A few months ago, six major oil and gas companies, including BP, Royal Dutch Shell and Statoil, wrote an open letter calling for governments to implement pricing for carbon pollution. The letter read in part:
Our companies are already taking a number of actions to help limit emissions ... For us to do more, we need governments across the world to provide us with clear, stable, long-term, ambitious policy frameworks. We believe that a price on carbon should be a key element of these frameworks.
Leading oilsands producers are preparing to incorporate the price of managing carbon pollution into the cost of doing business. Meantime, the world’s top economies, including Canada, have pledged to phase-out fossil fuels by the end of the century. Resilient companies — from oil and gas to renewable energy producers and everything in between — are innovating to prepare for the inevitable, a lower-carbon future.
Positioning Alberta to compete in this economic context is one of the main objectives of Alberta’s climate leadership discussions, which are underway in the lead-up to the global climate talks in Paris this December.
It’s a critical time to be re-thinking Alberta’s approach to energy and the environment. Not only is the world watching, but current economic conditions are putting a spotlight on the costs of doing business in the energy sector. The fact is, by taking a more responsible approach to carbon management, Alberta’s energy industry stands to gain profoundly in terms of efficiency, innovation, improved reputation and access to markets.
But carbon pricing is just one piece of the puzzle when it comes to improving Alberta’s climate record.
The Alberta government has committed to phase out coal-fired electricity to reduce carbon pollution. We get more than half of our electricity from coal-fired power and burn more coal than the rest of the country put together. Jurisdictions all over the continent, and the world, are changing how they generate electricity to reduce their emissions. Alberta has an exciting opportunity to increase its use of cheap, clean, renewable electricity.
Increasing energy efficiency is another area with huge potential. Investing in residential, commercial and industrial energy efficiency programs is among the most cost-effective ways to reduce emissions. For this reason, every state in the U.S. and every province in Canada — except Alberta — has initiatives to increase energy efficiency. We’re missing out on programs that make it easier for homeowners and businesses to adopt more efficient products and services, and create good jobs at the same time.
The Pembina Institute’s 2015 Alberta Climate Summit, in Edmonton September 9, provides a venue for examining these ideas in depth. For Alberta to design a climate strategy that holds up to scrutiny, we need to look beyond the policies of the past and explore the solutions that are already at work in other jurisdictions. We also need to confront the unique challenges we face as an energy-producing province, and ensure our climate policies protect our most vulnerable citizens.
Companies and people working in jurisdictions with good policies around climate will benefit through stable investments, increased competitiveness, steady growth and more jobs. By adopting a carefully thought out climate strategy built around well-designed climate policies, Alberta can save energy, cut carbon and air pollution, create new jobs and restore its tarnished reputation — making us more resilient and better positioned to thrive in the decades ahead.
A new lower-carbon economy is coming. Alberta can’t afford to miss out.
