Opposition to the Canadian Net-Zero Emissions Accountability Act

Date:

March 2025

Expiry Date:

April 2028

Current Status:

Intent Not Met

Sponsors:

County of Newell

District:

1 – Foothills-Little Bow

Year:

2025

Convention:

Spring

Category:

Environment

Status:

Intent Not Met

Vote Results:

Carried

Preamble:

WHEREAS the Government of Canada has enacted the  Canadian Net Zero Emissions Accountability Act, which aims to achieve net-zero emissions by 2050 through policies primarily focused on minimizing carbon emissions; and

WHEREAS the implementation of net-zero policies has introduced measures that disproportionately impact key industries in Alberta, including agriculture and oil and gas, thereby creating economic challenges for these sectors; and

WHEREAS carbon dioxide comprises only 0.04% of the atmosphere and is a critical element for sustaining life, serving as a fundamental resource for photosynthesis and ecological balance; and

WHEREAS elevated levels of carbon dioxide have been shown to enhance plant growth, improve agricultural yields, and contribute to reducing global food insecurity by fostering more robust crop production.

Operative Clause:

THEREFORE, BE IT RESOLVED that the Rural Municipalities of Alberta (RMA) urge the governments of Alberta and Canada to  enact  policies that reflect the beneficial role of carbon dioxide in supporting ecosystems and agricultural productivity, in recognition that carbon dioxide is a vital component of the Earth’s natural systems, essential for sustaining life;

FURTHER BE IT RESOLVED THAT the RMA advocate for the withdrawal of the Canadian Net Zero Emissions Accountability Act, promoting instead a balanced approach to environmental stewardship that acknowledges the complex interactions of carbon cycles and their contributions to societal well-being.

Member Background:

The Canadian Net Zero Emissions Accountability Act, aiming for net-zero greenhouse gas emissions by 2050, has been analyzed by institutions  such as the C.D. Howe Institute and Deloitte. Their findings suggest several potential economic impacts:

  1. Significant Economic Costs: Achieving net-zero emissions could cost up to $2 trillion by 2050, nearly three-quarters of Canada’s 2021 GDP.[1]
  2. Job Losses: Production cuts in the oil and gas sector could result in approximately 90,000 job losses between 2030 and 2040.[2]
  3. Increased Energy Costs: Transitioning to renewable energy sources may raise system costs due to the need for energy storage solutions, impacting both consumers and businesses.[3]
  4. Competitiveness Concerns: Stringent emissions targets may hinder Canada’s competitiveness, especially in energy-intensive industries, by imposing higher operational costs.[4]

Increased atmospheric carbon dioxide offers several benefits, particularly in enhancing plant growth, agricultural productivity, and global food security. Lal (2004)[5] highlights that elevated CO₂ can bolster soil carbon sequestration, improving soil health and agricultural resilience while mitigating food insecurity. Donohue et al. (2013)[6] find that a “CO₂ fertilization effect” has caused a gradual greening around the globe. Collectively, these studies underscore the role of CO₂ in supporting ecosystems, improving agricultural yields, and addressing global environmental challenges.

ATTACHMENT: Canadian Net-Zero Emissions Accountability Act, S.C. 2021, c. 22

https://laws-lois.justice.gc.ca/eng/acts/c-19.3/fulltext.html

[1] See https://www.cdhowe.org/expert-op-eds/reducing-emissions-will-cost-governments-need-admit-financial-post

[2] See https://www.reuters.com/sustainability/climate-energy/canada-oil-gas-emissions-cap-likely-curtail-production-report-says-2024-06-18/

[3] See https://www.cdhowe.org/public-policy-research/power-when-you-need-it-case-small-nuclear-reactors

[4] See https://www.cdhowe.org/intelligence-memos/ben-brunnen-energy-scenarios-shouldnt-drive-policy-especially-canada

[5] See https://www.science.org/doi/10.1126/science.1097396

[6] See https://agupubs.onlinelibrary.wiley.com/doi/epdf/10.1002/grl.50563

RMA Background:

2-22S: Negative Impact of Carbon Tax on Rural Albertans

THEREFORE, BE IT RESOLVED that the Rural Municipalities of Alberta (RMA) conduct a rural impact analysis on the federal carbon pollution pricing system to determine how the system is negatively impacting rural Albertans and rural municipalities and share the analysis with the governments of Alberta and Canada; and

FURTHER BE IT RESOLVED that the RMA advocate to the Government of Canada for the amendment to the Greenhouse Gas Pollution Pricing Act to halt carbon tax increases on fuel.

