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Danielle Smith slams Ottawa’s not-yet-released ‘just transition’ plan

Alberta Premier Danielle Smith is taking shots at the federal government's just transition legislation, which should be tabled early this year. Photo by Chris Schwarz/Government of Alberta/Flickr (CC BY-NC-ND 2.0)

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The new year has kicked off with Alberta’s premier and environment minister up in arms over the federal government’s yet-to-be-released Just Transition Act.

The Liberals’ bill was originally pitched as a way to “ensure energy workers and communities can shape their own futures” by giving them access to the training, support and new opportunities needed to succeed in the clean economy. But Alberta politicians are raising concerns about the legislation signalling a possible phaseout of the oil and gas sector.

Premier Danielle Smith panned the government’s just transition plan as “ill-conceived” and “short-sighted” in a tweet posted Jan. 3 after Natural Resources Minister Jonathan Wilkinson told CBC News the long-awaited legislation will be tabled early this year.

Smith’s repeated assertions that the federal government wants to shut down the oil and gas sector clash with comments Wilkinson made late last year.

The new year has kicked off with Alberta’s premier and environment minister up in arms over the federal government’s yet-to-be-released Just Transition Act. #abpoli #cdnpoli #DanielleSmith

“This global shift to a low-carbon future can be accomplished without phasing out Canada’s oil and gas sector,” Wilkinson told the House of Commons on Nov. 14 after being asked about just transition consultations by Conservative MP Pat Kelly of Calgary Rocky Ridge.

Wilkinson went on to say the cause of climate change “is not fossil fuels themselves but the carbon emissions associated with producing and burning them,” and that “Canada’s challenge is to aggressively reduce those emissions because hydrocarbons will continue to have a role to play in a net-zero economy.”

Natural Resources Canada’s just transition webpage and discussion paper do not mention the words “oil and gas” at all, and the paper only includes one explicit reference to the “clean energy transition” in the context of mining.

“With an election looming (in Alberta), I think it's very difficult for the (United Conservative Party) to accept anything from the federal government that implies that there's going to be a transition. They've adopted the strategy of running in the election against the federal government,” Lisa Young, a political scientist at the University of Calgary, told Canada’s National Observer.

When asked about the ongoing just transition conversation, Alberta Opposition Leader Rachel Notley told reporters: “We need to perhaps move away a little bit from the debate that seems to be developing over the use of language and instead focus on the object.”

The objective, Notley said, “must be to support the growth of jobs within our oil and gas sector” focused on reducing emissions to ensure Canada is “well-placed to be the market of choice internationally.”

The federal and Alberta governments align in a lot of ways, at least at a big-picture level, despite Smith’s squabbles with Ottawa, said Kathryn Harrison, a climate policy researcher and professor of political science at the University of British Columbia.

“Both the federal and provincial governments have this sort of fanciful idea that the last barrel of oil will be produced in Canada,” said Harrison. She pointed to the International Energy Agency’s 2021 World Energy Outlook report, which projects that if countries follow through on their current climate pledges, Canadian oil production drops 43 per cent by 2050, worse than the global average. The same is true for Canadian gas production: the IEA expects it to decline more steeply than the global average.

There are more reasons climate researchers, including Harrison, don’t buy arguments that Canada can produce the last barrel of oil. Harrison said Canada’s oil is generally more costly to extract than other sources and although government subsidies for carbon capture technology can lower the production emissions, other jurisdictions can do the same.

“The idea that the rest of the world’s industry isn't playing the same game, I think, just ends up being a race to the bottom with taxpayers holding the bag,” Harrison said.

We have lost years and years of time denying Canada’s oil and gas exports will be challenged by global action on climate change — years that could have been spent planning for a transition, said Harrison.

“I don't see how we can have an … intellectually honest (and) practical conversation about just transition in Canada without naming the oil and gas industry,” she said.

The Liberals first promised a Just Transition Act in 2019. More recently, Wilkinson has described the legislation as an action plan for “sustainable jobs,” rather than a “just transition.” Ian Cameron, director of communications for Natural Resources Canada, confirmed to Canada’s National Observer that the minister “will be advancing the federal government’s work on Sustainable Jobs” early this year.

“The term ‘just transition’ plays very well with environmentally concerned voters, but that ‘T-word’ — transition — is acknowledging the reality … that certain sectors are going to see decline,” said Harrison. “That's the point that we've been in denial about.”

If the world hopes to meet its climate goals and protect the planet, there must be a swift transition away from fossil fuels, according to the Intergovernmental Panel on Climate Change. When the IPCC report was released, UN Secretary-General António Guterres said countries increasing fossil fuel production are “truly dangerous radicals” and called investing in new fossil fuel infrastructure “moral and economic madness.”

The federal government walks a “very fine line” on energy issues, said Young. On the one hand, it has positioned itself as supporting meaningful reductions of greenhouse gas emissions in Canada and, on the other hand, as supporters of the oil industry, said Young, pointing to Prime Minister Justin Trudeau’s 2018 decision to “rescue” the Trans Mountain pipeline expansion project, which is now likely to cost taxpayers billions more.

Smith did not respond to requests for comment by deadline.

Natasha Bulowski / Local Journalism Initiative / Canada’s National Observer

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