Alberta
Premier Smith meets with Prime Minister Trudeau
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Premier Danielle Smith met with Prime Minister Justin Trudeau on July 7 to discuss economic priorities.
Although the meeting was constructive, there are still several concerning issues that need to be resolved if Alberta and the federal government are to reach an agreement on an emissions-reduction plan that will simultaneously secure a reliable and affordable electricity grid, protect Alberta workers and drive economic growth in our energy sector for decades.
The positive news is the federal government has agreed to immediately form a bilateral working group with the Alberta government to work on an aligned framework to incentivize investment in carbon capture, utilization and storage as well as other emissions-reducing technologies.
This group would also work to develop a regulatory framework for the construction and use of small modular reactor technology in our province and to secure credit for carbon reduction through increased LNG exports to international markets. Article 6 in the Paris Accord allows for jurisdictions to receive credit for reducing emissions in other countries.
These are welcome developments.
However, the federal government has yet to formally recognize Alberta’s exclusive jurisdiction to set its own emissions-reduction targets and milestones on the path to a carbon-neutral energy sector and electricity grid by 2050.
They continue to set targets for a 42 per cent reduction in energy sector emissions by 2030 and a net-zero electricity grid by 2035. Both of these targets are unachievable, will drive billions of investment out of Alberta, massively increase electricity costs and result in the loss of tens of thousands of Alberta jobs.
We also understand the federal government is set to release its draft so-called ‘clean electricity’ regulations (CER) for feedback in the coming weeks, and which do not initially include a carve-out for provinces like Alberta, which needs more time to transition to a carbon-neutral power grid due to our reliance on natural gas-fired electricity generation.
It will be critical after this initial feedback period is complete that Ottawa grant Alberta’s requested CER carve-out until the working group has reached an agreement on decarbonizing our power grid that Albertans can afford and support.
Albertans have borne the significant cost of replacing all coal-fired electricity generation with natural gas seven years ahead of schedule, for which ratepayers have already paid billions in compensation and will continue to make these compensation payments through 2030.
Alberta has sovereign and exclusive constitutional jurisdiction to regulate our energy and electricity industries. This is non-negotiable.
We have asked the federal government to come to the table in good faith and to assess the realities of our power grid and the true magnitude of being the fifth-largest producer of oil and gas in the world.
If Ottawa does not recognize and support Alberta’s exclusive right to regulate these sectors of our economy, our province will have no choice but to use alternative policy options to protect our rights independent of federal interference.
Our sincere hope is that the newly formed federal and provincial working group will be able to facilitate an agreement that will align Ottawa’s efforts with the Alberta government’s Emissions Reduction and Energy Development Plan.
Failing to reach an agreement on these matters would be an unprecedented missed opportunity that would cost our country tens of billions in economic investment and countless jobs from coast to coast. We look forward to starting the working group as soon as possible.
Alberta
Open letter to Ottawa from Alberta strongly urging National Economic Corridor
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Canada’s wealth is based on its success as a trading nation. Canada is blessed with immense resources spread across a vast country. It has succeeded as a small, open economy with an enviable standard of living that has been able to provide what the world needs.
Canada has been stuck in a situation where it cannot complete nation‑building projects like the Canadian Pacific Railway that was completed in 1885, or the Trans Canada Highway that was completed in the 1960s. With the uncertainty of U.S. tariffs looming over our country and province, Canada needs to take bold action to revitalize the productivity and competitiveness of its economy – going east to west and not always relying on north-south trade. There’s no better time than right now to politically de-risk these projects.
A lack of leadership from the federal government has led to the following:
- Inadequate federal funding for trade infrastructure.
- A lack of investment is stifling the infrastructure capacity we need to diversify our exports. This is despite federally commissioned reports like the 2022 report by the National Supply Chain Task Force indicating the investment need will be trillions over the next 50 years.
- Federal red tape, like the Impact Assessment Act.
- Burdensome regulation has added major costs and significant delays to projects, like the Roberts Bank Terminal 2 project, a proposed container facility at Vancouver, which spent more than a decade under federal review.
- Opaque funding programs, like the National Trade Corridors Fund (NTCF).
- Which offers a pattern of unclear criteria for decisions and lack of response. This program has not funded any provincial highway projects in Alberta, despite the many applications put forward by the Government of Alberta. In fact, we’ve gone nearly 3 years without decisions on some project applications.
- Ineffective policies that limit economic activity.
- Measures that pit environmental and economic objectives in stark opposition to one another instead of seeking innovative win-win solutions hinder Canada’s overall productivity and investment climate. One example is the moratorium on shipping crude through northern B.C. waters, which effectively ended Enbridge’s Northern Gateway proposal and has limited Alberta’s ability to ship its oil to Asian markets.
In a federal leadership vacuum, Alberta has worked to advance economic corridors across Canada. In April 2023, Alberta, Saskatchewan and Manitoba signed an agreement to collaborate on joint infrastructure networks meant to boost trade and economic growth across the Prairies. Alberta also signed a similar economic corridor agreement with the Northwest Territories in July 2024. Additionally, Alberta would like to see an agreement among all 7 western provinces and territories, and eventually the entire country, to collaborate on economic corridors.
Through our collaboration with neighbouring jurisdictions, we will spur the development of economic corridors by reducing regulatory delays and attracting investment. We recognize the importance of working with Indigenous communities on the development of major infrastructure projects, which will be key to our success in these endeavours.
However, provinces and territories cannot do this alone. The federal government must play its part to advance our country’s economic corridors that we need from coast to coast to coast to support our economic future. It is time for immediate action.
Alberta recommends the federal government take the following steps to strengthen Canada’s economic corridors and supply chains by:
- Creating an Economic Corridor Agency to identify and maintain economic corridors across provincial boundaries, with meaningful consultation with both Indigenous groups and industry.
- Increasing federal funding for trade-enabling infrastructure, such as roads, rail, ports, in-land ports, airports and more.
- Streamlining regulations regarding trade-related infrastructure and interprovincial trade, especially within economic corridors. This would include repealing or amending the Impact Assessment Act and other legislation to remove the uncertainty and ensure regulatory provisions are proportionate to the specific risk of the project.
- Adjusting the policy levers that that support productivity and competitiveness. This would include revisiting how the federal government supports airports, especially in the less-populated regions of Canada.
To move forward expeditiously on the items above, I propose the establishment of a federal/provincial/territorial working group. This working group would be tasked with creating a common position on addressing the economic threats facing Canada, and the need for mitigating trade and trade-enabling infrastructure. The group should identify appropriate governance to ensure these items are presented in a timely fashion by relative priority and urgency.
Alberta will continue to be proactive and tackle trade issues within its own jurisdiction. From collaborative memorandums of understanding with the Prairies and the North, to reducing interprovincial trade barriers, to fostering innovative partnerships with Indigenous groups, Alberta is working within its jurisdiction, much like its provincial and territorial colleagues.
We ask the federal government to join us in a new approach to infrastructure development that ensures Canada is productive and competitive for generations to come and generates the wealth that ensures our quality of life is second to none.
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Devin Dreeshen
Devin Dreeshen was sworn in as Minister of Transportation and Economic Corridors on October 24, 2022.
Alberta
Premier Smith and Health Mininster LaGrange react to AHS allegations
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Alberta Premier Danielle Smith and Health Minister Adriana LaGrange respond to allegations of political interference in the issuing of health-care contracts.
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