Alberta to Use Sovereignty Act to Challenge Federal Emissions Cap

Alberta Premier Danielle Smith has vowed to use the controversial Alberta Sovereignty Within a United Canada Act to fight back against the federal government’s proposed carbon emissions cap for the oil and gas sector. The move marks the first legislative test of the act, introduced two years ago to in response to perceived federal overreach into provincial jurisdiction.

On November 4, Ottawa introduced draft regulations for an oil and gas emissions cap, despite objections from several provinces and industry. Alberta argues the cap amounts to a production cut disguised as emissions regulation, which would slash oil and gas output by at least one million barrels per day and put thousands of jobs at risk.

“We will continue to defend our province from Ottawa’s senseless and direct attack,” Smith said. “Our motion protects Albertans’ jobs and livelihoods, puts Ottawa back in their place, and ensures we can continue to support global energy security with Alberta oil and gas for decades to come.”

The Sovereignty Act motion, if passed, would authorize Alberta’s government to launch an immediate constitutional challenge to the federal emissions cap. It would also empower the province to take actions such as prohibiting provincial entities from enforcing federal regulations and declaring emissions data as proprietary to Alberta.

Alberta Environment Minister Rebecca Schulz characterized the federal emissions cap as a thinly veiled attempt to curtail oil and gas production and centralize control of the province’s energy sector. “This cap is not actually about emissions,” Schulz said. “This is about the federal government wanting to cut oil and gas production, even if it costs thousands of jobs and hurts Canadians from coast to coast.”

Critics, however, have questioned the efficacy of the Sovereignty Act in protecting the oil sector. Duane Bratt, a professor of political science at Mount Royal University, took to X (formerly known as Twitter) to express his skepticism about how the act could compel private firms to ignore federal regulations. “The Sovereignty Act does not apply to private firms, so how will Alberta force them to ignore federal regulations?” Tweeted Bratt.

The proposed federal emissions cap has sparked concerns from Alberta’s government and industry groups, who cite studies warning of severe economic consequences. Independent analyses by the Conference Board of Canada and Deloitte estimate the cap could lead to 150,000 job losses and cost the average Canadian family up to $419 monthly due to higher energy and living expenses.

The Sovereignty Act, which has yet to be tested in court, introduces significant legal and political uncertainties. Alberta is also proposing measures to strengthen provincial control over oil and gas operations, including treating industry infrastructure as “essential” under Alberta’s Critical Infrastructure Defence Act. Smith says these actions are designed to protect Alberta’s economy and maintain its role as a key supplier of energy to global markets.

“Alberta will not stand by while Ottawa undermines our constitutional jurisdiction and jeopardizes the livelihoods of our people,” Smith said. “We are taking a stand for our province and for all Canadians who depend on Alberta’s energy sector.”