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Alberta

Premier Smith reacts to Liberal Government’s announcement on new methane reduction targets at COP 28

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Federal methane emissions targets: Joint statement

“Once again, the federal government is setting unrealistic targets and timelines. Infrastructure can only be updated as quickly as technology allows. For example, Alberta will not accept nor impose a total ban on flaring at this time, as it is a critical health and safety practice during production. Any regulation that completely prohibits this is putting lives at risk”

Premier Danielle Smith and Minister of Environment and Protected Areas Rebecca Schulz issued the following statement on the federal government’s proposed methane emissions regulations:

“The federal government has unilaterally established new methane emissions rules and targets to help win international headlines. Instead of building on Alberta’s award-winning approach, Ottawa wants to replace it with costly, dangerous and unconstitutional new federal regulations that won’t benefit anyone beyond Environment and Climate Change Minister Steven Guilbeault’s post-office career.

“Managing emissions from Alberta’s oil and gas industry is our constitutional right and responsibility, not Ottawa’s, and we are getting the job done. Using a province-led approach, Alberta has already reduced methane emissions from the oil and gas sector by 45 per cent – hitting our target three years early – and we’re just getting started.

“Meanwhile, not only is it illegal for Ottawa to attempt to regulate our industries in this manner, Ottawa also hasn’t even hit one of its past arbitrary and unscientific emissions targets largely because it has little to no credible expertise regulating the natural resource, agricultural and other industry sectors in this space.

“Ottawa could have helped us keep reducing emissions with joint incentive programs in line with Alberta’s Emissions Reduction and Energy Development Plan. It could have listened to the Supreme Court’s declaration that the Impact Assessment Act was unconstitutional and abandoned this kind of arrogant and ineffective scheme. Instead, these new regulations threaten our successful province-led approach and impede good work that’s already underway.

“Once again, the federal government is setting unrealistic targets and timelines. Infrastructure can only be updated as quickly as technology allows. For example, Alberta will not accept nor impose a total ban on flaring at this time, as it is a critical health and safety practice during production. Any regulation that completely prohibits this is putting lives at risk. A total ban would also be costly, resulting in shut-ins and loss of production.

“This approach will also cost tens of billions in infrastructure upgrades, yet Ottawa has provided virtually no financial support to do so. Thousands of Albertans could be put out of work in the coming years due to these costly regulations. A federal government willing to invest $37.7 billion into just three battery plants in Ontario and Quebec cannot credibly refuse to provide tax credits and financial incentives for producers in Alberta and Saskatchewan to assist with achieving a carbon-neutral economy by 2050.

“For years, Alberta, not Ottawa, has done the hard work and achieved results. We strongly support reducing methane emissions and have invested tens of millions into developing these technologies. Minister Guilbeault must work with us, and not against us, to keep cutting methane emissions and charting a course for carbon neutrality by 2050.

“Given the unconstitutional nature of this latest federal intrusion into our provincial jurisdiction, our government will use every tool at our disposal to ensure these absurd federal regulations are never implemented in our province.”

Alberta

Premier Smith says Auto Insurance reforms mean lower premiums and better services for Alberta drivers

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

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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Alberta

Alberta fiscal update: second quarter is outstanding, challenges ahead

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Alberta maintains a balanced budget while ensuring pressures from population growth are being addressed.

Alberta faces rising risks, including ongoing resource volatility, geopolitical instability and rising pressures at home. With more than 450,000 people moving to Alberta in the last three years, the province has allocated hundreds of millions of dollars to address these pressures and ensure Albertans continue to be supported. Alberta’s government is determined to make every dollar go further with targeted and responsible spending on the priorities of Albertans.

The province is forecasting a $4.6 billion surplus at the end of 2024-25, up from the $2.9 billion first quarter forecast and $355 million from budget, due mainly to higher revenue from personal income taxes and non-renewable resources.

Given the current significant uncertainty in global geopolitics and energy markets, Alberta’s government must continue to make prudent choices to meet its responsibilities, including ongoing bargaining for thousands of public sector workers, fast-tracking school construction, cutting personal income taxes and ensuring Alberta’s surging population has access to high-quality health care, education and other public services.

“These are challenging times, but I believe Alberta is up to the challenge. By being intentional with every dollar, we can boost our prosperity and quality of life now and in the future.”

Nate Horner, President of Treasury Board and Minister of Finance

Midway through 2024-25, the province has stepped up to boost support to Albertans this fiscal year through key investments, including:

  • $716 million to Health for physician compensation incentives and to help Alberta Health Services provide services to a growing and aging population.
  • $125 million to address enrollment growth pressures in Alberta schools.
  • $847 million for disaster and emergency assistance, including:
    • $647 million to fight the Jasper wildfires
    • $163 million for the Wildfire Disaster Recovery Program
    • $5 million to support the municipality of Jasper (half to help with tourism recovery)
    • $12 million to match donations to the Canadian Red Cross
    • $20 million for emergency evacuation payments to evacuees in communities impacted by wildfires
  • $240 million more for Seniors, Community and Social Services to support social support programs.

Looking forward, the province has adjusted its forecast for the price of oil to US$74 per barrel of West Texas Intermediate. It expects to earn more for its crude oil, with a narrowing of the light-heavy differential around US$14 per barrel, higher demand for heavier crude grades and a growing export capacity through the Trans Mountain pipeline. Despite these changes, Alberta still risks running a deficit in the coming fiscal year should oil prices continue to drop below $70 per barrel.

After a 4.4 per cent surge in the 2024 census year, Alberta’s population growth is expected to slow to 2.5 per cent in 2025, lower than the first quarter forecast of 3.2 per cent growth because of reduced immigration and non-permanent residents targets by the federal government.

Revenue

Revenue for 2024-25 is forecast at $77.9 billion, an increase of $4.4 billion from Budget 2024, including:

  • $16.6 billion forecast from personal income taxes, up from $15.6 billion at budget.
  • $20.3 billion forecast from non-renewable resource revenue, up from $17.3 billion at budget.

Expense

Expense for 2024-25 is forecast at $73.3 billion, an increase of $143 million from Budget 2024.

Surplus cash

After calculations and adjustments, $2.9 billion in surplus cash is forecast.

  • $1.4 billion or half will pay debt coming due.
  • The other half, or $1.4 billion, will be put into the Alberta Fund, which can be spent on further debt repayment, deposited into the Alberta Heritage Savings Trust Fund and/or spent on one-time initiatives.

Contingency

Of the $2 billion contingency included in Budget 2024, a preliminary allocation of $1.7 billion is forecast.

Alberta Heritage Savings Trust Fund

The Alberta Heritage Savings Trust Fund grew in the second quarter to a market value of $24.3 billion as of Sept. 30, 2024, up from $23.4 billion at the end of the first quarter.

  • The fund earned a 3.7 per cent return from July to September with a net investment income of $616 million, up from the 2.1 per cent return during the first quarter.

Debt

Taxpayer-supported debt is forecast at $84 billion as of March 31, 2025, $3.8 billion less than estimated in the budget because the higher surplus has lowered borrowing requirements.

  • Debt servicing costs are forecast at $3.2 billion, down $216 million from budget.

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