One of Alberta’s largest business associations has come out against Ottawa’s proposed oil and gas cap by calling it a “mechanism for wealth transfer” from Alberta to other regions of the country and indeed, the globe.In a statement, the Alberta Enterprise Group (AEG) said the imposition of a cap and trade system is essentially a production cap that will make Canadians’ lives less affordable and less secure by funnelling dollars that could be used to fund health and education out of the country. .“Our members believe this framework is not fair, equitable, nor is it in the national interest. It should not be implemented.”AEG president Catherine Brownlee.The fact that this “cap-and-trade” system would have Alberta’s oil and gas companies purchase credits from low emitters elsewhere in the country, or instead of purchasing offsets or credits companies might have the option of paying essentially a tax — 10% of a facility’s emissions — into the federal government’s decarbonization fund, “indicates this is a significant wealth redistribution scheme,” it said.In addition to raising the cost of virtually everything from food to home heating, it also jeopardizes Canadas national security and slows a shift from coal in developing countries. “Our members believe this framework is not fair, equitable, nor is it in the national interest,” said AEG president Catherine Brownlee. “It should not be implemented.”.The group represents companies that employ about 150,000 people in all sectors of Alberta’s economy. Brownlee made the comments after the AEG electronically filed a formal submission to Environment and Climate Change Canada, the department responsible for implementing it.Monday was the final day for comments before it goes to committee.“Revenues that would normally accrue to Alberta to help fund health care, education, infrastructure, and other necessities for its citizens, would now be funnelled out of the province to other jurisdictions and potentially to the federal government to spend on federal Liberal-NDP priorities rather than on the people of Alberta.”Despite assertions to the contrary from the federal government, AEG says the emissions cap is an effective cap on production which means there will be less available responsibly, ethically and environmentally sound Canadian oil and gas available to enter the world market. .“An emissions cap means that Canada’s potential to help limit coal use, and its associated emissions, in Asia — India and China in particular — is severely diminished along with the possibility of making a real difference in lowering global emissions where it matters,” it continues.AEG.As an example it cited the fact that Germany came to Canada last year asking for natural gas even as Prime Minister Justin Trudeau said there was no economic business case for LNG exports from Canadian shores. As a result, Germany was forced to burn more coal to keep its lights on. On Monday the German government put out tenders for more than 10 gigawatts (GW) of subsidized natural gas fired power capacity and has been signing deals with countries such as the US to supply the fuel.Others, such as India, have shelved plans to retire coal plants and will build 13.9 GW of new ones because it is unable to secure LNG.India, along with China accounts for nearly 40% of global emissions — the kind the Canadian government is presumably trying to abate. Canada’s global share from all sources, including oil and gas is about 1.5%.The AEG further argues that access to abundant energy resources is a source of geopolitical strength when the Middle East and Europe are both in turmoil.“An emissions cap means that Canada’s potential to help limit coal use, and its associated emissions, in Asia — India and China in particular – is severely diminished along with the possibility of making a real difference in lowering global emissions where it matters,” it continues.
One of Alberta’s largest business associations has come out against Ottawa’s proposed oil and gas cap by calling it a “mechanism for wealth transfer” from Alberta to other regions of the country and indeed, the globe.In a statement, the Alberta Enterprise Group (AEG) said the imposition of a cap and trade system is essentially a production cap that will make Canadians’ lives less affordable and less secure by funnelling dollars that could be used to fund health and education out of the country. .“Our members believe this framework is not fair, equitable, nor is it in the national interest. It should not be implemented.”AEG president Catherine Brownlee.The fact that this “cap-and-trade” system would have Alberta’s oil and gas companies purchase credits from low emitters elsewhere in the country, or instead of purchasing offsets or credits companies might have the option of paying essentially a tax — 10% of a facility’s emissions — into the federal government’s decarbonization fund, “indicates this is a significant wealth redistribution scheme,” it said.In addition to raising the cost of virtually everything from food to home heating, it also jeopardizes Canadas national security and slows a shift from coal in developing countries. “Our members believe this framework is not fair, equitable, nor is it in the national interest,” said AEG president Catherine Brownlee. “It should not be implemented.”.The group represents companies that employ about 150,000 people in all sectors of Alberta’s economy. Brownlee made the comments after the AEG electronically filed a formal submission to Environment and Climate Change Canada, the department responsible for implementing it.Monday was the final day for comments before it goes to committee.“Revenues that would normally accrue to Alberta to help fund health care, education, infrastructure, and other necessities for its citizens, would now be funnelled out of the province to other jurisdictions and potentially to the federal government to spend on federal Liberal-NDP priorities rather than on the people of Alberta.”Despite assertions to the contrary from the federal government, AEG says the emissions cap is an effective cap on production which means there will be less available responsibly, ethically and environmentally sound Canadian oil and gas available to enter the world market. .“An emissions cap means that Canada’s potential to help limit coal use, and its associated emissions, in Asia — India and China in particular — is severely diminished along with the possibility of making a real difference in lowering global emissions where it matters,” it continues.AEG.As an example it cited the fact that Germany came to Canada last year asking for natural gas even as Prime Minister Justin Trudeau said there was no economic business case for LNG exports from Canadian shores. As a result, Germany was forced to burn more coal to keep its lights on. On Monday the German government put out tenders for more than 10 gigawatts (GW) of subsidized natural gas fired power capacity and has been signing deals with countries such as the US to supply the fuel.Others, such as India, have shelved plans to retire coal plants and will build 13.9 GW of new ones because it is unable to secure LNG.India, along with China accounts for nearly 40% of global emissions — the kind the Canadian government is presumably trying to abate. Canada’s global share from all sources, including oil and gas is about 1.5%.The AEG further argues that access to abundant energy resources is a source of geopolitical strength when the Middle East and Europe are both in turmoil.“An emissions cap means that Canada’s potential to help limit coal use, and its associated emissions, in Asia — India and China in particular – is severely diminished along with the possibility of making a real difference in lowering global emissions where it matters,” it continues.
