'Line in the sand': Smith unyielding on federal targets for climate, energy sector

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Politics

In a statement Monday night, Smith described the meeting with federal ministers as ‘very constructive,’ adding ‘there is much more work to be done’

Published Jun 19, 2023 • Last updated 26 minutes ago • 5 minute read

Premier Danielle Smith speaks during an announcement that Alberta will extend the fuel tax pause program through to Dec. 31. The announcement was made at New West Truck Centres in Calgary on Monday, June 19, 2023. Photo by Gavin Young /Postmedia

Premier Danielle Smith said her position on recent federal government propositions centred around climate goals and the energy industry is unwavering, ahead of a meeting with two federal ministers on the contentious topics.

Smith, with Energy Minister Brian Jean and Environment Minister Rebecca Schulz, met with federal Natural Resources Minister Jonathan Wilkinson and Intergovernmental Affairs Minister Dominic LeBlanc on Monday. The focus of the meeting was expected to be the energy and climate files, which have caused friction between the two levels of government.

“Certainly, issues related to energy and climate are on the agenda, but so are health care and the wildfires and a number of other things,” Wilkinson said prior to the meeting at an unrelated press conference in Calgary on Monday morning.

Leblanc said he and Wilkinson had a “constructive conversation” with Smith surrounding the energy sector shortly before the election; talks Monday were to be a continuation of that process.

“We took away a positive feeling,” said LeBlanc. “We agreed that on the other side of the election, if (Smith’s) government was reelected, we would try and get together and continue the conversation quickly.

“Albertans chose their new government, and our job is to figure out ways we can collaborate constructively.”

Smith aiming for carbon neutrality by 2050

Smith took a more hard-nosed stance than her Ottawa counterparts ahead of the meeting, pointing to two federal propositions with which her government has taken issue as central topics she wanted to raise: net-zero electricity by 2035 and a 42 per cent emissions cap reduction for oil and natural gas by 2030.

“That’s seven years from now. We’ve also told them that is simply not achievable,” Smith said at a Monday press conference.

“Part of my discussion with them this afternoon is going to be that we put forward our emissions reduction and energy development plan. We are going to take the lead on developing an emissions reduction plan that works for Alberta while maintaining our economic growth. We need to bring them into alignment with what it is that we want to do and get them back to their original commitment of carbon neutrality by 2050 — we think that that’s achievable.”

Smith and Saskatchewan Premier Scott Moe have stated implementing net-zero electric grids within 12 years is an unaffordable goal and something they argue should be in provincial jurisdiction; both provinces are aiming for carbon-neutral grids by 2050. Smith has also said the emissions cap is a back-door route the federal government is using to curb oil and gas production.

Wilkinson has rejected and contended the notions of the Alberta and Saskatchewan governments, saying that the federal goals are feasible.

Smith looking for common ground with federal ministers

Smith has said the use of her sovereignty act is not off the table in relation to the policies, vowing to fight for Alberta’s jurisdiction to manage its natural resources.

Smith did concede there have been improvements in some of Ottawa’s climate-oriented plans, specifically the recent move away from the contentious “just transition” moniker. Wilkinson introduced the Canadian Sustainable Jobs Act in parliament last week.

“Their just transition law — which we knew by using that language that it set the expectation of phasing out oil and natural gas workers completely — we told them that’s not on. We are going to be phasing out emissions; we are not going to be phasing oil and natural gas jobs,” she said. “They seem to have acknowledged that with their legislation that came forward, that includes opportunities for us to invest in carbon capture utilization and storage, hydrogen, LNG export — those are the things that I think we can find in common.”

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Smith said she was hopeful for a productive conversation with Wilkinson and LeBlanc, but she plans to stick to her commitment to carbon neutrality by 2050, adding, “They’ve got to come into alignment with us.”

“There should be the ability to have a kumbaya moment,” she said. “But the fact of the matter is, there’s a hard line.

“I’ve drawn the line in the sand.”

Meeting ‘very constructive’: Smith

Following the meeting, Wilkinson said they did not “fully get to a meeting of minds.” But he was open to trying to understand what Alberta’s concerns are and “to see the extent to which we may be able to address them.”

“I think it’s a mistake for anybody to be drawing a clear line in the sand saying, you know, we’re not willing to compromise on anything,” said Wilkinson.

“We have committed to a cap on oil and gas emissions. But there are lots of different ways to do that. There are flexibilities and how you design it.”

Wilkinson did not say whether that would mean changes to the timelines for those policies.

In a statement Monday night, Smith described the meeting as “very constructive,” adding “there is much more work to be done.”

Smith said she proposed the creation of a joint working group to address issues such as carbon capture and storage, energy sector infrastructure and emissions reductions targets.

“The federal ministers committed to take Alberta’s working group proposal back to the federal government for a prompt response in the coming weeks,” the statement reads.

“I look forward to hearing that response and continuing this critical negotiation and dialogue.”

Gas tax relief extended

Smith followed through Monday on an election promise to continue a pause on the fuel tax, preserving the 13 cents per litre cut at the pumps. The tax holiday, which was scheduled to end on June 30, has been extended through the end of the year.

The UCP says the pause has Albertans paying the lowest gas prices in Canada at an average of 141.4 cents per litre, below the national average of 158.8 cents per litre.

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Finance Minister Nate Horner says extending the program will cost $520 million, but the government is cautiously optimistic about Alberta’s economy.

“There are a lot of things happening in Alberta’s economy that is good news for us,” Horner said Monday. “That’s why we are able to do this today.”

Smith said although WTI benchmark oil prices are currently below US$90 a barrel, Albertans continue to face challenges due to inflation and the federal carbon tax.

Come Jan. 1, 2024, the government will reinstate the fuel tax, with the rate indexed to oil prices. If oil prices are above US$90 a barrel, the tax will remain paused; the tax will step up in stages if prices plunge, going up to the full 13 cents a litre if costs go below US$80 a barrel.

— With files from The Canadian Press

mrodriguez@postmedia.com

Twitter: @michaelrdrguez

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