Course: PPOL619: Governance, Institutions and Public Policy

Assignment: 1000-word legislative history document interpreting government records and offering insights into the significance of Alberta's carbon emission strategy. Providing strategic context and offering a thorough analysis derived from the policymaking process, examining the issue and its relevant legislation.

Title: Alberta’s Carbon Emission Strategy: Stakeholder Overview

Final Grade: 97%

Overview

Canada's constitutional framework does not specifically enumerate powers concerning the regulation of greenhouse gas (GHG) emissions (Canada 1982). In climate policy, "carbon" refers to carbon dioxide (CO₂) a major GHG. In Alberta, GHG management is currently governed by the Technology Innovation and Emissions Reduction Regulation (TIER) (Alberta 2019b). Meanwhile, the Canadian courts have affirmed the federal government's authority to regulate GHGs based on the "peace, order, and good government" clause (specifically for carbon pricing) and the criminal law power (pertaining to renewable fuel regulation) (Rennie J.A. 2016, 3).

Alberta's Carbon Emission Strategy Legislative History

  • 2003: Alberta enacted the Climate Change and Emissions Management Act (CCEMA), to reduce Alberta’s GHG emissions “relative to Gross Domestic Product to an amount that is equal to or less than 50% of 1990 levels” (Alberta 2003a). 
  • 2007: Alberta introduced North America's first GHG management via the Specified Gas Emitters Regulation (SGER) under CCEMA  (Alberta 2007; 2023, 5–6), aiming for environmental and economic balance (Saric, Carson, and Bachmann 2017, 319).
  • 2015: The NDP government, via the Climate Leadership Plan, revised SGER, enhancing emission reduction targets and fund credit pricing (Ross et al. 2016). Climate Leadership Implementation Act introduced the provincial carbon tax (Powell 2016, 12).
  • 2018: Alberta introduced the Carbon Competitiveness Incentive Regulation (CCIR) to address criticisms of SGER's efficiency and align with global standards (Alberta 2017). The regulation focused on consistent industry performance and regulatory predictability, vital for the energy sector's economic activity and investment (Saric, Carson, and Bachmann 2017, 347–48).
  • 2019: The Kenney government discontinued the Climate Leadership Plan, repealing the provincial carbon tax (Alberta 2019a). The legislation was renamed to the Emissions Management and Climate Resilience Act (Alberta 2003b) without aligning with updated national and international policies. This enabled the application of the federal fuel charge (Downey et al. 2021, 232).
  • 2020: Alberta introduced TIER (Alberta 2019b), as its third-generation industrial carbon pricing and trading; TIER prioritized economic resilience amid global challenges while maintaining commitments to emissions reductions.
  • 2023: Alberta Emissions Reduction and Energy Development Plan was released, outlining the province's aspiration to achieve a net zero carbon economy by 2050 (Alberta 2023). Alberta amended TIER for 2023–2030 with an annual stepped carbon price schedule rise from $65 to $170/tonne and enhanced benchmark stringency (Alberta 2023, 14, 28), providing long-term certainty for industries.

Provincial-Federal Dynamics

Alberta's policy initiatives often intersected with federal directives, especially with the Pan-Canadian Framework (Canada 2016). While Alberta committed to decarbonizing its electricity sector and capping oil sands emissions (Alberta 2023, 11), regulations for the latter are pending. This tension between provincial autonomy and federal cohesion exists due to Canada's constitutional division. While Alberta has the authority over property, public lands, and non-renewable resources, aspects like oil sands sales and international pipeline regulations are federally governed (Lucas and Ingelson 2023, 411).

Stakeholder Overview

Alberta Provincial Government: Historically industry-focused, Alberta's government has shifted towards stricter carbon regulations, echoing global and national trends.  Kenney's 2022 Speech From the Throne highlighted the government's commitment to the Oil Sands Pathways to Net Zero Alliance (Alberta 2022a, 4), aiming to achieve net-zero carbon emissions in the industry by 2050. Furthermore, Premier Smith's 2022 Speech From the Throne emphasized the government's investments in eco-technologies like carbon capture and hydrogen (Alberta 2022b, 6–7). These addresses illustrate the government's evolving stance, acknowledging the need to balance industry interests with environmental sustainability, innovation, and economic growth.

Federal Government: Aims to unify carbon pricing across the nation while balancing the individual autonomy of provinces with broader climate goals. It seeks to ensure a coordinated approach to addressing climate change across the country. The recent promise to institute a cap on oil and gas emissions by the fall of 2023 has been a point of contention (Bloomberg 2023). Smith's opposition to this legislation, which she describes as an enforced production cap (Canadian Press 2023b), further highlights the tension.

Municipalities: In Alberta, the Municipal Government Act (MGA) delineates municipal authorities, with any bylaw conflicting with provincial or federal statutes is invalidated (Alberta 2020). Notably, Edmonton and Calgary, as charter cities, possess augmented environmental capabilities but remain subject to MGA provisions (Alberta 2020). Environmental legal experts suggest revisions to the MGA to amplify municipal climate initiatives (Powell 2016, 23–24), emphasizing advanced building energy criteria, pioneering financing for energy efficiency, and holistic environmental strategies that champion sustainable transportation and green spaces.

Indigenous Communities: The aspirations for more inclusive participatory processes were realized with the establishment of the Alberta Indigenous Opportunities Corporation in 2019 (Alberta 2023, 12), signifying a commitment to inclusive policymaking. There have also been efforts to address concerns of First Nations in the oil sands region, partly through the establishment of the provincial Aboriginal Consultation Office (Lucas and Ingelson 2023, 413).

