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Alberta

Indigenous leaders see progress in 2023 but continue to advocate for national loan guarantee program

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Wolf Midstream and its partners in the Northern Lakeland Indigenous Alliance participate in a signing ceremony celebrating a $103 million loan guarantee from the AIOC to obtain a 43% stake in the Access NGL Pipeline System. Photo courtesy AIOC

From the Canadian Energy Centre

By Shawn Logan

“Things are starting to work but self-determination is the ultimate goal.”

When John Desjarlais reflects on 2023, he admits he had feared a growing national tide of Indigenous investment in key energy projects was due to hit a speedbump.

Instead, as a new year approaches, the executive director of the Indigenous Resource Network (IRN) says any doubts have been replaced by optimism that the positive momentum of the last few years will flow into 2024.

“I’m feeling more optimistic now. I’m pleased to see the level of conversation being had with Indigenous leaders,” he said.

“I think there is growing opportunity for Indigenous participation across entire value chains, for board and executive positions, and more meaningful involvement. I think we’re really going to see the needle move in 2024.”

John Desjarlais, executive director of the Indigenous Resource Network in Bragg Creek, Alta. Photo by Dave Chidley for the Canadian Energy Centre

Despite the year’s slow start, Desjarlais said 2023 became something of a bellwether for how the rest of the world views the involvement of First Nations and Métis in Canada’s oil and gas industry.

In April, Desjarlais joined a delegation of Indigenous leaders in Ottawa to meet face-to-face with diplomats from some of the world’s strongest economies. Joined by Haisla Nation Chief Councillor Crystal Smith, First Nations LNG Alliance CEO Karen Ogen and former Enoch Cree First Nation chief Billy Morin, the delegation quickly learned not only was there an appetite for Canadian energy, but for Indigenous knowledge and participation on the critical file.

“Every official had a real desire to really understand Indigenous sentiment around resource development. There was a sincere desire to learn from our perspective,” Desjarlais told the CEC following the meetings with representatives from G7 allies Germany, France, Japan and the United States, as well as Poland and India.

However, while potential international energy partners are intrigued by the potential of relationships with Indigenous energy suppliers, a significant hurdle remains – the need for a national loan guarantee program that would empower more Indigenous ownership in community-transforming projects, particularly oil and gas.

Dale Swampy, president of the National Coalition of Chiefs, is a veteran in the fight for First Nations and Métis to fully benefit from critical resources to directly benefit communities. And he is hopeful there is growing recognition in Ottawa that enabling self-determination is an effective and enduring pathway to prosperity.

“The only way to defeat on-reserve poverty is to create ways to employ people,” he said.

“And the only industry that gives us this opportunity is the natural resources industry.”

Alberta has been a leader in helping open doors to indigenous ownership of major resource projects, launching the Alberta Indigenous Opportunities Corporation (AIOC) in 2019. As the year came to a close, the AIOC announced two more major deals, which will see the total investment backed by the fund to date reach more than $680 million, directly impacting 42 Indigenous groups.

Dale Swampy President National Coalition of Chiefs. Canadian Energy Centre photo

In what marks the second-largest loan guarantee backed by the provincial corporation, 12 Indigenous communities will invest $150 million to obtain 85 per cent ownership in oil and gas midstream infrastructure in the Marten Hills and Nipisi areas of the Clearwater play in Northern Alberta.

While the ink was still drying, two days later another deal saw five First Nations in northwestern Alberta enter into a $20.5 million partnership with NuVista Energy Ltd. for majority ownership of an emissions-reducing cogeneration unit at the Wembley gas plant in the County of Grande Prairie.

The AIOC’s success saw the Alberta government increase its loan guarantee capacity to $2 billion this year, and it’s set to increase it further to $3 billion for the 2024-2025 fiscal year.

Desjarlais’ IRN spent most of 2023 advocating for a federal version of the AIOC, to emulate its success at the national level.

