Economy
Business Council of Canada warns Trudeau’s oil and gas emissions cap could cripple economy
Business Council of Canada’s Michael Gullo
From LifeSiteNews
‘Canada’s GDP outlook for this year will be a dismal 0.6 % and Canada is poised to be the worst-performing advanced economy from 2020 to 2030 and from 2030 to 2060,’ said the Business Council of Canada’s Michael Gullo.
The Business Council of Canada has warned that the Trudeau government’s proposed oil and gas emissions cap could cripple the economy.
On February 5, the Business Council of Canada wrote an open letter to Assistant Deputy Minister Environmental Protection Branch John Moffet to voice concerns over the Liberal government’s proposed regulations on oil and gas.
“Imposing an emissions cap will likely force operators to involuntarily curtail their production. This would effectively reduce the overall capacity of the most productive segment of Canada’s economy at a time when investment and growth is desperately needed,” Michael Gullo, the council’s vice-president of policy, wrote.
Furthermore, Gullo warned that the emissions cap could “exacerbate the country’s inflation and affordability problems by applying a broad-based economic shock that will reduce tax revenues and add pressure to the federal deficit.”
“Canada’s GDP outlook for this year will be a dismal 0.6 % and Canada is poised to be the worst-performing advanced economy from 2020 to 2030 and from 2030 to 2060,” he added.
“Our energy sector is a stalwart of the country’s economy,” Gullo explained. “It accounts for more than 10 per cent of Canada’s GDP, drives our trading relationship with the United States, and props up real wages and household and retirement incomes.”
Gullo’s warning comes in response to the Liberal government’s Regulatory Framework to Cap Oil and Gas Sector Greenhouse Gas Emissions. The draft regulations, published in December, aim to severely limit the gas and oil emissions by 2030 to make a net-zero goal by 2050 possible.
The regulations seek to set emission caps for all provinces, which Gullo pointed out could interfere with current emission policies, potentially leading to lawsuits. Gullo also explained that the policy’s proposed timeline is “unrealistic.”
He argued the new regulations could undermine carbon pricing mechanisms and endanger the competitiveness of the oil and gas industry within Canada.
“Investments are not made on speculative legislation. It is simply unrealistic to assume that projects, technologies and decarbonization strategies will be deployed, permitted and operational in four years,” wrote Gullo.
The Business Council of Canada’s warning comes on the heels of Alberta announcing that it would not be enforcing the proposed regulations.
“Albertans will not accept this cap or the attack on its constitutional jurisdiction, economy, and citizens that the cap represents,” Alberta (Environment Minister Rebecca Schulz) wrote.
Alberta pointed out that the proposed regulations are unconstitutional, unrealistic, would prove detrimental to Canada’s economy, and would not necessarily reduce emissions worldwide.
However, the Liberal government, under the leadership of Prime Minister Justin Trudeau, seems intent on pushing emission regulations regardless of their effects on Canadians.
Currently, the Trudeau government is trying to force net-zero regulations on all Canadian provinces, notably on electricity generation, as early as 2035. His government has also refused to extend a carbon tax exemption on heating fuels to all provinces, allowing only Atlantic provinces this benefit.
Trudeau’s current environmental goals are in lockstep with the United Nations’ “2030 Agenda for Sustainable Development” and include phasing out coal-fired power plants, reducing fertilizer usage, and curbing natural gas use over the coming decades.
The reduction and eventual elimination of the use of so-called “fossil fuels” and a transition to unreliable “green” energy has also been pushed by the World Economic Forum (WEF) – the globalist group behind the socialist “Great Reset” agenda – an organization in which Trudeau and some of his cabinet are involved.
In November, after announcing she had “enough” of Trudeau’s extreme environmental rules, Alberta Premier Danielle Smith said her province has no choice but to assert control over its electricity grid to combat federal overreach by enacting its Sovereignty Act. The Sovereignty Act serves to shield Albertans from future power blackouts due to the federal government’s decisions.
Unlike most provinces in Canada, Alberta’s electricity industry is nearly fully deregulated. However, the government still could take control of it at a moment’s notice.
From the Fraser Institute
By Matthew Lau
In the past nine years, business investment in Canada has fallen while increasing more than 30 per cent in the U.S. on a real per-person basis. Workers in Canada now receive barely half as much new capital per worker than in the U.S.
According to a new Statistics Canada report, government regulation has grown over the years and it’s hurting Canada’s economy. The report, which uses a regulatory burden measure devised by KPMG and Transport Canada, shows government regulatory requirements increased 2.1 per cent annually from 2006 to 2021, with the effect of reducing the business sector’s GDP, employment, labour productivity and investment.
Specifically, the growth in regulation over these years cut business-sector investment by an estimated nine per cent and “reduced business start-ups and business dynamism,” cut GDP in the business sector by 1.7 percentage points, cut employment growth by 1.3 percentage points, and labour productivity by 0.4 percentage points.
While the report only covered regulatory growth through 2021, in the past four years an avalanche of new regulations has made the already existing problem of overregulation worse.
The Trudeau government in particular has intensified its regulatory assault on the extraction sector with a greenhouse gas emissions cap, new fuel regulations and new methane emissions regulations. In the last few years, federal diktats and expansions of bureaucratic control have swept the auto industry, child care, supermarkets and many other sectors.
