Before the 112th Grey Cup kicks off at Princess Auto Stadium in Winnipeg, Alberta Premier Danielle Smith anticipates a significant development in the ongoing federal-provincial energy policy dispute. The energy policies in Alberta have been progressing in recent months, with Smith referring to a potential breakthrough as a “grand bargain” by the time of the CFL championship game on Nov. 16.
Smith expressed her expectation for the federal government to finalize an agreement by Grey Cup to facilitate the attraction of private capital back to Canada’s natural resource sector. The agreement would involve the removal or revision of what Alberta deems as “bad laws” and a commitment to advancing the approval process for a pipeline to the B.C. coast. Additionally, Smith aims for the realization of the Pathways Alliance project, a significant carbon capture and storage initiative near Cold Lake.
On the federal front, indications suggest a shift away from the proposed oil and gas emissions cap, a key policy during former Prime Minister Justin Trudeau’s tenure. Instead, the federal government is considering emphasizing strong carbon pricing, methane regulations, and increased deployment of carbon capture and storage technologies.
Finance Minister François-Philippe Champagne highlighted that certain conditions must be met for the elimination of the emissions cap, emphasizing the need for further steps in the process. Alberta’s industrial carbon tax program, known as Technology Innovation and Emissions Reduction (TIER), plays a pivotal role in the larger energy policy landscape.
The province’s decision to maintain the industrial carbon price freeze at $95 per tonne until 2026 diverges from the federal government’s escalating backstop price targets. Discussions around potentially adjusting Alberta’s carbon price are ongoing, with an emphasis on encouraging investments in emissions reduction technologies.
Amidst uncertainties, stakeholders are navigating the complexities of aligning federal and provincial carbon pricing frameworks. Collaborative efforts are crucial to achieving a balance between environmental objectives and economic imperatives. The road ahead remains intricate, with varying perspectives on the optimal approach to carbon pricing and emissions reduction strategies.