The Alberta government is launching a $7 million advertising campaign in Alberta, British Columbia, Ontario, New Brunswick and Nova Scotia to highlight the federal government’s plan to introduce emissions limits on oil and gas. They claim that this is an effort to put a damper on the situation. sector.
Alberta Premier Daniel Smith told reporters Tuesday that the campaign, which the province has dubbed “Scrap the Hat,” will include television, online video, print and social media ads. This closely mirrors the design of the state’s previous $8 million campaign in October 2023 against federal clean power rules.
“We are calling on the federal government to forget this reckless and extreme idea and support Alberta’s leadership by reducing emissions and investing in real solutions that will not undermine Canada’s prosperity. ,” Smith said.
In December 2023, the federal government announced plans Introducing emission limits in the oil and gas sector. biggest source of information The amount of greenhouse gases in the country. scientists say Climate change is caused by an increase in greenhouse gases in the Earth’s atmosphere.
The proposed regulatory framework, initially outlined in December, industry will be needed Reduce greenhouse gas emissions by 35-38% from 2019 levels by 2030, or reduce emissions by 20-23% from 2019 levels by purchasing offset credits or contributing to a decarbonization fund It will be lowered to
In the months since the regulatory framework was introduced, oil-producing provinces Alberta and Saskatchewan have been vocal about their dissatisfaction with the plan. The Alberta government says emissions should be reduced through incentives and technology, and that Ottawa’s plan would infringe on the province’s exclusive jurisdiction over its resources and stifle the economy. .
Meanwhile, the federal government and environmental groups have suggested the cap is an important part of meeting Canada’s climate change goals.
Groups such as clean energy think tank Pembina Institute say there is “little evidence” that companies are allocating enough capital to projects that reduce emissions, despite recent record profits. , argue that emissions caps provide a necessary backstop to industry commitments.
Regulations to be finalized in 2025
Publication of the final regulations is targeted for 2025, with a phase-in of regulations to be developed between 2026 and 2030. Canadian law states the next federal election must be held by October 2025, but political parties may seek to hold it sooner.
Asked by a reporter on Tuesday why the province is launching this election campaign now, given the possibility of a change of government at the federal level, Smith said the Liberal Party would not be able to move forward if there was no path to re-election. He said there is the potential to “pass all kinds of policies.” election.
“We know that undoing it will be complex and time-consuming, and will have a negative impact on the investment community. COP29 will be held in Baku within the next month, and that is when the federal government is making a big deal. “That’s when we have to be most worried that we’re going to be groomed on the international stage,” Smith said.
COP29 is the United Nations’ 29th Conference of the Parties to the Climate Change Summit, which will be held in Baku, Azerbaijan from November 11 to 22.
Federal Energy and Natural Resources Minister Jonathan Wilkinson said in an interview with CBC News on Tuesday that draft regulations should be released in the coming weeks.
Asked about Mr Smith’s reference to COP29 as the venue for the announcement, Mr Wilkinson said he did not want to get in the way of Environment Minister Stephen Guilbeault’s priorities, but said such a domestic announcement was “almost certainly in 2020″. It will be held in 2020.” Not anywhere else in the world, but Canada. ”
Mr Wilkinson added that he thought people should wait and see what the emissions cap would look like before drawing any conclusions.
“At the end of the day, the numbers will follow, and we have thought very carefully. I would say our predictions, like the Prime Minister’s, are until oil peaks globally, but not yet. We have not reached that point, and production will continue to increase,” Wilkinson said.
“However, we need to think carefully about ensuring that oil and gas resources are decarbonized so that they can be competitive in a world focused on low-carbon fuels.”
cap cost
The state’s camp also contends that federal regulations expected later this year will make food, gasoline and all other necessities even more expensive.
University of Calgary economist Trevor Tombe said he believes emissions caps are bad policy, but the argument that they would drive up the price of gas and, by extension, food is misleading.
Tombe said gasoline prices are mainly determined by taxes, retail markups and margins, and global oil prices.
“There is no reliable analysis yet to suggest that Canada’s oil and gas emissions limits will impact global oil prices,” Tombe said.
Tombe said it’s a valid argument that the cap would lead to fewer jobs and lower wages in the sector, and that he believes federal policy is taking a flawed approach.
Tombe said the most efficient way to reduce emissions is to impose the same burden on all sectors in all regions, so that every ton of emissions faces the same consequences. He said it would be.
At the same time, he said caps on emissions would not necessarily force production cuts.
“Even if costs go up and profits go down, it’s very likely that even if costs go up, the profits per barrel will still be positive,” Tombe said.
Meanwhile, Chris Severson Baker, executive director of the Pembina Institute, said he has not yet seen any proposals from the state government to adequately regulate emissions.
“If oil sands companies don’t follow through on their plans, not only will emissions from that sector continue to rise, but we will also miss out on significant investment in this state,” he said.
In September, the Canadian Climate Institute found that despite strong growth in Canada’s economy and population, greenhouse gas emissions fell slightly last year.
However, oil and gas emissions continued to rise, increasing by 1 percent, or 2.2 megatonnes, from 2022. They currently account for 31 per cent of Canada’s total emissions, the report says.