Chief Greg Desjarlais of Frog Lake First Nation signs a historic agreement between Enbridge and 23 First Nation and Métis communities in September 2022. The communities acquired, collectively, an 11.57% non-operating interest in seven Enbridge-operated pipelines in the Athabasca region of northern Alberta for $1.12 billion on September 22, 2022. Photo courtesy Enbridge

In its fall financial update, the federal government announced it would unveil a new Indigenous loan guarantee program when it sets its 2024 budget this spring. But there has been no commitment to include oil and gas projects as part of the program.

Desjarlais said the fact a program has been promised is a good first step – now Indigenous leaders need to convince the federal government that imposing restrictions will only impede economic reconciliation.

“It looks like there is a program coming but we have to take a look at the exclusions,” he said.

“What we really want to see is less paternalism. Things are starting to work but self-determination is the ultimate goal.”

Desjarlais said the last few years have seen significant progress when it comes to Indigenous involvement in resource projects.

On the west coast, Indigenous-owned Cedar LNG and Ksi Lisims LNG will be at the vanguard of Canada’s first significant foray into exporting the in-demand fuel for customers in Asia. While several Indigenous communities across western Canada are investing in critical infrastructure like pipelines and carbon capture and storage projects.

For Swampy, that progress is long overdue. And it’s becoming increasingly clear that Indigenous communities no longer want to be reliant on government supports – they want to take control of their own destinies.

“They want to take part in the prosperity that comes with oil and gas, and they want to own it,” he said.

“All we ask is that we be involved when it comes to the question about land and resources. We don’t want to just be part of these consultations, we want to lead projects.”

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Alberta

Red Deer’s first new courthouse in 40 years expected to open early in 2025

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Front entrance of the new Red Deer Justice Centre.

New courthouse in downtown Red Deer will improve justice services for the region’s growing population and address space constraints.

Red Deer residents are one step closer to enhanced justice services in a state-of-the-art facility. The newly built Red Deer Justice Centre will replace the city’s existing outdated court facilities that have been operating at capacity. The new centre has space for 16 courtrooms, with 12 courtrooms fully built and the ability to add up to four additional courtrooms for future use.

With construction complete, Alberta Infrastructure is turning the building over to Alberta Justice, who will outfit the facility with furniture and modern equipment to prepare the building for the public. The centre is expected to officially open and begin operating in early 2025.

“This new, state-of-the-art courthouse will increase access to justice services for residents of Red Deer and central Alberta. The new facility will meet the space and service needs of residents for generations to come.”

Pete Guthrie, Minister of Infrastructure

Construction on the new Red Deer Justice Centre began in August 2020. The new centre includes spaces for alternative approaches to the traditional courtroom trial process, with three new suites for judicial dispute resolution services, a specific suite for other dispute resolution services, such as family mediation and civil mediation, and a new Indigenous courtroom able to accommodate smudging. Additionally, it will include modern technology to replace legacy systems at the current courthouse.

“Along with building a new justice centre for Red Deer, Alberta’s government is preparing to expand pre-court services, such as mediation, in Red Deer early in 2025. This new facility has the space to offer these services while also allowing more court cases to be heard, increasing Albertans’ access to justice.”

Mickey Amery, Minister of Justice

“As MLA for Red Deer-North, I am thrilled this new justice centre will open its doors to serve our growing community soon. When it opens, it will provide essential space and resources to support timely legal services, reflecting our commitment to improve legal access for the people of Red Deer and central Alberta.”

Adriana LaGrange, MLA for Red Deer-North

“Central Alberta is a wonderful, attractive place for individuals to work, live and raise families, and many are choosing our region for these reasons. The Red Deer Justice Centre will improve justice services for a growing population of individuals, families and businesses. This centre is a testament to Red Deer and central Alberta’s growth and our government’s commitment to it.”

Jason Stephan, MLA for Red Deer-South

Building the vital public infrastructure that Albertans need, creating jobs and attracting investment is integral to Alberta’s economic development. The project supported about 1,100 construction-related jobs from start to finish.

