Alberta Premier Danielle Smith plans to challenge the proposed federal greenhouse gas emissions cap using the Alberta Sovereignty within the United Canada Act.

The government intends to take legal action if the cap becomes law and aims to assert provincial authority over emissions data and restrict federal access to oil and gas facilities.

Smith, as reported by the Canadian Press, said: “We have been very clear that we will use all means at our disposal to fight back against federal policies that hurt Alberta, and that is exactly what we are doing”.

The Sovereignty Act requires the government to first introduce a motion in the legislative assembly, identifying the federal issue and outlining possible steps to address it.

Once the motion is passed, Smith's cabinet will assess the legality of the proposed measures before implementation.

Smith mentioned other potential responses such as instructing the Alberta Energy Regulator not to enforce the cap, declaring oil and gas facilities as essential infrastructure, and enhancing the government's capacity to sell oil and gas on behalf of the industry.

“We are asserting our ownership over our oil and gas resources,” Smith told reporters, adding that she expects oil and gas companies to support the steps being considered.

The proposed federal emissions cap would require oil and gas companies to reduce emissions by 35% between 2030 and 2032.

Smith has called the cap unconstitutional and warned that it would severely impact the province's oil and gas industry.

She argued that the cap could result in a production loss of one million barrels per day, which would lead to a 5% reduction in Alberta's royalty revenues.

In response, federal Environment Minister Steven Guilbeault and Energy Minister Jonathan Wilkinson issued a joint statement disputing Smith's claims.

They maintained that the emissions cap is constitutional and would not lead to a decline in production.

“The pollution cap will drive the industry to invest record profits back into the sector, helping to fuel Canadian-made clean technologies and creating jobs in the process,” the statement read.

“Production and jobs will increase under this policy while pollution goes down – that is a win-win-win."

Guilbeault and Wilkinson also stated that Smith is “manipulating and politicising” emissions reporting.