‘I’m pissed’: Alberta premier, oil and gas industry slam Ottawa’s new emissions cap

Alberta Premier Danielle Smith expressed strong opposition to Ottawa’s newly announced greenhouse gas emissions cap on Monday.

“I’m pissed — I’m absolutely angry,” Smith stated during a news conference.

Smith explained that Alberta had been collaborating with the federal government for two years on a plan to responsibly reduce emissions by 2050, only to see Ottawa announce “the exact same policy they put forward a year ago, with no changes whatsoever,” adding that the federal government is misleading the public about its intentions.

Smith argued the cap infringes on Canada’s constitution, referencing Section 92A, which grants provinces exclusive control over non-renewable natural resources. She claimed the cap would lead to a reduction of one million barrels per day in Alberta’s oil production by 2030.

Calling the policy a “deranged vendetta” by federal Environment Minister Stephen Guilbeault against Alberta’s oil and gas sector, Smith also criticized Prime Minister Justin Trudeau’s administration.

“They persist in this pathway which will harm our province and harm the country, and that is not acceptable — not for a government that is polling at about 20 per cent and on its way out,” she remarked.

Smith announced plans to challenge the emissions cap in court, saying, “I’ll get my justice minister working on it immediately and we’ll start drafting a motion under the sovereignty act.”

The federal regulations, introduced by Guilbeault, would require Canada’s oil and gas sector to reduce greenhouse gas emissions by about one-third over the next eight years. These regulations won’t be finalized until 2025.

For the Liberal government, the cap fulfills a 2021 election commitment to make the energy sector a more active participant in combatting climate change.

Smith contended that the targets are unrealistic and would force oil and gas companies to scale back production, leading to reduced revenue for Alberta, and potentially impacting funding for public education and social programs.

In Ottawa, Guilbeault responded by accusing Conservative leaders like Smith of spreading climate change-denying misinformation, stating, “They will continue doing stupid things, and we will continue focusing on helping Canadians. Fighting climate change is difficult and it takes political courage.”

Guilbeault added that production cuts would not be necessary if technologies like carbon capture and storage are widely adopted.

According to the Montreal Economic Institute (MEI), a non-profit research organization, the cap could result in a loss of 112,900 Canadian jobs by 2040. MEI director Krystle Wittevrongel argued the policy is more about Guilbeault’s personal stance on the energy sector than sound environmental policy.

In 2022, upstream oil and gas operations contributed about 31 per cent of Canada’s total emissions. The new regulations aim to reduce emissions from these operations to 35 per cent below 2019 levels by around 2030-2032.

While the cap does not specify how companies must achieve these reductions, Guilbeault noted that the government anticipates about half of the cuts will come from methane reductions.