The Alberta and federal governments are currently in discussions to finalize a significant agreement that could potentially reshape their ties. Both parties are aiming to execute a formal memorandum of understanding (MOU) with hopes of completing the deal before the Canadian Football League’s Grey Cup on Nov. 16.
The relationship between the federal government and the province has historically been strained but escalated to a toxic level over the past decade. Alberta governments have consistently pointed fingers at Prime Minister Justin Trudeau’s policies, attributing them to deteriorating relations. These policies include alterations to impact assessment legislation, a ban on oil tankers on B.C.’s northern coast, net-zero electricity regulations, and proposed regulations for an oil and gas emissions cap.
Negotiations are deemed crucial, with ministers and sources refraining from public comments to avoid jeopardizing the discussions. Even Alberta Premier Danielle Smith and Environment Minister Rebecca Schulz, known for their swift responses to climate policy announcements, have remained reserved following the Carney government’s climate strategy outline in the budget.
The Climate Competitiveness Strategy reaffirmed the Carney government’s commitment to certain emissions-reduction policies that have irked the Alberta government, such as enhanced methane regulations and clean electricity regulations. While the strategy did not outright promise to eliminate the oil and gas emissions cap, it laid out conditions that, if met, could render the contentious policy unnecessary.
In a statement released on Tuesday evening, Smith withheld judgment until the conclusion of negotiations with the Carney government by mid-November. She emphasized the importance of determining the federal government’s seriousness in repealing or revising policies that have negatively impacted Alberta’s economy and electricity grid stability.
A spokesperson for Smith referred to a prior statement indicating ongoing efforts by both parties to reach an agreement that addresses federal climate policies opposed by Alberta. Additionally, the statement mentioned Alberta’s progression as the proponent of a bitumen pipeline to British Columbia’s northern coast, intending to submit an application through the federal Major Projects Office.
Shannon Joseph, an advocate for natural gas based in Calgary, sees the potential November agreement as a stepping stone towards a new era. Joseph highlighted the shared focus of Smith and Prime Minister Mark Carney on attracting investments and positioning Canada as an energy powerhouse, signaling a rare alignment in economic objectives.
Oliver Anderson, who closely collaborated with the former federal environment and climate change minister, expressed skepticism regarding the likelihood of a breakthrough. He noted Alberta’s conservative government’s resistance to federal clean energy policies and their inclination towards confrontation rather than cooperation.
If successful, these negotiations would mark a significant milestone for both levels of government, which have historically grappled with conflicts in their relationship. The prospect of a “grand bargain,” as mentioned by Smith post her meeting with Carney in June, holds promise for potential reconciliation between the parties.