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Alberta

Alberta NDP have their own Just Transition plan – Project Confederation

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From Josh Andrus, Executive Director of Project Confederation

Look what we discovered about the “Just Transition”…

You might remember, not so long ago, that federal Natural Resources Minister, Jonathan Wilkinson, announced that the federal Liberal government would soon be rolling out its plan for a “Just Transition.”

This is the “Just Transition” plan that the federal NDP insisted be included in the “confidence and supply agreement” that is currently propping up Justin Trudeau’s minority government.

Then, an internal government memo was made public, suggesting that hundreds of thousands of jobs will be lost in this “transition” – particularly in western Canada.

Project Confederation immediately sprung to action, investigating the proposed policies and launching a petition against the plan, which has now received more than 13,000 signatures.

(If you haven’t signed the petition yet, you can do so here)

As news spread, Alberta Premier Danielle Smith, and Saskatchewan Premier Scott Moe spoke out strongly against the plan.

But one politician was suspiciously quiet – the Alberta NDP leader, Rachel Notley.

We thought Albertans, and Canadians, deserved to know whether someone running to be Premier of Alberta supported the shutting down of Alberta and western Canada’s largest industry.

And so we pushed hard for Rachel Notley to answer the question – does she support the “Just Transition” idea?

But, as time went on, Notley’s silence became more and more deafening.

Eventually, her silence became so deafening that even some in the media began to question whether or not she truly disagreed with the plan.

Hours turned into days, and days turned into weeks – literally!

Two full weeks after Wilkinson’s announcement, Rachel Notley finally broke her silence, calling on Ottawa to “put the brakes on” the “Just Transition”.

But, “put the brakes on” sounded a lot more like “wait until after the Alberta election” than “ditch it entirely” to us.

So we decided to do some more digging.

Well, after some excellent work by our research team, we think we now know why it took so long for Rachel Notley to oppose the “Just Transition.”

It turns out that, rather than just being some federal NDP idea that she’s now distanced her provincial party from, the “Just Transition” was actually a huge part of her NDP government’s plans.

Insert flashback music here.

It’s November 2015, the newly minted NDP government are celebrating a big election win, and are moving forward with their climate change strategy.

(You know, the one they accidentally forgot to mention that they were going to implement if they won).

New Alberta Minister of Environment and Parks, Shannon Phillips, commissions a blue-ribbon report by a team of high-profile academics, to help the NDP figure out exactly how to fulfil their campaign promise (sorry, their campaign omission).

Several months later, the “Climate Leadership Report” is released, setting out the government’s vision for climate policy and – guess what?

The “Just Transition” is a key part of the NDP’s Climate Leadership Report!

Yep, that’s right – forget not knowing what the “Just Transition” is, and claiming not to support the federal government’s plan.

In reality, it was Rachel Notley’s government who wrote the policy in the first place, and then made it a critical part of their entire environmental policy agenda.

Here are some extracts from the report…

In a section discussing mitigating the impacts of carbon pricing on low- and middle-income Albertans, the NDP said they would “support a sound and just transition for labour and communities…”

Later in the report, the authors highlight a quote from their friends at the Alberta Federation of Labour.

This quote is really just one gigantic contradiction, given the government is literally legislating their employment out of existence:

Next, the report talks about what the workers who lose their jobs might need to do as part of this “transition” – it notes that they may need assistance with “relocation”:

Oh, sorry, did the government legislate away your job?

Not to worry, we’ll “fix” it for you by helping you walk away from your entire life and move somewhere else.

Remember how Rachel Notley said Albertans might have to move to BC to find work while she was Premier?

Yeah, we’d prefer Albertans could find work here in Alberta, thanks.

*****

Here’s the thing…

Not only did the Alberta NDP support the concept of a federal “Just Transition” when they were in government, they were also actively implementing their own “Just Transition” – 8 years earlier than the federal government!

And yet now they claim to not support the idea at all?

No wonder it took so long for Rachel Notley to answer the question.

She was probably just surprised that no one in the media had dug up her own support of “Just Transition” legislation from years before, and was wondering if she could get away with pretending she hadn’t.

Well, we’re not surprised no one in the media bothered looking.

But, we did look, and thank goodness we did!

Thank you to our researchers who dug up this document, which I’m sure the NDP would have preferred we’d not found.

If you’d like to help us do even more research like this, please click here to make a donation to our work.

Otherwise, if you haven’t signed the No Unjust Transition petition yet, please click here to do so now.

Rachel Notley’s claim to now be opposed to the exact thing that she herself implemented is not credible.

She can run from it, but she can’t hide.

Her environmental policies put Alberta into one of its deepest recessions ever.

And we can’t afford to repeat those mistakes.

Sincerely,

Josh Andrus
Executive Director
Project Confederation

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Alberta

Low oil prices could have big consequences for Alberta’s finances

Published on

From the Fraser Institute

By Tegan Hill

Amid the tariff war, the price of West Texas Intermediate oil—a common benchmark—recently dropped below US$60 per barrel. Given every $1 drop in oil prices is an estimated $750 million hit to provincial revenues, if oil prices remain low for long, there could be big implications for Alberta’s budget.

