After decades of insufficient or insincere attempts to address emissions from Canada’s fastest growing source of climate pollution, a new government-sponsored oilsands advisory group may help resolve political gridlock surrounding the nation’s most contentious natural resource by bringing together industry, environmental and indigenous stakeholders.

The Oil Sands Advisory Group (OSAG) is tasked with helping the province implement a new emissions cap for the oilsands that limits greenhouse gas output to 100 megatonnes per year and will also advise on reducing the overall environmental impacts of production, according to a government statement released Wednesday.

According to Tzeporah Berman, the group's co-chair and a well-known environmentalist, the composition of the advisory group represents a notable shift in the political landscape.

“Let's be clear: under previous governments environmental leaders had very little access and were outright ridiculed by many ministers and departments,” Berman told DeSmog Canada. “First Nations leaders were simply shut out. Climate change was denied.”

“A lot has changed in a year in Alberta and it is opening up new conversations.”

Alberta announced new climate legislation last fall that for the first time in the province’s history put an end to the notion of endless oilsands growth. Upon release of the new plan, Premier Rachel Notley, flanked by leaders of industry, prominent environmental organizations and local First Nations, said, “This is the day we stop denying this is an issue, and this is the day we do our part.”

The climate plan marked not only a new era of climate leadership (it was called a “pigs fly” situation) but a fresh approach to resolving the political gridlock that for years has pitted climate advocates and environmental groups against a seemingly entangled block of government and industry.

Berman, who stood with Notley during the climate plan announcement in November, said she’s optimistic that, working together, these strange bedfellows can make real change to a stagnant climate leadership environment and “move past the polarization of the oilsands.”

“The fact that the government just appointed people like me, who have been fierce critics shows its resolve to face and solve the hard stuff,” she said. “So instead of trading opinions through the media, those of us who have been 'adversaries' will be sitting down with a common purpose and a shared mandate.”

Dave Collyer, group co-chair and former president of Canadian Association of Petroleum Producers, echoed the sentiment: “It is the diversity of this group and its problem-solving focus on emissions leadership, local environmental performance and innovation that will help de-escalate conflict and contribute to the ongoing success of this important industry.”

According to the Conference Board of Canada, Canada ranks among the worst in the world for per capita greenhouse gas emissions, following the U.S. and Australia. Although Alberta accounts for only 11 per cent of the population, it contributed 36 per cent of national emissions in 2013.

The oilsands are Canada’s fastest growing source of greenhouse gas emissions and those emissions are projected to grow enough to nullify emissions reductions in other sectors and jurisdictions across the country.

“The simple fact is Alberta can’t let its emissions grow without limit,” energy minister Margaret McCuaig-Boyd said in a statement, “but we can grow our economy and our market by showing leadership, including reducing our carbon output per barrel.”

Simon Dyer, member of the new advisory group and director of the Pembina Institute in Alberta, said Alberta is finally treating oilsands environmental management and climate change “as they deserve to be treated: as serious public policy issues that need big change.” 

“I’ve been working on these issues for more than a decade and it was always traditionally framed as just a communications, PR air war,” Dyer told DeSmog Canada, adding the change in government engagement is “very welcome.”

There are still lots of issues in the oilsands that need to be resolved, Dyer said, “but they are only going to be resolved by a lot of people talking about them and the government making substantive changes.”

Alberta is playing catch up when it comes to environmental management and embracing renewable energy, Dyer said.

Earlier this week the government announced new incentives for enhanced oil and gas programs, something many in the environmental community were distressed to see. Equally distressing for some climate advocates is the province’s staunch support of building new oil export pipelines.

“I think what the government is trying to do is allay concerns they are anti-oil and gas and at the same time recognizing that a new economy is going to have to be based on renewables so we have to expand the clean economy,” Dyer said. “That’s the political reality in Alberta. It’s unfortunate but we’re behind and playing catch up.”

“That something like moving to 30 per cent renewables could be considered risky or out of step with the mainstream just shows how far behind Alberta has been and this government has to make big strides going forward,” Dyer added. “But they have to bring the rest of Alberta with them.”

