Federal climate plan won’t work in Alberta’s best interests

By Lethbridge Herald on April 9, 2022.

Nathan Neudorf – UCP MLA for Lethbridge East

Since the federal government released their 2030 Emissions Reductions Plan, we’ve seen mixed reviews from across the country. While I am strongly in favour of responsible stewardship and environmental protections, we need a well-rounded and sustainable approach that takes into consideration all the components that currently face us.

Prime Minister Trudeau’s Federal Climate Plan may be well-intended on the surface but at its core, is ill-conceived and poorly timed. While it earnestly attempts to solve a problem – climate change – it’s legislation that needlessly inflicts economic harm on energy-producing provinces like Alberta, effectively frustrating the end goals it sets out to achieve.

There are two reasons for this: the timing is poor, and the logic is shaky. 

With respect to timing, Canada is experiencing the highest level of inflation since 1990. Many economists agree that a contributing factor to the current inflationary pressures we are experiencing stem from policy measures designed to combat climate change, such as carbon taxes and the incentivization of alternative energy sources. 

No doubt there are other complicating factors, such as military conflicts in Eastern Europe, as well as the impact of major stimulus spending intended to facilitate recovery from the pandemic. Many of these variables are outside of Canadians’ control; however, the Federal Climate Plan is not. 

The new climate plan is calling for the oil and gas industry to reduce greenhouse gas emissions by 42 per cent by 2030 – at 60 per cent of previous emissions targets set in 2005. Again, while it’s applaudable in theory, it’s technologically and intellectually impossible. If enacted, this plan will create a cascading effect of job losses, increased consumer costs and crippled industries. To sum it up, Canada is the only government in the entire world attempting such a plan in the middle of a global energy crisis. 

For Alberta specifically, these targets are largely unrealistic and further, would prove devastating to an economy that’s just beginning to reemerge. 

We supply 50 per cent of oil and gas for the U.S. – and would be disproportionately affected by a plan that fails to recognize the demand for ethically produced energy.

If this initiative were enacted, we’d not only face job losses in our primary energy industry – but secondary losses in supportive industries.

 When production costs increase, it always inevitably works its way back to the consumer, to the everyday Albertan already facing high living costs. What happens when fuel and transportation costs rise even more, heating costs skyrocket and carbon taxes increase?

 Groceries will cost more for less; utility bills will get harder to stomach – and filling up the gas tank will require a lot more than a strong cup of Tims. 

Adding “fuel” to the fire is not helping Canadians at the pump. Because Canadian motorists were paying an alarming 32.3 per cent more at the pump in February 2022 than in February 2021, our government stopped the collection of the provincial fuel tax to offer Albertans a glimpse of relief from the impact of these compounding prices. According to February 2022’s Consumer Price Index, Canadian consumer prices increased 5.7 per cent from the year previous – the largest average year over year price gain since 1991. Anybody who has recently walked into a grocery store can vouch for these alarming numbers. The average price for eggs and dairy products, for example, increased by upwards of 6.9 per cent year over year, whereas the cost of beef and chicken rose by 16.8 per cent and 10.4 per cent respectively. Suffice to say, wages are not keeping up with these steep price escalations. 

If we’re going to create a climate initiative that prepares us for the future, we need to choose targets that can be reasonably met and sustained. Regrettably, Canada has issued at least 11 plans and set nine different emissions targets since 1988, without meeting a single one of them.

Provinces have clear constitutional jurisdiction over natural resources, and this is something that needs to be respected in the formation of a federal climate plan. 

A climate initiative of this calibre affects all of Canada and therefore, deserves the input of all our provinces and territories with their jurisdictional awareness and expertise. 

Alberta’s strategy is to be the most credible, responsible supplier of energy products in a decarbonizing world. Our common-sense climate policies are creating real and timely emissions reductions, with a strong focus on innovative technology that benefits Alberta and other jurisdictions. These policies have been carefully crafted to achieve real emissions reductions while also ensuring jobs, industry and the economy are protected.

Our hard work is paying off – methane emissions have decreased by 34 per cent, and Alberta is set to cut these emissions by 45 per cent from 2014 levels by 2025. We continue to support industry as they innovate, while leveraging our existing strengths in natural gas, carbon capture and storage and renewable electricity by pursuing clean hydrogen. 

There are major flaws to the logic underpinning the Federal Climate Plan. It disproportionately hurts Alberta and in turn Canada – an energy producing country subject to the strictest environmental production standards and ethical guidelines on the planet. 

By making it more difficult and expensive to produce fossil fuels in Canada, we inadvertently incentivize production in other countries who do not impose the same standards on themselves. By reducing our market share, we are increasing theirs. 

Alberta’s answer to the federal plan is simply “no”. 

This plan doesn’t allow for the realities currently facing us, nor does it prepare us for the future we’ve all been working for. The Federal Government needs to go back to the table.