Not surprisingly, carbon pricing has been identified by the Climate Panel as the primary policy tool for reducing emissions in the province.
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When Justin Trudeau was elected Canada’s new prime minister, he put environmental policies at the forefront of his agenda.
Not only are we an important producer of oil – which we should be happy with because it’s a source of wealth for Canada – but we’re also the third largest producer of hydro electricity in the world.
Additionally, there’s been increasing pressure to halt oil sands production for climate reasons.
Top scientists highlighted for first ministers the troublesome situation facing Canada as a result of climate change, including that Canada’s rate of warming is about twice the global rate. There’ve been consultations going on, there will be more consultations after the plan rolls out. “Alberta is showing leadership on one of the world’s biggest problems”. “In this way, we will do our part to address climate change while protecting jobs and industry competitiveness in Alberta”. The government is misleading Albertans.
While many details remain undeveloped, there are four key mandates.
The plan caps the oilsands industrys emissions at 100 megatonnes per year compared to its current 70, with an additional 10 MT allowed for new cogeneration or upgrader plants. It also seeks to cut methane emissions by 45 per cent from 2014 levels by 2025.
What does the strategy mean for the oil sands sector?
He said the proposal helps firms make a transition with what he described as “subsidies” for the best-performing companies. “It’s time that Alberta is seen as a climate, energy and innovation leader”.
ExxonMobil-controlled Imperial Oil (TSX:IMO, Forum) would like you to know that its profit margin is more important than the air you breathe, and it doesn’t care if it’s the only one saying so, you darn hippies.
Under its new Climate Leadership Plan, the Alberta government has committed to phasing out all pollution created by burning coal and transitioning to more renewable energy by 2030. That’s the place that has all that oil locked up in tar sands and is anxious about Priuses and Teslas taking over.
“In Paris, a united Canada will demonstrate that we are serious about climate change”, he said.
How does Alberta’s strategy stack up with the other Canadian provinces?
Al Kemmere, president of the Alberta Association of Municipal Districts and Counties, said people in rural areas care about the environment.
He’ll undoubtedly find it harder to maintain a united front as he gets into the nitty gritty of setting a national emission reduction target and mediating conflicting provincial demands over how to disperse the billions he’s promised in funding to help reduce their carbon footprint.
At least six energy companies – Canadian Natural Resources Ltd, Cenovus, Enbridge Inc, Royal Dutch Shell Plc, Suncor Energy and TransCanada Corp – publicly supported the plan.
“If we attempt to make it uniform from sea to sea to sea, it will fail, obviously”, said Quebec Premier Philippe Couillard.
Policy experts including Warren Mabee similarly praised the move, but raised several questions about the implementation.
Regardless, Alberta has taken a needed bold step forward. “Will renewables be incentivized above and beyond the carbon levy (tax)?” Once considered an essential part of carbon tax ideology (the government will collect the tax and then return it to taxpayers in other ways), revenue neutrality has now been neutered into meaninglessness.
“We encourage the province to follow a balanced approach, recognizing that our sector can only become a global supplier of responsibly produced oil and natural gas if we are competitive on the world stage”.
The money paid by Albertans for carbon-emitting power is expected to generate $3 billion annually for the government.
A previous version of this story incorrectly stated that the New Democratic Party was victorious in the recent Canadian federal election.
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“Canada will, through the Prime Minister’s office, be participating in the leadership forum early on”.
