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Automotive

Trudeau’s electric vehicle mandate could cause Canada’s power grid to collapse, analysis shows

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6 minute read

From LifeSiteNews

By Anthony Murdoch

Not only would the need to generate more electric power skyrocket, but prices and taxes would soar for consumers, a Fraser Institute study found.

A noted fiscally conservative think tank warned that a proposed federal mandate from the government of Prime Minister Justin Trudeau to ban the sale of new gasoline/diesel-only powered cars after 2035 and allow electric-only sales is an unrealistic fantasy that would cause massive chaos by threatening to collapse the nation’s power grids.

“Requiring all new vehicle sales in Canada to be electric in just 11 years means the provinces need to substantially increase their power generation capabilities, and adding the equivalent of 10 new mega-dams or 13 new gas plants in such a short timeline isn’t realistic or feasible,” said G. Cornelis van Kooten, a Fraser Institute senior fellow and author of “Failure to Charge: A Critical Look at Canada’s EV Policy.”

“Canadians need to know just how much additional electricity is going to be required in order to meet Ottawa’s electric vehicle mandate, because its impact on the provinces — and taxpayers and rate payers — will be significant.”

Van Kooten’s in-depth analysis of the impending electric vehicle (EV) mandate was released March 14 and estimates that to meet the 2035 target national electric generation would need to go up some 15.3% in only 11 years, which is a monumental task.

This would mean building no less than 10 new mega hydro dams nationwide, or at least 13 new large natural gas plants, according to Van Kooten. For those pushing so-called “green” power, that would mean some 5,000 new wind turbines, which all must still be backed up by natural gas peaker plants because of their unreliability when the wind is not blowing.

Given the length of time it takes to build a natural gas plant due to red tape, costs, and other factors, van Kooten observed that “the major obstacle relates to the likelihood of constructing sufficient power generating capacity to meet the anticipated demand EVs would impose on electricity grids.”

“The real-world situation is not as easy as merely replacing current ICE vehicles with EVs, and there are many obstacles to be overcome on the path of electrifying the personal vehicle fleets within Canada,” he said.

“The type of electricity that goes into the grid would also be a big consideration when switching over to EVs, as jurisdictions will need to increase their electricity production capabilities with green sources that meet the additional hourly load requirements and can be employed quickly to balance intermittent renewable energy sources.”

Van Kooten’s study looks at how much extra electricity will be required in all of Canada’s biggest provinces, Ontario, British Columbia, and Quebec to meet the 2035 EV mandate.

Trudeau plans to ban the sale of new gasoline-powered cars after 2035. The EU (European Union) also has an EV mandate in place for the same year.

Canadian Environment Minister Steven Guilbeault announced just before Christmas the “Electric Vehicle Availability Standard.” This is a plan that will mandate that all new cars and trucks by 2035 be electric, which would in effect ban the sale of new gasoline- or diesel-only powered vehicles after that year.

The reality is that electric cars cost thousands more to make and buy, are not suited to Canada’s cold climate, offer poor range and long charging times (especially in cold weather), and have batteries that take tremendous resources to make and are hard to recycle.

Just over a week ago, LifeSiteNews reported that a 2022 study found that electric vehicles pollute at a rate far higher than their gasoline or diesel-powered counterparts.

Not all Canadian provinces are on board Trudeau’s EV dictate

In January, LifeSiteNews reported that Alberta’s Minister of Energy criticized the federally funded Canadian Broadcasting Corporation (CBC) for publishing a report stating that electric cars are better able to handle cold weather than gas-powered ones, all at the same time an extreme cold snap gripped much of western Canada and nearly caused Alberta’s power grid to collapse due to its increased reliance on so-called renewable energy.

Alberta Premier Danielle Smith has promised that she intends to fight with “everything” at her disposal what she called an “unconstitutional” new federal government EV mandate as well as a net-zero power generation, which if implemented would lead to guaranteed power outages.

She noted that when it comes to Trudeau’s EV mandate, “Ottawa is trying to force increased demands on the electricity grid while simultaneously weakening Alberta’s and other provinces’ grids through their federal electricity regulations.”

Trudeau’s EV mandates have also been called out by the automotive industry in Canada. The Canadian Vehicle Manufacturers’ Association said in response to the new EV mandate that forcing people to buy EVs will “disproportionately impact households living in rural and northern communities that may have lower access to public charging infrastructure.”

