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Economy

Canada’s current climate plan is ineffective and wasteful

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Article submitted by The MacDonald Laurier Institute

Alternative approaches will not only reduce emissions more efficiently but will provide socio-economic benefits beyond Green-House Gas mitigation.

OTTAWA, ON (June 27, 2023): The federal government has committed to reduce its greenhouse gas emissions by 40 to 45 percent below 2005 levels by 2030 and has spent or committed over $113 billion in climate related initiatives. Yet, Canada will still likely miss its 2030 emissions target by 48 percent. The government risks heavily indebting Canadians without meeting its climate goals.

In this new MLI paper – Maximizing value, minimizing emissions: The cost-effective path for Canada’s climate agenda, Senior Fellow Jerome Gessaroli proposes a climate policy based on international collaboration that would be more cost-effective than policies the government has implemented to date.

“A marginal cost analysis of methane abatement projects shows that it is possible for Canada to reduce its GHG emissions in a more cost-effective way by looking further afield to other countries than by focusing only on domestic projects.”

According to Gessaroli, Canada, along with numerous other countries, has yet to tap into the potential benefits of international cooperation. By leveraging comparative advantages such as technologies, lower costs, and mitigation opportunities, countries can join forces to reduce GHG emissions beyond their territorial borders. Recognition and encouragement of emissions reductions resulting from international collaboration, as outlined in Article 6 of the 2015 Paris Agreement, can lead to more effective climate outcomes compared to domestic initiatives.

Of particular significance is Article 6.2, which allows countries to voluntarily collaborate on GHG emissions reduction and receive credit for reductions achieved outside their political boundaries. Canada can leverage Article 6.2 by engaging in cooperative arrangements with foreign countries to share costs or exchange technical capabilities for mitigation benefits. By doing so, Canada can reduce global emissions while receiving credit toward its formal climate targets under the Paris Agreement.

“The projects can lead to further international collaboration and partnerships in other areas,” writes Gessaroli.

“And depending upon the project, local benefits such as job creation, worker training, enhanced water quality, more efficient water usage, and greater agricultural productivity are possible extras over and above the emissions mitigation.”

Regrettably, the federal government appears to show limited interest in utilizing Article 6.2 to meet greenhouse gas emission goals. With a range of abatement technologies across multiple sectors, Canada possesses the means to facilitate substantial GHG emission reductions in other countries, thereby helping to meet our own climate objectives.

The report concludes by urging the federal government to rethink its climate spending priorities and prioritize policies that deliver the greatest GHG abatement outcomes at the lowest cost. By embracing international collaboration and actively pursuing cooperative climate initiatives, Canada can significantly contribute to global emissions reductions while simultaneously reaping socio-economic benefits.

To learn more, read the full paper here:

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Jerome Gessaroli is a senior fellow with the Macdonald Laurier Institute. He writes on economic and environmental matters, from a market-based principles perspective. Jerome teaches full-time at the British Columbia Institute of Technology’s School of Business, courses in corporate finance, security analysis, and advanced finance. He was also a visiting lecturer at Simon Fraser University’s Beedie School of Business, teaching into their undergraduate and executive MBA programs.

The Macdonald-Laurier Institute is the only non-partisan, independent national public policy think tank in Ottawa focusing on the full range of issues that fall under the jurisdiction of the federal government.

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Economy

Trudeau has more than doubled Canada’s debt while Canadians get poorer

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From LifeSiteNews

By Clare Marie Merkowsky

46 percent of Canadians are a few hundred dollars away from not being able to meet their financial obligations…  400,000 more Canadians live in poverty now compared to 2020. 

Prime Minister Justin Trudeau has more than doubled Canada’s national debt, but Canadian’s quality of life has only decreased.   

According to calculations from the Canadian Taxpayers Federation (CTF), Canada’s national debt has more than doubled since Prime Minister Justin Trudeau took power in 2015, reaching a total of $1.239 trillion.  

“Canadians can’t afford another decade-and-a-half debt binge,” Franco Terrazzano, CTF Federal Director, said in a  . “Trudeau needs to stop wasting so much money and balance the books, because it’s wrong to waste billions on debt interest payments.” 

