Guilbeault announces oil and gas production cap, prompting potential Sovereignty Act motion
'Albertans and all Canadians can rely on our government to actively explore … a constitutional challenge and the use of the Alberta Sovereignty Act,' Premier Danielle Smith told reporters.
The Trudeau government officially announced its cap on oil and gas production, prompting Premier Danielle Smith to invoke the Sovereignty Act.
By 2032, the feds hope to cut oil and gas emissions by 35% to 38% from 2019 levels. Those who buy offset credits or contribute to a decarbonization fund would lower their target to between 20% and 23%.
“It will reward low polluting facilities and incentivize higher polluting facilities to invest,” Environment Minister Steven Guilbeault told reporters on Monday.
“It goes after pollution, not production,” he clarified, prompting a fiery response from Alberta Premier Danielle Smith.
“Albertans and all Canadians can rely on our government to actively explore the use of every legal option, including a constitutional challenge and the use of the Alberta Sovereignty within a United Canada Act,” she told reporters at a separate press conference.
“It is not an emissions cap,” clarified Smith. “It is a production cap.”
Environment Minister Steven Guilbeault (@S_Guilbeault) announces an emissions cap on Canada's oil and gas sector, describing it as "part of a broad suite of measures."
— Rebel News (@RebelNewsOnline) November 4, 2024
"We aim to finalize these regulations next year," he adds.https://t.co/dh39RL8IFZ pic.twitter.com/yBpCaYyRka
The cap-and-trade proposal mandates a less daunting emissions target than campaigned on during the 2021 federal election.
Minister Guilbeault said the compromise came after extensive consultation with industry and other stakeholders to ensure its aims are achievable.
Meanwhile, the Government of Alberta was denied access to the draft regulations last December over their refusal to sign a non-disclosure agreement.
Nevertheless, Premier Smith says the cap “violates Canada's constitution,” specifically section 92, which clearly gives provinces exclusive jurisdiction over non-renewable natural resource development.
“Are you taking the federal government to court in regard to these regulations?” asked a reporter last year. “Well, there's no question that if they continue on this path, it will end up in court,” she replied.
“And in court, I think we will win.”
.@ABDanielleSmith slams the Trudeau Liberals' oil and gas production cap:
— Rebel News (@RebelNewsOnline) November 4, 2024
"Ultimately this cap will lead Alberta and our country into economic and societal decline....he needs to call an election now to seek a mandate to do this." https://t.co/PHR7jF0lJM pic.twitter.com/0pzEYPvQAc
The federal government previously lost two federal court cases in 2023, as Bill C-69 and the plastics ban intruded into provincial jurisdiction.
“I would ask them to read the court decisions again,” said the premier last year. “You cannot drop two unilateral policies in our jurisdiction out of the blue without an agreement.”
“This is not cooperative federalism,” she added.
Last December 7, Premier Smith accused Guilbeault of singling out the oil and gas sector alone for punitive federal treatment.
“[The] de facto production cap on Alberta's oil and gas sector amounts to an intentional attack by the federal government on the economy of Alberta,” she said then.
“They're devaluing the retirement investments of millions of Canadians and they're threatening the jobs of hundreds of thousands of Albertans,” she added, a claim she reiterated on Monday.
Premier Smith says the Trudeau Liberals' "de facto" emissions cap on Alberta's oil and gas "amounts to an attack by the federal government on the economy of Alberta and the financial well being of millions of Albertans and Canadians."https://t.co/dh39RL8IFZ pic.twitter.com/mnwng2M9w1
— Rebel News (@RebelNewsOnline) December 7, 2023
The feds will implement the final regulations next year, the minister told reporters.
Oil and gas production accounts for more than one-quarter of Canada's emissions with a cap critical to meeting their climate targets, Guilbeault previously claimed.
Emissions from the sector already fell 7% between 2019 and 2022 — the most recent year that statistics are available — with similar levels of production.
“We've been responsible by setting a price on carbon as far back as 2007,” Smith said last year.
The Government of Alberta has already developed a carbon offset and trading program, investing billions in commercial-scale carbon capture utilization and storage, while creating an innovation fund that has provided billions more in grants.
"I'm pissed!": A fiery Premier Smith explains her anger with the Trudeau Liberals after Environment Minister @S_Guilbeault announced a production cap on oil and gas.
— Rebel News (@RebelNewsOnline) November 4, 2024
"That is not acceptable for a govt at 20% in the polls ... We just won't stand for it."https://t.co/PHR7jF0lJM pic.twitter.com/5Ypb26vu06
On Monday, Guilbeault claimed his government can achieve their aims with existing technology, and without cutting production.
Federal modelling shows even with the regulations oil and gas production will still rise 16% by 2032, compared with 2019.
Still, Smith contends the production cap will push Alberta, and Canada as a whole, into economic and societal decline.
“The losses to GDP mean $28 billion will disappear from the Alberta economy and $97 billion, nationally,” the premier claimed.
“To give you an idea,” Smith said, “one million barrels a day of lost production would cost us anywhere from $3 billion to $7 billion per year in royalties.
“To put that into context, we spend $2.2 billion on roads and bridges,” she added.
Alex Dhaliwal
Calgary Based Journalist
Alex Dhaliwal is a Political Science graduate from the University of Calgary. He has actively written on relevant Canadian issues with several prominent interviews under his belt.
COMMENTS
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Bruce Atchison commented 2024-11-04 19:57:02 -0500Guilbeault is an idiot. Smart folks know that carbon dioxide is plant food. Smart people also know that we aren’t in a climate emergency. Environmentalists were freaking out 50 years ago about the same things but we’re still here. Like ALL other doomsday prophecies, the green panic is a scam.
