Premier Danielle Smith, alongside Ministers Rebecca Schulz, Brian Jean, and Mickey Amery, announced a bold strategy to counter the federal government’s proposed emissions cap on Alberta’s oil and gas sector. The announcement highlighted the province’s intent to invoke the Alberta Sovereignty Within a United Canada Act, marking a decisive step in defending Alberta’s jurisdiction over natural resource development.
On November 4, Ottawa unveiled its emissions cap plan, aiming to cut oil and gas production by one million barrels per day by 2030. Smith argued that this move would severely impact Alberta’s economy, costing an estimated 150,000 jobs nationwide and leading to billions of dollars in lost GDP and government revenues.
“The cap violates Section 92A of the Constitution, which grants provinces exclusive jurisdiction over non-renewable natural resource development,” Smith stated. She emphasized that Alberta’s energy sector is already leading in emissions reduction through innovative technologies, achieving progress without the need for federal interference.
The Alberta government plans to table a motion under the Sovereignty Act to shield the province from the federal cap. This motion seeks legislative approval for actions including:
- Constitutional Challenges: Immediate legal action against the federal emissions cap.
- Prohibitions on Enforcement: Restricting provincial bodies from aiding in the cap’s implementation.
- Essential Infrastructure Protections: Designating oil and gas facilities as critical infrastructure under provincial jurisdiction.
- Data Ownership: Declaring all emissions-related data as provincial property, with disclosure controlled by Alberta.
Minister Schulz reiterated the province’s position, accusing Ottawa of ignoring Alberta’s concerns. “We face a choice: secure Alberta’s future or let Prime Minister Trudeau’s ideological agenda sacrifice our prosperity,” she said. Schulz warned that the cap could devastate rural and Indigenous communities, eliminate billions in public service funding, and increase energy costs for Canadians.
Industry leaders and experts have echoed Alberta’s criticisms. Eric Nuttall of Ninepoint Partners called the cap “economic idiocy,” while François Poirier, CEO of TC Energy, argued it would harm families and businesses by driving up energy prices. The Calgary Chamber of Commerce warned the cap would stifle investment and create uncertainty.
Alberta’s government asserts that the cap could also stall investments in emissions-reduction technologies, undermining progress already achieved by the energy sector. “Capping production doesn’t cap global demand,” Schulz stated, highlighting the risk of higher emissions from less responsible jurisdictions filling the void left by reduced Canadian output.
Smith outlined additional measures to bolster Alberta’s energy independence, including leveraging the Alberta Petroleum Marketing Commission to market resources directly and exploring partnerships with the U.S. for energy security. “We are ready to meet North American energy needs while safeguarding Alberta’s constitutional rights,” she said.
The Alberta Sovereignty Act motion marks a pivotal moment in the province’s resistance to what it views as federal overreach. “Our fight is not just about energy—it’s about protecting Alberta’s prosperity, livelihoods, and constitutional authority,” Smith concluded.