‘Divisive, Destructive’: SK and AB Push Back on Ottawa’s Threat to Withhold Funds if Net-Zero Goals Not Heeded

‘Divisive, Destructive’: SK and AB Push Back on Ottawa’s Threat to Withhold Funds if Net-Zero Goals Not Heeded
(Left) United Conservative Party Leader Danielle Smith in Calgary, Alta., on May 29, 2023. (Jeff McIntosh/The Canadian Press); (Right) Saskatchewan Party Leader Scott Moe speaks during the leaders' debate at the Provincial Archives in Regina on Oct. 14, 2020. Michael Bell/The Canadian Press
Marnie Cathcart
Updated:
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The premiers of Saskatchewan and Alberta say Ottawa is happy to take from their provinces through equalization payments but wants to penalize them for not meeting impossible net-zero electricity targets.

“Saskatchewan and Alberta are driving the Canadian economy,” Saskatchewan Premier Scott Moe said on social media on Aug.9. He said the two provinces “receive nothing from equalization while other provinces get billions.”

He said the federal government is now “threatening to further penalize Saskatchewan and Alberta for not meeting their impossible net-zero electricity targets.”

“What kind of a national government acts like this? It’s divisive, destructive and dangerous,” said Mr. Moe, including a chart with 2021 data that shows that his province and Alberta lead Canada in GDP per capita.

“I couldn’t agree more with Premier Scott Moe,” said Alberta Premier Danielle Smith on'on the platform X, formerly known as Twitter, on Aug.9.

“Ottawa’s unrealistic net-zero targets and recent escalation is completely unnecessary. It’s time for the feds to face reality and work with us on pragmatic solutions,” she posted.

The premiers made the remarks following an Aug.8 announcement from Ottawa that said the federal government is considering withholding tax credits and programs from provinces that will not meet the target of a net-zero electricity grid by 2035.
In another Twitter statement released on Aug. 10, Premier Moe said, “Trudeau’s net-zero electricity regulations are unaffordable, unrealistic and unconstitutional. They will drive electricity rates through the roof and leave Saskatchewan with an unreliable power supply.”

The premier said that Environment Minister Steven Guilbeault’s announcement “does not take into consideration that electricity generation is a constitutionally-protected provincial responsibility.”

Mr. Moe said the federal government has not considered feedback and perspective from provinces and utility providers.

“Trudeau’s net-zero targets are simply not achievable in Saskatchewan,” said Mr. Moe. “We will not ask our residents to pay the extraordinary price for the federal government’s divisive policies, nor will we risk the integrity of our provincial power grid to defy the laws of thermodynamics.”

Alberta has maintained a similar position. The premiers are referring to details contained in a comprehensive report, “Powering Canada Forward: Building a Clean, Affordable, and Reliable Electricity System for Every Region of Canada”.

‘Unattainable’

Alberta’s minister of environment, Rebecca Schulz, released a statement on Aug. 8 that said the funding announced by Ottawa of approximately $40 billion, is a “pittance compared with the estimated $1.7 trillion in funding that would be required to fully transition the grid by 2035.”

“Under normal circumstances, this would be welcome news. Unfortunately, the federal government has a track record of announcing tax credits and programs and then failing to follow through,” said Ms. Schulz.

She said that reports have indicated the feds are “considering prohibiting access to these funds, should they ever become available, to provinces that will not commit to their unrealistic 2035 timeline.”

The minister said this would penalize the provinces that most need assistance to transition to a carbon-neutral grid, including Alberta.

The province has repeatedly said the federal government’s plan is unrealistic and unattainable and will drive prices up for consumers.

The upcoming Clean Electricity Regulation and other plans Ottawa has “are driving instability and uncertainty,” said Alberta’s Minister of Affordability and Utilities Nathan Neudorf. He said the province’s “unique grid is disproportionately impacted by these federal ambitions.”

Both Alberta and Saskatchewan have indicated they have set a goal of 2050 to achieve a net-zero power grid.

Premier Smith told The Epoch Times in a recent interview that she will use the Sovereignty Act if the federal government proceeds with emissions caps that “amount to a production cap” or that impact the province.

Ms. Smith cited a recent report that places the cost of a national power grid at $1.7 trillion if it was to be achieved by 2035, which she says would increase electricity prices by up to five-fold for consumers. She said another report suggested that federal regulations would result in a “shut-in” of 1.5 million barrels of oil production.

Mr. Guilbeault said in the release that “building a clean grid across [Canada] is a generational opportunity for Canada, key to fighting climate change, key to our economy.”

“The simple fact is that we will need more clean electricity to support Canadians who are making the cost-saving switch to electric cars and heating and to support industries looking for a lower carbon footprint,” said Mr. Guilbeault.

Doug Lett contributed to this report.