Jun 9, 2022

Alberta has the opportunity to lead in new sources of energy, such as hydrogen, say writers Alison Cretney and Mike Wilson. A hydrogen-powered airplane by APUS Group is displayed at the Hanover technology fair in Hanover, northern Germany, on May 30, 2022. Photo by AXEL HEIMKEN /AFP via Getty Images Article content If the urgency to transition to lower-emission energy sources wasn’t already obvious, the events of the last few months have dispelled any remaining doubt. The surge in energy prices, Russia’s weaponization of its oil and gas exports, and renewed federal investments in climate policies and programs all clearly show that the world and its climate have reached a defining moment, and Canadians, our businesses and our political leadership have a choice to make: Will we define this critical moment in history for ourselves or will we let it define us? In other words, will we make our largely hydrocarbon-based economy future fit? Advertisement 2 Opinion: Alberta, it’s time to move from hedging bets to staking claims in the energy transition Back to video The conversation around hydrocarbons is often polarized: one side wants to see a resurgence in fossil fuel production, the other a complete elimination of it. In truth, neither of these viewpoints adequately address what is a very complicated problem. One viewpoint assumes that the role hydrocarbons play in our economy will continue to play around the world, and the “drill baby, drill” versus the “keep it all in the ground” debate fails to recognize the proven innovation and imagination of Canadians united in a common goal. That’s why Energy Futures Lab partnered with Smart Prosperity Institute, the Business Council of Alberta, Canada West Foundation, Co-operators, The Natural Step Canada, Max Bell Foundation and Emissions Reduction Alberta, along with support and guidance from members of an Indigenous Advisory Committee. Together, we’re exploring how Alberta can use policy to attract investment into future-fit hydrocarbon industries — industries that will help Canada reach its emissions reduction goals while growing and diversifying our economy. Advertisement 3 Article content There are five key areas of opportunity that demand co-ordination and co-operation between political leaders in Edmonton and Ottawa: geothermal energy, lithium mining, clean hydrogen, carbon removal and bitumen beyond combustion. All five are opportunities for economic growth, attracting capital, Indigenous reconciliation and the reduction of greenhouse gas emissions, but each requires a level of policy stability and co-ordination we haven’t yet seen. What’s more, these are perishable opportunities. The longer we wait to act, or the more time spent on inter-jurisdictional squabbling, the more we cost future generations of Albertans. Here’s the good news: we have a head start. The assets and strengths of Alberta’s oil and gas industry can be used to build bridges to a low-emissions economy. And buy-in from Alberta is essential. As former federal natural resources minister Seamus O’Regan said, “There is no way we are reaching net-zero without Alberta.” Advertisement 4 Article content With a generous federal tax credit for carbon capture and storage in the works and an increasingly higher price placed on carbon, the time for talking is over. It’s time for Alberta to take the same determination and innovative attitude that made the oilsands a multibillion-dollar industry and apply it to the challenge of decarbonization. It’s time to move from hedging bets to staking claims, and it’s time for the rest of the country to support Alberta as it takes some new and necessary risks. Staking our claim in the energy transition requires establishing the right policy environment to reassure increasingly climate-conscious investors that their money will be put to good use. Mandating climate and ESG reporting aligned with international standards , along with a provincial platform on best practice for ESG metrics that includes the imperative of advancing Indigenous rights and title are good places to start. Removing regulatory barriers to new business and derisking transformative clean technologies are other necessary moves. Finally, kickstarting transition investment vehicles to connect private sector capital with projects driving the shift to net-zero in our highest emitting sectors will be essential. Yes, achieving net-zero demands that we wean ourselves off burning oil and gas as fuel, but leaving it in the ground means saying no to great opportunities. We should focus on turning our existing energy assets into something fit for the future and helping transform the strengths of the present into the advantages of the future. It won’t be easy. Achieving big and important things rarely are. Alison Cretney is the managing director of the Energy Futures Lab. Mike Wilson is the executive director of the Smart Prosperity Institute. Share this article in your social network Share this Story: Opinion: Alberta, it’s time to move from hedging bets to staking claims in the energy transition