The woman who’s looking to reclaim power in Canada’s energy heartland is pushing back against Prime Minister Justin Trudeau’s targets for cleaning up the oil and gas industry.
Rachel Notley, who was the center-left premier of Alberta from 2015 to 2019 and is running for the job again, said Trudeau’s plan for cutting the sector’s emissions by more than 40 per cent by the end of decade is too onerous. Her stance mirrors that of the country’s largest crude producers — and it’s also one that may be a political necessity as her New Democratic Party battles for votes in a province where oil is king and the prime minister is deeply unpopular.
Relations between the federal government and Alberta — whose nearly 4 million barrels of daily oil output makes Canada the world’s fourth-largest crude producer — are a perennial flashpoint in local politics. Notley’s 2015 victory was a rare win in a traditionally conservative province. She’s looking to defeat the United Conservative Party, currently led by Danielle Smith, in an election set for May 29.
Notley said she doesn’t oppose a cap in principle, but she declined to provide her own emissions target, saying she’d consult with experts and industry on the matter. Notley is expected to sweep much of Alberta’s capital city of Edmonton, while Smith is dominant in the smaller population centers and rural areas. The election will likely come down to who wins the most districts in Calgary — where many of Canada’s energy companies are headquartered.
Another of Trudeau’s signature environmental policies is a carbon tax on consumer fuels, which kicks in if a province doesn’t have an equivalent carbon price of its own. Notley said she would leave that as a federal tax, instead of replacing it with a made-in-Alberta version.To help push the oil sector to decarbonize, Trudeau has also introduced tax credits to defray the capital costs of building carbon capture systems. The credits are worth up to $12.
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