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Oilsands high on Alison Redford’s agenda

News Articles Featured | Calgary Herald | October 05, 2011

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Alison Redford emphasized health and education in her run to become Alberta's next premier, but it appears energy and environmental issues will be her most immediate challenge on taking office.

On Tuesday, the European Commission ruled that oilsands crude was more environmentally harmful than conventional crude, a move that could effectively stifle future imports to the European Union.

It came the same day as a report by Canada's environment commissioner - an independent watchdog who reports to Parliament - said the federal government had ineffective monitoring of greenhouse gas emissions and the oilsands.

Redford - who will be sworn in as premier Friday after winning the job of Progressive Conservative leader in last weekend's vote - also must decide how she will pitch the proposed Keystone XL pipeline project. The development has become mired in controversy south of the border because it will send Alberta bitumen through to refineries on the U.S. Gulf Coast.

Speaking to reporters in Edmonton after her first meeting with the government caucus, Redford said discussions are underway with the federal government and Canadian Embassy over the province's best approach on Keystone XL.

With her swearing-in on Friday, Redford will not testify at U.S. State Department hearings on the pipeline in Washington, D.C.

When asked about the European move, Redford said the province can't control the decisions of sovereign governments. However, Alberta must do a better job of "telling our story" and defending the oilsands, she added.

"What we're seeing right now is an international climate that is feeling they have to deal with public pressure around those issues. It is not the right decision. It is not the right way to deal with the issues. I do not agree with the decision and we'll be continuing to lobby in capitals on that issue," she said.

Redford's comments came because the European Commission approved placing a higher carbon-emissions value on bitumen-derived fuel than conventional oil under its new fuel quality directive.

If approved by the European Parliament, importers would face higher carbon offsets to trade in Canadian oil.

Janet Annesley, vice-president of communications for the Canadian Association of Petroleum Producers, noted little oilsands product is exported to Europe, but standing up to the EU's move is a "matter of trade principle."

"We view it as discriminatory and not the foundation of good policy that's based in science and principle," said Annesley, who was reached in Washington where CAPP president Dave Collyer is scheduled to testify Friday at the Keystone hearings.

"The decision was based on just one study . . . oilsands crude was singled out and is being treated differently than energy products from other countries."

Doug Horner, who was named Tuesday by Redford to serve as deputy premier, said there is a widespread feeling within the Tory government that it must be proactive in getting its message out.

"We're going to have to make sure that we can change the direction fairly quickly and start to get our message out and I think Premier Redford was very adamant about that today," he told the Herald.

Chaldeans Mensah, a political scientist at Grant MacEwan University in Edmonton, said Redford spoke frequently during the Tory leadership race about beefing up environmental monitoring in the oilsands, but she's also staked out a position defending the industry.

"Does Alison Redford have the fortitude to defend the oilsands against these kind of negative signals coming from Europe and other places?" he asked.

"One of her strong suits is her communication skills and it will be put to the test on this file."

Despite Redford's prooilsands stance, her election has given at least a glimmer of hope for environmental organizations that she will make changes beyond simply messaging.

The Pembina Institute, in a statement released Tuesday, noted Redford has spoken about a worldwide shift to sustainable energy production and her desire for Alberta not to be left behind.

"Redford's new strategy for energy sees Alberta as a 'global leader in sustainable hydrocarbon production,' which means to us ensuring responsible oilsands development that respects science-based environmental limits to protect air, land and water," said the Alberta-based think-tank.

The group added that there are feasible technical and policy solutions to many of the environmental challenges posed by oilsands development that could improve the sector's environmental performance.


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