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Feds move target for net-zero grid back 15 years. Western provinces say it’s not of their business

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From Resource Works

“These latest measures fail to recognize provinces have jurisdiction over the development and management of electricity. The federal regulations are duplicative, inefficient, and add to costs.”

The federal government has clarified its clean-energy goal for a net-zero power grid.

Its final Clean Electricity Regulations target a net-zero grid across the country by 2050. But didn’t Ottawa previously, in August 2023, set a goal of 2035?

Certainly, one leading environmental group declared: “The federal government has committed to achieving zero-emissions electricity by 2035.”

And a law firm that analyses energy matters told followers in August 2023: “Government of Canada releases draft Clean Electricity Regulations aimed at achieving net-zero emissions from Canada’s electricity grid by 2035.”

What Ottawa said in August 2023 was this: “The proposed regulations would set performance standards that would ensure that the sector achieves significant transformation by 2035, so that a robust foundation of clean electricity is available to power the electric technologies (e.g., electric transportation) needed to support Canada’s transition to a net-zero GHG emissions economy by 2050.”

Announcing that 2035 goal was a case of fuzzy wording, according to Energy Minister Jonathan Wilkinson. He said Ottawa could have been more precise in its language and context around what exactly the 2035 target referred to.

He now says: “2035 was really having a plan as to how you were going to reduce emissions to be able to get to a net-zero economy by 2050… Perhaps we were not as precise with our language as we should have been.”

Environment Minister Steven Guilbeault issued an update in February 2024: “All G7 countries, including Canada and the United States, have committed to transitioning to a net-zero electricity grid as a foundational measure to help achieve low-carbon economies by 2050.”

And he now says: “We knew from the get-go, from where we are to where we need to be, we couldn’t get there in 10 years… It was always our intention that we want to see things happening before 2035. But that we wouldn’t be able to get to a decarbonized grid before 2050.”

Whatever they said, meant, clarified, updated, and/or corrected, the new regulations face opposition and a court challenge from Alberta, for one.

Premier Danielle Smith criticized the latest regulations as unconstitutional, arguing they seek to regulate an area of provincial jurisdiction.

“After years of watching the federal government gaslight Canadians about the feasibility of achieving a net-zero power grid by 2030, we are gratified to see Ottawa finally admit that the Government of Alberta’s plan to achieve a carbon-neutral power grid by 2050 is a more responsible, affordable, and realistic target.

“That said, the federal government’s finalized electricity regulations remain entirely unconstitutional as they seek to regulate in an area of exclusive provincial jurisdiction. They also require generators to meet unreasonable and unattainable federally mandated interim targets beginning in 2035, which will still make electricity unaffordable for Canadian families.

“Alberta will therefore be preparing an immediate court challenge of these electricity regulations.”

Saskatchewan’s government said in a news release that it will simply not comply with the new regulations.

“Our government unequivocally rejects federal intrusion into our exclusive provincial jurisdiction over the electricity system.

“Saskatchewan will prioritize maintaining an affordable and reliable electricity grid to support our regional needs and growth. The federal Clean Electricity Regulations are unconstitutional, unaffordable, unachievable, and Saskatchewan cannot, and will not, comply with them.”

The Business Council of BC slammed the new federal regulations on multiple grounds: constitutionality, jeopardizing the reliability of electricity delivery, higher costs for businesses and households, limiting investment, regional inequities, technological limitations, and risks to greenhouse-gas management.

“These latest measures fail to recognize provinces have jurisdiction over the development and management of electricity. The federal regulations are duplicative, inefficient, and add to costs.”

And: “It is important to recognize that Canada’s combined electricity systems are already 84% non-emitting, and that electricity represents less than 10% of Canada’s total emissions. The sector has made more progress in reducing emissions than any other sector in the country over the past two decades.

“We urge the government to set aside these new regulations and work collaboratively with the electricity sector to develop a more balanced approach that respects provincial roles and will not risk undermining investment and driving up costs. The path to a cleaner energy system requires cooperation, not regulation.”

The latest announcement from Ottawa includes these statements:

  • “Federal analyses find that the Regulations have no impact on electricity rates for the vast majority of Canadians, and in some cases, will even have a slightly positive impact on rates. Independent third-party expert modelling substantiates federal analysis that the Regulations are feasible.
  • “To ensure rates are affordable for Canadian families over the coming decade, the federal government is investing $60 billion to support the electricity sector.
  • “The adoption of efficient electric appliances, vehicles, and heat pumps presents an enormous opportunity for families to save money on their energy bills.
  • “In the shift to clean electricity, 84% of households are expected to spend less on their monthly energy costs, when accounting for the over $60 billion in federal clean electricity incentives. This could lead to $15 billion in total energy-related savings for Canadians by 2035.”

All subject to clarification, updating, and/or correction—and Alberta’s promised court case.

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Bank of Canada Slashes Interest Rates as Trade War Wreaks Havoc

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The Opposition with Dan Knight

With businesses cutting jobs, inflation rising, and consumer confidence collapsing, the BoC scrambles to contain the damage

The Bank of Canada just cut interest rates again, this time by 25 basis points, bringing the rate down to 2.75%. On the surface, that might sound like good news—lower rates usually mean cheaper borrowing, easier access to credit, and in theory, more money flowing into the economy. But let’s be clear about what’s actually happening here. The Canadian economy isn’t growing because of strong fundamentals or responsible fiscal policy. The Bank of Canada is slashing rates because the Trudeau—sorry, Carney—government has utterly mismanaged this country’s economic future. And now, with the U.S. slapping tariffs on Canadian goods and our government responding with knee-jerk retaliatory tariffs, the central bank is in full-blown damage control.

