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Alberta Politics

Pigs fly as oil industry and environmental groups endorse NDP’s ambitious Made-in-Alberta Climate Change Plan

Pigs continued to fly in Alberta politics today as energy industry leaders and environmental groups joined Premier Rachel Notley and Environment and Parks Minister Shannon Phillips at a press conference to release Alberta’s much anticipated plan to take action against Climate Change. The Alberta government received the final report from the independent panel led by University of Alberta economics professor Andrew Leach and announced its plans to phase out coal burning electricity plants, phase in a price on carbon, introduce a limit on overall emissions from the oil sands and introduce an energy efficiency strategy.

Ms. Notley will now take the report and the made-in-Alberta plan to address climate change to a meeting with Prime Minister Justin Trudeau and other premiers tomorrow and to the United Nations Framework Convention on Climate Change (COP21) in Paris next week.

Here is what energy industry executives, environmental leaders and opposition politicians had to say about today’s climate change announcement:

Responding to climate change is about doing what’s right for future generations of Albertans – protecting our jobs, health and the environment. It will help us access new markets for our energy products, and diversify our economy with renewable energy and energy efficiency technology. Alberta is showing leadership on one of the world’s biggest problems, and doing our part.” – Rachel Notley, Premier of Alberta (full release)

I thank the panel members and the many Albertans, including Indigenous people, industry, environmental groups, municipalities and other partners and stakeholders for their contribution. This is the right plan for our province, and now is the right time to implement it.” – Shannon Phillips, Minister of Environment and Parks (full release)

The announcement is a significant step forward for Alberta. We appreciate the strong leadership demonstrated by Premier Notley and her government. The framework announced will allow ongoing innovation and technology investment in the oil and natural gas sector. In this way, we will do our part to address climate change while protecting jobs and industry competitiveness in Alberta.” – Murray Edwards, Chair, Canadian Natural Resources Limited (full release)

Today we are making history, with Alberta taking its rightful place as a leader on the world stage. Premier Notley promised Albertans leadership on the issue of climate change and she and her government have delivered. This is the right thing to do for both for our environment and our economy. The world needs more of this kind of leadership from major energy producing jurisdictions if we are to avoid dangerous climate change.” – Ed Whittingham, Executive Director, Pembina Institute (full release)

We fully support the Government’s new climate policy direction. It enables Alberta to be a leader, not only in climate policy, but also in technology, innovation, collaborative solutions and energy development. I believe it will lead to Albertans and Canadians receiving full value for their oil and natural gas resources, while addressing climate change.” – Brian Ferguson, President & Chief Executive Officer of Cenovus Energy (full release)

After a string of pipeline victories and over a decade of campaigning on at least three different continents, the Alberta government has finally put a limit to the tarsands. Today they announced they will cap its expansion and limit the tarsands monster to 100 megatonnes a year.” – Mike Hudema, Greenpeace (full release)

This new carbon tax will make almost every single Alberta family poorer, while accelerated plans to shut down coal plants will lead to higher power prices and further jobs losses. Wildrose will be looking at every detail of this plan closely, and we will speak out against policies that hurt Albertans and the economy.” – Brian Jean, leader of the Wildrose Party (full release)

Canadians have high expectations of themselves when it comes to protecting the environment and managing economic growth, and the world expects much of Canada. Alberta’s new climate change policy sends a clear message that Alberta intends to live up to those expectations. Today’s announcement sets Canadian oil on the path to becoming the most environmentally and economically competitive in the world.” – Lorraine Mitchelmore, President and Country Chair Shell Canada and EVP Heavy Oil for Shell (full release)

Now it’s time for the government to unapologetically promote Alberta’s emissions reduction successes to date and clearly articulate support for the long-term growth of Alberta’s energy industry, including the oil sands, conventional production, natural gas power, cogeneration and renewable energy.” – Greg Clark, leader of the Alberta Party (full release)

