Protecting Alberta’s economic future from Ottawa
Press Release
Nov 26, 2024
Alberta’s government will introduce an Alberta Sovereignty Within a United Canada Act motion to fight back against the unconstitutional, job-killing federal emissions cap.
The proposed oil and gas emissions cap is in reality a federal government-imposed cap on oil and gas production and, if implemented, will result in a production cut of at least one million barrels a day of oil and gas in Alberta, while effectively prohibiting any production growth.
The Canadian constitution clearly gives provinces exclusive jurisdiction over non-renewable natural resource development. Multiple reports have shown an emissions cap will kill 150,000 jobs, devastate Alberta’s economy, cut production, and hurt Albertans.
Yet, on Nov. 4, the federal government introduced draft regulations for an oil and gas emissions cap, ignoring concerns from many provinces, industry, businesses and Albertans.
In response, Alberta’s government will introduce an Alberta Sovereignty Within a United Canada Act motion to stop a federal cap from infringing on the province’s distinct jurisdiction and killing good-paying jobs. The resolution asks the legislative assembly for approval to take a series of swift, effective actions designed to protect Alberta if the production cap ever becomes law.
“We will continue to defend our province from Ottawa’s senseless and direct attack. Our motion protects Albertans’ jobs and livelihoods, puts Ottawa back in their place, and ensures we can continue to support global energy security with Alberta oil and gas for decades to come.”
Danielle Smith, Premier
Independent analysis by the Conference Board of Canada, Deloitte and S&P Global all show the devastating impact of the federal government’s proposed oil and gas emissions cap. This includes cutting production by one million barrels a day by 2030 and draining billions from Canada’s economy. In addition, the Conference Board of Canada estimates that up to 150,000 Canadian jobs could be lost as a result of the cap. As a result of these – and other – impacts, the average Canadian family would have up to $419 less for groceries, mortgage payments and utilities every month.
“This cap is not actually about emissions. This is about the federal government wanting to cut oil and gas production and control our energy sector, even if it costs thousands of jobs and hurts Canadians from coast to coast. We are standing up for our province and protecting Albertans from this extreme federal overreach.”
Rebecca Schulz, Minister of Environment and Protected Areas
If passed, the actions proposed in the Alberta Sovereignty Within a United Canada Act motion will help protect Alberta’s economy while the province continues producing responsible energy to meet the world’s growing demands.
The motion proposes that the government launch an immediate constitutional challenge when, or if, the federal production cap becomes law. It also instructs the government to consider passing legislation, amending provincial regulations or taking whatever other steps are needed to:
- Ensure that no provincial entity participates in the enforcement or implementation of the federal cap.
- Ensure that all interest holder oil and gas production facilities and related infrastructure in Alberta (Interest Holder Facilities) are ‘essential infrastructure’ subject to the protections granted under Alberta’s Critical Infrastructure Defence Act.
- Prohibit entry by any individual, including any federal official or contractor, onto any Interest Holder Facilities, excepting any interest holders, employees and contractors, and those specifically licensed to enter by the Government of Alberta.
- Declare all information that is directly or indirectly related to greenhouse gas, collected at Interest Holder Facilities, as proprietary information exclusively owned by the Government of Alberta, and mandate that all emissions data be reported and disclosed at the province’s discretion.
- Effectively sell conventional oil through the Conventional Oil Royalty-in-Kind program, and work collaboratively with industry to implement a Bitumen Royalty-in-Kind program for bitumen, and develop a similar program for natural gas, if necessary.
- Work collaboratively and proactively with other provinces and territories, the United States and First Nations to double oil and gas pipeline capacity to tidewater and the United States of America.
If the motion is passed, Alberta’s government will immediately begin taking steps to be ready to protect the province if the federal regulations become law.
Quick facts:
- Alberta has repeatedly expressed that the federal cap is unconstitutional and impermissibly intrudes into an area of exclusive provincial jurisdiction as set out in section 92A of the Constitution Act, 1867.
- The Conference Board of Canada forecasts that royalties in Alberta will drop by $2-4 billion in 2030-31 under the emissions cap.
- Deloitte forecasts a $26 billion cut to Canada’s overall GDP in 2035, including a $16 billion decline in the GDP produced by oil and gas. It forecasts a five per cent decline in revenue for Alberta by 2035.
- Via the ScraptheCap.ca, over 4,000 people have sent letters to their Members of Parliament and federal ministers, and there have been over 12 million views of the current video online.
- Albertans and Canadians can continue to use the website to send letters.
Related information
- Deloitte: Potential Economic Impact of the Proposed Federal Oil and Gas Emissions Cap
- S&P Global Commodity Insights: Economic Impact Assessment of Canadian Conventional Oil and Gas
- Conference Board of Canada: Economic Impacts of a Greenhouse Gas Emissions Cap on the Oil and Gas Sector
- Scrap the Cap
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