Net Zero Part Three: No One Tells You How Much it Will Cost

Dan McTeague

Published

4 years ago

5 minute read

Last week, the National Observer, one of the voices of environmental activism in Canada, published an article entitled Natural Resources Canada probes net zero affordability.

The article references an internal memo from a senior public servant at Natural Resources Canada (NRCan – the federal government department that deals with resource issues such as energy). NRCan Assistant Deputy Minister Mollie Johnson, a senior bureaucrat, is the memo’s author, and in it she notes that the department has been looking into questions on how, amongst other things, the “Net Zero by 2050” campaign will affect affordability for consumers.

“how, amongst other things, the “Net Zero by 2050” campaign will affect affordability for consumers.”

Now, the National Observer provides a customary green dodge on the legitimate question about the costs of Net Zero by 2050, noting that this is the kind of question oil and gas industry players focus on. The National Observer goes on to insist that the real issue is that the costs of the climate crisis are soaring – they do not really specify what costs except to point to weather events and suggest these are getting worse and that the costs of them are becoming unmanageable (both are untrue – we will address in a future blog).

It is as if they are saying “How dare energy companies and their lobbyists have the nerve to ask questions about how government policy will affect their interests! How dare Mollie Johnson suggest questions concerning a policy’s impact on affordability might be appropriate for government officials to consider before advancing the policy!”

To the environmental activists and their friends at the National Observer, the very act of daring to raise one’s hand and ask about the radical green agenda that is Net Zero by 2050, to ask ‘how much will it cost?’, is simply unacceptable. Indeed, to the activists, raising such questions is so unacceptable that asking such questions should be forbidden.

And these green propagandists consistently fall back on the usual apocalyptic rhetoric about a “climate emergency” or “climate crisis”.

ADM Mollie Johnson of NRCan appears to be doing what you would hope a public servant would do: asking how much a policy will cost the taxpayer. Thank you Ms. Johnson!

But in this time of ideological green fervor, in the cult of climate action, you cannot dare ask such heretical and vulgar questions as how policy will affect the economic well-being of citizens.

I encourage all of our readers to do just that. Call your local utility, or bank or insurance company, or a mining company, or any other company that is currently espousing a commitment to Net Zero by 2050 – and ask them how much it will cost. How much will it cost in terms of direct taxpayer dollars? How many jobs will this cost? How much in lost tax revenue will it cost the government when the jobs are gone?

My bet is they can’t answer your question.

They don’t know.

Yet they still commit to Net Zero by 2050.

Net Zero Part 4 will be published on Todayville Thursday, June 10

Click here for more articles from Dan McTeague of Canadians for Affordable energy

Dan McTeague | President, Canadians for Affordable Energy

Widely sought for his extensive work and knowledge in energy pricing, Dan continues to provide valuable insights to North American media and policy makers. He brings three decades of experience and proven efforts on behalf of consumers in both the private and public spheres. Dan is committed to improving energy affordability for Canadians and promoting the benefits we all share in having a strong and robust energy sector.

Related Topics:#AffordableEnergy.ca #CanadiansForAffordableEnergy #DanMcTeague #NetZeroBy2050 #NoOneTellsYouHowMuchItWillCost feature

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Net Zero Part Two: Misleading Language

Dan McTeague

affodableenergy.ca

An 18 year veteran of the House of Commons, Dan is widely known in both official languages for his tireless work on energy pricing and saving Canadians money through accurate price forecasts. His Parliamentary initiatives, aimed at helping Canadians cope with affordable energy costs, led to providing Canadians heating fuel rebates on at least two occasions. Widely sought for his extensive work and knowledge in energy pricing, Dan continues to provide valuable insights to North American media and policy makers. He brings three decades of experience and proven efforts on behalf of consumers in both the private and public spheres. Dan is committed to improving energy affordability for Canadians and promoting the benefits we all share in having a strong and robust energy sector.

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Trump: China’s tariffs to “come down substantially” after negotiations with Xi

Published on April 23, 2025

Todayville

MxM News

Quick Hit:

President Trump said the 145% tariff rate on Chinese imports will drop significantly once a deal is struck with Chinese President Xi Jinping, expressing confidence that a new agreement is on the horizon.

Key Details:

Trump said the current 145% tariff rate on China “won’t be anywhere near that high” after negotiations.
He pointed to his relationship with Xi Jinping as a reason for optimism.
The White House said it is preparing the groundwork for a deal, and Treasury officials expect a “de-escalation” of the trade war.

