I think we have the ability to be both a clean energy superpower and a conventional energy superpower. We have the ability to be a clean energy superpower and attract investments into new things like hydrogen, clean fuels, critical minerals and new tech. That's important. It's also important that, if we want to be a conventional energy superpower, it means oil and gas.
I don't believe the emissions cap and the clean electricity regulations are consistent with that at all. If the cap leads to a production cut, which industry says it will, then how can we expand to new and growing markets? We'll continue to be dependent on primarily one market, which is the United States. We need to be able to expand our production, grow markets and develop beyond the United States.
The emissions cap is particularly challenging for industry because when they make an investment decision—whether it's in clean tech or whether it's where they have their production—they have to know that the project they're investing in is going to cover capital costs, cover the costs of financing and cover operational costs. If the emissions cap makes that unaffordable and makes other alternatives in other jurisdictions more investable, we'll lose production and we won't be able to be an energy superpower.
Likewise with the clean electricity regulations, as many of you have probably heard already, Alberta's electricity grid is completely off coal, but it's 75% dependent on natural gas. Our gas generators have said that they cannot comply with the clean electricity regs as drafted. If we want to be a superpower in both clean energy and conventional energy, we need to support natural gas power generation. That will support the development of data centres and AI. Both of those regulations are not consistent.
On top of that, they're layered onto industrial carbon pricing, which in my view has worked well. Industrial carbon pricing has worked well for both the province and Canada—since 2007 in Alberta. Those two regulations layer on top of it, adding a layer of complexity. If we can strengthen and keep the industrial carbon price strong, we do not need the emissions cap or the clean electricity regs.
We can do all we need to do to be a clean energy superpower and a conventional energy superpower by working with the provinces and ensuring that we have a robust industrial carbon tax.