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Alberta

Premier Danielle Smith says federal EV mandate doesn’t work for Albertans

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Federal electric vehicle mandate: Premier Smith

Premier Danielle Smith issued this response to the federal zero-emission vehicle mandate:

“Alberta’s government supports reducing emissions from the transportation sector and supporting Albertans who wish to drive lower-emissions vehicles. However, these efforts must be led by and support consumers and businesses, and the federal government has no legal or moral authority to tell Albertans what vehicles they can and cannot buy.

“Alberta has already purchased and is working with municipalities and industry to explore the use of hydrogen-powered vehicles in our provincial transportation fleet and evaluating options to increase hydrogen fuelling stations across Alberta. We’re funding pilots that are testing long-range hydrogen trucks for industry and buses in major cities. We’re working with the same partners to improve access to EV charging stations. The federal government should rein back its failed command economy tactics and work with us on a consumer-based market approach that is achievable and doesn’t hurt people.

“And yet, in another show of total disregard for the well-being of Canadians, the federal government has unilaterally imposed an unconstitutional edict with a bizarrely impossible timeline that will result in massive increases in the cost of vehicles and utility bills, vehicle rationing and wait lists, increased costs to businesses and elevated difficulty and safety risk for hundreds of thousands of Albertans and Canadians just trying to get to work and family activities in our unpredictable, and often cold, climate.

“The sheer hypocrisy of this announcement is astounding. To date, the federal government’s EV approach has been a disaster. The independent federal commissioner of the environment and sustainable development found Ottawa is failing to meet its current target of making 80 per cent of the federal government’s fleet vehicles net zero by 2030. The federal commissioner found that if progress continues at the current rate, the federal government will reach only one per cent of its target by 2030. Not only are there not enough electric vehicle chargers, Ottawa doesn’t even know where EV chargers are needed. The federal government will fail to hit its target even where it has complete discretion, and yet it plans to mandate similar targets on consumers throughout all of Canada.

“Although it seems rather obvious to say, emissions targets and regulations must be realistic, achievable, and cannot result in multiple severe harms to millions of Canadians. A federal government that can’t transition its own fleet to EVs should not be telling Albertans and Canadians to do what even it is unable to do.

“It’s also deeply concerning that Ottawa is trying to force increased demands on the electricity grid while simultaneously weakening Alberta’s and other provinces’ grids through their federal electricity regulations. Our electric grids are not equipped to handle the massive demand surge that a forced full-scale transition to EVs would need to accommodate the delusional timelines in Ottawa’s regulations, and the federal government has not provided remotely enough financial assistance to assist provincial grids to meet this mandated electricity demand.

“Further, these new regulations will result in a shortage and rationing of traditional vehicles starting in 2026 and even earlier, as millions of consumers in need of combustion engine vehicles, especially those living in smaller municipalities that commute long distances, will be unable to power or afford an EV but also won’t be able to find an appropriate vehicle to drive in their circumstances. Apparently, the federal government doesn’t understand that freezing with their families in -30 C on the side of a rural road is not an option for Albertans.

“There is a way to encourage Canadians to drive more EVs, hydrogen-powered cars and other low-emission vehicles. Instead of telling Canadians how to spend their money and lining up for the right to purchase what they need, the federal government should focus on helping provinces develop infrastructure and advance technologies that are more suitable to Canada’s long distances and cold weather.

“Canadians deserve more than destructive virtue-signalling regulations and unachievable targets. Unfortunately, this federal government continues to show that it is all rhetoric and no substance. This approach does not serve Canadians and it won’t protect the environment.

“The Government of Alberta will do everything within its legal jurisdiction to thwart implementation of these unconstitutional regulations in our province.”

Alberta

Big win for Alberta and Canada: Statement from Premier Smith

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Premier Danielle Smith issued the following statement on the April 2, 2025 U.S. tariff announcement:

“Today was an important win for Canada and Alberta, as it appears the United States has decided to uphold the majority of the free trade agreement (CUSMA) between our two nations. It also appears this will continue to be the case until after the Canadian federal election has concluded and the newly elected Canadian government is able to renegotiate CUSMA with the U.S. administration.