#Alberta Brings Former Adversaries Together for New #Oilsands Advisory Group https://t.co/zzYjqLfAtJ #ableg #cdnpoli pic.twitter.com/AXGeaio0HG

— DeSmog Canada (@DeSmogCanada) July 18, 2016

For years the oilsands have faced growing civil society opposition, especially with respect to expansion, impacts on First Nations treaty rights and the construction of new or expanded oilsands export pipelines.

Adam Scott from Oil Change International said his organization is encouraged the new body  “can help start a real discussion” about Alberta’s energy resources.

Although he cautions, “there is no acceptable climate scenario where Alberta would be allowed to grow the tar sands and build new pipelines like Kinder Morgan and Energy East.”

Tim Gray, one of the 18 members of the advisory group and executive director of Environmental Defence, said Alberta — as an oil-producing jurisdiction that has an interest in building new pipelines — faces some significant challenges.

“Industry — and the Alberta government to a lesser degree — has been adamant that they want to build more pipelines and they’ve tied the completion of those to a lot of economic promises and it’s not clear if those will be achieved or not even if they did build a pipeline."

Gray said he remains unconvinced pipelines are the best strategy for Alberta and that more work needs to be done to determine if any need for new pipelines will remain once the cap put on emissions is put into place.

He said his organization remains opposed to pipeline projects like Energy East.

But, he added, he is encouraged such questions are being put to the diverse group of people that comprise the oilsands advisory group.

“I think the fact that you have organizations around the table that have very divergent views on the necessity of pipelines and what is the best way forward for an oil jurisdiction that is interesting and will make for challenging circumstances for the development of recommendations,” he told DeSmog Canada.

“But I think it shows a level of maturity by the government that they’re willing to have people with those divergent opinions and trying to work through them and bring data to bear.”

Berman said the group will begin the immediate work of creating new rules to keep oilsands emissions under the 100 megatonne cap.

“This is one of the first times in the world that an oil jurisdiction has voluntarily set a limit and we are breaking new ground,” Berman said. 

“Our goal is recommendations in the fall and then we will move on to designing reviews for cumulative impacts on water, air and biodiversity.”

“Within two years we will have made recommendations on all of those issues plus developed proposals for developing a long-term pathway on climate leadership between now and 2050.” 

For a province that has consistently failed to implement meaningful climate regulations on the oil and gas sector, the task at hand is enormous — but it's encouraging to see Alberta's willingness to bring together strange bedfellows and tackle the thorny questions head on.

Image: Suncor/Flickr

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A complaint filed with Alberta’s Office of the Ethics Commissioner on Tuesday argues that the president of the Coal Association of Canada contravened the Conflict of Interest Act by lobbying for the coal industry shortly after leaving his post as an Alberta cabinet minister.

Until six months ago, coal lobbyist Robin Campbell served as Alberta’s finance minister. He previously held positions as minister of aboriginal relations and minister of environment and sustainable resource development.

The Conflicts of Interest Act bars a former minister from lobbying any public office holder for 12 months after their last day in office.

Progress Alberta, a non-profit progressive advocacy group, filed the ethics complaint, arguing that Campbell’s activity on behalf of the coal industry may contravene rules in the Lobbyist Act designed to prevent the use of “grassroots communication” to persuade members of the public to pressure public office holders.

Since his controversial appointment as Coal Association president, Campbell has visited communities across Alberta and spoken with media about the lobby group’s positions. At least one media report indicates Campbell called on audiences to get in touch with their elected officials.

The Lobbyist Act defines “grassroots communication” as “appeals to members of the public through the mass media or by direct communication that seek to persuade members of the public to communicate directly with a public office holder in an attempt to place pressure on the public office holder to endorse a particular opinion.”

The Coal Association of Canada website states Campbell “is leveraging his decades of experience to help preserve jobs and ensure the coal industry remains an important part of our economy.”

