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Rachel Notley has a warning for Trump

Alberta Premier Rachel Notley gives a year end update in Edmonton Alta, on Wednesday, December 14, 2016. File Photo by The Canadian Press/Jason Franson
Alberta Premier Rachel Notley gives a year end update in Edmonton Alta, on Wednesday, December 14, 2016. File Photo by The Canadian Press/Jason Franson

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Alberta Premier Rachel Notley says U.S. President Donald Trump is likely to have some unhappy supporters south of the border if he goes after Canadian energy with trade sanctions.

Notley, who is on a trade mission in China, says she doesn't know what Trump was talking about last week when he lumped energy in with what he considers are other trade irritants, including softwood lumber and dairy.

"We're not exactly sure what it is he was referring to," Notley said in a conference call Monday. "We're trying to get a sense of that."

She noted that many of Trump's backers need and want energy from north of the border, so Canada is likely to have a lot of allies.

"The leadership of the U.S. administration is going to find that they have a lot of their own stakeholders reminding them how much they need Canadian energy," she said.

"It's not something as simple as just throwing a border adjustment tax, because in fact there will be huge consequences and cost increases for a number of different players throughout the U.S. should that happen."

Canada has found itself in the crosshairs as Trump pushes for what he says will be "very big changes" to the North American Free Trade Agreement.

Trump has upped his rhetoric on NAFTA and is calling the deal a disaster that he plans to get rid of once and for all.

Notley said Trump's talk is another argument for expanding the Trans Mountain pipeline to the B.C. coast so Alberta's oil can be shipped to other markets overseas.

Alberta's draft rules for methane coming later this year

Alberta, the province at the heart of Canada’s oil patch, is moving ahead with plans to slash one of its most powerful sources of heat-trapping pollution, said Notley.

Alberta’s annual emissions of methane, a greenhouse gas that is 25 times more potent than carbon dioxide, are higher than any other province, in part due to its oil and gas industry. This sector is responsible for close to three quarters of the provincial total.

Notley's NDP government has pledged to reduce methane emissions 45 per cent by 2025. The province, which put a price on carbon Jan. 1, is set to introduce draft methane regulations later this year, the premier said.

Alberta is “still committed to the target, it’s a component of our climate leadership plan,” said Notley. “We’ll have draft rules around that in place this fall.”

“The companies are aware that a regulatory backstop will come into effect and as a result of that, in the short term when it’s paired with the climate levy, it’s actually an incentive for them to move more quickly, and we’re seeing that kind of work underway.”

The Trudeau government signaled last week it would propose a delay in its timeline for implementing federal regulations to start cutting methane.

The federal government says it’s still committed to meet a similar national target of a 40 to 45 per cent reduction in annual emissions by 2025. But environmental groups were disappointed with the move, and say this will prevent Canada from meeting its targets.

It wasn't immediately clear if Alberta was also planning to delay implementation.

Alberta’s methane emissions were 44 megatonnes of carbon dioxide equivalent in 2013, according to the federal government’s latest greenhouse gas national inventory report.

The province is the country’s largest greenhouse gas emitter, having increased its emissions 53 per cent since 1990, “mostly driven by the enhanced production of petroleum resources,” the report states.

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