Alberta will invoke the Alberta Sovereignty Within a United Canada Act to counter the Liberals’ oil and gas emissions cap.
Alberta Premier Danielle Smith made the announcement alongside the province’s Environment Minister Rebecca Schulz and Minister of Energy Brian Jean on Tuesday.
“We’ve been very clear that we will use all means at our disposal to fight back against federal policies that hurt Alberta, and that’s exactly what we’re doing,” said Smith. “The cap violates section 92A of the Constitution, which gives provinces exclusive jurisdiction over non-renewable natural resource development.”
The premier explained that the cap will cut 1 million barrels of oil per day by 2030 and that reports have highlighted that 150,000 Canadians will lose their jobs and tens of billions will vanish from Canada’s GDP.
“Ottawa seems to think that they need to save us from ourselves, but they are wrong because we’re not just working with industry to continue to drive down emissions; we’re succeeding at it. Alberta already has a system in place that is working,” said Smith. “Emissions per barrel are declining even as production and contribution to GDP grows. Alberta’s energy industry doesn’t just provide jobs to Albertans but to Canadians all across our country. And it doesn’t just power Alberta’s economy, it powers Canada’s.”
Despite warnings from economists that the emissions cap will have a negative impact on the Canadian economy, the Trudeau government has pushed forward.
A report from the Conference Board of Canada estimates that the cap will result in the average Canadian family having $419 less a month for groceries, utilities, and mortgage payments. The report highlighted that the cap would reduce Canada’s GDP by up to $1 trillion between 2030 and 2040.
An S&P study highlighted that the cap would cut production of oil by two million barrels daily.
Alberta launched a national advertising campaign in Oct., warning Canadians against the consequences of a federal emissions cap.
Smith said the advertising campaign’s goal was to warn everyone who stands to lose something from the cap—all Canadians—about the risks of the cap.
She previously called the oil and gas cap “a deranged vendetta” targeting Alberta.
The Alberta Sovereignty Within a United Canada Act motion must be passed in the legislature. The motion proposes launching an immediate constitutional challenge against the emissions cap.
The motion seeks to ensure no provincial entity enforces the cap while designating oil and gas facilities as essential infrastructure. It also prohibits unauthorized access to these facilities. It declares emissions data proprietary to Alberta and mandates that disclosure be controlled by the province. Additionally, it establishes royalty-in-kind programs for oil and bitumen. It aims to expand pipeline capacity through collaboration with other jurisdictions.
“If the motion passes, we’ll act fast to get ready for Ottawa’s destructive cap. Albertans expect no less. We’ll defend Alberta’s prosperity, Alberta’s livelihood and our energy industry,” said Smith. “This motion marks an important step in our pushback against federal overreach. We’re telling Ottawa, your cap goes too far. This is not the way federal-provincial relations should be. It’s certainly not the way we want them to be.”
Schulz said that the cap would make life less affordable for Canadians while having no impact on reducing global emissions. In fact, she said that the cap will increase the production of coal and other high emissions energy worldwide.
“After years of trying to reason with this out-of-touch federal government, our province faces a choice: secure our economic future and the livelihoods of all Albertans, or let Prime Minister Justin Trudeau sacrifice our prosperity for his extreme ideological agenda,” said Schulz.
She added that Prime Minister Justin Trudeau is telling Canadians to prioritize Environment Minister Steven Guilbeault’s green agenda over feeding their families or paying their rent.
“The federal government should not be willing to undercut Alberta’s economy just because we don’t vote for them. They seem to just be trying to placate their eco-activist base in Ottawa as they collapse in the polls,” said Schulz. “They are chasing headlines and soundbites while playing politics once again with people’s livelihoods. This is unacceptable. We voiced these concerns to Ottawa many times, only to be dismissed and ignored. We will not be sidelined or silenced.”
Smith said the province will use the Alberta Petroleum Marketing Agency to market its resources directly and independently. The agency was established by Peter Lougheed in 1973 to defend constitutional rights in the war against oil and gas waged by Trudeau’s father.