Today we reach a milestone in ensuring Alberta’s valuable resource is accompanied by leading carbon policy. It’s time that Alberta is seen as a climate, energy and innovation leader. This plan will make one of the world’s largest oil-producing regions a leader in addressing the climate change challenge.” – Steve Williams, President and Chief Executive Officer, Suncor (full release)

“On a public policy Richter scale, Alberta’s new Climate Leadership Plan is an 11. It is enormously positive and forward-looking and will yield measurable benefits for the health and quality of life of Albertans. Significantly, the new plan is supported by oil industry leaders, environmental organizations and other important stakeholders.” – Rick Smith, executive director of the Broadbent Institute

Alberta’s decision to move away from coal-fired electricity generation and dramatically increase its use of renewable energy reflects a trend happening in countries all over the world. More renewable energy in Alberta will reduce greenhouse gas emissions, clean the air, and produce significant new investment and jobs – particularly in rural areas of the province.” – Robert Hornung, President of CanWEA (full release)

As Premier Notley said today, we expect today’s announcement to further enhance the reputation of our sector and improve our province’s environmental credibility as we seek to expand market access nationally and internationally. As well, the province’s climate strategy may allow our sector to invest more aggressively in technologies to further reduce per barrel emissions in our sector and do our part to tackle climate change. That’s what the public expects, and that’s’ what we expect of ourselves.” – said Tim McMillan, president and chief executive officer of the Canadian Association of Petroleum Producers (full release)

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Alberta Politics

Keystone XL is dead. New government means climate change back on the agenda.

President Barack Obama
President Barack Obama

Having enjoyed the last week in the sunny Berkeley, California, it felt odd to turn on the car radio to hear the local disc jockeys discussing the tarsands and the merits of a pipeline that would pump unrefined bitumen from Canada to Texas. Being one of the most liberal areas in the U.S. – there were more than a few cars sporting “Bernie Sanders 2016″ bumper stickers – the discussion revolved around climate change and the environmental impact of the tarsands.

So, to the shock of no one who was paying attention, American President Barack Obama rejected the TransCanada corporation’s application for the cross-border permit needed to link the Keystone XL pipeline across the Canada-United States border.

It had become clear over the past few years that the project was unlikely to be approved by the American President. While counter-messages from the oil industry and environmental groups set the tone internationally, opposition to the pipeline by a handful of rural landowners in Nebraska is what ended up tying the pipeline project in the courts.

Justin Trudeau
Justin Trudeau

While the rejection of Keystone XL represents a victory for the projects opponents, it also represents a failure of Canadian foreign policy. For the past decade, the federal and provincial governments have been subsidizing TransCanada by spending significant amount of time and resources providing public funding for the pipeline through lobbying activities.

Elected officials like former Premier Alison Redford and her cabinet ministers were essentially publicly-funded lobbyists as they travelled to the U.S. dozens of times to advocate for Keystone XL and other oil industry projects. The decision by Jim Prentice to appoint well-connected Member of Parliament Rob Merrifield to the post of Alberta’s representative in Washington D.C. was supposed to give a boost to the government’s pipeline lobbying goals (he was later dismissed by Premier Rachel Notley). And the government led by Saskatchewan Premier Brad Wall was reported to have paid at least $3 million to lobbyists in Washington D.C.

Stephen Harper Calgary Stampede
Stephen Harper

The Conservative government of Stephen Harper, which was rejected by Canadians on Oct. 19, had arguably been the most pro-oil industry administration we have seen in decades. But instead of trying to build a national consensus in favour of projects like Keystone XL, the Conservative government demonized opposition to the pipelines in Canada. Opponents of Bill C-51 claimed that new spy laws passed by the former Conservative government with support from the Liberals could target Canadian citizens who oppose the expansion of oil pipelines.