The Smith government already projects a $5.2 billion budget deficit in 2025/26 with continued deficits over the following two years. This year’s deficit is based on oil prices averaging US$68.00 per barrel. While the budget does include a $4 billion “contingency” for unforeseen events, given the economic and fiscal impact of Trump’s tariffs, it could quickly be eaten up.

Budget deficits come with costs for Albertans, who will already pay a projected $600 each in provincial government debt interest in 2025/26. That’s money that could have gone towards health care and education, or even tax relief.

Unfortunately, this is all part of the resource revenue rollercoaster that’s are all too familiar to Albertans.

Resource revenue (including oil and gas royalties) is inherently volatile. In the last 10 years alone, it has been as high as $25.2 billion in 2022/23 and as low as $2.8 billion in 2015/16. The provincial government typically enjoys budget surpluses—and increases government spending—when oil prices and resource revenue is relatively high, but is thrown into deficits when resource revenues inevitably fall.

Fortunately, the Smith government can mitigate this volatility.

The key is limiting the level of resource revenue included in the budget to a set stable amount. Any resource revenue above that stable amount is automatically saved in a rainy-day fund to be withdrawn to maintain that stable amount in the budget during years of relatively low resource revenue. The logic is simple: save during the good times so you can weather the storm during bad times.

Indeed, if the Smith government had created a rainy-day account in 2023, for example, it could have already built up a sizeable fund to help stabilize the budget when resource revenue declines. While the Smith government has deposited some money in the Heritage Fund in recent years, it has not created a dedicated rainy-day account or introduced a similar mechanism to help stabilize provincial finances.

Limiting the amount of resource revenue in the budget, particularly during times of relatively high resource revenue, also tempers demand for higher spending, which is only fiscally sustainable with permanently high resource revenues. In other words, if the government creates a rainy-day account, spending would become more closely align with stable ongoing levels of revenue.

And it’s not too late. To end the boom-bust cycle and finally help stabilize provincial finances, the Smith government should create a rainy-day account.

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Alberta

Governments in Alberta should spur homebuilding amid population explosion

Published on

From the Fraser Institute

By Tegan Hill and Austin Thompson

In 2024, construction started on 47,827 housing units—the most since 48,336 units in 2007 when population growth was less than half of what it was in 2024.

Alberta has long been viewed as an oasis in Canada’s overheated housing market—a refuge for Canadians priced out of high-cost centres such as Vancouver and Toronto. But the oasis is starting to dry up. House prices and rents in the province have spiked by about one-third since the start of the pandemic. According to a recent Maru poll, more than 70 per cent of Calgarians and Edmontonians doubt they will ever be able to afford a home in their city. Which raises the question: how much longer can this go on?

Alberta’s housing affordability problem reflects a simple reality—not enough homes have been built to accommodate the province’s growing population. The result? More Albertans competing for the same homes and rental units, pushing prices higher.

Population growth has always been volatile in Alberta, but the recent surge, fuelled by record levels of immigration, is unprecedented. Alberta has set new population growth records every year since 2022, culminating in the largest-ever increase of 186,704 new residents in 2024—nearly 70 per cent more than the largest pre-pandemic increase in 2013.

Homebuilding has increased, but not enough to keep pace with the rise in population. In 2024, construction started on 47,827 housing units—the most since 48,336 units in 2007 when population growth was less than half of what it was in 2024.

Moreover, from 1972 to 2019, Alberta added 2.1 new residents (on average) for every housing unit started compared to 3.9 new residents for every housing unit started in 2024. Put differently, today nearly twice as many new residents are potentially competing for each new home compared to historical norms.

While Alberta attracts more Canadians from other provinces than any other province, federal immigration and residency policies drive Alberta’s population growth. So while the provincial government has little control over its population growth, provincial and municipal governments can affect the pace of homebuilding.

For example, recent provincial amendments to the city charters in Calgary and Edmonton have helped standardize building codes, which should minimize cost and complexity for builders who operate across different jurisdictions. Municipal zoning reforms in CalgaryEdmonton and Red Deer have made it easier to build higher-density housing, and Lethbridge and Medicine Hat may soon follow suit. These changes should make it easier and faster to build homes, helping Alberta maintain some of the least restrictive building rules and quickest approval timelines in Canada.

There is, however, room for improvement. Policymakers at both the provincial and municipal level should streamline rules for building, reduce regulatory uncertainty and development costs, and shorten timelines for permit approvals. Calgary, for instance, imposes fees on developers to fund a wide array of public infrastructure—including roads, sewers, libraries, even buses—while Edmonton currently only imposes fees to fund the construction of new firehalls.

It’s difficult to say how long Alberta’s housing affordability woes will endure, but the situation is unlikely to improve unless homebuilding increases, spurred by government policies that facilitate more development.

Tegan Hill

Director, Alberta Policy, Fraser Institute

Austin Thompson

Senior Policy Analyst, Fraser Institute
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