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Alberta

Province will balance the economy and the environment – Emissions Reduction and Energy Development Plan

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Balancing the economy and the environment

Alberta’s new Emissions Reduction and Energy Development (ERED) Plan charts Alberta’s course for cutting emissions, attracting investment and growing the economy. 

Albertans have been stewards of one of Canada’s largest economic engines, the oil and gas sector. For decades, Albertans have stepped up to deliver responsible, ethically produced energy, helping mitigate global energy crises and leading in technology innovation to reduce emissions.

The ERED Plan is Alberta’s path forward to net-zero aspirations by 2050 while maintaining affordable, reliable and secure energy for Albertans. The plan affirms that responsibly produced oil and gas will continue to be a fundamental part of the global energy mix in the coming decades while sending a clear signal to the world that Alberta is the place to invest.

“Our made-in-Alberta plan to reduce emissions while growing the economy is a plan that works for Albertans. This could never be a one-size-fits-all model passed on by the federal government. I’m so proud of the work that has been done to bring this forward. Alberta can, and will, be a part of the solution to safeguard North American and global energy security. We can make real progress on environmental protection without sacrificing Alberta’s and Canada’s economic engine.”

Danielle Smith, Premier

Cutting emissions should not make life harder and more expensive. Actions in the ERED Plan like modernizing the electricity system, integrating new technology and supporting natural gas-fired generation will help keep energy reliable, safe and affordable for Albertans.

In February, Premier Danielle Smith sent a letter to Prime Minister Justin Trudeau, informing the federal government that a made-in-Alberta plan was on the way. Alberta’s government is calling on the federal government to stop setting unrealistic, unachievable targets, to stay in their lane and work with the provinces without interfering in provincial jurisdiction. Families need to keep the lights on, buy groceries and have enough gas in their car to get their kids to soccer practice without carrying the burden of expensive government climate policies.

Former premier Ralph Klein took the first step by putting out the first such plan in 1998. Since then, decades of hard work from the men and women who make their living in Alberta’s industries have led to today. The plan Alberta’s government is unveiling salutes the work done by Albertans over decades, culminating in a significant focus over the last four years, and charts the province’s next steps. More work is yet to be done.

“Alberta’s plan forward to reduce emissions while growing economic activity sets a course of success for our province. The conversation about emissions reduction must include energy security, affordability and reliability. This plan does exactly that.”

Sonya Savage, Minister of Environment and Protected Areas

Alberta’s ERED Plan outlines investment and partnership opportunities, including ways to better support Alberta’s skilled workforce, strengthen relationships with Indigenous organizations and communities, and collaborate with industry. By driving emissions reductions in all sectors through clean technology and innovative solutions, Alberta’s plan protects and diversifies jobs and keeps money in the pockets of hard-working Albertans.

“Alberta will make an outsized contribution to Canada and the rest of the world by developing low-cost technologies towards successful decarbonization. Given Alberta’s ingenuity and energy expertise, it is in the best position to support Canada’s aim to achieve net-zero emissions in 2050.”

Jack Mintz, president’s fellow, School of Public Policy, University of Calgary

“Alberta has demonstrated tremendous leadership in economic reconciliation for Indigenous Peoples by creating opportunities for Indigenous communities to participate in projects that will drive tangible economic benefits and prosperity for generations to come.”

Chana Martineau, CEO, Alberta Indigenous Opportunities Corporation

The ERED Plan outlines actions and opportunities across Alberta’s environment and economy, from oil and gas to agriculture and waste management. A summary of actions is available on the ERED Plan website.

As part of Alberta’s work to address the rising cost of living due to inflation, the ERED Plan includes a commitment to explore building codes, labelling and building benchmarking, balancing informed consumer choice with property right considerations, and exploring and growing innovation and technology for homes like new building materials and heat pumps.

“The Pathways Alliance is encouraged by the Government of Alberta’s plan to reduce emissions and achieve net zero while ensuring industry can compete globally, attract investment and continue to provide economic growth and prosperity for Albertans and Canadians.”

Kendall Dilling, president, Pathways Alliance

“Alberta’s Emissions Reduction and Energy Development Plan presents evidence that Alberta does not require overlapping federal regulation to do what is necessary to meet net zero by 2050 goals. The plan’s net zero by 2050 aspiration is the statement that investors and analysts have been looking for as the overarching signal of commitment to emissions reductions action.”

Gary Mar, president and CEO, Canada West Foundation

Quick facts

  • Alberta was the first jurisdiction in Canada to establish a climate plan in 1998.
  • Alberta was the first jurisdiction in North America to introduce an industrial carbon price and emissions trading system in 2007.
  • Alberta was the first government in Canada to set a methane emissions reduction target for the oil and gas sector and is on track to meet and exceed its 2025 methane emissions reduction goal.
  • Alberta is expected to transition from coal-fired electricity in 2023, seven years ahead of provincial and federal targets.
  • The Technology Innovation and Emissions Reduction (TIER) Regulation, Alberta’s industrial carbon pricing system, is at the core of emissions management in Alberta.
  • From 2009 to 2021, $2.5 billion from industrial carbon pricing funds were invested in programs that support emissions reductions and climate resiliency.
  • Alberta is recognized as a leader in developing carbon capture, utilization and storage (CCUS) technology, committing more than $1.8 billion to support CCUS projects to date.

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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