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Alberta

Premier Smith negotiates publicly with PM Trudeau: cancel ‘just transition’ and collaborate on carbon capture

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Letter from Premier Smith to Prime Minister Trudeau

Premier Danielle Smith invites Ottawa to collaborate with Alberta on carbon capture, utilization and storage investment and halt introduction of Just Transition legislation and oil and gas emissions cap.

Dear Prime Minister:

I am writing in follow up to our meeting of February 7th, during which we discussed the need for the Government of Canada to halt introduction of the proposed Just Transition legislation and implementation of unachievable targets and measures under the federal Emissions Reduction Plan (ERP) such as the Clean Electricity Regulations (CER) and oil and gas sector emissions cap.

As a much more productive alternative, I invited your government to agree to commencing a collaborative effort between Ottawa and Alberta to develop a series of cooperative initiatives to attract investment and workers into Alberta’s emerging, conventional and non-conventional energy sectors while substantially reducing Canada’s and Alberta’s net emissions.

In that meeting, you expressed a willingness to pursue this course of collaborative action, but requested it be commenced promptly. The morning following my return to Alberta, I met with several of my ministers regarding this issue and can advise as follows.

The Government of Alberta is prepared to work with the federal government on a coordinated approach for a carbon capture, utilization and storage (CCUS) incentive program for the purpose of net emissions reductions in our province while attracting billions in new investments for Alberta-based oil and gas projects, electricity, manufacturing and other sectors.

To this end, we propose coordinating a federal CCUS income tax credit with an expansion of our current Alberta Petrochemicals Incentive Program (APIP) to include CCUS projects. This new incentive program would be in addition to the over $1.8 billion already invested into CCUS projects across the province by the Government of Alberta as well as our province’s additional implicit contribution to CCUS made through our current royalty regime.

Our government is also willing to discuss with your government expanding this coordinated approach to incentivizing other emerging emission reducing technologies as well, though we suggest beginning with agreement on a coordinated CCUS incentive program, so we are able to establish a successful foundation on which to build upon.

To this end, I request that we immediately create a federal/provincial minister-led working group with the objective of reaching agreement on a coordinated provincial-federal CCUS incentive program in the coming weeks.

Prime Minister, I must make it clear that the above invitation for cooperation and collaboration on this CCUS proposal and other energy and climate initiatives comes with one non-negotiable condition.

It is that the federal government refrain from introducing any new federal legislation or policies that materially impact Alberta’s oil and gas resource development, management or workforce participation without the full involvement, consultation and consent of Alberta.

This includes the contemplated Just Transition legislation and implementation of unachievable targets and measures under the federal Emissions Reduction Plan (ERP) such as the Clean Electricity Regulations (CER) and oil and gas sector emissions cap.

Each of these initiatives, as currently understood, would pose an unconstitutional and existential threat to the Alberta economy and the jobs of hundreds of thousands of Albertans.

As an alternative to this policy package of economic destruction, Alberta proposes working collaboratively with the federal government on aggressively advancing emission reducing technologies in Alberta as outlined above while simultaneously increasing export of LNG through the lens of replacing higher emitting fuels around the world to meet aggressive but achievable overall emissions reduction in Alberta’s oil and gas and other sectors. Ideally, our government would like to incorporate these collaborative federal-provincial initiatives into our soon-to-be-released Alberta Emissions Reduction and Energy Development Plan.

I must once again emphasize to you, Prime Minister, that although Alberta is willing to work as an active partner with the federal government on a coordinated approach to reducing Alberta’s and Canada’s net emissions, under no circumstances will our province accept the imposition of arbitrary and unachievable targets or policies that spell the end of meaningful long-term investment in Alberta’s energy sector, and as a result, the imminent phase out of Alberta’s largest industry. In such circumstances, our government would have no other choice but to oppose these destructive policies using every tool at our disposal in order to protect Albertans, their jobs and our province’s future.

Prime Minister, this issue is far larger and more important than you or I. There are literally hundreds of billions in public revenues and investments, and millions of jobs, riding on Alberta and Ottawa working together – instead of in conflict – on energy and environmental issues to create an attractive and certain investment climate that millions around the world want to invest in and move to.

Failure to do so will not only undermine Canada’s prosperity by driving billions in energy investment and revenue out of Canada and into the hands of the world’s most brutal and undemocratic regimes, but will also result in increased energy poverty and food insecurity in many of the world’s most impoverished countries, a loss of our nation’s global influence, and most ironically, an increase in the world’s global emissions due to an increased use of coal, as opposed to LNG, by developing nations to meet increasing world demand for electricity.

Canada has the potential to become a global energy superpower with all of the economic and political influence for good that such standing would grant us. We can and must seize this opportunity without delay. Please come to the table and work collaboratively with Alberta on likely the most important economic issue facing this country in a generation.