Click here to view the full resolution.

ER3-24S: Opposition to Federal Zero Emission Vehicle Mandate

THEREFORE, BE IT RESOLVED that the Rural Municipalities of Alberta (RMA) register its opposition to the federal zero emission vehicle (ZEV) mandate in its current form;

FURTHER BE IT RESOLVED that the RMA advocate to the Federation of Canadian Municipalities (FCM) and to the Government of Canada (GOC) to reconsider and revise the ZEV mandate to address the unique challenges faced by rural communities and develop a more flexible, market-based approach that removes the 100 percent ZEV requirement.

Click here to view the full resolution.

5-22F: Fertilizer Emission Reduction Target Impacts

THEREFORE, BE IT RESOLVED that the Rural Municipalities of Alberta request that the Government of Canada either cancel the 30% fertilizer emissions reduction target or ensure that said target remains voluntary.

Click here to view the full resolution.

Government Response:

Alberta Environment and Protected Areas

I share your frustration when it comes to the Canadian Net-Zero Emissions Accountability Act and recognize its disproportionate impact on key industries in Alberta. Our government is committed to asserting our constitutional right to develop our resources and is opposed to federal policies that limit our ability to do so.

Alberta is already a leader when it comes to emissions reduction and promoting sustainable resource development. Our approach includes working with industry, as well as well as farmers and ranchers. This ensures continued operational and technological improvements to lower industrial carbon emissions and environmental footprint, while improving productivity, climate resilience, and supporting global food security.

Mixed farming operations and agroforestry enhance biodiversity and soil health. Alberta’s agricultural community is setting an example of how to feed the world sustainably and responsibly. Through techniques like crop rotation, conservation tillage, precision technology, and sustainable practices, Alberta’s farmers are stewarding the land for future generations while producing high-quality crops.

The Technology Innovation and Emissions Reduction (TIER) system has been Alberta’s approach to emissions management and helps industrial facilities reduce emissions and invest in technology to stay competitive. The TIER Regulation requires any industrial facility emitting 100,000 tonnes or more of carbon dioxide equivalent per year in 2016 – or any subsequent year – or those that import more than 10,000 tonnes of hydrogen annually, to meet annual emissions reductions using either a facility-specific or a sector benchmark approach.

A facility with emissions less than the threshold may opt into the regulation if it competes directly with another regulated facility, emits 2,000 tonnes carbon dioxide equivalent or more, and belongs to an emissions-intensive, trade-exposed sector. TIER-regulated facilities include oil and gas, oil sands mining, electricity, forestry, chemicals (including hydrogen production), fertilizers, minerals, food processing, and waste.

Development:

Although the government response from Environment and Protected Areas sympathizes with the concerns and needs of municipalities outlined in Resolution 11-25S, the response does not acknowledge the positive impacts of carbon dioxide and does not commit to encouraging or implementing policies accordingly. Rather, the response highlights the numerous existing initiatives and policies that promote greenhouse gas emissions reduction, without addressing the various negative economic impacts that such policies, along with the Canadian Net Zero Emissions Accountability Act (The Act) impose on rural Albertans and industries. Furthermore, the response does not commit to advocating for the repeal of The Act. For these reasons, this resolution is assigned a status of Intent Not Met.

Provincial Ministries:

Energy and Minerals, Environment and Protected Areas

Provincial Boards and Organizations:

None reported.
Federal Ministries and Bodies:
Environment and Climate Change, Energy and Natural Resources

Internal Notes:

None reported.