Quick facts

  • Red Deer’s current court facilities include seven courtrooms that were built in the 1980s.
    • Since then, Red Deer’s population has almost doubled.
  • The approved project funding is about $203.1 million.
  • The new 312,000 sq ft (29,000 m2) Red Deer Justice Centre is built to LEED Silver standards to ensure reduced energy consumption and operational costs and increased durability of the building.
  • The new facility was designed by Group2 Architecture and Interior Design, in conjunction with justice facility specialists DLR Group.
  • There are currently five courthouse capital projects in planning or design throughout the province.
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Alberta

Ottawa’s oil and gas emissions cap will hit Alberta with a wallop

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From the Fraser Institute

By Kenneth P. Green

Even if Canada eliminated all its GHG emissions expected in 2030 due to the federal cap, the emission reduction would equal only four-tenths of one per cent of global emissions—a reduction unlikely to have any impact on the trajectory of the climate in any detectable manner or produce any related environmental, health or safety benefits.

After considerable waiting, the Trudeau government released on Monday draft regulations to cap greenhouse gas (GHG) emissions from Canada’s oil and gas producers.

The proposed regulations would set a cap on GHG emissions equivalent to 35 per cent of the emissions produced in 2019 and create a GHG emissions “cap and trade” system to enable oil and gas producers (who cannot reduce emissions enough to avoid the cap) to buy credits from other producers able to meet the cap. Producers unable to meet the cap will also be able to obtain emission credits (of up to 20 per cent of their needed emission reductions) by investing in decarbonization programs or by buying emission “offsets” in Canada’s carbon markets.

According to the government, the cap will “cap pollution, drive innovation, and create jobs in the oil and gas industry.” But in reality, while the cap may well cap pollution and drive some innovation, according to several recent analyses it won’t create jobs in the oil and gas industry and will in fact kill many jobs.

For example, the Conference Board of Canada think-tank estimates that the cap would reduce Canada’s GDP by up to $1 trillion between 2030 and 2040, kill up to 151,300 jobs across Canada by 2030, and national economic growth from 2023 to 2030 would slow from 15.3 per cent to 14.3 per cent.

Not surprisingly, Alberta would be hardest hit. According to the Board, from 2023 to 2030, the province’s economic growth would fall from an estimated 17.8 per cent to 13.3 per cent and employment growth would fall from 15.8 per cent to 13.6 per cent over the same period. Alberta government revenues from the sector would decline by 4.5 per cent in 2030 compared to a scenario without the cap. As a result, Alberta government revenues would be $4.5 billion lower in nominal terms in fiscal year 2030/31. And between 54,000 to 91,500 of Canada’s job losses would occur in Alberta.

Another study by Deloitte estimates that, due to the federal cap, Alberta will see 3.6 per cent less investment, almost 70,000 fewer jobs, and a 4.5 per cent decrease in the province’s economic output (i.e. GDP) by 2040. Ontario would lose more than 15,000 jobs and $2.3 billion from its economy by 2040. And Quebec would lose more than 3,000 jobs and $0.4 billion from its economy during the same period.

Overall, according to Deloitte, Canada would experience an economic loss equivalent to 1.0 per cent of GDP, translating into lower wages, the loss of nearly 113,000 jobs and a 1.3 per cent reduction in government tax revenues. (For context, Canada’s economic growth in 2023 was only 1.1 per cent.)

And what will Canadians get for all that economic pain?

In my study published last year by the Fraser Institute, I found that, even if Canada eliminated all its GHG emissions expected in 2030 due to the federal cap, the emission reduction would equal only four-tenths of one per cent of global emissions—a reduction unlikely to have any impact on the trajectory of the climate in any detectable manner or produce any related environmental, health or safety benefits.

Clearly, the Trudeau government’s new proposed emissions cap on the oil and gas sector will impose significant harms on Canada’s economy, Canadian workers and our quality of life—and hit Alberta with a wallop. And yet, as a measure intended to avert harmful climate change, it’s purely performative (like many of the government’s other GHG regulations) and will generate too little emission reductions to have any meaningful impact on the climate.

In a world of rational policy development, where the benefits of government regulations are supposed to exceed their costs, policymakers would never consider this proposed cap. The Trudeau government will submit the plan to Parliament, and if the cap becomes law, it will await some other future government to undo the damage inflicted on Canadians and their families.

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