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Alberta

Clean tech innovation cuts emissions, creates jobs

Published

7 minute read

March 12, 2019

Alberta’s Climate Leadership Plan is helping major industries reduce emissions and create jobs while cutting costs and becoming more competitive.

Emissions Reduction Alberta is funding more than a dozen new clean technology projects across the province, while Energy Efficiency Alberta is supporting small and medium-sized oil and gas companies to reduce methane emissions through upgrades.

“Innovation is a key part of Alberta’s economic and environmental success, and our industries continue to show tremendous leadership. Clean technology investments lead to made-in-Alberta solutions that support jobs, protect our environment, and point Alberta toward a healthy, prosperous future.”

Shannon Phillips, Minister of Environment and Parks and Minister responsible for the Climate Change Office

Emissions Reduction Alberta (ERA)

From Fort McMurray to Waterton, 16 innovative clean technology projects will receive funding through ERA’s $100-million Biotechnology, Electricity and Sustainable Transportation (BEST) Challenge – the largest challenge in ERA’s history.

These projects have a combined value of $600 million and the potential to reduce a total of 2.5 million tonnes of greenhouse gas emissions by 2030 – the same as taking 530,700 cars off the road. These projects will also result in 114 new jobs.

“Our BEST Challenge is about accelerating the most promising clean technology solutions across multiple sectors – from new solar opportunities in coal-impacted communities to efficient fleet solutions. These projects will be a showcase for innovative technologies that can be adopted in communities across Alberta. They support economic growth, community health and demonstrate environmental leadership on a national and global scale.”

Steve MacDonald, CEO, Emissions Reduction Alberta

The Alberta Motor Transport Association (AMTA) is working to develop and demonstrate a 700-kilometre-plus-range zero emission truck. These trucks will reduce greenhouse gas emissions through improved fuel efficiency of the fuel cell hybrid drivetrain. Sequestering carbon at the hydrogen generation facility will result in even greater emissions reductions.

“This is a very exciting project for the AMTA and our member companies. This initiative is primarily about moving freight on Alberta’s highways with zero emissions, but it is also about the future of the Alberta economy. Alberta is in the transportation fuel business, and that business is changing. The AZETEC project demonstrates that Alberta’s commercial transportation industry is leading the transition towards innovative, zero-emission transportation that meets the province’s unique needs.”

Chris Nash, president, Alberta Motor Transport Association

Another funding recipient, eCAMION, is working on a project to transition Alberta’s buses from diesel to electric. Its first-of-a-kind charging system could lower installation and operating costs, encouraging broader and faster adoption across the province. eCAMION will partner with the City of Edmonton on a trial of its fast-charge technology. A complete list of BEST Challenge projects is available here.

Energy Efficiency Alberta (EEA)

Government is providing an additional $5 million to support the continued success of EEA’s popular $10-million Methane Emissions Reduction initiative.

The program has already made it easier for 30 small and medium-sized oil and gas companies to address methane waste through energy-efficient equipment upgrades, which also helps facilities hire more staff, reduce annual emissions and boost competitiveness. To date, 2,534 applications are approved, with at least 1,500 more anticipated by March 31, 2019.

“Through methane-reduction education and deployment of existing technologies, companies ultimately have the ability to become more competitive and efficient. This announcement will result in a great collaboration to further our methane-reduction programming for the oil and gas sector.”

Monica Curtis, CEO, Energy Efficiency Alberta

The funding boost will also support a $1.5-million grant for the Petroleum Technology Alliance of Canada to introduce technologies that reduce methane emissions. The grant is expected to reduce up to 200,000 tonnes of emissions – the same as taking 42,460 cars off the road.

“Energy Efficiency Alberta’s Methane Emissions Reduction initiative is a momentous step towards a massive deployment of proven, cost-effective, economic methane-mitigation technologies that will benefit our people, planet and industry. It will enable producers – large and small – to maintain competitiveness, while helping Alberta’s entrepreneurs and small technology providers prosper and create jobs.”

Soheil Asgarpour, president, Petroleum Technology Alliance of Canada

“EEA’s Methane Emissions Reduction Program continues to improve the province’s emissions inventory while growing local jobs and incentivizing capital investment in Alberta-based emission-reduction projects. We look forward to continuing to contribute to the success of this program and working with industry to implement emission-reduction technologies.”

Jackson Hegland, executive director, Methane Emissions Leadership Alliance

Quick facts

  • The biotechnology, electricity and sustainable transportation sectors account for more than 40 per cent of Alberta’s annual greenhouse gas emissions.
  • ERA takes action on climate change and supports economic growth and diversification by investing carbon pricing paid by industry directly into clean technology solutions that reduce emissions, attract investment and create jobs. To date, ERA has committed more than $572 million in funding to 164 projects with a total value of roughly $4.3 billion.
  • The climate change impact of methane is 25 times greater than carbon dioxide over a 100-year period. Methane emissions in 2014 from Alberta’s oil and gas sector accounted for 70 per cent of provincial methane emissions, and 25 per cent of all emissions from the upstream oil and gas sector.
  • The Methane Emissions Reduction Program was announced in October 2018, and 60 per cent of the first year’s budget has already been committed. The program received three dozen applications in the first six weeks.

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Alberta

Alberta’s fiscal update projects budget surplus, but fiscal fortunes could quickly turn

Published on

From the Fraser Institute

By Tegan Hill

According to the recent mid-year update tabled Thursday, the Smith government projects a $4.6 billion surplus in 2024/25, up from the $2.9 billion surplus projected just a few months ago. Despite the good news, Premier Smith must reduce spending to avoid budget deficits.