Prime Minister Justin Trudeau declared his support for TransCanada’s Keystone XL pipeline in a speech to the Calgary Petroleum Club in October 2013 while also criticizing the Conservative government’s approach to lobbying for the pipeline in Washington D.C. “They have poked and prodded, annoyed and irritated the Obama administration at every turn. Largely, I suspect, because they don’t know how to work with people who don’t share their ideology,” Mr. Trudeau told Calgary’s oil elite.

Premier Rachel Notley Calgary Stampede Alberta
Rachel Notley

While Mr. Trudeau has not publicly supported TransCanada’s other major pipeline project, the Energy East pipeline, new Natural Resources Minister Jim Carr faces a challenging task of managing the interprovincial politics of pipelines. An Energy East pipeline that would would pump oil from Alberta to port terminals in New Brunswick or Quebec, keeping jobs in Canada, was endorsed by Ms. Notley and New Brunswick Premier Brian Gallant last month.

The appointment of Ottawa MP Catherine McKenna as Minister of Environment and Climate Change, and former environment minister Stephane Dion as Minister of Foreign Affairs signals that the new federal government may not be as singularly focused on pipelines as the previous government. Mr. Dion is well versed in environmental policy after serving as environment minister from 2004 to 2006 and spearheading the Green Shift policy while leading the Liberal opposition in the 2008 election.

Catherine McKenna
Catherine McKenna

One of the new federal government’s first major tasks will be to bring its ideas to address climate change to COP21, the 2015 United Nations Climate Change Conference, being held Nov. 30 to Dec. 11 in Paris, France. Ms. McKenna will be advised by a strong Alberta voice in these matters, with former Pembina Institute executive director Marlo Reynolds, a Canmore, Alberta resident, as her chief of staff.

Ms. Notley and Alberta Environment Minister Shannon Phillips will also be attending the conference in Paris.

The Pembina Institute may have spotted one of the biggest changes that the rejection of TransCanada’s Keystone XL signifies for Canada’s new foreign relations and energy strategies. In a statement released yesterday, Alberta director Simon Dyer said the “decision by President Obama reiterates that climate change is a key consideration for all energy infrastructure projects going forward.”

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Alberta Politics

What do the federal election results mean for Edmonton and Alberta?

With the excitement of the 2015 federal election one week behind us, now is a good time to take a look at how the results of the election could impact Edmonton and Alberta. The reality of a majority Liberal government in Ottawa will make Conservative Albertans uneasy, but there is little reason to believe this new government will lead to doom and gloom for our province.

Last Friday, I had the pleasure of participating in a panel discussion about the election results with Edmonton Journal editor-in-chief Margo Goodhand and University of Alberta professor Steve Patten at a Institute of Public Administration of Canada event at Government House. With this discussion still fresh in my mind, here is a look at some of the ways last week’s federal election results could impact Edmonton and Alberta.

Liberal growth in Conservative Alberta
Conservative Party candidates earned 59 percent of the vote and elected candidates in 29 of Alberta’s 34 federal ridings. The Liberals broke a nearly five decade long drought in Calgary with the election of Kent Hehr in Calgary-Centre and Darshan Kang in Calgary-Skyview. In Edmonton, two Liberals were elected in bellwether ridings – Randy Boissonnault in Edmonton-Centre and Amarjeet Sohi in Edmonton-Mill Woods. Since 1984, these two Edmonton ridings have elected MPs belonging to the party in government. (Note: the election results in Edmonton-Mill Woods will face a judicial recount).

The “Class of 2015”
There was a significant turnover in Alberta’s representation in Ottawa, with 18 of 34 Members of Parliament from our province being elected for the first time, including seven first-time MPs representing Edmonton ridings. This ‘class of 2015’ includes four Liberals and fourteen Conservatives.

Alberta in Cabinet
It is expected that Alberta will have representation in the federal cabinet but it is not clear how large that representation will be. In my opinion, it would be a grave mistake for incoming Prime Minister Justin Trudeau to not appoint a cabinet minister from both Edmonton and Calgary. The third and fifth largest municipalities in Canada should have representation at the highest levels in Ottawa. These large urban centres also represent an area of future electoral growth for the federal Liberal Party. In Calgary, the Liberals earned a surprising 30 percent of the vote and in Edmonton they earned 23 percent. The new cabinet will be sworn-in on Nov. 4, 2015.