Governor Tiff Macklem didn’t mince words at his press conference. “The Canadian economy ended 2024 in good shape,” he insisted, before immediately admitting that “pervasive uncertainty created by continuously changing U.S. tariff threats have shaken business and consumer confidence.” In other words, the economy was doing fine—until reality set in. And that reality is simple: a trade war with our largest trading partner is economic suicide, yet the Canadian government has charged headlong into one.

Macklem tried to explain the Bank’s thinking. He pointed out that while inflation has remained close to the BoC’s 2% target, it’s expected to rise to 2.5% in March thanks to the expiry of a temporary GST holiday. That’s right—Canadians are about to get slammed with higher prices on top of already sky-high costs for groceries, gas, and basic necessities. But that’s not even the worst part. Macklem admitted that while inflation will go up, consumer spending and business investment are both set to drop as a result of this economic uncertainty. Businesses are pulling back on hiring. They’re delaying investment. They’re scared. And rightly so.

A BoC survey released alongside the rate decision shows that 40% of businesses plan to cut back on hiring, particularly in manufacturing, mining, and oil and gas—precisely the industries that were already hammered by Ottawa’s obsession with green energy and ESG policies. As Macklem put it, “Canadians are more worried about their job security and financial health as a result of trade tensions, and they intend to spend more cautiously.” In other words, this is self-inflicted. The government could have pursued a different approach. It could have worked with the U.S. to de-escalate trade tensions. Instead, Mark Carney—an unelected, Davos-approved globalist—is running the show, doubling down on tariffs that will raise prices for Canadians while doing absolutely nothing to change U.S. policy.

The worst part is that the Bank of Canada is completely cornered. It can’t provide forward guidance on future rate decisions because, as Macklem admitted, it has no idea what’s going to happen next. “We are focused on assessing the upward pressure on inflation from tariffs and a weaker dollar, and the downward pressure from weaker domestic demand,” he said. That’s central banker-speak for: We’re guessing, and we hope we don’t screw this up. And if inflation does spiral out of control, the BoC could be forced to raise rates instead of cutting them.

At the heart of this mess is a government that has spent years inflating the size of the state while crushing private sector growth. Macklem admitted that consumer and business confidence has been “sharply affected” by recent developments. That’s putting it mildly. The Canadian dollar has dropped nearly 5% since January, making everything imported from the U.S. more expensive. Meanwhile, Ottawa has responded to U.S. tariffs with a tit-for-tat strategy, placing nearly $30 billion in retaliatory tariffs on American goods. The BoC is now forced to clean up the wreckage, but it’s like trying to put out a fire with a garden hose.

And what about unemployment? Macklem dodged giving a direct forecast, but he didn’t exactly sound optimistic. “We expect the first quarter to be weaker,” he said. “If household demand, if business investment remains restrained in the second quarter, and you’ll likely see weakness in exports, you could see an even weaker second quarter.” That’s code for job losses. It’s already happening. The hiring freezes, the canceled investments—those translate into real layoffs, real pay cuts, real suffering for Canadian families.

Meanwhile, inflation expectations are rising. And once those expectations set in, they become nearly impossible to undo. Macklem was careful in his wording, but the meaning was clear: “Some prices are going to go up. We can’t change that. What we particularly don’t want to see is that first round of price increases have knock-on effects, causing other prices to go up… becoming generalized and ongoing inflation.” Translation: We know this is going to hurt Canadians, we just hope it doesn’t spiral out of control.

If this sounds familiar, that’s because it is. The same policymakers who told you that inflation was “transitory” in 2021 and then jacked up rates at record speed are now telling you that trade war-driven inflation will be “temporary.” But remember this: the BoC is only reacting to the mess created by politicians. The real blame lies with the people in charge. And now, that’s Mark Carney.

Macklem refused to comment on Carney’s role as prime minister, insisting that the BoC remains “independent” from politics. That’s cute. But the damage is already done. Ottawa picked a fight with the U.S. and now the BoC is left trying to prevent a full-scale economic downturn. The problem is, monetary policy can’t fix bad leadership. Canadians are the ones who will pay the price.

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USAID reportedly burning, shredding classified documents

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From The Center Square

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The U.S. Agency for International Development is facing criticism after news broke that federal employees were reportedly told to burn or shred classified documents.

USAID has been the center of controversy since President Donald Trump took office, and billionaire Elon Musk directed the Department of Government Efficiency to expose a slew of spending items widely mocked and criticized, from transgender operas to propaganda overseas and more.

A senior USAID official reportedly sent a memo to employees directing them to destroy the documents, raising questions about legality and transparency at the embattled agency.

“Shred as many documents first, and reserve the burn bags for when the shredder becomes unavailable or needs a break,” reads the email obtained by Politico.

Hans von Spakovsky, a legal expert at the conservative Heritage Foundation, wrote on X that “these employees are committing felonies under 18 USC 1519 in destroying Gov documents,” arguing that they “should all be criminally prosecuted especially acting director of USAID.”

Secretary of State Marco Rubio announced last week that 83% of of USAID contracts were terminated, though a federal judge has limited the federal government’s ability to stop paying out at least some contracts. Where this lands legally remains unclear as it works its way through the courts.

“In consultation with Congress, we intend for the remaining 18% of programs we are keeping (approximately 1000) to now be administered more effectively under the State Department,” Rubio said.

D.C. Bureau Reporter

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