Alberta launches $7M “Scrap the Cap” campaign opposing Ottawa’s emissions limit on oil and gas sector

The Alberta government has unveiled a new $7-million national advertising campaign aimed at opposing the federal government’s proposed emissions cap for the oil and gas industry - calling it a “production cap in disguise” that threatens jobs and economic stability.

Premier Danielle Smith announced the “Scrap the Cap” campaign on Friday, arguing that Ottawa’s planned regulations, expected later this year, would hurt Alberta’s energy sector and make it harder for families to afford everyday essentials. “This cap will kill jobs, drive away investment, and raise costs for Canadians,” Smith said, describing it as federal overreach into provincial jurisdiction.

The campaign, which will run on television, radio, and digital platforms across Canada, warns that the cap could lead to higher costs for groceries, fuel, and home heating. However, experts say those claims may be overstated.

University of Calgary economist Trevor Tombe told reporters that while he believes the emissions cap is “bad policy” in principle, the argument that it would significantly increase gasoline or grocery prices is “weak.” He explained that gas prices are primarily influenced by global oil markets, retail margins, and taxes, not domestic emissions policies.

Tombe added that the cap does not necessarily limit production if companies can achieve emissions reductions through technology or carbon capture, as several industry groups have pledged.

The emissions cap is part of the federal Liberal government’s broader climate plan to help Canada meet its 2050 net-zero emissions goal. Alberta’s campaign comes amid rising tensions between Ottawa and Edmonton over energy policy, pipelines, and environmental regulations - an issue that continues to divide public opinion across Western Canada.