In its complaint, Progress Alberta argues that Campbell may have used his position to influence Albertans to advocate for investments that would benefit the coal industry and against the province’s plan to phase out coal.  

Coal Association Targets Coal Phase-out

The complaint has arrived on the desk of the Ethics Commissioner of Alberta at a rather noteworthy time for the Coal Association, which has recently kicked off its rather comically named Act for the Future campaign.

On its campaign website, the Coal Association states Alberta’s Climate Action Plan, which involves a province-wide phase out of coal-fired power by 2030, “will have significant impacts on every Albertan and jeopardize the economic advantage coal-fired generation provides Alberta industries.”

Last week, the lobby group confidently declared that electricity bills may triple in Alberta by 2021.

Two days later, Campbell penned a column for the Calgary Herald stating that “we do know power prices, part of Alberta’s competitive advantage, are going up.”

Experts critical of the Coal Association’s campaigning say Campbell’s argument that a plan to phase out coal is to blame for the imminent spike in power prices is complete rubbish.

“There’s absolutely no analysis that supports the contention … that the coal phase-out will triple power bills,” Ben Thibault, electricity program director at the Pembina Institute, said.

Duncan Kinney, executive director of Progress Alberta, added that Campbell’s argument “borders on ridiculous.”  

Plummeting Prices too Low for “Market to Work”

Although predicting the fate of any energy market is difficult, a dramatic drop in Alberta’s electricity prices in recent years has onlookers saying a price rise is warranted.  

Alberta’s average pool price for electricity plummeted in recent years, from an average of $80 per megawatt hour ($/MWh) in 2006 to $33/MWh in 2015.

According to the Alberta Electric System Operator (AESO), the average pool price for March was a stunningly low $14.79/MWh. The wholesale price of electricity hit zero in February.

Thibault, who works on electricity policy design and analysis, says prices must rise in the years to come regardless of the policy instruments in place, as current power pool prices are far too low to support necessary investments in the electricity system.

Prices are currently low because of rock-bottom prices for natural gas and coal, another balmy winter and the ongoing recession.

“One way or another you need new investment in combined cycle [natural gas generation facilities] and wind, the cheapest new generating options, and in order to get there we need the MWh to be $80,” Thibault told DeSmog Canada. “It’s too low right now for this market to work.”

In other words, the power pool price could triple or quadruple in coming years even if the Alberta government sat on its hands.

But such a reality isn’t convenient for Campbell, who has been criticized for flip-flopping on the issue after formally backing former premier Jim Prentice’s call for a coal phase-out.

Neither is the reality that low electricity prices are causing coal-fired power plants to flee the energy market early.

In January utility provider Enmax cancelled its power purchase agreement with the coal-fired Battle River power plant, saying low electricity prices, combined with emissions regulations from last summer, have made the enterprise unprofitable.

In March, TransCanada did the same, citing unprofitability as the main cause.

But Campbell seized upon the opportunity to blame the climate plan.

In a column for the Calgary Herald, Campbell suggested the government’s climate change plan will “prematurely close baseload coal” and “void power purchase agreements.”

In another article in the same paper Campbell said he “believes coal-fired power plants will start shutting down in 2018 as owners try to avoid the higher levies."

But once again, this reading of the coal industry’s trouble seems to be an instance of intentional obfuscation.

For one, 12 of the 18 coal-fired plants in Alberta would have been shuttered by 2030 anyways (with four planned for closure by 2019).

Even more important is the reality that a backdoor escape valve was bizarrely written into power purchase agreement contracts by the province’s deregulation apparatus nearly 15 years ago. This happened when the agreements were first auctioned off to allow buyers to get rid of their agreements if laws were changed making their business “unprofitable.”

“They’re trying to get out of these things because they’re losing money on them because of the power pool prices, but in order to get out of them they need to blame the climate plan,” Thibault says.

Kinney says such “very generous out-clauses” mean that large companies have “privatized profits and socialized losses.”

As mentioned, power prices are exceedingly low at the moment, rendering many agreements only marginally profitable (if at all).

