Alberta Premier Danielle Smith has launched a new campaign to counteract an incoming cap on emissions. (Photo: Pattison Media)

By Canadian Press

Alberta government launches $7M ad campaign against incoming federal emissions cap

Oct 15, 2024 | 2:12 PM

Alberta’s government has launched a national ad campaign targeting the federal government’s incoming emissions cap for the oil and gas sector.

Premier Danielle Smith says it’s a de facto production cap that would kill jobs and stifle the economy.

The province’s $7 million “Scrap the Cap” campaign also says the federal regulations expected later this year would make groceries, gas and all of life’s necessities even more expensive.

“Once again, Ottawa is attempting to set policies that are shortsighted and reckless,” says Smith. “We’re challenging proposed policy that would stifle our energy industry, kill jobs and ruin economies by launching a national campaign that tells Ottawa to “Scrap the Cap.” We’re telling the federal government to forget this reckless and extreme idea and get behind Alberta’s leadership by investing in real solutions that cut emissions, not Canada’s prosperity.”

University of Calgary economist Trevor Tombe says he believes the emissions cap is bad policy, but the argument that it would drive up gas, and therefore grocery, prices is a weak one.

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Tombe says gasoline prices would not go up as a result of the cap because they are largely determined by taxes, retail markups and margins, and global oil prices.

He says it also isn’t necessarily a production cap if the sector is able to achieve emission reductions, as some industry groups have promised.

Smith says her government plans to make Alberta carbon neutral by 2050, as opposed to Ottawa’s target of 2035.

Meantime, Alberta NDP Leader Naheed Nenshi says the approach presented today is typical of Danielle Smith — one which spends, “a whole bunch of taxpayer money in places like Halifax to try and influence the upcoming federal election instead of actually solving the problem.”

This report by The Canadian Press (with the exception of quotes from Naheed Nenshi) was first published Oct. 15, 2024.