Natural Resources Minister Jonathan Wilkinson, accompanied by Intergovernmental Affairs Minister Dominic LeBlanc, recently met with Alberta Premier Danielle Smith to discuss energy and climate policies. While there is no definitive divide between the governments, there are noticeable differences in their respective visions.
The relationship between the two governments has been strained due to concerns in Alberta regarding Ottawa’s climate change policies and its plans for a transition to a net-zero emissions economy. Premier Smith expressed skepticism about Ottawa’s goals for an emissions-free electricity grid by 2035 and a potential cap on oil and gas sector emissions, citing the potential negative impact on Alberta’s economy and job market.
During a news conference, Smith emphasized Alberta’s commitment to its own emissions reduction and energy development plan, sending a clear message to Ottawa that they will pursue their own pathway to achieving carbon neutrality by 2050. Wilkinson acknowledged the differences in perspective, stating that it would be a mistake to take polarizing positions and refusing to compromise. However, he emphasized the importance of moving towards a clean grid and implementing a cap on oil and gas emissions. He also mentioned the flexibility in designing such policies.
Wilkinson did not indicate whether adjustments to timelines would be made, but he emphasized the concept of net-zero emissions, which refers to the capture of any remaining greenhouse gas emissions through natural or technological means. Both Canada and Alberta have set the goal of achieving net-zero emissions by 2050, with Canada having intermediate targets along the way, including a 40% reduction in emissions from the oil and gas sector by 2030.
One area of contention, the federal sustainable jobs legislation, seems to have been addressed. Smith had previously expressed concern that the legislation would harm Alberta’s energy sector. However, her concerns have largely dissipated, including due to the name change from “just transition” to “sustainable jobs.” Smith acknowledged that the initial name implied a phasing out of oil and natural gas jobs, which was not acceptable for Alberta. The revised legislation offers opportunities for investment in carbon capture, utilization and storage, hydrogen, and LNG export.
During the meeting, carbon capture technology was extensively discussed. Wilkinson also expressed Ottawa’s interest in collaborating with Alberta on hydrogen and net-zero petrochemical plants. While there are differences between the governments, the meeting provided an opportunity to discuss shared aspirations and explore how to address differing perspectives in a constructive manner.
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