But thanks to ongoing tweaks to the carbon pricing for large emitters — which requires an annual emissions intensity reduction of 15 per cent in 2016 and 20 per cent in 2017 — companies can claim the government adjustments have resulted in “unprofitability” even though they’re likely attempting to get out of the agreements because of low returns.

Media Coverage of Alberta’s Complex Electricity Market “Sucks”

Campbell’s recent campaign efforts have often been facilitated by media outlets that present only one side of the issue (for example: using Campbell as a single source in multiple articles that feature intensely controversial claims).

“The electricity market in Alberta is complex,” Kinney said. “Because it’s complex, reporting on it — how do I put this delicately? — sucks.”

“It seems anyone can go out and say anything about the electricity system now and it’ll get reprinted simply because no-one really knows what’s going to happen,” he added.

According to iNews880, “Campbell declined comment” on the potential conflict of interest “due to the fact Progress Alberta filed the complaint with the ethics commissioner.”

Reports by the ethics commissioner often take months to be written and published.

Image: Government of Alberta/Flickr

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An article published last week in the National Post that claims a “secret” deal was struck between oil companies and environmentalists has ruffled many feathers — from corporate big wigs in Calgary to environmental activists on the West Coast.

According to Claudia Cattaneo’s story, Alberta’s climate change plan — which introduced a carbon tax, phased out coal-fired electricity and put a cap on oilsands emissions — was “the product of secret negotiations between four top oilsands companies and four environmental organizations.”

I’m not sure how secret any of that was given that all of those players could clearly be seen on stage with Alberta Premier Rachel Notley when she announced the plan, but the story goes on to state: “The companies agreed to the cap in exchange for the environmental groups backing down on opposition to oil export pipelines, but the deal left other players on the sidelines, and that has created a deep division in Canada’s oil and gas sector.”

The remainder of the story goes into how various oil companies have their knickers in a twist over the deal.  You’d think environmentalists would be dancing in the streets about that, but no — it’s actually hard to say who’s more outraged: environmentalists, who bristle at the idea of a secret deal and who don’t think the agreement is strong enough, or oil companies, who don’t think the new regulations will help them gain the market access they’re so desperately seeking.

Let’s just all hold our horses for a second.

First off, let’s look at the source. Cattaneo has spewed quite a bit of industry drivel over the years and her interpretation of Canada’s energy politics leaves much to be desired. Has she exhibited much understanding of how social movements actually work? Nope.

Secondly, was there a deal to stop opposition to oil export pipelines? There were at least five environmental groups on stage for the announcement: Forest Ethics, the Pembina Institute, Clean Energy Canada, Equiterre and Environmental Defence.

Forest Ethics has publicly stated that its campaign against Kinder Morgan’s Trans Mountain pipeline won’t change.

Environmental Defence’s executive director Tim Gray told DeSmog Canada that its work on pipeline issues from a climate, water, biodiversity and community impact perspective will continue. The organization is now looking to the feds for a revised review process for pipelines, which includes a climate test that takes into account all infrastructure, including trains, and respects Alberta’s cap on oilsands emissions.

The Pembina Institute’s executive director Ed Whittingham told DeSmog Canada that Pembina’s oilsands advocacy work will continue. Pembina’s advocacy around pipelines has always been out of concern for upstream impacts — not surprising for a group founded in Alberta, on the heels of a deadly sour gas well blowout.  While many of Pembina’s climate-related concerns have been addressed by Alberta’s climate plan, “lots of air, land and water concerns remain,” Whittingham said.

Clean Energy Canada never campaigned against pipelines in the first place. And Equiterre couldn’t be reached, but I’d hazard a guess they’re in the same boat as the others.

So, sounds to me as though there was no deal of the sort that Cattaneo described.

Thirdly, even if there was a deal, a deal with four environmental groups wouldn’t be worth the hypothetical notepad it was jotted on given the breadth of opposition to new oil pipelines in this country — from municipalities like Vancouver and Burnaby to First Nations to grassroots activists to the umpteen environmental groups that weren’t on that stage.

