Energy
Why Eastern Canada Needs to Support Western Provinces and Reject the Government’s Energy Policies
From EnergyNow.ca
By Catherine Swift
There are currently about 400 different laws, regulations, taxes and other measures in Canada that serve as greenhouse gas (GHG) reduction measures. No one has a clue which of them are effective or useless or how much they are damaging our economy and reducing Canadians’ standard of living needlessly.
From the Fraser Institute
Two recent events exemplify the fundamental irrationality that is Canada’s electric vehicle (EV) policy.
First, the Carney government re-committed to Justin Trudeau’s EV transition mandate that by 2035 all (that’s 100 per cent) of new car sales in Canada consist of “zero emission vehicles” including battery EVs, plug-in hybrid EVs and fuel-cell powered vehicles (which are virtually non-existent in today’s market). This policy has been a foolish idea since inception. The mass of car-buyers in Canada showed little desire to buy them in 2022, when the government announced the plan, and they still don’t want them.
Second, President Trump’s “Big Beautiful” budget bill has slashed taxpayer subsidies for buying new and used EVs, ended federal support for EV charging stations, and limited the ability of states to use fuel standards to force EVs onto the sales lot. Of course, Canada should not craft policy to simply match U.S. policy, but in light of policy changes south of the border Canadian policymakers would be wise to give their own EV policies a rethink.
And in this case, a rethink—that is, scrapping Ottawa’s mandate—would only benefit most Canadians. Indeed, most Canadians disapprove of the mandate; most do not want to buy EVs; most can’t afford to buy EVs (which are more expensive than traditional internal combustion vehicles and more expensive to insure and repair); and if they do manage to swing the cost of an EV, most will likely find it difficult to find public charging stations.
Also, consider this. Globally, the mining sector likely lacks the ability to keep up with the supply of metals needed to produce EVs and satisfy government mandates like we have in Canada, potentially further driving up production costs and ultimately sticker prices.
Finally, if you’re worried about losing the climate and environmental benefits of an EV transition, you should, well, not worry that much. The benefits of vehicle electrification for climate/environmental risk reduction have been oversold. In some circumstances EVs can help reduce GHG emissions—in others, they can make them worse. It depends on the fuel used to generate electricity used to charge them. And EVs have environmental negatives of their own—their fancy tires cause a lot of fine particulate pollution, one of the more harmful types of air pollution that can affect our health. And when they burst into flames (which they do with disturbing regularity) they spew toxic metals and plastics into the air with abandon.
So, to sum up in point form. Prime Minister Carney’s government has re-upped its commitment to the Trudeau-era 2035 EV mandate even while Canadians have shown for years that most don’t want to buy them. EVs don’t provide meaningful environmental benefits. They represent the worst of public policy (picking winning or losing technologies in mass markets). They are unjust (tax-robbing people who can’t afford them to subsidize those who can). And taxpayer-funded “investments” in EVs and EV-battery technology will likely be wasted in light of the diminishing U.S. market for Canadian EV tech.
If ever there was a policy so justifiably axed on its failed merits, it’s Ottawa’s EV mandate. Hopefully, the pragmatists we’ve heard much about since Carney’s election victory will acknowledge EV reality.
Kenneth P. Green
Senior Fellow, Fraser Institute
From the Daily Caller News Foundation
By Audrey Streb
President Donald Trump issued an executive order calling for the end of green energy subsidies by strengthening provisions in the One Big Beautiful Bill Act on Monday night, citing national security concerns and unnecessary costs to taxpayers.
The order argues that a heavy reliance on green energy subsidies compromise the reliability of the power grid and undermines energy independence. Trump called for the U.S. to “rapidly eliminate” federal green energy subsidies and to “build upon and strengthen” the repeal of wind and solar tax credits remaining in the reconciliation law in the order, directing the Treasury Department to enforce the phase-out of tax credits.
“For too long, the Federal Government has forced American taxpayers to subsidize expensive and unreliable energy sources like wind and solar,” the order states. “Reliance on so-called ‘green’ subsidies threatens national security by making the United States dependent on supply chains controlled by foreign adversaries.”
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Former President Joe Biden established massive green energy subsidies under his signature 2022 Inflation Reduction Act (IRA), which did not receive a single Republican vote.
The reconciliation package did not immediately terminate Biden-era federal subsidies for green energy technology, phasing them out over time instead, though some policy experts argued that drawn-out timelines could lead to an indefinite continuation of subsidies. Trump’s executive order alludes to potential loopholes in the bill, calling for a review by Secretary of the Treasury Scott Bessent to ensure that green energy projects that have a “beginning of construction” tax credit deadline are not “circumvented.”
