Canmore | Traditional territories of the Treaty 7 Nations – As Canada navigates turbulent times in the global energy market, Environmental Defence has launched a first-of-its-kind report on the opportunities and challenges facing the province of Alberta – that provides a path forward for energy security and future prosperity. New Frontiers: A Guide to Alberta’s New Energy and Economic Power examines Alberta’s unique position as one of the world’s leading producers and exporters of oil and gas, and examines the potential economic crisis Alberta faces over the next 25 years as oil royalties decline.
The global energy sector faces deep disruptions, Canada’s energy markets are in flux, renewable energy now accounts for forty per cent of the world’s energy use, and U.S. actions in Venezuela have created unprecedented uncertainty amongst major energy producers and consumers.
“For decades, Alberta has shaped Canada’s energy conversation, all while our provincial accounts have been filled by oil royalties. But as the market evolves and as more countries pivot to low-carbon economies, those billions in revenue face unprecedented risk. The challenge now isn’t just convincing Alberta’s political decision makers of climate science, it’s demonstrating how the province can remain economically vibrant while transitioning away from fossil fuel dependency.” – Stephen Legault, Senior Program Manager, Alberta Energy Transition, Environmental Defence Canada
“This is the best work I’ve seen on the energy transition in the last decade.”- Hon. Shannon Phillips, former Alberta Minister of the Environment and Climate Change
Alberta can successfully drive the energy transition by:
- Creating a Level Playing Field for Energy Development. Eliminate excessive restrictions on renewable energy and establish harmonized approval processes for all energy projects—wind, solar, oil, gas, or battery storage—ensuring Alberta capitalizes on abundant renewable resources while maintaining energy leadership.
- Addressing Alberta’s Structural Economic Vulnerability. Establish a Revenue Review Panel to reduce Alberta’s dangerous dependence on volatile oil and gas revenues (20-25 per cent of provincial income despite employing only 5 per cent of the workforce). All revenue options, including sales tax, should be considered to protect healthcare and education from market disruptions.
- Establishing an Economic Transition Authority to coordinate transition activities and guaranteed reemployment programs for oil and gas workers through comprehensive retraining and community support, including early retirement payouts for those who qualify.
- Diversifying the Economy Through Strong, Future-Focused Sectors. Use the Revenue Review Panel’s findings to invest in growing sectors that can boost Alberta’s economy, create jobs, and increase provincial income. These sectors include housing, manufacturing, construction, healthcare, and professional services.
Political parties across Alberta and Canada need to prioritize their mandates and better prepare for the energy transition. As global markets shift and climate imperatives grow, Alberta’s future prosperity depends on developing comprehensive economic diversification strategies beyond fossil fuel dependence.
ABOUT ENVIRONMENTAL DEFENCE (environmentaldefence.ca): Environmental Defence is a leading Canadian environmental advocacy organization that works with government, industry and individuals to defend clean water, a safe climate and healthy communities.
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For more information or to request an interview, please contact:
Alex Ross, Environmental Defence, media@environmentaldefence.ca