When Trudeau took office in November 2015, Canada’s federal debt was just $616 billion.

Despite this doubling of the national debt, the Trudeau government does not plan to balance the budget until 2040, according to supplementary data from the Parliamentary Budget Office (PBO). 

Currently, every Canadian owes $31,000 of the debt, however, interest charges between now and the time the budget is balanced in 2040 will mean that the number is much higher. By 2040, interest charges on the federal debt will have cost taxpayers a whopping $847 billion, meaning each Canadian will owe an additional $18,000.  

“Waiting until 2040 to balance the budget is outrageous and the government won’t even hit that target if the economy has a hiccup or politicians can’t say no to new spending,” Terrazzano said. “This government has given taxpayers every reason to believe it will never balance the budget.” 

While the national debt has skyrocketed, and the government continues to spend money hand-over-fist, the quality of living for Canadians is plummeting. Instead of addressing this, Trudeau continues to send tax dollars to Ukraine and subsidizing a variety of ideologically motivated causes that provide no material benefit to Canadians. 

In July, a survey found that a massive 46 percent of Canadians are a few hundred dollars away from not being able to meet their financial obligations. 

LifeSiteNews reported that fast-rising food costs in Canada have led to many people feeling a sense of “hopelessness and desperation” with nowhere to turn for help, according to the Canadian government’s own National Advisory Council on Poverty. 

At the same time Canadians are being driven into poverty, housing prices have skyrocketed, with a recent analysis estimating that a Canadian household now has to spend an unprecedented 63.5% of its income to afford a mortgage. 

At the same time, criminal incidents under the Trudeau government have increased 20 percent, with critics placing the blame on Trudeau’s “catch and release” policy, which allows dangerous criminals to walk free on bail.

Indeed, this policy has put many Canadians in danger, as was the case last month when a Brampton man charged with sexually assaulting a 3-year-old was reportedly out on bail for an October 2022 incident in which he was charged with assault with a dangerous weapon and possession of a dangerous weapon.  

As LifeSiteNews previously reported, a well-known Ottawa think tank warned that Canada’s justice system is unable to keep up with out-of-control crime that has risen sharply in the last few decades to the point where the national murder rate is at its highest in 30 years. 

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Bruce Dowbiggin

The Explosive Cost of Canada’s Civil Service Hiring Binge

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Most living in Canada would agree that a crumbling infrastructure and healthcare shortages could justify adding bodies to the public rolls. But a deep dive into those jobs extolled by the PM shows an explosion of new positions, not in public works or the military, but in the vanity areas of DEI, gender equality and climate change.

In the tsunami of miserable economic and political news generated by the Trudeau government the past decade, party flacks have always tried to point to job growth in the economy as a sign that they’re doing something right.

But if you look carefully at the numbers of full-time jobs “created”, it soon becomes apparent that most of the highly touted  “new” jobs are public-service positions. At all three levels of government the number of workers in Canada’s public sector has soared in recent years, far outpacing the hiring in the private sector.

For example, the federal public service has grown by 38 per cent since Prime Minister Justin Trudeau came to power in 2015, according to MEI, a Montreal-based think tank. During the Covid years, nine out of every ten jobs created was in the public service.

Here was Trudeau in 2022 cheering on his aggressive hiring processes, which have also included a similar growth in the use of consultants. “Thanks to your hard work and the hard work of Canadians across the country, Canada’s unemployment rate is the lowest it’s been since the start of the pandemic. In fact, more than 154,000 jobs were created last month — and … in the COVID-19 Era, more than one million jobs have been recovered.”

Most living in Canada would agree that a crumbling infrastructure and healthcare shortages could justify adding bodies to the public rolls. But a deep dive into those jobs extolled by the PM shows an explosion of new positions, not in public works or the military, but in the vanity areas of DEI, gender equality and climate change.

