Alberta Premier Danielle Smith and Prime Minister Justin Trudeau meet during Stampede

Alberta Premier Danielle Smith met with Prime Minister Justin Trudeau in Calgary on Friday to discuss carbon emissions and the B.C. port strike.

Both leaders were in town for the first day of the Calgary Stampede’s 10-day celebration of western culture, which kicked off with a parade in the morning that Smith rode into. The meeting was Trudeau’s first stop on a two-day visit.

The two shared a firm handshake, their first since the “awkward handshake” between them in February went viral.

“We do have some serious things that we need to discuss,” Smith said.

“We’d like to bring our emissions reduction and energy development plan with a targeted carbon neutrality by 2050 and line up with some of the objectives of the federal government, and that will require us to have some conversations.”

Smith also flagged the federal government’s goal of having a net-zero electricity grid by 2035, saying it isn’t realistic for Alberta without a massive economic cost.

“We would like to establish a working group so that we can talk about how we might be able to achieve a net-zero power grid, but that is not possible by 2035,” she added.

Canada and Alberta are aiming to be net-zero by 2050, but the federal government has set multiple earlier targets along the way.

Meanwhile, Trudeau said the working group between the two governments is a great achievement.

“We will be able to sit down and really look at what our experts are saying, figure out the common ground and figure out the path forward,” Trudeau said.

“That’s going to make sure we’re responding to the energy needs of a growing economy around the world while at the same time making sure that we get that net zero by 2050 that we all agree on.”

Smith happy with developments, says feds must respect Alberta rights on energy

After the meeting concluded, Smith issued a statement, saying there were “welcome developments.”

She says the federal government has agreed to form a  “bilateral working group” with the Alberta government to work on a framework that will focus on incentivizing carbon capture, utilization, and storage, along with emissions-reducing technology.

Smith adds that the group would also develop a framework for constructing and using small modular reactor technology “to secure credit for carbon reduction through increased LNG exports to international markets.” The Paris Accord allows jurisdictions to receive credit for reducing emissions in other countries.

However, the premier says the federal government is yet to “formally recognize” the province’s jurisdiction to set emissions-reduction targets and milestones.

“They continue to set targets for a 42 per cent reduction in energy sector emissions by 2030 and a net-zero electricity grid by 2035,” her statement reads. “Both of these targets are unachievable, will drive billions of investment out of Alberta, massively increase electricity costs and result in the loss of tens of thousands of Alberta jobs.”

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She also holds concerns about the federal government’s clean energy regulations (CER), which she says does not include a “carve-out” for Alberta. She says time is needed before Alberta can transition to carbon-neutral because it relies on natural gas-fired electricity.

“It will be critical after this initial feedback period is complete that Ottawa grant Alberta’s requested CER carve-out until the working group has reached an agreement on decarbonizing our power grid that Albertans can afford and support,” Smith said.

“Albertans have borne the significant cost of replacing all coal-fired electricity generation with natural gas seven years ahead of schedule, for which ratepayers have already paid billions in compensation and will continue to make these compensation payments through 2030.

“Alberta has sovereign and exclusive constitutional jurisdiction to regulate our energy and electricity industries. This is non-negotiable.”

She is asking Ottawa to support Alberta’s rights to regulate these sectors, otherwise, she will “have no choice but to use alternative policy options to protect our rights independent of federal interference.”

“Failing to reach an agreement on these matters would be an unprecedented missed opportunity that would cost our country tens of billions in economic investment and countless jobs from coast to coast,” the premier said.

Concerns mount over B.C. port strike

Smith is also asking for Parliament to be recalled to put an end to the port strike, which began about a week ago, saying it is “causing extreme hardship to our producers and our exporters.”

Trudeau did not commit to doing so, but said he realizes how much of an effect it has had on producers across the Prairies.

He said he still believes that the best deals are found at the bargaining table.

“We will keep putting a lot of pressure on all parties to find that solution that I know is out there, but I also know that pressure is mounting, day by day, and people are really, really worried about how things could look next week and we are as well.”