Alberta
Premier Danielle Smith sent this letter to PM Justin Trudeau today
An alternative to Just Transition: Premier Smith
Alberta Premier Danielle Smith invites Prime Minister Justin Trudeau to work with her to develop “Sustainable Jobs” legislation as an alternative to the proposed “Just Transition” legislation.
Dear Prime Minister:
I am writing to once again raise Alberta’s serious concerns with the proposed federal ‘Just Transition’ legislation. The world needs more Canadian energy, not less. It would be premature and ill-advised to signal the end of a vibrant, thriving industry that has the ability to reduce Canada’s and the world’s emissions through technological innovation and increased exports of LNG and other clean burning fuels the world so desperately needs. It is also critical to the security of our nation and allies to lessen dependence on fuel sources from unstable, undemocratic and dangerous countries with atrocious environmental records.
Simply put, the world needs more Canadian energy and technology, not less, and as the owner of the world’s third largest oil and gas reserves and the most advanced environmental technology on the planet – we need to signal our intention to provide substantially more of both.
According to your government’s own predictions, the federal Just Transition initiative alone will risk a full 25 percent of Alberta’s economy and 187,000 jobs in Alberta, while also causing major disruptions and displacement to 13.5 percent of Canada’s workforce. At a time when Canadians are struggling to afford basic services and goods, Canada’s oil and gas sector offers some of the highest wages in Canada, which translates to strong business and community support across the country. Signalling a move away from these types of high paying jobs, threatens the national economy, and the livelihoods of hundreds of thousands of workers across the country at a time when good jobs are needed the most. It also creates a chilling effect on investors considering large scale investments in the Alberta and Canadian energy sector.
Prime Minister, we are at a crossroads in Alberta’s relationship with the Federal Government. We can continue with the endless court challenges, legislation to protect jurisdictional rights and inflammatory media coverage over our disagreements, or, as is my strong preference, Alberta and Ottawa can work in partnership on a plan that will signal to all Canadians and investors from around the world that our governments have cooperatively designed a series of incentives and initiatives intended to achieve the following objectives:
- Substantially decreasing Canada’s and Alberta’s net emissions;
- Accelerating private and public investment in projects and infrastructure that utilize and develop Carbon Capture Utilization and Storage (CCUS), Bitumen Beyond Combustion, Geothermal technology, petrochemicals, hydrogen, lithium, helium, zero-emissions vehicles and nuclear technologies;
- Attracting and growing a larger skilled workforce to fill positions in both the conventional energy sector as well as emerging industries using the technologies cited above; and
- Significantly, and through the lens of global emissions reduction, increasing the export of LNG and other responsibly developed conventional oil and natural gas resources to Europe, Asia and the United States.
Prime Minister, all of the above objectives need to be clearly articulated and integrated into any Federal legislation or policies your government seeks to implement in the coming months, or that legislation will face irrepressible opposition from Alberta. I genuinely do not want to see that happen.
Further, this proposed legislation must be developed through cooperative discussions with affected provinces – namely Alberta. I would therefore invite you to meet with me in February on this matter, after which I would propose we have our appropriate ministers and officials meet repeatedly in the coming months with the goal of coming to a joint agreement on the key items to be included in your contemplated legislation so that it can be introduced and passed by the end of Spring.
Further, I request that you take to heart, and acknowledge publicly, the following items, in an extension of good faith to Albertans:
- Immediately drop the verbiage of “Just Transition”. Accordingly, rename the “Just Transition Act” to the “Sustainable Jobs Act”;
- Vow that all provisions of any forthcoming legislation will be designed to incentivize investment and job growth in both the conventional energy sector as well as in emerging industries utilizing Carbon Capture Utilization and Storage (CCUS), Bitumen Beyond Combustion, petrochemicals, hydrogen, lithium, helium, geothermal, zero-emissions vehicle and nuclear technologies;
- Demonstrate that no provision of the Act will be designed to phase out or reduce Alberta’s conventional oil and natural gas sector and workforce (as we are already experiencing a workforce shortage in this sector);
- Commit your Government to actively partnering with Alberta to expand LNG exports to Asia and Europe as part of our nation’s overall emissions reduction strategy; and
- Promise that you and your Government will work with Alberta in partnership to set reasonable and meaningful emissions reductions targets and will not unilaterally impose such targets on Alberta’s energy, agriculture and other industrial sectors on a go forward basis.