Alberta Public: Some favor robust industrial growth, viewing it as essential for job prospects and economic stability. Others are more environmentally driven and advocate for stricter carbon regulations. Notably, a majority of Albertans (55%) express concern over climate change (Canadian Press 2023b), indicating a recent shift in public sentiment.

Industrial Emitters: Heavy industries play a pivotal role in Alberta's economy. These entities prioritize operational efficiency and seek flexible compliance mechanisms that allow them to integrate emissions reduction efforts with their core operations. Many in this sector support TIER for its flexibility and industry-specific approach. They have also advocated for a more global approach to carbon pricing to prevent imbalances that could affect competitiveness within Alberta. However, there is an emerging trend among some oil and gas companies that prioritize short-term production, profits, and dividends over emissions reduction efforts (Canadian Press 2023a).

Conclusion

Alberta's evolution of carbon policy reflects a balance of acknowledging and integrating diverse stakeholder perspectives, including industrial needs, federal directives, public opinion, Indigenous concerns, and local governance. Balancing national objectives with provincial autonomy is essential to ensure Alberta's unique needs and challenges are considered. For the province to succeed in achieving net-zero by 2050, it will require a dedicated and unified approach to sustainability, accommodating varied interests from economic to environmental.

References

Alberta. 2003a. Climate Change and Emissions Management Act, SA 2003, c C-16.7. CanLII. https://canlii.ca/t/53m7v.

Alberta. 2003b. ‘Emissions Management and Climate Resilience Act, SA 2003, c E-7.8’. CanLII. 2003. https://canlii.ca/t/56128.

Alberta. 2007. Specified Gas Emitters Regulation, Alta Reg 139/2007. CanLII. https://canlii.ca/t/52x2q.

Alberta. 2017. Carbon Competitiveness Incentive Regulation, Alta Reg 255/2017. CanLII. https://www.canlii.org/en/ab/laws/regu/alta-reg-255-2017/144796/alta-reg-255-2017.html.

Alberta. 2019a. An Act to Repeal the Carbon Tax, SA 2019, c 1. CanLII. https://canlii.ca/t/53pdv.

Alberta. 2019b. Technology Innovation and Emissions Reduction Regulation, Alta Reg 133/2019. CanLII. https://canlii.ca/t/561rl.

Alberta. 2020. Municipal Government Act, RSA 2000, c M-26. CanLII. https://canlii.ca/t/560z7.

Alberta. 2022a. ‘Thirtieth Legislative Assembly, Third Session (2022)’. Hansard.

Alberta. 2022b. ‘Thirtieth Legislative Assembly, Fourth Session (2022-2023)’. Hansard.

Alberta. 2023. ‘Alberta Emissions Reduction and Energy Development Plan’. Environment and Protected Areas. https://open.alberta.ca/publications/alberta-emissions-reduction-and-energy-development-plan.

Bloomberg. 2023. ‘Canada to Reveal Plan for Emissions Cap on Oil and Gas This Fall - BNN Bloomberg’. BNN. 31 August 2023. https://www.bnnbloomberg.ca/canada-to-reveal-plan-for-emissions-cap-on-oil-and-gas-this-fall-1.1965829.

Canada. 1982. The Constitution Act, 1982, c 11. CanLII. https://canlii.ca/t/ldsw.

Canada, Environment and Climate Change. 2016. ‘Pan-Canadian Framework on Clean Growth and Climate Change’. Report on plans and priorities. https://publications.gc.ca/site/eng/9.828774/publication.html.

Canadian Press. 2023a. ‘Suncor Has Been Too Focused on Energy Transition, Must Get Back to Fundamentals: CEO | CBC News’. CBC. 15 August 2023. https://www.cbc.ca/news/canada/calgary/suncor-too-focused-on-energy-transition-rich-kruger-says-1.6937360.

Canadian Press. 2023b. ‘Twin Polls Suggest Slim Majority of Albertans Support Oil and Gas Emissions Cap’. The Globe and Mail, 14 September 2023. https://www.theglobeandmail.com/canada/alberta/article-twin-polls-suggest-slim-majority-of-albertans-support-oil-and-gas/.

Downey, Brendan, Mike Henry, Robyn Finley, Sean Korney, and John Zhou. 2021. ‘Pathways to Net-Zero: Opportunities for Canada in a Changing Energy Sector’. Alberta Law Review 59 (2): 225. https://canlii.ca/t/tsxk.

Lucas, Alastair R., and Allan E. Ingelson. 2023. ‘Environment in the Courtroom II’. https://canlii.ca/t/7n4js.

Powell, Brenda Heelan. 2016. ‘Climate Change Legal Roadmap: A Snapshot of Alberta’s Climate Change Law & Policy’. https://canlii.ca/t/2f9q.

Rennie J.A. 2016. Syncrude Canada Ltd. v. Canada (Attorney General). Federal Court of Appeal.

Ross, Alan L., Leanne Desbarats, Rick Williams, Robert R. Shouldice, Adam Chamberlain, and Carolyn Milne. 2016. ‘Renewables In Alberta: New Policies, New Opportunities’. Alberta Law Review 54 (2): 241. https://canlii.ca/t/ql.

Saric, Dana, Lorne Carson, and Guido Bachmann. 2017. ‘Managing Your Carbon Footprint: Impacts and Opportunities Arising From Alberta’s Climate Change Legislation’. Alberta Law Review 55 (2): 317.