Alberta Premier Danielle Smith and Environment Minister Rebecca Schulz are calling for the immediate cancellation of the federal government’s proposed oil and gas emissions cap, citing a new report from the Parliamentary Budget Officer (PBO) that warns of significant economic consequences.
In a joint statement, Smith and Schulz emphasized that the emissions cap would negatively impact the economy, cut jobs, and weaken Canada’s energy sector.
The PBO report estimates that the cap would reduce oil and gas production by 5%, amounting to over 245,000 barrels per day, and eliminate 54,400 jobs. The policy would also lead to a $20 billion decline in GDP by 2032, all while global emissions continue to rise.
“For years, provinces, businesses, and industry leaders have warned that this policy will hurt Canadians, yet the federal government has ignored these concerns,” the statement read.
“Now, the independent PBO’s scathing analysis confirms the damage this cap will cause.”
The Alberta government argues that the federal policy is contradictory, as Ottawa promotes Canada’s energy sector in trade negotiations while simultaneously limiting its production.
Smith and Schulz assert that Alberta is taking steps to expand its market reach by increasing access to tidewater, which would enhance the value of its energy exports.
“The evidence is clear: the federal government’s proposed emissions cap is unconstitutional, bad for the economy, and bad for Canadians,” the statement continued.
“We urge the next elected Prime Minister to abandon this extreme and ideological cap.”