Alberta's climate change strategy targets carbon, coal, emissions

Alberta's climate change strategy includes a tax on carbon, a cap on oilsandsemissions, a phasing out of coal-fired electricityand an emphasis on wind power.

"Our goal is to become one of the world's most progressive and forward-looking energy producers," said Premier Rachel Notley. "We are turning the page on the mistaken policies of the past, policies that have failed to provide the leadership our province needed."

But the strategy will not be cheap andwill be paid for not only by industry, but by ordinary Albertans.

The province estimates the carbon tax will amount to roughly $470 in increased heating, electricity and transportation costs for an average household in 2018, assuming that household consumes the same amount of fossil fuels as it did in 2015.

There will be,however,consumer rebates to offset some of those increases.

The carbon tax on industry is expected toraise $3 billion a year, which will be reinvested inrenewable energy sectors and cover increased costs to consumers.

The province sees the emissions cap as motivationfor the oilsands sector to innovate and become more globally competitive.

Greenpeace, industry approve

The plan is endorsed by environmentalists andthe oilsandsindustry.

"On behalf of CanadianNatural Resources Ltd.,my colleagues from Suncor, Cenovus and Shell, we applaudPremier Notley for giving us, to provide us the position ofleadership on climate policy," CNRLchairman Murray Edwards said at thenews conference.

Steve Williams, CEO ofSuncor,shared Edwards' enthusiasm.

"This plan will make one of the world's largest oil-producing regions a leader in addressing the climate change challenge," he said.

WhileGreenpeacesaid themeasures will helpslow Alberta's growing emissions, diversify its economy and create jobs, theystill requireemission reduction targets.

"Targets give an important signal to business, let the world know where Alberta is headed, and help ensure that direction leads to the reductions that science and equity demand," said spokesmanMike Hudema.

The Canadian Association of Petroleum Producers (CAPP) offered cautiously optimistic comments.

"From ourindustries point of view, there arecertainlya lot of details that will need to be filled in on multiple different fronts, but in general we're quite supportive of the use of natural gas and the phase out of coal," CAPP presidentTim McMillan said.

One of the few dissenting voices came from the opposition Wildrose Party.

Leader Brian Jean said Albertans facejob losses and economic uncertainty.

"This new carbon tax will make almost every single Alberta family poorer, while accelerated plans to shut down coal plants will lead to higher power prices and further jobs losses," hesaid in a news release.

Notleyunveiledthe strategy Sunday afternoon at anews conference.

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Here are some of details of the plan according to a government news release:

Coal and renewable energy

• Alberta will phase out all pollution created by burning coal and transition to more renewable energy and natural gas generation by 2030.
• Three principles will shape the coal phase-out: maintaining reliability; providing reasonable stability in prices to consumers and business; andensuring that capital is not unnecessarily stranded.
• Two-thirds of coal-generated electricity will be replaced by renewables primarily wind power while natural gas generation will continue to provide firm base-load reliability.
• Renewable energy sources will comprise up to 30 per cent of Alberta's electricity production by 2030.

Carbon pricing

• A price will be put on carbon to providean incentive for everyone to reduce greenhouse gas pollution.
• The pricewill be introducedin two steps:$20 pertonne in January 2017 and$30 pertonne in January 2018
• An overall oilsands emission limit of 100 megatonneswill be set, with provisions for new upgrading and co-generation.

Methane reduction

• In collaboration with industry, environmental organizationsand affected First Nations, Alberta will implement a methane reduction strategy to reduce emissions by 45 per centfrom 2014 levels by 2025.

Revenue neutral

• Allproceeds from carbon pricing will be reinvested in Alberta.
• A portion of revenues will be invested into measures to reduce pollution, including clean-energy research and technology; green infrastructure, such as public transit; andprograms to help Albertans reduce their energy use.
• Other revenues will be invested in an adjustment fund that will help individuals and families make ends meet andprovide transition support to small businesses, First Nationsand people working in affected coal facilities.

Notley'sunusual Sunday briefingcamethe day beforeNotleymeets with Prime Minister JustinTrudeauand other provincial and territorial leaders in Ottawa todiscussa national climate change planand a week prior to a major international climate conference in Paris.

Trudeau tweeted his approvalfollowing the briefing.

The strategyis seen as critical to improving Alberta'senvironmental reputation atthe international level in order to win better acceptance oftheprovince's energy exports.

Former American vice-president, Al Gore,called the strategy inspired and forward thinking.

"This is also another powerful signal well-timed on the eve of the Paris negotiations that humanity is beginning to win our struggle to solve the climate crisis," hesaid in a statement.

The Alberta strategy is based on information gathered by a five-member climate change panel chaired by Andrew Leach, academic director of energy programs at the University of Alberta's business school.

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