Premiers push back on Ottawa’s clean energy policies

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Canada’s premiers are imploring the federal government to consider the cost of clean energy policies, arguing Ottawa is at risk of stifling the country’s competitiveness, sticking consumers and businesses with the bill.

The country’s premiers wrapped up their annual three-day conference Wednesday by pushing back on Prime Minister Justin Trudeau’s various plans to reduce emissions, including clean fuel regulations and clean electricity regulations. Some premiers, speaking to reporters at a news conference, argued the federal government has ignored their concerns over how such policies amplify the affordability crisis across the country.

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“It just seems to be a pile-on of additional costs,” Blaine Higgs, the premier of New Brunswick, said. “Let’s get some recognition for the impact this is having on every day lives.”

The federal government has been facing opposition to its climate policies from several corners of the country. Alberta, Saskatchewan and Ontario fought losing court battles over the carbon tax, and Alberta is awaiting a Supreme Court of Canada decision on its challenge to federal environmental impact legislation. Atlantic Premiers have warned their provinces will be disproportionately harmed by federal clean fuel regulations

Scott Moe, the premier of Saskatchewan, said Wednesday that “when you layer on policy after policy after policy, there are costs.” He pointed to proposed clean electricity regulations, where Ottawa wants the electricity grid to produce net-zero emissions by 2035. That would mean $8-billion in “stranding assets” in Saskatchewan, Mr. Moe said, and ratepayers would end up paying more.

People that use electric heat, who are concentrated in Saskatchewan’s northern and Indigenous communities, would be hit hardest, he said.

Alberta Premier Danielle Smith, who rose to power by pushing back against Ottawa, said the federal government needs to build the infrastructure, such as ports, railways and pipelines, that help provinces get their products to market. That, in turn, will give the provinces the means to invest in technology to reduce emissions, she said.

“The problem with the federal approach is it’s all stick and no carrot,” Ms. Smith said. “We can meet green energy standards, we can meet emissions targets, but we have to have growing economies.”

She noted the United States is offering funding to help the transition to green energy under a law passed last year.

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Federal Natural Resources Minister Jonathan Wilkinson and federal Environment and Climate Change Minister Steven Guilbeault issued a joint statement in response to the premiers’ concerns. It noted policies such as the clean fuel regulations will “help Canada thrive in the global low-carbon economy.”

The clean fuel regulations, the statement said, are designed to “give companies many different options to reduce their pollution without downloading extra costs on consumers.”

These types of policies will spark innovation and make Canada more competitive, the statement said, and Ottawa, the ministers said, is “actively working with provinces and territories, with industry and with Canadian households to support efficient new programs that reduce costs and provide energy security.”

The premiers, gathered in Winnipeg for the Council of the Federation, also requested a First Ministers’ meeting to address infrastructure ranging from highways to housing.

“Having a national strategy around infrastructure that includes things like community infrastructure, as well as those pieces we traditionally think of – the highways, the ports, the railways – is so important,” British Columbia Premier David Eby said.

Mr. Eby said that provinces can only get so far on their own without the federal partner at the table.

At the same time, the premiers cautioned that any federal action on the issue should leave the provinces flexibility to address their different priorities.

Jean-Sébastien Comeau, a spokesman for federal Infrastructure Minister Dominic LeBlanc, in a statement said collaboration between Ottawa and the provinces has resulted in billions of dollars in infrastructure spending in recent years.

The premiers have been pushing for more information on what will replace the $33-billion Investing in Canada Infrastructure program, which ended in March, amid increasing pressures caused by inflation and supply chain issues.

Mr. LeBlanc said last month details on a next generation of funding programs are to be announced in the fall.

The provincial and territorial leaders also used the three-day gathering to urge Ottawa to reform the federal criminal code and quickly revamp Canada’s bail system.

With files from The Canadian Press