“People who think climate policy in Alberta will ‘buy market access’ through B.C. don’t understand concerns around Indigenous rights, tanker traffic, oil spills or the grossly unequal distribution of economic risk and benefit,” said Kai Nagata, energy and democracy director at B.C.-based Dogwood Initiative.

It’s not helping the industry’s case that a landmark study released on Tuesday by the U.S. National Academy of Sciences confirms that diluted bitumen, such as that carried by Kinder Morgan’s Trans Mountain pipeline, sinks in water if not cleaned up immediately, making for a nightmare scenario.

The study, Spills of Diluted Bitumen from Pipelines: A Comparative Study of Environmental Fate, Effects, and Response, concluded that diluted bitumen poses unique risks compared to other blends of crude oil.

Which brings me back to my point: the pipeline deal-breaker in B.C. has always been the risk of oil spills. Alberta’s action on climate change doesn’t move the needle on that.

Now, to the climate plan itself. Many environmentalists aren’t terribly impressed with it. Take this revealing infographic by Barry Saxifrage, which shows how Alberta’s emissions will continue to grow until 2030. (Canada has promised to reduce emissions 30 per cent from 2005 levels by 2030.)

However, we must take into consideration that Alberta has already issued permits for another six million barrels a day of oilsands production. The new cap means that, at current emissions levels, three million barrels of those barrels will stay in the ground. That’s a seriously bold move in a province that has an economy 70 per cent based on oil — and that has already seen 40,000 layoffs in the energy industry this year.

All of the enviro grousing of late has reminded me of Rebecca Solnit’s stellar piece in The Guardian a few years back, written to her dismal allies on the U.S. left.

“If I gave you a pony, you would not only be furious that not everyone has a pony, but you would pick on the pony for not being radical enough until it wept big, sad, hot pony tears,” Solnit wrote. “Can you imagine how far the civil rights movement would have gotten, had it been run entirely by complainers for whom nothing was ever good enough? To hell with integrating the Montgomery public transit system when the problem was so much larger!”

Environmentalists are fighting the richest industry in the world — an industry that has spent millions of dollars to confuse the public about climate change science. They are finally starting to see some victories. The climate change plan enacted in Alberta was unimaginable a year ago. It has the “100 per cent” support of Athabasca Chipewyan First Nation Chief Allan Adam.

If we want any policy to stick — not to be struck down like former Alberta Premier Ed Stelmach’s royalty review — it needs to have broad support. Part of the job of the environmental movement should be to help build that support.

To quote Solnit again: “Being different (from the radical right) means celebrating what you have in common with potential allies, not punishing them for often-minor differences. It means developing a more complex understanding of the matters under consideration than the cartoonish black and white that both left and the right tend to fall back on.”

The fact industry and environmental leaders met informally over the past year, found some common ground and ended up standing on stage together to announce a major step forward on Alberta climate policy is a great thing. (And saying that does not mean I don’t acknowledge that while great, it’s not sufficient for Alberta to do its fair share to keep the planet from warming more than two degrees.)

As Tzeporah Berman, adjunct professor in the faculty of environmental studies at York University, wrote recently: “To say a policy is great does not mean there is not more work to be done.”

Without further ado, may the pipeline battles continue.

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Alberta Minister of Environment Shannon Phillips says her province is being celebrated on the international stage for its climate leadership.

“Alberta has put in place a robust set of policies and we are now leaders in the country and on the continent in terms of action,” she told reporters in Paris on Wednesday.

The province of Alberta is participating in the Canadian delegation to the Paris climate talks alongside many other provinces including B.C., Manitoba, Ontario and Quebec.

Philips says when it comes to its international reputation, Alberta has “turned the page.”

She added Alberta’s positive reception in Paris can be attributed to the new NDP government’s change in tone.

“We’ve demonstrated that it can be done: that rational, drama-free conversations as energy producers can be had and that leadership can come out of that.”