Investments by Alberta’s oil and natural gas industry are driving the creation of the very clean technologies needed to bring emissions down both in Canada and around the world. Oil and natural gas companies representing the majority of production in Canada are investing $24 billion on projects to help reduce annual GHG emissions from operations by 22 million tonnes by 2030, and have committed to emission neutrality by 2050. Putting an end to or hampering this important work, and continued tepid support for increased LNG export, is the best way for your government to fail in its goal of reducing our nation’s and the world’s emissions. It would be the ultimate example of scoring on our own net.
The Alberta energy sector has grown and thrived through innovation, providing good paying jobs for thousands and contributing billions of dollars in tax revenue for all levels of government. They will continue to evolve and adapt to new technologies in search of new low to zero-emitting fuel sources like hydrogen and provide new, high-paying skilled jobs for decades to come. It is essential that the federal government stands shoulder to shoulder with Alberta to reduce emissions and continue to develop our oil and natural gas and future energy sources responsibly, while also positioning Canada as the optimal solution to global energy needs and security.
Prime Minister, we can and must work together. Operating in political silos, as adversaries on this issue, is getting us nowhere, and I believe all Canadians are tired of seeing it. Canada should be the world’s greatest energy superpower. It can be, if we come together collaboratively in pursuit of that objective. There is no limit to our nation’s potential.
Let’s turn the page starting with a meeting between us next month followed by a dedicated effort to craft “Sustainable Jobs” legislation that a vast majority of Albertans and Canadians will welcome and support. The consequences of missing this opportunity will be dire for the Canadian and Alberta economies, workforce and environment.
I look forward to your prompt reply.
Louisiana Governor Jeff Landry and New Hampshire Governor Chris Sununu of the Governors’ Coalition for Energy Security
Premier Danielle Smith has joined the Governors’ Coalition for Energy Security to further support advocacy of Alberta’s energy and environmental interests with key U.S. states.
The coalition was established in September 2024 by U.S. State governors Jeff Landry (Louisiana) and Chris Sununu (New Hampshire) with the aim of ensuring energy security, lower energy costs, increased reliability, sustainable economic development and sensible management of energy resources and the environment. With 12 U.S. states already signatories to the coalition, Alberta is the first non-U.S. state to enter into this agreement.
By expanding energy ties with the U.S. and promoting cross-border energy trade and participation, Alberta is helping to build upon its North American Energy strategy. Alberta already accounts for 56 per cent of all oil imports to the U.S. – twice as much as Mexico, Saudi Arabia and Iraq combined – which is helping to drive job creation and prosperity on both sides of the border. Natural gas also plays an important role in North America’s energy mix. Alberta is the largest producer of natural gas in Canada and remains positioned to support the U.S. in filling their domestic supply gaps.
“I am honoured to join the Governors’ Coalition for Energy Security and would like to extend my sincere thanks to governors Landry and Sununu for the invitation. Alberta plays a vital role in North American energy security, serving as the largest supplier of crude oil and natural gas to the United States. With 200 billion barrels of recoverable oil, 200 trillion cubic feet of recoverable natural gas, significant natural gas liquids and ample pore space for carbon capture, Alberta’s contribution is set to grow even further as we look to work with the Trump Administration and other U.S. partners to increase our pipeline capacity to our greatest friend and ally, the United States. We are proud to collaborate with this coalition of allied states in advancing energy security, reliability and affordability for Americans and Canadians.”
“Our mission as an organization has not changed but Alberta’s welcome arrival to our group sparked a conversation about what our core mission is, and that is ensuring energy security in all its forms. Our members all share the common goal of enhancing and protecting energy options for our people and businesses, which leads to lower energy costs, increased reliability, sustainable economic development and wise management of energy resources and the environment. I welcome Premier Smith and the insights she will bring as the leader from a fellow energy-producing province, that like my state, is under a federal system of government where national imperatives are not always aligned with state or provincial interests.”
Alberta is a global leader in emissions reduction technology and clean energy solutions. The province has captured about 14 million tonnes of carbon dioxide through carbon capture, utilization and storage technology, and has the ability to support the U.S. in developing new infrastructure and supply chains for future energy markets in the areas of hydrogen, renewables, small modular reactors and others.
