Alberta Says ‘Quid Pro Quo’ With U.S. Required on Carbon Rules
Alberta won’t raise its levy on greenhouse-gas emissions unless the U.S. acts on the issue, Premier Alison Redford said.
“In Alberta, we’re not looking to increase our price on carbon unless there’s going to be a move from the United States,” Redford said in a Canadian Broadcasting Corp. radio interview that aired today. “There has to be a quid pro quo.”
Redford is heading to Washington this month to lobby for U.S. approval of the Keystone XL pipeline that would connect Alberta’s oil sands with Gulf Coast refineries. She plans to discuss the existing C$15 ($14.40) per metric ton that the province levies on carbon from emitters that don’t meet greenhouse-gas reduction targets, she said.
Canada has delayed implementing regulations regarding greenhouse gas emissions for the oil and natural gas industry. The federal government has said it’s working with Alberta, where most of Canada’s energy companies are based, on developing rules to help the nation of 34 million meet its Copenhagen Accord target of reducing greenhouse-gas output by 17 percent by 2020 from 2005 levels.
“The federal government’s role is going to be very important in terms of leadership on the issue,” Redford said.
Canada and the U.S. have discussed working together on regulations to reduce carbon emissions in their oil and gas industries, Canada’s Natural Resources Minister Joe Oliver said in September. Jointly implementing rules would “not necessarily” be the right approach, he said in Calgary.
Redford plans to meet with the U.S. State Department that has been reviewing the Keystone XL pipeline for more than five years, during a trip to Washington between Nov. 11 and 13, according to a statement last month from the provincial government.
“If Keystone XL doesn’t get approved, it will have an impact on U.S.-Canada relations,” Redford said in the radio interview.
The State Department didn’t immediately respond to an e-mailed request for comment.
TransCanada Corp. (TRP), the Calgary-based company proposing Keystone XL, said last month it expects a U.S. decision on the delayed pipeline by the end of March.
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