Last month Alberta announced a new climate plan that places an absolute cap on oilsands emissions, the phase-out of 18 coal-fired power plants and the establishment of a province-wide $30 per tonne carbon tax.

Creation of the plan brought together a broad range of environmental organizations and industry representatives. At the plan’s unveiling, Premier Rachel Notley was flanked by oil executives from some of Alberta’s top producing companies as well as members of the environmental movement.

“We’ve had broad recognition that Alberta needed to change how it approaches these matters,” Phillips said.

“The policies that preceded us at both the provincial and federal level…were mistaken.”

Phillips said Alberta’s new approach has opened the province up to more frank discussions with international trading partners.

She said new leadership “allows us to walk into the economy of the future instead of turning our back on all of that investment and economic growth that is very clearly on the horizon for the entire planet.”

At the COP21 climate talks in Paris nearly 200 countries are aiming to deliver an internationally binding climate agreement that will mandate the eventual decarbonization of the world's economy.

Alberta to Remain Oil-Producing Province

Phillips was quick to add that Alberta will not stop producing oil any time soon.

“Everyone understands that Alberta is in a unique position,” she said. “Everyone equally understands that Alberta has taken a leadership role and we are willing to work collaboratively with everyone in the Canadian federation and the federal government to ensure Canada does its fair share.”

On Tuesday Phillips said federal ministers are responsible for deciding Canada’s climate commitments within the internationally binding agreement currently being negotiated in Paris.

She told reporters Alberta has done enough to strengthen its provincial climate plan. “We have taken our share of responsibility.”

Canada’s current climate commitment, developed under the former Conservative government, requires a 30 per cent reduction in 2005 level emissions by 2030.

However, in Paris, Canada’s government has come out in support of stronger climate targets, which aim to prevent global temperatures from increasing above 1.5 degress Celsius. The current target, used in previous climate negotiations, requires countries to keep temperatures from rising two degrees.

When pressed on Alberta’s contribution to Canada’s rising greenhouse gas emissions, Phillips said an oilsands cap of 100 megatones of emissions is “appropriate” for “a heavy oil producer that powers the rest of the Canadian economy.”

Alberta Climate Plan Not Yet Implemented

She added her government has yet to implement the policies outlined in the new climate plan.

“We’ve put forward a very robust policy architecture that we’re very proud of,” she said. “Our job is to execute that.”

She added a change in investment priorities, with new efforts being made to support clean tech and renewables, will also influence Alberta’s emissions output.

Phillips also said her party campaigned with a promise to “implement the principles and guiding philosophies of the UN Declaration on the Rights of Indigenous Peoples.”

“We’re serious about those matters,” she said, adding a more collaborative and engaged approach with First Nations can play a role in the implementation of those principles.

“This is the beginning of a conversation about how we are going to move forward in Alberta,” Phillips said.

“We are six, seven months into our mandate and we’re talking about 35-year timelines here,” she said. “A lot can change in that time.”

“What we have done is put in place a set of policies that will allow us to lead and allow us to reduce our emissions.” 

Image: Facebook

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The days of infinite growth in Alberta’s oilsands are over with the Alberta government’s blockbuster climate change announcement on Sunday, which attracted broad support from industry and civil society.

“This is the day that we start to mobilize capital and resources to create green jobs, green energy, green infrastructure and a strong, environmentally responsible, sustainable and visionary Alberta energy industry with a great future,” Premier Rachel Notley said. “This is the day we stop denying there is an issue, and this is the day we do our part.”

Notley and Environment & Parks Minister Shannon Phillips released a 97-page climate change policy plan, which includes five key pillars.

1) Carbon will be priced economy-wide at $30/tonne by 2018.

2) Coal-fired power plants will be phased out by 2030.

3) Oilsands emissions will be capped at 100 megatonnes (Mt) per year (recent Environment Canada figures predicted a 2020 output of 103 Mt from the sector), which amounts to allowing current construction to go ahead, but that’s it. That means to expand production beyond current projects, per barrel emissions will need to be reduced.