Again, the negative results are evident. Over the past nine years, Canada’s cumulative real growth in per-person GDP (an indicator of incomes and living standards) has been a paltry 1.7 per cent and trending downward, compared to 18.6 per cent and trending upward in the United States. Put differently, if the Canadian economy had tracked with the U.S. economy over the past nine years, average incomes in Canada would be much higher today.
Also in the past nine years, business investment in Canada has fallen while increasing more than 30 per cent in the U.S. on a real per-person basis. Workers in Canada now receive barely half as much new capital per worker than in the U.S., and only about two-thirds as much new capital (on average) as workers in other developed countries.
Consequently, Canada is mired in an economic growth crisis—a fact that even the Trudeau government does not deny. “We have more work to do,” said Anita Anand, then-president of the Treasury Board, last August, “to examine the causes of low productivity levels.” The Statistics Canada report, if nothing else, confirms what economists and the business community already knew—the regulatory burden is much of the problem.
Of course, regulation is not the only factor hurting Canada’s economy. Higher federal carbon taxes, higher payroll taxes and higher top marginal income tax rates are also weakening Canada’s productivity, GDP, business investment and entrepreneurship.
Finally, while the Statistics Canada report shows significant economic costs of regulation, the authors note that their estimate of the effect of regulatory accumulation on GDP is “much smaller” than the effect estimated in an American study published several years ago in the Review of Economic Dynamics. In other words, the negative effects of regulation in Canada may be even higher than StatsCan suggests.
Whether Statistics Canada has underestimated the economic costs of regulation or not, one thing is clear: reducing regulation and reversing the policy course of recent years would help get Canada out of its current economic rut. The country is effectively in a recession even if, as a result of rapid population growth fuelled by record levels of immigration, the GDP statistics do not meet the technical definition of a recession.
With dismal GDP and business investment numbers, a turnaround—both in policy and outcomes—can’t come quickly enough for Canadians.
Matthew Lau
Adjunct Scholar, Fraser Institute
Business
‘Out and out fraud’: DOGE questions $2 billion Biden grant to left-wing ‘green energy’ nonprofit`
From LifeSiteNews
The EPA under the Biden administration awarded $2 billion to a ‘green energy’ group that appears to have been little more than a means to enrich left-wing activists.
The U.S. Environmental Protection Agency (EPA) under the Biden administration awarded $2 billion to a “green energy” nonprofit that appears to have been little more than a means to enrich left-wing activists such as former Democratic candidate Stacey Abrams.
Founded in 2023 as a coalition of nonprofits, corporations, unions, municipalities, and other groups, Power Forward Communities (PFC) bills itself as “the first national program to finance home energy efficiency upgrades at scale, saving Americans thousands of dollars on their utility bills every year.” It says it “will help homeowners, developers, and renters swap outdated, inefficient appliances with more efficient and modernized options, saving money for years ahead and ensuring our kids can grow up with cleaner, pollutant-free air.”
The organization’s website boasts more than 300 member organizations across 46 states but does not detail actual activities. It does have job postings for three open positions and a form for people to sign up for more information.
The Washington Free Beacon reported that the Trump administration’s Department of Government Efficiency (DOGE) project, along with new EPA administrator Lee Zeldin, are raising questions about the $2 billion grant PFC received from the Biden EPA’s National Clean Investment Fund (NCIF), ostensibly for the “affordable decarbonization of homes and apartments throughout the country, with a particular focus on low-income and disadvantaged communities.”
PFC’s announcement of the grant is the organization’s only press release to date and is alarming given that the organization had somehow reported only $100 in revenue at the end of 2023.
“I made a commitment to members of Congress and to the American people to be a good steward of tax dollars and I’ve wasted no time in keeping my word,” Zeldin said. “When we learned about the Biden administration’s scheme to quickly park $20 billion outside the agency, we suspected that some organizations were created out of thin air just to take advantage of this.” Zeldin previously announced the Biden EPA had deposited the $20 billion in a Citibank account, apparently to make it harder for the next administration to retrieve and review it.
“As we continue to learn more about where some of this money went, it is even more apparent how far-reaching and widely accepted this waste and abuse has been,” he added. “It’s extremely concerning that an organization that reported just $100 in revenue in 2023 was chosen to receive $2 billion. That’s 20 million times the organization’s reported revenue.”
Daniel Turner, executive director of energy advocacy group Power the Future, told the Beacon that in his opinion “for an organization that has no experience in this, that was literally just established, and had $100 in the bank to receive a $2 billion grant — it doesn’t just fly in the face of common sense, it’s out and out fraud.”
Prominent among PFC’s insiders is Abrams, the former Georgia House minority leader best known for persistent false claims about having the state’s gubernatorial election stolen from her in 2018. Abrams founded two of PFC’s partner organizations (Southern Economic Advancement Project and Fair Count) and serves as lead counsel for a third group (Rewiring America) in the coalition. A longtime advocate of left-wing environmental policies, Abrams is also a member of the national advisory board for advocacy group Climate Power.
DOGE is currently conducting a thorough review of federal executive-branch spending for the Trump administration, efforts that left-wing activists are challenging in court. The official DOGE website currently claims credit for a total estimated savings of $55 billion.
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