The fiscal update projects resource revenue of $20.3 billion in 2024/25. Today’s relatively high—but very volatile—resource revenue (including oil and gas royalties) is helping finance today’s spending and maintain a balanced budget. But it will not last forever.

For perspective, in just the last decade the Alberta government’s annual resource revenue has been as low as $2.8 billion (2015/16) and as high as $25.2 billion (2022/23).

And while the resource revenue rollercoaster is currently in Alberta’s favor, Finance Minister Nate Horner acknowledges that “risks are on the rise” as oil prices have dropped considerably and forecasters are projecting downward pressure on prices—all of which impacts resource revenue.

In fact, the government’s own estimates show a $1 change in oil prices results in an estimated $630 million revenue swing. So while the Smith government plans to maintain a surplus in 2024/25, a small change in oil prices could quickly plunge Alberta back into deficit. Premier Smith has warned that her government may fall into a budget deficit this fiscal year.

This should come as no surprise. Alberta’s been on the resource revenue rollercoaster for decades. Successive governments have increased spending during the good times of high resource revenue, but failed to rein in spending when resource revenues fell.

Previous research has shown that, in Alberta, a $1 increase in resource revenue is associated with an estimated 56-cent increase in program spending the following fiscal year (on a per-person, inflation-adjusted basis). However, a decline in resource revenue is not similarly associated with a reduction in program spending. This pattern has led to historically high levels of government spending—and budget deficits—even in more recent years.

Consider this: If this fiscal year the Smith government received an average level of resource revenue (based on levels over the last 10 years), it would receive approximately $13,000 per Albertan. Yet the government plans to spend nearly $15,000 per Albertan this fiscal year (after adjusting for inflation). That’s a huge gap of roughly $2,000—and it means the government is continuing to take big risks with the provincial budget.

Of course, if the government falls back into deficit there are implications for everyday Albertans.

When the government runs a deficit, it accumulates debt, which Albertans must pay to service. In 2024/25, the government’s debt interest payments will cost each Albertan nearly $650. That’s largely because, despite running surpluses over the last few years, Albertans are still paying for debt accumulated during the most recent string of deficits from 2008/09 to 2020/21 (excluding 2014/15), which only ended when the government enjoyed an unexpected windfall in resource revenue in 2021/22.

According to Thursday’s mid-year fiscal update, Alberta’s finances continue to be at risk. To avoid deficits, the Smith government should meaningfully reduce spending so that it’s aligned with more reliable, stable levels of revenue.

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Alberta

Premier Smith says Auto Insurance reforms may still result in a publicly owned system

Published on

Better, faster, more affordable auto insurance

Alberta’s government is introducing a new auto insurance system that will provide better and faster services to Albertans while reducing auto insurance premiums.

After hearing from more than 16,000 Albertans through an online survey about their priorities for auto insurance policies, Alberta’s government is introducing a new privately delivered, care-focused auto insurance system.

Right now, insurance in the province is not affordable or care focused. Despite high premiums, Albertans injured in collisions do not get the timely medical care and income support they need in a system that is complex to navigate. When fully implemented, Alberta’s new auto insurance system will deliver better and faster care for those involved in collisions, and Albertans will see cost savings up to $400 per year.

“Albertans have been clear they need an auto insurance system that provides better, faster care and is more affordable. When it’s implemented, our new privately delivered, care-centred insurance system will put the focus on Albertans’ recovery, providing more effective support and will deliver lower rates.”

Danielle Smith, Premier

“High auto insurance rates put strain on Albertans. By shifting to a system that offers improved benefits and support, we are providing better and faster care to Albertans, with lower costs.”

Nate Horner, President of Treasury Board and Minister of Finance

Albertans who suffer injuries due to a collision currently wait months for a simple claim to be resolved and can wait years for claims related to more serious and life-changing injuries to addressed. Additionally, the medical and financial benefits they receive often expire before they’re fully recovered.

Under the new system, Albertans who suffer catastrophic injuries will receive treatment and care for the rest of their lives. Those who sustain serious injuries will receive treatment until they are fully recovered. These changes mirror and build upon the Saskatchewan insurance model, where at-fault drivers can be sued for pain and suffering damages if they are convicted of a criminal offence, such as impaired driving or dangerous driving, or conviction of certain offenses under the Traffic Safety Act.

Work on this new auto insurance system will require legislation in the spring of 2025. In order to reconfigure auto insurance policies for 3.4 million Albertans, auto insurance companies need time to create and implement the new system. Alberta’s government expects the new system to be fully implemented by January 2027.

In the interim, starting in January 2025, the good driver rate cap will be adjusted to a 7.5% increase due to high legal costs, increasing vehicle damage repair costs and natural disaster costs. This protects good drivers from significant rate increases while ensuring that auto insurance providers remain financially viable in Alberta.

Albertans have been clear that they still want premiums to be based on risk. Bad drivers will continue to pay higher premiums than good drivers.

By providing significantly enhanced medical, rehabilitation and income support benefits, this system supports Albertans injured in collisions while reducing the impact of litigation costs on the amount that Albertans pay for their insurance.

“Keeping more money in Albertans’ pockets is one of the best ways to address the rising cost of living. This shift to a care-first automobile insurance system will do just that by helping lower premiums for people across the province.”

Nathan Neudorf, Minister of Affordability and Utilities

Quick facts

  • Alberta’s government commissioned two auto insurance reports, which showed that legal fees and litigation costs tied to the province’s current system significantly increase premiums.
  • A 2023 report by MNP shows
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