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Alberta's premier says the province is leaving the federal government's national climate plan as a result of the latest setback to the Trans Mountain pipeline expansion.

The move followed a Federal Court of Appeal decision handed down Thursday that quashed the project's approval, marking a triumph for Indigenous groups and environmentalists who opposed the pipeline expansion.

"Whether (the federal government) appeals to the Supreme Court or whether they simply do the modifications recommended by the Federal Court of Appeal, both of those take time", said Bratt.

Earlier this year, in an escalating dispute with the B.C. government over Trans Mountain, Notley's government passed sweeping legislation allowing it to intervene in the marketplace and restrict oil flows if necessary to maximize prices while also sending a sharp message to Canadian regions reliant on Alberta's oil. "People didn't believe that (the federal government) had skin in the game before - I think we all know that they do now", Notley said.

When it was introduced previous year, the carbon tax was pegged at $20 per tonne.

Trudeau said on Twitter that he had spoken with Notley and reassured her that the federal government stands by the project and will ensure it moves forward in the right way.

She said any climate change plan must be "paired with very intentional efforts to build our economy, to create jobs, and to support Alberta" by completing the pipeline.

In a report to clients Friday, Scotiabank predicted that the court ruling will delay the pipeline expansion by at least one year and "increases the likelihood that the project is abandoned altogether".

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Further consultation will have to include serious examination of the community's 1,200 page environmental assessment and studies on spill potential and air quality, said Rueben George, a representative of the Tsleil-Waututh.

Christie said the court decision on consultation was based on established law, but another expert said the ruling appeared to shift the requirements for governments.

"I understand the frustration of the premier, absolutely", said Sohi, who represents an Edmonton riding.

"The current state of affairs in Canada right now is such that building a pipeline to tidewater is practically impossible".

The federal government will now have to consult with First Nations in a way that seriously considers their concerns and provides a response and even an accommodation in some cases, said Gordon Christie, a University of British Columbia law professor.

The ruling requires the energy board to conduct a new review including the impacts of tanker traffic and means the government will have to redo part of its consultation with Indigenous groups. It has signalled that the money will likely be returned through some sort of individual tax rebate to residents in a province, rather than to provincial governments that refuse to implement their own carbon pricing scheme.

"If we just say no, we're letting the prime minister take our money out of Manitoba and away from Manitobans", he said in an interview.


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