Alberta Premier Danielle Smith issued a strong rebuke against the federal government’s new draft regulations aimed at capping oil and gas emissions.
She took to a podium on Nov. 4, shortly after a press conference in Ottawa announcing the proposed legislation.
Calling the policy an unconstitutional “production cap,” Smith states it threatens Alberta’s economic stability. In her remarks, Smith said Alberta would use every legal avenue to defend what she described as its constitutional rights over resource management.
“Only about an hour ago, Ottawa released details of its oil and gas production cap. It is not an emissions cap. It is a production cap,” Smith argument is based off of Section 92A of the Canadian Constitution. The section grants provinces exclusive authority over non-renewable resources.
“May I say that again? Exclusive jurisdiction over non-renewable natural resource development,” she emphasized.
Earlier, federal Minister of Environment and Climate Change, Steven Guilbeault, presented the draft regulations. They aim to cut emissions by 35 per cent from 2019 levels by 2030. Additionally, Guilbeault framed the move as necessary to transition Canada’s energy sector toward a greener future. He wants to hold the industry accountable to its carbon neutrality pledge by 2050.
“Canada’s oil and gas sector accounts for almost a third of our climate pollution,” Guilbeault said.
He noted the sector’s profits had surged from $6.6 billion to $66 billion since the pandemic.
“We’re asking the oil and gas sector to invest their record profits into pollution-cutting projects, projects that can create and keep good jobs.”
Meanwhile, Smith argued the policy undermines Alberta’s economy and would result in severe job losses.
“We will continue to defend the livelihoods of the estimated 150,000 workers nationwide who will lose their jobs as a result of this cap,” she stated, adding it would also cost Canadian families financially.
According to Smith, the production cut would also jeopardize essential services.
“To give you an idea, one million barrels a day of lost production would cost us in royalties anywhere from $3 billion to $7 billion per year,” she explained. “We spend $2.2 billion on roads and bridges. It would wipe out our entire roads and bridges budget. We spend $3.2 billion supporting Assured Income for the Severely Handicapped—it would wipe out that entire program.”
Additionally, Smith criticized Prime Minister Justin Trudeau for pursuing policies she said prioritize ideology over the needs of Canadians.
“Once again, Prime Minister Justin Trudeau is putting reckless policy ahead of the needs and concerns of everyday Canadians.”
She then compared it to a “bad renter who’s burning the furniture on their way out.”
In conclusion, Smith made it clear that Alberta intends to take action.
“Tweaks won’t work. This cap must be scrapped,” she declared. “Albertans and all Canadians can rely on our government to actively explore the use of every legal option, including a constitutional challenge and the use of the Alberta sovereignty within a United Canada Act.”
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