Concerns grow that Alberta's Sovereignty Act will drive investment from province when it's needed most

On the 15th floor of a downtown Calgary office tower on Wednesday, a new clean-tech fund was launched with an aim of decarbonizing the energy sector. But much of the talk at the event was about the Alberta government's controversial Sovereignty Act, which was introduced in the provincial legislature less than 24 hours earlier.

Some organizers couldn't help but shake their heads at the timing.

The irony was evident in having an announcement promoting collaboration between industry and government, while so much attention in the province is on the combative new policy.

That's why concerns in the business community are growing over the new piece of legislation and how it could scare people and companies away from locating or investing in Alberta at a time when the oilpatch is finally back on its feet after several years in a downturn and as the province tries to keep its economy growing amid a possible recession. 

There is no shred of evidence that the act will lead to economic growth, said Calgary Chamber of Commerce president Deborah Yedlin, who describes the confrontational nature of the policy as "troubling."

"This comes at a time when we are dealing with high inflation, supply chain challenges and a labour shortage. We're trying to get people to come to Alberta so that we can address that talent shortage. This is not going to set the table for people to look at Alberta as a place to invest or necessarily to come and find economic opportunities," she said on Wednesday.

"We see this as potentially introducing a very significant element of risk and uncertainty for businesses in Alberta." 

On Wednesday, Avatar Innovations kicked off a new $3 million fund to provide cash for startups pursuing energy transition technologies. The firm works with a range of companies from traditional oil and gas producers and pipeline companies to technology firms. 

Avatar is also expanding into the United States to increase its network. The more people and companies who become involved, the more opportunities and funding become available to scale-up new technologies. 

"Conversations that are about anything other than how we advance investment and technology and collaboration in this province is going to hinder those efforts," said CEO Kevin Krausert.

Investors won't be attracted to Alberta unless it is a safe and sound jurisdiction that is governed by the rule of law, said Krausert, who spent most of his career in the oil and gas drilling industry.

Meanwhile, there are concerns that Alberta Premier Danielle Smith's Sovereignty Act could put up walls around Alberta and target certain federal policies. 

"I hope we never have to use this bill," Smith told reporters on Tuesday. "I hope that we've sent a message to Ottawa that we will vigorously defend our constitutional areas of jurisdiction and they should just butt out."

For decades, Alberta politicians of all stripes have routinely criticized the federal government. Call it a political pastime. But, make no mistake, choosing not to enforce federal rules is a much more aggressive type of opposition to Ottawa.