Alberta
Emissions cap threatens Indigenous communities with higher costs, fewer opportunities
Dale Swampy, founder of the National Coalition of Chiefs. Photograph for Canadian Energy Centre
From the Canadian Energy Centre
National Coalition of Chiefs founder Dale Swampy says Canada needs a more sustainable strategy for reducing emissions
The head of the National Coalition of Chiefs (NCC) says Ottawa’s proposed oil and gas emissions cap couldn’t come at a worse time for Indigenous communities.
Dale Swampy says the cap threatens the combined prospect of higher costs for fuel and groceries, along with fewer economic opportunities like jobs and revenues from involvement in energy projects.
“Any small fluctuation in the economy is affected on our communities tenfold because we rely so much on basic necessities. And those are going to be the products that increase in price significantly because of this,” says Swampy, who founded the NCC in 2016 to fight poverty through partnerships with the natural resource sector.
He says that of particular concern is the price of fuel, which will skyrocket under the emissions cap because it will force reduced Canadian oil and gas production.
Analysis by S&P Global found that meeting the cap’s requirements would require a production cut of over one million barrels of oil equivalent per day (boe/d) in 2030, and 2.1 million boe/d in 2035.
“Production gets reduced, and the cost of fuel goes up,” Swampy says.
“Our concern is that everything that has to do with both fuel for transportation and fuel to heat our homes is amplified on First Nation communities because we live in rural Canada. We live in isolated communities, and it costs much more for us to operate our daily lives because we have to travel much further than anybody in a metropolitan area. So, it’s going to impact us greatly.”
Indigenous communities are already stretched financially, he says.
“What you could buy in 2019 terms of meat and produce is almost double now, and even though the inflation rate is trending downwards, we still haven’t gotten over the impact of what it costs for a bag of groceries these days,” Swampy says.
“In our communities, more than half are under the age of 21, so there’s a lot of bigger families out there struggling to just get food on the table.”
The frustrating timing of the cap is that it comes amid a rising tide of Indigenous involvement in Canadian oil and gas. Since 2022, more than 75 Indigenous communities in Alberta and B.C. have agreed to become part owners of energy projects.
Three major projects – the Trans Mountain Pipeline Expansion, Coastal GasLink Pipeline and LNG Canada export terminal – together have spent more than $11 billion with Indigenous and local businesses.
“We’re at a turning point right now. There’s a real drive towards getting us involved in equity opportunities, employment opportunities, and contracting opportunities,” Swampy says.
“Everybody who didn’t talk to us in the past is coming to our front door and saying, ‘Do you want to work with us?’ It couldn’t come at a worse time when we have this opportunity. The emissions cap is going to reduce the amount of activity, and it’s going to reduce the amount of investment,” he says.
“We’re part of that industry now. We’re entrenched in it now, and we have to support it in order to support our people that work in this industry.”
Economic growth, and more time, is needed to fund development of low emissions energy sources without ruining the economy, he says.
“I think we need more consultation. We’d like to see them go back to the table and try to incorporate more of a sustainable strategy for emission reductions,” Swampy says.
“We’re the only country in the world that’s actually incorporating this type of legislation. Do you think the rest of the world is going to do this type of thing? No, they’re going to eat our lunch. They’re going to replace the production that we give up, they’re going to excel in the economy because of it, and they won’t talk about significant emission reduction initiatives.”
From Danielle Smith on X
Over the last 24 hours I had the opportunity to meet President @realdonaldtrump at Mar-a-Lago last night and at his golf club this morning. We had a friendly and constructive conversation during which I emphasized the mutual importance of the U.S. – Canadian energy relationship, and specifically, how hundreds of thousands of American jobs are supported by energy exports from Alberta.
I was also able to have similar discussions with several key allies of the incoming administration and was encouraged to hear their support for a strong energy and security relationship with Canada.
On behalf of Albertans, I will continue to engage in constructive dialogue and diplomacy with the incoming administration and elected federal and state officials from both parties, and will do all I can to further Alberta’s and Canada’s interests.
The United States and Canada are both proud and independent nations with one of the most important security alliances on earth and the largest economic partnership in history. We need to preserve our independence while we grow this critical partnership for the benefit of Canadians and Americans for generations to come.
The Government of Alberta is working with partners to increase pipeline capacity in pursuit of its goal to double crude oil production and increase exports to the United States.
Alberta is a strong partner to the United States, currently delivering more than 4.3 million barrels per day to the U.S. The province is committed to increasing Alberta’s crude oil production and preserving and adding pipeline capacity, supporting North American energy security as well as enabling increased U.S. production.
The Government of Alberta is taking immediate action to accelerate its plan to increase pipeline capacity to get more product to market and more value for its product.
A critical step towards achieving this goal includes working directly with industry. This is why Alberta’s government has signed a letter of intent with Enbridge, which will form a working group with the Alberta Petroleum Marketing Commission (APMC). The working group will evaluate future egress, transport, storage, terminalling and market access opportunities across the more than 29,000 kilometres of the Enbridge network in support of moving more Alberta oil and gas to Canadians and American partners.
“The world needs more Alberta oil and gas, and we need to make sure Alberta is meeting those needs. Our objective of doubling oil production aligns with Enbridge’s plans to enhance its existing pipeline systems and we look forward to partnering with them to enhance cross-border transport solutions. This will also allow us to play a role in supporting the United States in its energy security and affordability goals.”
The working group will focus on preserving and optimizing egress, developing opportunities to expand along Enbridge’s current footprint, and developing new solutions to improve global market access and maximize the value of Alberta’s commodity. Additionally, it will work with government to cut red tape and streamline regulations and permitting approvals. It will also assess opportunities for shared investment and benefit to both Albertans and Enbridge by leveraging BRIK (Bitumen-Royalty-In-Kind) barrels.
“A strong and growing Alberta oil and gas transport and storage network will allow the Government of Alberta to maximize the economic benefits for all Albertans from our bitumen and natural gas royalties. We must also pursue regulatory reform where needed so Alberta can continue to be an attractive place for companies to invest.”
“Enbridge has 75 years of experience delivering Alberta’s energy, safely and cost-effectively to support the region’s economy, unlock export value and help meet North American demand. We’re prepared – and exceptionally well-positioned – to work with producers and governments to deliver capacity as production ramps up, providing cost-effective, scalable, executable solutions now and through the decade that support North American energy security, reliability and affordability.”
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