4) Methane emissions from oil and gas operations will be cut by 45 per cent in 2025.

5) 30 per cent of all electricity will be generated by renewables by 2030.

It is a staggeringly significant proposal, one that far surpasses anything the former Progressive Conservative government imagined in the course of its 43-year reign. The announcement — delivered at Edmonton’s Telus World of Science — was benefitted by appearances from CEOs of Suncor, Canadian Natural Resource Ltd. (CNRL), Shell and Cenovus, something far-right activist Ezra Levant dismissed by alleging the massive energy companies “don't represent the industry.”

Environmental groups such as the Pembina Institute and Clean Energy Canada were also on stage. Getting all of those players in support of one climate strategy is a huge testament to the leadership of University of Alberta energy economist Andrew Leach, who chaired the climate change panel.

Climate Change Policy Plan Garners Broad Support

With the exception of the rabidly conservative Wildrose Party and former deputy premier Thomas Lukaszuk, it seemed every serious player in politics and industry celebrated the announcement. The NDP-affiliated Broadbent Institute, headquartered in Toronto, concluded: “On a public policy Richter scale, Alberta’s new Climate Leadership Plan is an 11.”

Shell Canada announced that “these measures provide predictability and certainty and will help ensure that producers can responsibly develop and grow this significant Canadian resource while also addressing global concerns about climate change.”

Prime Minister Justin Trudeau congratulated Notley in a tweet now favourited over 1,300 times as “a very positive step in the fight against climate change.”  Political blogger Dave Cournoyer accurately dubbed it a “pigs fly” situation.

All of this means a whole lot given the impending Paris Climate Change Conference (COP 21).

Canada ranks 15th out of 17th countries for greenhouse gas emissions according to the Conference Board of Canada, with Alberta contributing 36 per cent of national emissions in 2013 despite only accounting for 11 per cent of the country’s population.

The expected spike in oilsands expansion was widely expected to nullify all other sources of emissions reductions in the Canada. The fact that Alberta, and by extension Canada, is now going into COP 21 with a detailed plan to address the province’s largest source of emissions – oilsands development and coal-fired power plants – speaks volumes about the desire to be taken seriously on the world stage.

Climate Plan May Increase Social Licence for Oilsands Operations

Another component that ostensibly drove oil execs to hop on the green bandwagon was the need to accrue “social licence,” or the support required to build pipelines to export its products. The veto of TransCanada’s Keystone XL pipeline represents what happens when such social licence isn’t secured.

By addressing runaway emissions, Alberta-based companies might actually stand a chance to build infrastructure like the Energy East pipeline, which would transport 1.1 million barrels of diluted bitumen from Alberta to Quebec and New Brunswick every day.

“The province’s climate strategy may allow our sector to invest more aggressively in technologies to further reduce per barrel emissions in our sector and do our part to tackle climate change,” said Tim McMillan, Canadian Association of Petroleum Producers’ president and chief executive officer, in a statement.

“We encourage the province to follow a balanced approach, recognizing that our sector can only become a global supplier of responsibly produced oil and natural gas if we are competitive on the world stage.”

The fight over pipelines is unlikely to dissipate. While Sunday’s announcement was a giant step in the right direction, it’s still not enough to avoid catastrophic global warming, according to a statement from Greenpeace.

“These policies are important first steps, but much bigger emission reductions will be needed for Alberta to do its part to keep global warming below 2 degrees Celsius,” Alberta climate and energy campaigner Mike Hudema said.

Hudema also noted that the province still has no short or long-term emission reduction targets.

“Targets give an important signal to business, let the world know where Alberta is headed, and help ensure that direction leads to the reductions that science and equity demand,” he said.

The Pembina Institute has historically supported a higher carbon tax than what was proposed on Sunday – with $40/tonne in 2016, $50/tonne in 2017 and $60/tonne in 2018 — but the plan is an indisputably major upgrade from the Specified Gas Emitters Regulation (SGER), which taxed Alberta’s largest emitters (103 at last count) at the equivalent of $1.80/tonne.