Alberta is also unlocking its untapped geological potential to help meet the increasing demand for minerals – many of which are used worldwide to manufacture batteries, cell phones, energy storage cells and other products. This includes the province’s lithium sector where Alberta’s government is supporting several innovative projects to develop new ways to extract and concentrate lithium faster and with higher recovery rates that are less capital and energy intensive and have a smaller land-use footprint.
As part of this coalition, Alberta looks forward to sharing best practices with states that already have expertise in these areas.
Quick facts
- The U.S. is Alberta’s largest trading partner, with C$188 billion in bilateral trade in 2023.
- In 2023, energy products accounted for approximately C$133.6 billion, or more than 80 per cent of Alberta’s exports to the U.S.
- The Governors’ Coalition for Energy Security’s 12 signatory states include Louisiana, New Hampshire, Indiana (Governor Eric Holcomb), Alabama (Governor Kay Ivey), Georgia (Governor Brian Kemp), Tennessee (Governor Bill Lee), South Dakota (Governor Kristi Noem), Mississippi (Governor Tate Reeves), Arkansas (Governor Sarah Huckabee Sanders), Oklahoma (Governor Kevin Stitt), Wyoming (Governor Mark Gordon) and Virginia (Governor Glenn Youngkin).
Helping builders by putting an end to housing delays
Alberta’s new Stop Housing Delays online portal will allow developers, municipalities and other housing partners to report red tape and unnecessary home-building delays.
Alberta’s government is focused on ensuring Albertans have access to the housing they need, and that means working to streamline processes, cut red tape and reduce delays that are slowing housing construction down. As part of this work, government has launched a new online portal to help in these efforts.
The Stop Housing Delays online portal is now available for developers and municipal authorities to help identify areas that are preventing fast and efficient residential construction. This portal will help government identify and address barriers to building homes across the province.
“The Stop Housing Delays portal will allow Alberta’s government to hear directly from developers, municipalities and other partners on where delays are happening in the construction process. This will help identify and remove barriers, ultimately getting homes built faster and continuing Alberta’s record home-building pace.”
“Alberta’s government will continue to work with municipalities and find solutions to speed up the home-building process. The Stop Housing Delays portal will give us another tool to inform those discussions and identify areas where we can improve the pace of home building.”
Once developers, municipalities or industry partners have submitted their issue using the online form, government will collect and assess the information provided. Alberta’s government will be taking a collaborative, cross-ministry approach to ensure the appropriate departments are working together to find solutions where possible. Solutions may range from minor changes to policy reform.
Alberta’s government continues to support builders and encourage new residential housing construction by reducing red tape, incentivizing housing construction and supporting innovative strategies to build homes faster than ever.
“This webpage is an excellent opportunity to gather knowledge and further eliminate red tape. Government has been persistent in our approach of cutting red tape and removing roadblocks, and this will help to speed up residential construction. I look forward to hearing from developers and our other partners on how we can help get projects moving and Albertans in homes.”
Alberta continues to see strong housing starts and increases while other provinces across Canada are seeing a reduction in housing starts. The first half of 2024 saw 9,903 apartment unit starts in the province. This marks the highest amount in any half year in Alberta’s history, breaking the previous record of 9,750 set in 1977. Albertans will benefit from 33,577 new housing starts from January through September 2024, up 35 per cent from the same period last year. Alberta’s government remains focused on working with industry and non-profit partners to ensure that the province’s growing population has access to the housing it needs.
“This portal is a valuable tool for industry to highlight gaps, barriers and delays that may need to be prioritized and addressed by either local or provincial governments. Real solutions can only emerge through transparency, open communication and collaboration. This is an important step toward identifying the unique challenges each region and municipality faces in delivering attainable housing.”
Quick Facts
- Housing starts for January – September 2024 compared with January – September 2023
- Provincewide: 33,577 compared with 24,904 (up 35 per cent)
- Edmonton: 13,359 compared with 9,099 (up 47 per cent)
- Calgary: 17,414 compared with 14,141 (up 23 per cent)
- Lethbridge: 599 compared with 148 (up 305 per cent)
- Red Deer: 314 compared with 146 (up 115 per cent)
- Data shows Alberta had 10,699 purpose-built rentals, making up 32 per cent of all housing starts.
- Since 2019, Alberta’s government has invested almost $850 million to build more than 5,100 units and close to 900 shelter spaces. This includes projects we have committed to, that are in progress and that are complete.
- Together with its partners, Alberta’s government is supporting $9 billion in investments into affordable housing to support 25,000 additional low-income households by 2031.
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