With their generous pensions and benefits these new employees are an expensive drag on the public purse. In addition, except for the very top of the pay scale, government salaries are typically higher than those in the public sector. Trudeau and Chrystia Freeland give Canadians the impression that their massive hiring binge— paid for by increasing debt— means a healthy growing economy. But the money that is moved from the private economy to public economies chokes productivity and creates inflation.

As a result, Canada’s GDP is lowest in the leading Western nations while its borrowing now sits at an unsustainable $713 billion. Carrying the debt is expected to cost the federal treasury $60.7 billion in 2028-29, according to the government’s own economic statement.

No wonder economists warn that this growth of government jobs is not sustainable in the long run. “If you look at how the private sector’s trending, it’s sharply decelerating,” Beata Caranci, chief economist at Toronto-Dominion Bank,

As just one example of runaway government hiring, listen to Kareem Allam, former Vancouver city budget chief, who went on Vancouver’s CKNW recently to describe how runaway hiring has affected his city. “We had 1,200 city employees in 2008. We have about 9,000 now. There are 700 people in the city of Vancouver staff that work full-time on climate change. And (yet) our GHG emissions keep going up.”

While Americans are experiencing the same bloating of the civil service, Allam points out that they are more efficient than Canadians. “Dawn Pinnock is the head of the Civil Service in the city of New York. She’s their city manager. And not only is she responsible for being the city manager, she’s also got the same responsibility as (Vancouver’s) Translink, but in New York.

And it’s a city that has thirteen times the population of Greater Vancouver. Dawn makes US$ 240,000 a year. Our CEO of Translink, our CEO of Metro Vancouver, and our city manager combined make $1.4 million. The executive from New York doing the job of essentially three executives here in the lower mainland, and yet making a fraction of what they make here.”

Naturally these salaries have to come from somewhere. That somewhere is tax. “It is unbelievable the amount of money that is pouring into city hall and the lack of accountability we’re seeing around how that money was being spent,” says Allam. “When Gregor Robertson first got elected as mayor in 2003 the city budget was $894 million. It’s going to be well over $2.4 billion this year.

“That’s almost a tripling of our taxes. Is anyone in Vancouver thinking that we’ve gotten a triple in the benefit of services? Are potholes getting better?”

There are some exceptions to the bloating of the public service and its budgets. In Calgary, the multi-billion Green Line transit system has been chewing through hundreds of millions without any progress. The original estimate of track was shrinking with the southeast part of the plan mothballed. Now the unpopular Green Line has been stopped by the provincial UCP government of Danielle Smith.

Assessing the project as a “boondoggle” Transportation minister Devin Dreeshen said, “This is unacceptable and our government is unable to support or provide funding for this revised Green Line Stage 1 scope as presented in the city’s most recent business case… throwing good money after bad is simply not an option for our government.” Calgary’s progressive city council is seeking to find alternatives (they could always build a direct link to the airport) before they’re tossed out of office in the next municipal elections.

Would that Ontario and Toronto governments had paused before creating their Metrolinx Crosstown subway line, the 25-stop, 19-kilometre project. Work began in 2011 and Metrolinx previously announced completion dates of 2020 and 2021. Its budget has now soared to $13 billion with stories emerging of 260 cases of quality control issues still pending at the start if the summer.

One of Pierre Poilievre’s favourite attack lines against the federal Liberals has been getting control of spending, making government live within its means as taxpayers do. No one expects him to slay the dragon as Javier Milie has done in Argentina. But Canadians will be looking to him to at least change the Trudeau Spend, Spend, Spend philosophy before it ruins the nation.

Bruce Dowbiggin @dowbboy is the editor of Not The Public Broadcaster  A two-time winner of the Gemini Award as Canada’s top television sports broadcaster, he’s a regular contributor to Sirius XM Canada Talks Ch. 167. His new book Deal With It: The Trades That Stunned The NHL And Changed hockey is now available on Amazon. Inexact Science: The Six Most Compelling Draft Years In NHL History, his previous book with his son Evan, was voted the seventh-best professional hockey book of all time by bookauthority.org . His 2004 book Money Players was voted sixth best on the same list, and is available via brucedowbigginbooks.ca.

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