Alberta's 'Green' Talk: A Serious Plan to Combat Greenhouse Gases, or Gambit to Secure U.S. Keystone XL Approval?

By Keith Edmund White

Editor-in-Chief

Alberta, Canada's oil production heavyweight, is pushing for increased carbon production taxes and seeking to slash GHG emissions.  Apparently, Ottawa is surprised.  Yeah, I thought I was reading an exceedingly dry Onion article.  Oh, wait...it's a plan offered by Alberta's Environment Minister...that is not endorsed by Alberta's Conservative government.  OK, the sky's not falling.  So the real question:  Are Alberta's Conservatives looking green to win Keystone, and then offer up a dead-on-arrival plan?

Is McQueen's  carbon plan for real?

The Globe and Mail reports (or hypes up?) a recent carbon tax and reduction plan offered by Alberta's Environment Minster:

The Alberta government has quietly presented a proposal to sharply increase levies on carbon production and force large oil-industry producers to slash greenhouse gas emissions by as much as 40 per cent on each barrel of production, a long-term plan that has surprised Ottawa and industry executives with its ambition.

Alberta Environment Minister Diana McQueen stunned a recent meeting in Calgary attended by senior oil executives and her federal counterpart, Peter Kent, with the proposal, which goes well beyond anything Ottawa or the companies contemplated, industry and government sources said Wednesday. The three sides are engaged in intense negotiations, with the industry warning that regulations that are too onerous could undermine the competitiveness of the oil sands sector as it seeks international investment. to drive production growth.

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[Alberta Premier Alison Redford/Diana McQueen's boss] and Prime Minister Stephen Harper are under considerable pressure to introduce regulations for the oil industry to limit greenhouse gas emissions.

The Cynical Read:  Looking Green Key to U.S. Keystone Approval.  My guess is that this plan has one main audience:  the United States.  If Alberta looks 'super' green, it makes it easier for Keystone to get approved.  The catch:  the plan will be so long-term that the 'carbon pain' won't be felt until Alberta's Progressive Conservatives or either out of office or filled with new leaders.

Cynical Read 2.0:  What 'Great' Timing!  Oh, and this is a pretty well-timed leak, given that Alberta oilsands environmental data is about to be released. 

Yeah, yeah...but maybe the plan's for realies?  Ha.  This March 2013 Globe and Mail article shows just how blistering the Alberta's environmental hot potato is.  

The main takeaway:  Alberta Premier Redford will take heat for any real carbon tax increase, let alone steep reductions, unless (1) they come online way into the future and (2) secure Keystone XL in the short-term.  

And Redford's opponents, Alberta's Liberal Party and the strong provincial party Wildrose, are happy to exploit Redford's tough spot whatever way they can. 

Something tells me that Redford's Alberta critics and Keystone critics are going to react to news of Redford's Green Plan 2.0 with some help The Who:

But it might just get Alberta Keystone.

From the Globe & Mail ,March 2013 article on Alberta Conservative's environment-Keystone XL headache:

The Alberta government’s climate-change plan was under scrutiny Tuesday, a day after comments Ms. Redford made in Ottawa were interpreted as a call on the federal government to follow Alberta’s lead in putting a price on carbon.

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The Premier quickly backed away from those remarks, saying that’s not what she meant, but was grilled in Question Period by the opposition. At one point, she scolded the provincial Liberals – a party that last year proposed what would ultimately be a $1.8-billion-per-year provincial carbon levy – for “saying that our environmental record in Alberta isn’t good enough. That’s not good for Alberta, and it’s not good for Canada.”

Liberal Leader Raj Sherman said a higher carbon price would help pave the way for pipelines. “If we actually dealt with the environmental issues that we face, we could get our pipelines to the U.S. and the West Coast. It’s hurting us not to do this right,” he said.

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The Premier was said to have called on the federal government to follow Alberta’s lead and introduce a price on carbon. Her office later said she was misunderstood, issuing a clarification and then making Ms. Redford available to speak to reporters in Edmonton on Tuesday. “I am in no way advocating any sort of national carbon tax. That’s for other governments to decide,” she said.

Wildrose Leader Danielle Smith nonetheless accused the Premier of advancing a plan that “would see Alberta’s vast resource wealth sucked out of this province and pumped into Ontario and Quebec.” Ms. Redford later fired back. “The suggestion that that’s what the conversation was about [in Ottawa Monday] is absolutely absurd, but I don’t expect anything more from the opposition,” the Premier said, later noting that Ms. Smith said just last year that the “science isn’t settled” on climate change.