Trudeau Faces Energy Battles as Conservatives Hold Alberta

Alberta Premier Danielle Smith and her United Conservative Party retained control of Canada’s top oil-producing province in an election Monday, setting up a series of energy-policy clashes with Prime Minister Justin Trudeau.

(Bloomberg) — Alberta Premier Danielle Smith and her United Conservative Party retained control of Canada’s top oil-producing province in an election Monday, setting up a series of energy-policy clashes with Prime Minister Justin Trudeau.

Smith’s UCP won 49 of 87 seats in the provincial legislature to form a majority government, defeating the left-leaning New Democratic Party. Smith, 52, became premier last fall by winning her party’s leadership after her predecessor, Jason Kenney, stepped down amid dissatisfaction with his handling of the pandemic.

“We have to keep powering and diversifying our amazing economy, and I want to tell every business owner and investor listening tonight — whether doing business inside or outside of Alberta — we are throwing our doors wide open for businesses, large and small,” Smith said during her victory speech.

The victory threatens to complicate Trudeau’s quest to fulfill Canada’s climate commitments. Smith has opposed a plan to make the nation’s electricity grids net zero by 2035, and she has promised to fight efforts to slash emissions from the province’s oil sands. 

Trudeau’s government has pledged to limit emissions in the energy sector to meet Canada’s climate targets. His government published a plan last year that modeled a 42% cut in oil and gas sector emissions by 2030, which oil executives have said isn’t possible without slashing output.

Beyond energy, Smith has floated the ideas of pulling Alberta out of Canada’s main pension plan and replacing the Royal Canadian Mounted Police with a provincial force.

The government’s first priority will be to pass a law that requires approval by referendum for any increase to personal or business taxes, Smith said.

The UCP’s 11-seat margin of victory made it the closest provincial election since Alberta became a Canadian province in 1905. 

(Updates with final seat count in second paragraph and other new information)

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