Carney says he’ll work with oil and gas industry, says he opposes ‘preset caps’

Prime Minister Mark Carney is considering a new approach to regulating emissions in the oil and gas industry, signaling a departure from the policies of his predecessor, Justin Trudeau. During a meeting with Alberta Premier Danielle Smith in Edmonton, Carney expressed his willingness to collaborate with industry and provinces to achieve emissions reductions without relying on preset caps or restrictions.

This shift in strategy has raised some eyebrows, as it contradicts recent statements made by Environment Minister Terry Duguid, who suggested that Carney would uphold the Liberals’ proposed emissions cap. Trudeau had promised to implement a cap on emissions from oil and gas, and his government had already begun the regulatory process in 2022.

The proposed regulations aimed to reduce emissions by one-third over the next eight years without imposing a cap on production. Additionally, the government introduced a cap-and-trade system where companies could buy and sell emissions allowances to meet their targets.

Premier Smith voiced her concerns about the impact of federal policies on Alberta’s resource rights and the oil and gas industry. She presented Carney with a list of demands to address within the first six months of his term to prevent a national unity crisis. Despite her skepticism about Carney’s ability to deliver, she emphasized the need for policy changes to support resource production in Alberta.

In response to Smith’s demands, Carney reaffirmed his commitment to making Canada’s energy sector more competitive. He emphasized the importance of building pipelines to displace foreign oil imports and support domestic production.

During his visit to Edmonton, Carney engaged in various activities, including skating with the Edmonton Oilers and announcing funding for Jasper National Park’s reconstruction. He also unveiled measures to make homeownership more affordable by eliminating the GST on new or substantially renovated homes sold for less than $1 million to first-time buyers.

As the federal election campaign approaches, Carney’s Liberals face a challenging landscape in Alberta, where they have limited representation. Despite the uphill battle, Carney expressed confidence in the party’s strong candidates and their ability to connect with voters in the province.

Carney’s visit to his childhood home in Edmonton highlighted his roots in the community and his commitment to addressing key issues facing Canadians. With a focus on collaboration and competitiveness, Carney aims to navigate the complexities of energy policy while fostering national unity and economic growth.