“This is precisely what I have been advocating for from the U.S. administration for months.

“It means that the majority of goods sold into the United States from Canada will have no tariffs applied to them, including zero per cent tariffs on energy, minerals, agricultural products, uranium, seafood, potash and host of other Canadian goods.

“There is still work to be done, of course. Unfortunately, tariffs previously announced by the United States on Canadian automobiles, steel and aluminum have not been removed. The efforts of premiers and the federal government should therefore shift towards removing or significantly reducing these remaining tariffs as we go forward and ensuring affected workers across Canada are generously supported until the situation is resolved.

“I again call on all involved in our national advocacy efforts to focus on diplomacy and persuasion while avoiding unnecessary escalation. Clearly, this strategy has been the most effective to this point.

“As it appears the worst of this tariff dispute is behind us (though there is still work to be done), it is my sincere hope that we, as Canadians, can abandon the disastrous policies that have made Canada vulnerable to and overly dependent on the United States, fast-track national resource corridors, get out of the way of provincial resource development and turn our country into an independent economic juggernaut and energy superpower.”

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Alberta

Energy sector will fuel Alberta economy and Canada’s exports for many years to come

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From the Fraser Institute

By Jock Finlayson

By any measure, Alberta is an energy powerhouse—within Canada, but also on a global scale. In 2023, it produced 85 per cent of Canada’s oil and three-fifths of the country’s natural gas. Most of Canada’s oil reserves are in Alberta, along with a majority of natural gas reserves. Alberta is the beating heart of the Canadian energy economy. And energy, in turn, accounts for one-quarter of Canada’s international exports.

Consider some key facts about the province’s energy landscape, as noted in the Alberta Energy Regulator’s (AER) 2023 annual report. Oil and natural gas production continued to rise (on a volume basis) in 2023, on the heels of steady increases over the preceding half decade. However, the dollar value of Alberta’s oil and gas production fell in 2023, as the surging prices recorded in 2022 following Russia’s invasion of Ukraine retreated. Capital spending in the province’s energy sector reached $30 billion in 2023, making it the leading driver of private-sector investment. And completion of the Trans Mountain pipeline expansion project has opened new offshore export avenues for Canada’s oil industry and should boost Alberta’s energy production and exports going forward.

In a world striving to address climate change, Alberta’s hydrocarbon-heavy energy sector faces challenges. At some point, the world may start to consume less oil and, later, less natural gas (in absolute terms). But such “peak” consumption hasn’t arrived yet, nor does it appear imminent. While the demand for certain refined petroleum products is trending down in some advanced economies, particularly in Europe, we should take a broader global perspective when assessing energy demand and supply trends.

Looking at the worldwide picture, Goldman Sachs’ 2024 global energy forecast predicts that “oil usage will increase through 2034” thanks to strong demand in emerging markets and growing production of petrochemicals that depend on oil as the principal feedstock. Global demand for natural gas (including LNG) will also continue to increase, particularly since natural gas is the least carbon-intensive fossil fuel and more of it is being traded in the form of liquefied natural gas (LNG).

Against this backdrop, there are reasons to be optimistic about the prospects for Alberta’s energy sector, particularly if the federal government dials back some of the economically destructive energy and climate policies adopted by the last government. According to the AER’s “base case” forecast, overall energy output will expand over the next 10 years. Oilsands output is projected to grow modestly; natural gas production will also rise, in part due to greater demand for Alberta’s upstream gas from LNG operators in British Columbia.

The AER’s forecast also points to a positive trajectory for capital spending across the province’s energy sector. The agency sees annual investment rising from almost $30 billion to $40 billion by 2033. Most of this takes place in the oil and gas industry, but “emerging” energy resources and projects aimed at climate mitigation are expected to represent a bigger slice of energy-related capital spending going forward.

Like many other oil and gas producing jurisdictions, Alberta must navigate the bumpy journey to a lower-carbon future. But the world is set to remain dependent on fossil fuels for decades to come. This suggests the energy sector will continue to underpin not only the Alberta economy but also Canada’s export portfolio for the foreseeable future.

Jock Finlayson

Senior Fellow, Fraser Institute
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