How will Kyoto affect the Alberta economy?
Canada’s key strategy in reducing greenhouse gas emissions will be to reduce the wasteful burning of oil and coal. If we succeed, Canadian demand for these fossil fuels will drop. This means oil-rich Alberta may have to diversify its economy more fully, rather than just relying on the unlimited expansion of the oil sands. In addition, an effective national strategy will require all industries, including the oil industry, to reduce their pollution levels. Alberta and its oil industry are concerned that this will increase production costs. For some firms, this may be the case. However, those costs are expected to be manageable. As the CEO of Suncor stated in October 2002, “Kyoto is just a small bump in the road.” As well, BP, one of the world’s largest energy companies, reduced its emissions below the Kyoto target with a gain of $1 billion. There are also some excellent opportunities for Alberta under Kyoto. A low carbon strategy will support increased production of natural gas as a repl