Additionally, the executive order directs the U.S. to end taxpayer support for green energy supply chains that are controlled by foreign adversaries, alluding to China’s supply chain dominance for solar and wind. Trump also specifically highlighted costs to taxpayers, market distortions and environmental impacts of subsidized green energy development in explaining the policy.
Ahead of the reconciliation bill becoming law, Trump told Republicans that “we’ve got all the cards, and we are going to use them.” Several House Republicans noted that the president said he would use executive authority to enhance the bill and strictly enforce phase-outs, which helped persuade some conservatives to back the bill.
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The federal Liberal government’s approach to energy policy has created problematic regional divisions across Canada. It’s time for the East to reject these crass politics and show greater support for the West.
Two recent court decisions — one at the Supreme Court and another at the Federal Court — have ruled against the federal government with respect to the Impact Assessment Act (the “No More Pipelines Bill”) and the single-use plastics ban. The courts found these laws to be unconstitutional as the federal government had intruded on provincial jurisdiction, among some other considerations such as the absurdity of declaring plastics “toxic.”
Around the same time, Environment Minister Steven Guilbeault announced a punitive new emissions cap on the oil and gas industry at COP28, which was also attended by Alberta Premier Danielle Smith and Saskatchewan Premier Scott Moe. This was seemingly timed to embarrass Guilbeault’s provincial counterparts and the Canadian oil and gas executives in attendance.
Back in October, Prime Minister Justin Trudeau announced a three-year exemption for home heating oil from the carbon tax. As heating oil is only used extensively in the Atlantic provinces, this was clearly an attempt to win back sharply declining Liberal support in that region. After Liberals claimed the carbon tax must be applied everywhere — in every industry and every region — this move served as a complete refutation of everything the Liberals had said before. It completely undermined their rationale for the carbon tax.
Meanwhile, countries around the world such as the United Kingdom and much of the European Union have been abandoning or significantly watering down their “net-zero” plans. Auto manufacturers are backing off production of electric vehicles (EVs) as they are not selling and all the lofty goals of the climate-crisis crowd are being questioned, as it has become clear the impact of these policies is hugely damaging to the economy and our standard of living.
For the trillions of dollars spent around the globe to attain the elusive net-zero target, very little has been achieved other than negative impacts on average citizens. Meanwhile, an elite class of “green” activists and government officials travel around the world first-class on the taxpayers’ dime, spewing much carbon in the process.
There are currently about 400 different laws, regulations, taxes and other measures in Canada that serve as greenhouse gas (GHG) reduction measures. No one has a clue which of them are effective or useless or how much they are damaging our economy and reducing Canadians’ standard of living needlessly. This is because the Trudeau government never evaluates the effectiveness of its policies.
The Liberals first sold us the carbon tax as the only measure needed to reduce GHGs, arguing it was a market-based mechanism that would motivate consumers and businesses to make their own sensible decisions to reduce fossil fuel usage. We were also told by former environment minister Catherine McKenna the carbon tax would never exceed $50 a tonne, which we now know was just one of many Liberal bald-faced lies as the tax is slated to increase to at least $170/tonne by 2030.
Despite dishonest claims the carbon tax was the only measure needed, we have subsequently seen the so-called Clean Fuel Standard, the absurdly red-tape intensive Impact Assessment Act (which the Supreme Court has now overthrown), and Guilbeault’s recent emissions cap.
Interestingly, other parts of the economy emit similar amounts of GHGs as the oil and gas sector, but those industries are not subject to an emissions cap. Could it be because those industries are located in regions that tend to vote Liberal, unlike Alberta and Saskatchewan? Perish the thought!
Throughout all of the climate policy overkill, the provinces of Alberta and Saskatchewan have remained steadfast in opposing foolish federal government initiatives based on facts, science and constitutional law. All Canadians should know that Alberta in particular is a disproportionately significant contributor to the rest of Canada in many ways — equalization payments, contributions to programs such as CPP and Employment Insurance as well as personal and corporate taxation and royalty revenue from the oil and gas industry.
It was truly ironic that, in the context of the federal budget earlier this year, Finance Minister Chrystia Freeland boasted that government revenues had come in higher than forecast. Yet the key source for this excess revenue was the oil and gas sector the Liberals are working hard to kill.
Alberta and Saskatchewan have been doing yeoman’s work defending the jurisdictional rights of all provinces and opposing the costly and unproductive federal government policies. At the same time, their success is boosting the economy of the whole country.
While Trudeau plays his destructive and divisive regional games — putting in place policies that benefit some parts of Canada while punishing others — all in the name of Liberal votes, the whole of Canada should call his bluff and support the leadership role that is being taken by the Prairie provinces.
The next federal election would be an ideal time to demonstrate that support.
Catherine Swift is president of the Coalition of Concerned Manufacturers and Businesses of Canada