 

Alberta

Premier Smith says Auto Insurance reforms may still result in a publicly owned system

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Better, faster, more affordable auto insurance

Alberta’s government is introducing a new auto insurance system that will provide better and faster services to Albertans while reducing auto insurance premiums.

After hearing from more than 16,000 Albertans through an online survey about their priorities for auto insurance policies, Alberta’s government is introducing a new privately delivered, care-focused auto insurance system.

Right now, insurance in the province is not affordable or care focused. Despite high premiums, Albertans injured in collisions do not get the timely medical care and income support they need in a system that is complex to navigate. When fully implemented, Alberta’s new auto insurance system will deliver better and faster care for those involved in collisions, and Albertans will see cost savings up to $400 per year.

“Albertans have been clear they need an auto insurance system that provides better, faster care and is more affordable. When it’s implemented, our new privately delivered, care-centred insurance system will put the focus on Albertans’ recovery, providing more effective support and will deliver lower rates.”

Danielle Smith, Premier

“High auto insurance rates put strain on Albertans. By shifting to a system that offers improved benefits and support, we are providing better and faster care to Albertans, with lower costs.”

Nate Horner, President of Treasury Board and Minister of Finance

Albertans who suffer injuries due to a collision currently wait months for a simple claim to be resolved and can wait years for claims related to more serious and life-changing injuries to addressed. Additionally, the medical and financial benefits they receive often expire before they’re fully recovered.

Under the new system, Albertans who suffer catastrophic injuries will receive treatment and care for the rest of their lives. Those who sustain serious injuries will receive treatment until they are fully recovered. These changes mirror and build upon the Saskatchewan insurance model, where at-fault drivers can be sued for pain and suffering damages if they are convicted of a criminal offence, such as impaired driving or dangerous driving, or conviction of certain offenses under the Traffic Safety Act.

Work on this new auto insurance system will require legislation in the spring of 2025. In order to reconfigure auto insurance policies for 3.4 million Albertans, auto insurance companies need time to create and implement the new system. Alberta’s government expects the new system to be fully implemented by January 2027.

In the interim, starting in January 2025, the good driver rate cap will be adjusted to a 7.5% increase due to high legal costs, increasing vehicle damage repair costs and natural disaster costs. This protects good drivers from significant rate increases while ensuring that auto insurance providers remain financially viable in Alberta.

Albertans have been clear that they still want premiums to be based on risk. Bad drivers will continue to pay higher premiums than good drivers.

By providing significantly enhanced medical, rehabilitation and income support benefits, this system supports Albertans injured in collisions while reducing the impact of litigation costs on the amount that Albertans pay for their insurance.

“Keeping more money in Albertans’ pockets is one of the best ways to address the rising cost of living. This shift to a care-first automobile insurance system will do just that by helping lower premiums for people across the province.”

Nathan Neudorf, Minister of Affordability and Utilities

Quick facts

  • Alberta’s government commissioned two auto insurance reports, which showed that legal fees and litigation costs tied to the province’s current system significantly increase premiums.
  • A 2023 report by MNP shows
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Automotive

Bad ideology makes Canada’s EV investment a bad idea

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Dan McTeague

Written By

It doesn’t bode well for our country that our economic security rests on tariff exceptions to be negotiated by Liberal politicians who have spent the majority of Trump’s public life calling him a “threat to liberal democracy” and his supporters racists and fascists. Their hostility doesn’t lend itself to fruitful diplomacy. In any event, Trump’s EV rollback and aggressive tariffs will spell disaster for the Canadian EV sector.

What does Donald Trump’s resounding win in the recent U.S. election mean for Canada? Unfortunately, there doesn’t seem to have been much thought about the answer to this question in Ottawa, because the vast majority of our political and pundit class expected his opponent to be victorious. Suddenly they’re all having to process this unwelcome intrusion of reality into their narrow mental picture.

Well, what does it mean?

It is early days, and it will take some time to sift through the various policy commitments of the incoming Trump Administration to unpack the Canadian angle. But one thing we do know is that a Trump presidency will be no friend to the electric vehicle industry.

A Harris administration would have been. But, Trump spent much of his campaign slamming EV subsidies and mandates, pledging at the Republican National Convention in July that he will “end the electric vehicle mandate on day one.”

