The California State Teachers' Retirement System and investors overseeing $3.5-trillion (U.S.) are calling on Alberta to introduce a "credible" price on carbon as well as a climate strategy to prevent economic disruption.
Such a strategy will provide "assurance to investors," especially in the energy sector, and allow companies to adjust to a future with lower greenhouse-gas emissions, the investors said Wednesday in a letter to Premier Rachel Notley. Alberta is raising its current requirement that large emitters pay $15 (Canadian) per tonne for emissions that don't meet their reduction targets.
"Investors are deeply concerned about the portfolio risks associated with climate change, but also eager to exploit opportunities related to the transition to a low-carbon economy," said Bob Walker, vice-president at NEI Investments in Vancouver, who signed the letter.
Alberta , home to Canada's oil industry, plans to introduce a new climate strategy before the end of the year and is considering all the options to help reduce emissions, Environment Minister Shannon Phillips has said. The oil sands are Canada's fastest-growing source of the climate-changing gas, and Alberta is the country's largest emitter.