A meeting took place this week between the federal and Alberta ministers of the environment, and according to Marco Navarro-Genie, the president of the Haultain Research Institute, it could be heated behind closed doors. Navarro-Genie said that the federal Environment Minister, Steven Guilbeault, and Alberta Environment Minister, Rebecca Schulz, have very different visions of energy and the environment. The federal government has a zealous impetus to curtail the consumption of hydrocarbon energy, which threatens the survival of Alberta. The oil and gas industries are significant economic engines in Canada, contributing $175 billion to the country’s GDP in 2017 and employing hundreds of thousands of people.
Steven Guilbeault stated that the government wants to achieve a net zero electrical grid by 2035, along with plans to cap emissions from the oil and gas sector. Alberta argues that the cap amounts to a production cut. Alberta Premier Danielle Smith stated that the federal targets are unconstitutional, create investor uncertainty, and harm the Alberta and Canadian economies. She highlighted the importance of the oil and gas industry in the global energy supply mix and suggested that exporting Canadian liquid natural gas can reduce worldwide emissions.
A study published by S&P Global indicated that the oilsands sector may have to reduce production significantly to meet federal emissions targets, potentially resulting in the loss of thousands of direct jobs. Navarro-Genie argues that cutting back production is not realistic given the growing worldwide demand for energy. Compromise between the two sides will be challenging due to their differing ideological commitments.
Opinions are divided even within Alberta. NDP Leader Rachel Notley tweeted about the record area burned by forest fires in Canada, emphasizing the need for the government to address climate change without sacrificing the economy. Navarro-Genie believes that the opposing viewpoints could deepen the east-west divide in Canada and potentially provide ammunition for separatist movements. He warns that this could also become a wedge issue in the next federal election, which would further divide the country.