Alberta's oil industry executives don't want the province unfairly targeted when it comes to curbing greenhouse gas emissions, federal Environment Minister John Baird said.

"If industry here in Alberta is going to be regulated, they want to see the same thing across the country. I agree with that," Baird said Friday, after he and Calgary MP Jim Prentice met with industry executives. 

"They want to ensure that it's done in the best possible way that will actually reduce greenhouse gas emissions and not be a shell game, something that's obviously pretty important for us."

Economic growth important, Baird says

The federal government will be setting specific targets on greenhouse gas emissions, numbers Ottawa will bring forward shortly, said Baird, who also met in Calgary with environmental and community leaders.

"We want to ensure that while we keep our eye on cleaning up the environment, we also want to keep our eye on economic growth."

Baird ruled out both a carbon tax and any carbon credit trading deal Thursday before a commons committee on the government's proposed clean air act, a move that was met with mixed reviews in Alberta.

Environmental think-tank Pembina Institute's Chris Severson-Baker said his group came out in favour of trading emission credits during the meeting with Baird.

"In order to expect the industrial sector to do something, carbon has to be worth something. It has to represent a liability and/or an opportunity in terms of avoided costs."

Industry likes the message: CAPP

Before Friday's meeting, Rick Hyndman, spokesman for the Canadian Association of Petroleum Producers, said he likes what he's hearing from the federal environment minister.

"Sticking with the kinds of policy we've been discussing — targets for emission intensity improvements in industry and investment in technology — is the right way to go. So neither a full-blown carbon tax or international emission trading makes sense at this point."

Don Wharton, director of sustainable development for power generator TransAlta, said he would like to see Ottawa set hard targets and until then, companies are in a holding pattern, he said.

"If we knew the rules today we could be making proactive, positive investments in different types of facilities or different types of emission reduction plans. But we need to know the rules to really go to the next level of activity."

Emissions trading is an important tool for the industry and Ottawa should open the door to it, Wharton said.

Alberta emissions up 40 per cent

Since 1990, Alberta has seen a 16 per cent drop in emissions intensity, a number based on a formula that takes economic growth into consideration.

But the overall production of greenhouse gases in Alberta has steadily climbed and shows no signs of levelling off.

Total greenhouse gas emissions in Alberta have increased by 39.4 per cent from 168.17 megatons in 1990 to 234.51 megatons in 2004, according to Environment Canada.

Clare Demerse, climate change policy analyst with the Pembina Institute, warned that under a regime of intensity targets, a company's greenhouse gas emissions could increase at the same time as targets are being met.

"What we need is for governments, both provincially and federally, to put in place strong regulations that say to industry you have to stop using this many greenhouse gases."