Canadian Prime Minister Mark Carney signaled on Thursday he may work with industry rather than impose emissions caps on oil and gas producers, marking a potential shift from his predecessor’s climate policies during his first official visit to Alberta since becoming Liberal leader.
Following talks with Alberta Premier Danielle Smith in Edmonton, Carney emphasized collaboration over regulation when addressing emissions reductions from Canada’s energy sector.
“Working with industry and with provinces on specific ways to get those reductions, as opposed to having preset caps or preset restrictions on preset timelines,” Carney told reporters.
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His comments contrast with statements from Environment Minister Terry Duguid, who told The Canadian Press that the Liberal government’s proposed emissions cap would proceed if Carney wins the upcoming election.
The energy-rich western province has long opposed federal environmental policies, with Premier Smith threatening on Wednesday to call a national unity crisis and form a panel to poll Albertans on potential responses if Ottawa ignores her list of demands before the next election.
Smith has demanded guarantees for pipeline construction “in every direction,” an end to the proposed emissions cap, and the abolition of single-use plastics prohibitions.
Smith said in a statement after the meeting that she wanted her demands “meaningfully addressed within months of the next federal election.”
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Alberta NDP Leader Naheed Nenshi criticized Smith’s threats, saying on Thursday she is “playing chicken with people’s lives” at a time when many Albertans’ livelihoods are already under threat due to US tariffs.
“It’s juvenile, it’s childish, it’s not very bright, and it’s certainly not going to get Alberta what we need,” Nenshi said.
Smith’s demands for policy changes come amid deteriorating Canada-US relations, with Trump having imposed a broad 25% tariff on some Canadian goods for 30 days on March 6, followed by additional tariffs on steel and aluminum imports and threats of reciprocal tariffs on other products.
Carney has described US President Donald Trump’s policies as creating “the most significant crisis of our lifetimes” for Canada as he called a snap election for April 28.
“Our response must be to build a strong economy and a more secure Canada. President Trump claims that Canada isn’t a real country. He wants to break us so America can own us. We will not let that happen,” Carney told reporters in Edmonton.
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