The real existential threat to Alberta
Fair policies from Ottawa are crucial to our future, writes Dennis Mcconaghy.
In early October 2023, the Supreme Court of Canada nullified Bill C-69, better known as the No More Pipelines Act. The decision constrained, if not substantially eliminated, federal intrusion into provincial jurisdiction over the environment. The Supreme Court's decision was surprising given that this same court recently ruled that the federal government has constitutional authority to impose a federal carbon tax, regardless of the reality of provincial jurisdiction.
A central component of Bill C-69 was the requirement for open-ended climate impact assessments as part of the approval process for energy infrastructure to be conducted by the Impact Assessment Agency of Canada. Essentially, any project creating incremental emissions could be rejected regardless of the project's economic benefit to Canada, creating untenable investment risk.
The court's decision was joyously received by Albertans who have vigorously opposed C-69, along with most and current federal climate and energy policies.
But, predictably, the Liberal government has failed to acknowledge the significance of the Supreme Court's ruling, while persisting with climate policy elements that are fundamentally unacceptable to Alberta. The most notable being the decarbonization of Alberta's electric generation system and mandated emission reductions in the hydrocarbon production sector, while making no concessions to the massive economic costs that will be imposed on Alberta and the Canadian economy.
As this has all unfolded, Prime Minister Justin Trudeau's government has somehow found it acceptable to selectively exempt Canadians from paying federal carbon taxes on home heating oil, mostly used in Atlantic Canada, while still imposing the tax on other Canadians facing comparable affordability issues. But then again, some Canadian emitters are more Liberal than others. Hypocrisy abounds.
Regardless of the UN climate process, the global value of hydrocarbons has not diminished materially.
Various countries, most notably Canada and the United States, have even increased hydrocarbon production since the Paris Climate Accord almost 10 years ago.
Trying to phase out and replace hydrocarbons on a global scale will cause significant increases in the cost of energy and its reliability. Yes, climate risk does exist and should be collectively dealt with by the world's developed economies, inclusive of China and India. And while it is a risk that is induced by the use of fossil fuels over time, it should be addressed with the net costs and benefits of continued hydrocarbon use in mind.
Under the Liberal government, Canada has gleefully embraced decarbonization despite its economic cost, measured in terms of affordability, reliability, competitiveness and lost economic value from foregone export opportunities. And nowhere will these costs be more onerous and unjustified than in Alberta. However, Albertans have long understood that our province's interests are at odds with federal Liberal and NDP policies. The most essential question for Albertans to consider is whether a federal Conservative government can reverse the most perverse and destructive federal climate and energy policies. Specifically, the following must be addressed:
■ Canada's legislated target of net zero by 2050.
■ Federal carbon tax to be determined based on the net costs and benefits of continued hydrocarbon production and consumption.
■ Limiting federal carbon tax to the level imposed by the economies of Canada's major trading partners.
■ Ensuring federal carbon tax is applied equally to all Canadians.
■ Federal carbon tax remaining revenue neutral, not increasing the overall tax collected by the federal government.
■ No emission reduction mandates imposed on specific sectors or provinces.
These actions are what should be expected of federal Conservatives. It is not enough to simply object to existing federal policies and assume that is enough. The actions listed above would ensure that Canada, and especially Alberta, do not face unreasonable and disproportionate sacrifice to reduce climate risk. Anything less coming out of the next federal election risks the deconstruction of Alberta's economy.