I look forward to reading your response and to learning of the appointment of your government’s side of the federal/provincial minister-led working group for the CCUS incentive program so that our two governments can take our first steps in this critical collaborative effort.

This is a news release from the Government of Alberta.

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Alberta

New red tape reporting website will help ramp up housing construction in Alberta

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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.”

Jason Nixon, Minister of Seniors, Community and Social Services

“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.”

Ric McIver, Minister of Municipal Affairs

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.”

Dale Nally, Minister of Service Alberta and Red Tape Reduction

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.”

Scott Fash, chief executive officer, BILD Alberta Association

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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Alberta

Turning resources into new jobs and products

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(Left to right: Stéphane Germain, president of GHGSat; John Adams, president and CEO, NGIF Capital and NGIF Accelerator and managing partner of Cleantech Ventures; Rebecca Schulz, Minister of Environment and Protected Areas; Scott Volk, director of emissions and innovation, Tourmaline Oil; Justin Riemer, CEO of Emissions Reduction Alberta)

New funding will advance technologies that turn Alberta’s natural resources, such as bitumen, into materials of the future.

Alberta is Canada’s third-largest producer of manufactured goods and materials and first in clean technology innovation. At the same time, manufacturing companies around the world are looking for ways to make products like concrete, plastics, food, wood, chemicals and machinery more efficient, more durable, easier to recycle and better for the environment.

Alberta’s government is investing $40 million from the industry-funded Technology Innovation and Emissions Reduction (TIER) program to advance technologies that will turn everyday items that would otherwise be wasted or dumped in landfills into modern, low-emission products. These technologies will help create jobs, reduce emissions and help Alberta’s manufacturing industry lead the world.

“We have the resources, expertise and entrepreneurs needed to create some of the most advanced materials in the world. This funding competition will help develop new and exciting technologies that reduce emissions, create jobs, reuse waste and keep growing our economy.”

Rebecca Schulz, Minister of Environment and Protected Areas

Advanced materials are increasing in global demand. They are new or significantly improved materials that provide a distinct advantage in performance when compared to conventional materials. Advanced materials have already been used to create new construction materials, improved batteries and fuel cells and lighter, stronger aircrafts, bicycles and golf clubs, among other products.

Led by Emissions Reduction Alberta, Alberta’s new funding competition will support scale-up, pilot, and demonstration and first-of-kind commercial technologies that improve the extraction, production, manufacturing, and performance of new and existing materials and products in Alberta. It is open to a wide a range of applicants including researchers, businesses, municipalities and Indigenous communities.

“Enhancing existing products and developing new materials with superior performance while embracing circular economy strategies will help deliver deeper emissions reductions, enhance supply chain resiliency and strengthen industrial competitiveness. This funding, sourced from Alberta’s TIER regulation, is critical and the possibilities are endless.”

Justin Riemer, CEO, Emissions Reduction Alberta

The focus of this funding is to help create technologies that turn resources into modern, new products. This includes emerging technologies extracting high value metals like vanadium, titanium and lithium found within natural resources such as bitumen and creating novel, carbon-absorbing materials. These can then be used to improve everything from construction material and consumer electronics to aircrafts and hockey sticks.

“Emerging technology solutions, such as creating advanced carbon products from bitumen, are critical to lowering emissions and creating jobs in the province. Alberta Innovates is pleased to support this call and work closely with Emissions Reduction Alberta to realize a new future for Albertans.”

Dr. Michael Mahon, CEO, Alberta Innovates

“By transforming our abundant natural resources into advanced, low-carbon materials, we are not only driving emissions reductions but also creating valuable opportunities for industry growth and export potential. The Government of Alberta’s investment through Emissions Reduction Alberta’s Advanced Materials Challenge demonstrates a commitment to building a resilient economy that harnesses Alberta’s strengths in new and sustainable ways.”

Md Golam Kibria, co-founder and scientific director, CarboMat Inc.

Quick facts

  • Applications for the Advanced Materials Challenge close on Wednesday, January 22, 2025, at 5 PM MST.
  • Successful applicants are eligible for up to $5 million.
  • Applications are open to innovators, technology developers, commercial and industrial building owners, municipalities, Indigenous communities, small and medium-sized businesses, research and development organizations, universities, and not-for-profit organizations.
  • Applications are open to emerging technologies. While technology solutions can originate from anywhere globally, they must be piloted, demonstrated or deployed in Alberta.
  • The TIER system uses industry dollars to help Alberta facilities find innovative ways to reduce emissions and invest in clean technology to stay competitive and save money.
  • Full details on the Advanced Materials Challenge can be found on Emissions Reduction Alberta’s website.

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