George Hoberg, professor in the forest department at the University of British Columbia, notes there’s still plenty of work to be done but that: “Today is a day for celebration. Alberta has bent its carbon emissions curve, and provided a lever to Canada to show real climate leadership.”

Ultimately, the future of Canada’s environmental reputation may rely on the work that Trudeau and Environment and Climate Change Minister Catherine McKenna complete during and after the Paris conference. But Sunday’s announcement out of Alberta sets quite the standard.

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This article is authored by Binnu Jeyakumar and originally appeared on the Pembina Institute's blog.

“The days of denial are over,” said Environment Minister Shannon Phillips, kicking off the 2015 Alberta Climate Summit held last week in Edmonton. She was sending a message that Alberta’s attitude and commitments around climate change are changing.

The summit focused on exploring viable options for progress on climate change, with the participation of stakeholders from across the spectrum. More than 300 people filled the room, representing the oil and gas industry, the electricity sector, First Nations, unions, environmental groups, municipalities and the provincial government. The excitement was palpable as participants discussed both the reasons to take action and the opportunities now available.

The summit explored policy solutions in several areas, including carbon pricing, renewable electricity and energy efficiency. If you want more context on climate policy in Alberta, Pembina’s backgrounder from August is worth a look.

Carbon pricing

The morning included a discussion of British Columbia’s $30-per-tonne carbon tax, and the need for better communications about the success of carbon pricing. The panel emphasized the need for a better-informed conversation about what emissions sources could be covered and exempted, the effective price level, and the different ways to use the revenue that is generated.

On the topic of effective pricing, Nicholas Rivers of the University of Ottawa pointed to various studies that link price and impact, saying “We are looking at a $100-ish price on carbon by 2050.”

Of course, carbon emissions are not just carbon dioxide. Drew Nelson, of the Environmental Defense Fund, reminded attendees of the climate impact of methane emissions from the oil and gas sector. The United States has introduced cost-effective regulations that reduce methane leaks in the oil and gas sector, and enacting similar regulations in Alberta could result in significant reductions in emissions which total to well over 10 million tonnes of carbon emissions.

Coal phase-out and renewables

“What is our electricity system designed for?” was the question posed by Robert Hornung, president of the Canadian Wind Energy Association. He argued that to make sustainable reductions to carbon emissions, the entire electricity system — rather than just a few components — has to be reviewed. Alberta needs to evaluate the best ways to incentivize capital investment in renewables, learning from the experiences of other jurisdictions such as Ontario. Some options to consider include centralized procurement of electricity, or making retailers responsible for achieving a certain proportion of renewables in the generation mix.

There is also a need to manage the climate impacts, as well as the local environmental and health impacts, of Alberta’s existing coal-fired plants. The closure of TransAlta’s coal plant in Centralia, Washington, was discussed as a case study for how Alberta could negotiate an accelerated phase-out of coal.

Energy efficiency

When talking about cutting emissions, there’s a compelling case for energy efficiency. It’s the cheapest way to make more energy available, it creates jobs, it reduces operating expenses and it cuts down fossil fuel use. As Alberta adopts a new building code, the province should look to B.C. and Ontario — two provinces that are making huge strides in promoting building efficiency and sustainable urban development — for ideas on how to save energy.

There was no shortage of energy in the summit room, with people staying long after the end of the event to continue their discussions. That enthusiasm was perhaps driven by a sense of urgency, as the economic, health and environmental risks associated with the status quo become more and more evident. But it also speaks to a distinct sense of excitement in the province about the tangible actions that Alberta can and should take in the near future.

Presentations from the 2015 Alberta Climate Summit are available online here.

There are also a number of ways to get involved:

• Take the Alberta government’s climate change survey (open until September 18)
• Send your recommendations to the Climate Leadership Panel
• Stay tuned to the activities of the Energy Futures Lab, a platform to discuss, experiment and innovate in Alberta’s energy system.

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