Trudeau Emphasizes Alberta's Energy Role in Canada's Economic Well-being to Business Delegation

05 Oct, 2023

Trudeau Emphasizes Alberta's Energy Role in Canada's Economic Well-being to Business Delegation

Prime Minister Justin Trudeau has underscored the pivotal role Alberta plays in shaping the future health of Canada's economy, particularly as the energy landscape undergoes significant transformations.

Addressing a delegation consisting of representatives from approximately 50 companies, business groups, and First Nations from Alberta, Trudeau reiterated the importance of every region's success for Canada's overall prosperity. He emphasized, "Politics and other challenges have us divided or people pointing out differences, but the fact of the matter is we don't build the right future for Canada if Alberta isn't at the center of everything we do."

The business groups had convened in Ottawa for meetings with the prime minister, government officials, as well as ministers responsible for environment, industry, agriculture, prairies, small business, and employment.

Trudeau commended Alberta's ambitious companies, highlighting their innovations in areas such as carbon capture and storage, solar projects, and hydrogen technology. However, he also subtly criticized the strained relations between the federal government and the provincial government over environmental policies. Trudeau stated, "The politicians who'd rather deny the facts of the matter than take action to meet this moment are denying certainty to investors and business leaders, denying workers opportunities and denying our kids and grandkids the secure future they deserve."

The purpose of the three-day visit was to explore opportunities for increased collaboration with the federal government and to challenge existing perceptions of Alberta. Adam Legge, President of the Business Council of Alberta, expressed the need to continually share positive stories and information about the province to alter perceptions. He emphasized the importance of involving members, companies, innovators, and investors in these efforts.

While the delegation worked to focus on common goals, Alberta also sent a different message through an $8 million advertising campaign opposing new emissions reduction regulations proposed by the federal government. The campaign includes a truck displaying a billboard reading, "No one wants to freeze in the dark," driving around Ottawa.

Both levels of government agree on the target of achieving net-zero total emissions by 2050, but Ottawa has set a more ambitious goal of making the country's electricity grid emissions-neutral by 2035—a timeline that Alberta Premier Danielle Smith has vowed to challenge. Smith's government is preparing a Sovereignty Act motion to counter the regulations, citing warnings from the provincial grid operator of potential blackouts due to the province's heavy reliance on natural gas for power generation.

Despite these tensions, the business group leaders acknowledge alignment with provincial concerns regarding a net-zero electricity grid and impending emissions caps on oil and gas production. Trudeau acknowledged the environment as a significant concern, particularly the interim emissions reduction goals for oil and gas by 2030, which would require a 42% reduction in emissions—a challenge that industry leaders have deemed nearly impossible without substantial production cuts.

During his remarks, Trudeau also made a playful reference to Alberta's pitch to establish its own pension plan while highlighting the government's efforts to strengthen the Canada Pension Plan.

Efforts were made during the delegation to focus on substantive issues, leaving political discourse to the politicians. As Adam Legge succinctly put it, "We focus on the issues and we'll leave the political discourse to the politicians."