Alberta launches $7M ad campaign against feds oil and gas emissions cap

The provincial government in Alberta is launching a national advertisement campaign in response to the federal government’s proposed oil and gas emissions cap.

In a press conference Tuesday afternoon, Premier Danielle Smith said the new $7 million ‘Scrap the Cap’ campaign will aim to inform Canadians about the negative ramifications of the proposed cap, which she claims is “ideological” and “irresponsible.”

“Ottawa says they are working to cut emissions, but what they are really doing is cutting production of oil and gas,” said Smith. “And this, by extension, will cut jobs and revenues across the country.”

The province says the federal regulations expected later this year would make groceries, gas and all of life’s necessities even more expensive.

In December 2023, the Government of Canada announced a plan to introduce a cap-and-trade system to reduce greenhouse gas emissions in the oil and gas sector.

It proposes to cap 2030 emissions at 35 to 38 percent below 2019 levels, but there would be a flexibility for compliance at 20 to 23 per cent below 2019 levels.

Ottawa’s goal is to meet net-zero by 2050.

The UCP says Alberta would be hit hardest by the new policy and claims the province’s GDP would shrink by 4.5 per cent by 2040, with Canada’s decline by 1 per cent.

The province also claims the emissions cap would result in 150,000 Canadians losing their jobs and cost the national economy $14 billion a year.

In a joint statement, Environment Minister Steven Guilbeault and Energy and Natural Resources Minister Jonathan Wilkinson say the UCP is wasting taxpayers dollars to spread disinformation, and accused Smith of trying to appeal to her base ahead of her leadership review.

“It is pretty clear that Premier Smith is using this to distract from her own anti-energy policies that have put 24,000 Albertan energy jobs, $33 billion in investment, $54 million in local tax revenues, and enough energy to power 98% of Albertans’ homes at risk,” reads the statement.

The statement says the cap’s purpose is to cut pollution and not production.

University of Calgary economist Trevor Tombe said he believes the emissions cap is bad policy, but the argument that it would drive up the price of gas — and therefore groceries — is misleading.

Tombe said gas prices are largely determined by taxes, retail markups and margins, and global oil prices.

“There hasn’t been any credible analysis suggesting that Canada’s emissions cap on oil and gas will affect world oil prices,” said Tombe.

Alberta’s government has long opposed the feds’ plan with Smith previously saying the proposal “punishes” Alberta’s main industry and has even indicated plans to take the federal government to court.

The national ad campaign will run until the end of November and includes print, television and social media advertisements.

Its goal is to urge Canadians to contact their MPs and “share their thoughts,” the ‘Scrap the Cap’ website includes a letter that can be sent digitally.

With files from The Canadian Press