Federal-Provincial Relations
We have already witnessed a change in tone that could signal a significant improvement in the federal government’s relationship with the provinces. In the first week after the election, Mr. Trudeau invited provincial premiers to join Canada’s delegation to the important COP21 Climate Change Conference in Paris in November. Mr. Trudeau has also indicated his intention to negotiate a new health accord with the provinces.

Alberta-Ottawa Relations
The relationship between Ottawa and Edmonton would have been sour had Stephen Harper’s Conservatives been re-elected. After attacking Alberta’s NDP government numerous times during the campaign, it is unlikely that Mr. Harper and Premier Rachel Notley would have been able to develop the kind of productive working relationship that would benefit Albertans.

Even though she appeared on stage with NDP leader Tom Mulcair in the final days of the election campaign, Ms. Notley has indicated that she was willing to work with whoever became the next Prime Minister. If she and Mr. Trudeau can develop a good working relationship, Canadians may see progress on issues like pipeline expansion in the next four years. Although Mr. Harper was a vocal supporter of Canada’s oil and gas industry, he failed to secure the construction of new pipeline projects during his decade as Prime Minister.

A Municipal Agenda
The Liberals promised increased investment in public infrastructure and increased funding for municipal public transit projects. During his three-terms on city council, Mr. Sohi has been an vocal advocate for expanded Light-Rail Transit funding in southeast Edmonton. Mayor Don Iveson has been critical of the Conservative government’s lack of commitment to LRT funding in the past.

Commitment to defence funding
The Liberal platform committed to “maintain current National Defence spending levels, including current planned increases” which should at least be positive news for Edmontonians who work at CFB Edmonton.

The last First-Past-the-Post election
Mr. Trudeau promised that this federal election would be Canada’s last using the antiquated ‘first past the post’ electoral system. This would likely mean an end to Conservative overrepresentation of Alberta in Ottawa. Any system, whether it be proportional representation, single transferable vote or mixed member proportional representation, could allow voters choices to be better reflected in their representation in Ottawa. This would likely mean an end the system which allows 59 percent of voters to be represented by 81 percent of the Members of Parliament from Alberta.

Conservative Leadership
With Mr. Harper’s resignation as leader of the Conservative Party of Canada, that party will be thrust into a contest to select a new leader. While that party may seek to choose a new leader from another region of Canada, it is expected that Conservative MPs from Alberta will be candidates in that race. Already, there is speculation that Calgary-Nose Hill MP Michelle Rempel and Calgary-Midnapore MP Jason Kenney are interested in seeking the leadership.

Liberals and NDP in the West
Western Canada is no longer a monolith of the Conservative Party support. With British Columbia and Manitoba electing more Liberal MPs than Conservative MPs, Alberta and Saskatchewan are now the only provinces where Conservatives outnumber other parties. While the Conservatives remain strong in the rural west, that party has lost ground to the Liberals and NDP in the western urban centres of Calgary, Edmonton, Regina, Saskatoon, and Winnipeg. Twenty of the NDP’s 44 MPs and 29 of the 184 Liberal MPs were elected in ridings west of Ontario.

Trudeau wave bad news for Notley?
Conservative critics have already predicted that the rise of the federal Liberals in Alberta spells bad news for Ms. Notley’s provincial NDP. I suspect that the results of this federal election will have little impact on the level of NDP support in the next provincial election. It has been clear for some time that Mr. Mulcair is unpopular in Alberta. His noticeable absence from the province during the spring election campaign and low support for the federal NDP in four by-elections since 2011 suggests that Mr. Mulcair’s unpopularity has little impact on Ms. Notley’s political fortunes.