” she stated.