Diving Deeper:

President Donald Trump on Tuesday told reporters that the steep tariff rate currently imposed on Chinese imports will come down substantially after his administration finalizes a new trade deal with Chinese President Xi Jinping. While the current level stands at 145%, Trump made clear that number was temporary and would be adjusted following talks with Beijing.

“145 percent is very high. It won’t be that high, it’s not going to be that high … it won’t be anywhere near that high,” Trump said from the Oval Office, signaling a shift once a bilateral agreement is reached. “It will come down substantially, but it won’t be zero.”

The tariff, which Trump previously described as “reciprocal,” was maintained on China even after he delayed similar penalties on other trading partners. Those were cut to 10% and paused for 90 days to allow room for further negotiation.

“We’re going to be very nice. They’re going to be very nice, and we’ll see what happens. But ultimately, they have to make a deal because otherwise they’re not going to be able to deal in the United States,” Trump said, reinforcing his view that the U.S. holds the leverage.

Trump’s remarks come as markets remain wary of ongoing trade tensions, though the White House signaled progress, saying it is “setting the stage for a deal with China.” The president cited his personal rapport with Xi Jinping as a key factor in his confidence that an agreement can be reached.

“China was taking us for a ride, and it’s not going to happen,” Trump said. “They would make billions a year off us and build up their military with our money. That’s over. But we’ll still be good to China, and I think we’ll work together.”

Treasury Secretary Scott Bessent also said Tuesday that he expects a cooling of trade hostilities between the two nations, according to several reports from a private meeting with investors.

As the 90-day pause on other reciprocal tariffs nears its end, Trump emphasized that his team is prepared to finalize deals quickly. “We’ve been in talks with many, many world leaders,” he said, expressing confidence that talks will “go pretty quickly.”

White House Press Secretary Karoline Leavitt added that the administration has received 18 formal proposals from other countries engaged in trade negotiations, another sign that momentum is building behind Trump’s broader push to restructure global trade in favor of American workers and businesses.

(Li Xueren/Xinhua via AP)

2025 Federal Election

Next federal government should end corporate welfare for forced EV transition

Published on April 23, 2025

Todayville

From the Fraser Institute

By Tegan Hill and Jake Fuss

Corporate welfare simply shifts jobs and investment away from other firms and industries—which are more productive, as they don’t require government funding to be economically viable—to the governments’ preferred industries and firms, circumventing the preferences of consumers and investors. And since politicians spend other people’s money, they have little incentive to be careful investors.

General Motors recently announced the temporary closure of its electric vehicle (EV) manufacturing plant in Ontario, laying off 500 people because its new EV isn’t selling. The plant will shut down for six months despite hundreds of millions in government subsides financed by taxpayers. This is just one more example of corporate welfare—when governments subsidize favoured industries and companies—and it’s time for the provinces and the next federal government to eliminate it.

Between the federal government and Ontario government, GM received about $500 million to help fund its EV transition. But this is just one example of corporate welfare in the auto sector. Stellantis and Volkswagen will receive about $28 billion in government subsidies while Honda is promised $5 billion.

More broadly, from 2007 to 2019, the last pre-COVID year of data, the federal government spent an estimated $84.6 billion (adjusted for inflation) on corporate welfare while provincial and local governments spent another $302.9 billion. And crucially, these numbers exclude other forms of government support such as loan guarantees, direct investments and regulatory privileges, so the actual cost of corporate welfare during this period was much higher.

Of course, politicians claim that corporate welfare benefits workers. Yet according to a significant body of research, corporate welfare fails to generate widespread economic benefit. Think of it this way—if the businesses that received subsidies were viable to begin with, they wouldn’t need government support. So unprofitable companies are kept in business through governments’ support, which can prevent resources, including investment and workers, from moving to profitable companies, hurting overall economic growth.

Put differently, rather than fuelling economic growth, corporate welfare simply shifts jobs and investment away from other firms and industries—which are more productive, as they don’t require government funding to be economically viable—to the governments’ preferred industries and firms, circumventing the preferences of consumers and investors. And since politicians spend other people’s money, they have little incentive to be careful investors.

Governments also must impose higher tax rates on everyone else to pay for corporate welfare. In turn, higher tax rates discourage entrepreneurship and business investment—again, which fuels economic growth. And the higher the tax rates, the more economic activity they discourage.

GM’s EV plant shut down once again proves that when governments try to engineer the economy with corporate welfare, workers will ultimately lose. It’s time for the provinces and the next federal government—whoever it may be—to finally put an end to this costly and ineffective policy approach.