This line was so effective, especially in must-win Michigan, with its hundreds of thousands of autoworkers, that Kamala Harris was forced to assure everyone who listened that the U.S. has no EV mandate, and that she has no intention of introducing one.

Of course, this wasn’t strictly true.

First, the Biden Administration, of which Harris was a part, issued an Executive Order with the explicit goal of a “50% Electric Vehicle Sales Share” by 2030. The Biden-Harris Administration (to use their own formulation) instructed their Environmental Protection Agency (EPA) to introduce increasingly stringent tailpipe emission regulations on cars and light trucks with an eye towards pushing automakers to manufacture and sell more electric and hybrid vehicles.

Their EPA also issued a waiver which allows California to enact auto emissions regulations that are tougher than the federal government’s, which functions as a kind of back-door EV mandate nationally. After all, auto companies aren’t going to manufacture one set of vehicles for California, the most populous state, and another for the rest of the country.

And as for intentions, though the Harris camp consistently held that her prior policy positions shouldn’t be held against her, it’s hard to forget that as senator she’d co-sponsored the Zero-Emission Vehicles Act, which would have mandated that all new vehicles sold in the U.S. be “zero emission” by 2040. During her failed 2020 presidential campaign, Harris accelerated that proposed timeline, saying that the auto market should be all-electric by 2035.

In other words, she seemed pretty fond of the EV policies which Justin Trudeau and Steven Guilbeault have foisted upon Canada.

For Trump, all of these policies can be filed under “green new scam” climate policies, which stifle American resource development and endanger national prosperity. Now that he’s retaken the White House, it is expected that he will issue his own executive orders to the EPA, rescinding Biden’s tailpipe instructions and scrapping their waiver for California. And though he will be hindered somewhat by Congress, he’s likely to do everything in his power to roll back the EV subsidies contained in the (terribly named) Inflation Reduction Act and lobby for changes limiting which EVs qualify for tax credits, and how much.

All of this will be devastating for the EV industry, which is utterly reliant on the carrots and sticks of subsidies and mandates. And it’s particularly bad news for the Trudeau government (and Doug Ford’s government in Ontario), which have gone all-in on EVs, investing billions of taxpayer dollars to convince automakers to build their EVs and batteries here.

Remember that “vehicles are the second largest Canadian export by value, at $51 billion in 2023 of which 93% was exported to the U.S.,” according to the Canadian Vehicle Manufacturers Association, and “Auto is Ontario’s top export at 28.9% of all exports (2023).”

Canada’s EV subsidies were pitched as an “investment” in an evolving auto market, but that assumes that those pre-existing lines of trade will remain essentially unchanged. If American EV demand collapses, or significantly contracts without mandates or tax incentives, we’ll be up the river without a paddle.

And that will be true, even if the U.S. EV market proves more resilient than I expect it to. That is because of Trump’s commitment to “Making America Great Again” by boosting American manufacturing and the jobs it provides. He campaigned on a blanket tariff of 10 percent on all foreign imports, with no exceptions mentioned. This would have a massive impact on Canada, since the U.S. is our largest trading partner.

Though Justin Trudeau and Chrystia Freeland have been saying to everyone who will listen how excited they are to work with the Trump Administration again, and “Canada will be fine,” it doesn’t bode well for our country that our economic security rests on tariff exceptions to be negotiated by Liberal politicians who have spent the majority of Trump’s public life calling him a “threat to liberal democracy” and his supporters racists and fascists. Their hostility doesn’t lend itself to fruitful diplomacy.

In any event, Trump’s EV rollback and aggressive tariffs will spell disaster for the Canadian EV sector.

The optimism that existed under the Biden administration that Canada could significantly increase its export capacity to the USA is going down the drain. The hope that “Canada could reestablish its export sector as a key driver of growth by positioning itself as a leader in electric vehicle and battery manufacturing, along with other areas in cleantech,” in the words of an RBC report, is swiftly fading. It seems more likely now that Canada will be left holding the bag on a dying industry in which we’re invested heavily.

The Trudeau Liberals’ aggressive push, driven by ideology and not market forces, to force Electric Vehicles on everyone is already backfiring on the Canadian taxpayer. Pierre Poilievre must take note — EV mandates and subsidies are bad for our country, and as Trump has demonstrated, they’re not a winning policy. He should act accordingly.

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