Premier Smith Tells Trudeau Alberta’s Energy Sector Won’t Be ‘Phased Out’

Prime Minister Justin Trudeau meets with Alberta Premier Danielle Smith as Canada's premiers meet in Ottawa on Feb. 7, 2023. Sean Kilpatrick/The Canadian Press

In her first face-to-face meeting with Prime Minister Justin Trudeau in Ottawa on Feb. 7, Alberta Premier Danielle Smith said her province’s energy sector will not be phased out as part of the Liberal government’s plan for a “just transition.”

Trudeau and Smith had a brief media availability before their meeting, with Smith noting areas of tension and potential cooperation with the federal government.

Smith referred to the letter she sent to Trudeau on Jan. 25, which said that the relationship between Alberta and the federal government is at a “crossroads.”

She said the letter expressed concerns “about one of the major initiatives that have been announced without much consultation with Alberta that stand to have a huge impact on our province,” in reference to pending “just transition” legislation.

“[It] gives the impression that the energy sector is going to be phased out; it’s not going to be phased out,” Smith said, adding it will be transformed from high intensity emissions to lower emissions.

“Albertan energy workers and workers in general have been extraordinarily important for the success of Canada over many, many decades, and we need to make sure they continue to be strong into the future as well,” Trudeau said in opening the media availability.

Natural Resources Minister Jonathan Wilkinson told CBC News in early January that he would be tabling the “just transition” bill this year, which will seek to move workers out of the oil and gas sector and into other jobs.

Smith told Trudeau in her letter the proposed transition “threatens the national economy,” the livelihood of hundreds of thousands of workers, and business investments.

The Alberta government said in a readout issued after the meeting that the encounter lasted approximately 30 minutes.

The meeting centred on Smith’s request to halt the “just transition” and instead focus on a plan to attract investors and workers in the conventional and non-conventional sectors, while reducing emissions.

The readout says Trudeau expressed a “willingness” to explore this strategy.

Areas of Cooperation

The bilateral engagement between the two leaders took place on the sidelines of the first ministers’ meeting on federal health transfers.

Smith said that area is one where Alberta and Ottawa share common goals.

“We have I think a lot of shared goals in addressing issues of Indigenous health care, mental health addiction, home care, community-based care, as we transform our health care system,” she said.

She added that there are also many opportunities to find common ground on issues like exploitation of critical minerals, hydrogen, and geothermal energy.

Smith has taken a hard stance against the Trudeau government since replacing Jason Kenney at the leader of the United Conservative Party in October.

She passed the Alberta Sovereignty Act in December as a way to push back against federal laws or policies deemed to go against the interests of the province.

The province has also signalled its intention not to cooperate with the federal gun buyback program, which has yet to become operational.