Economy
Fixing the Trudeau – Guilbeault Policy Mess May Take Longer Than We’d Like – Here’s Why
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From EnergyNow.ca
By Jim Warren
By spring 2024 it was pretty clear the Liberal government was headed for palliative care. A Leger poll on May 25 and an Abacus poll June 10 showed the Conservatives with a 20 point lead over the Liberals.
As the likelihood of their imminent defeat increased, the Trudeau Liberals stepped up the implementation of legislation and regulations inimical to the gas and petroleum industries. Their efforts in 2024 included legislation limiting freedom of speech for companies and individuals who publicize environmental progress in the oil and gas sector (aka Bill C-59). The speech-muzzling measure became law on June 21.
Around the same time, Environment and Climate Change Minister, Steven Guilbeault was busy shepherding two particularly ominous regulatory packages through to finalization. One set of regulations supported Canada’s Clean Electricity Regulations—intended to eliminate the use of coal and natural gas in the production of electricity with staged decommissioning deadlines between 2035 and 2050. The second package finalized the rules for the natural gas and oil industries emissions cap intended to restrict production and growth in those industries, to take effect in 2026.
The regulations weren’t finalized until the month before the House shut down for the holidays, just weeks before Justin Trudeau’s political career was put on life support.
The green policy stampede extended to the international stage. Never mind deficits and debt, the Liberals found plenty of cash to enhance their status as world class environmental luminaries.
At November’s COP29* conference at Baku, Azerbaijan, Guilbeault and Canada’s Ambassador for Climate Change (who knew we had one?), Catherine Stewart signed us on to 15 pledges to take action on fighting climate change. Around half of the promises were merely motherhood and apple pie statements, concessions to the environmentally woke who attend these sorts of international conferences.
But several of the commitments made on our behalf came with price tags. I’m still unclear on exactly which line item in a federal budget, legislative authority or policy statement authorized the spending.
Canada’s COP29 delegation launched the $2 billion GAIA project. Apparently we are cost sharing the project with Mitsubishi. The official government report on the conference doesn’t indicate how much of the $2 billion Canada is kicking in.
Canada also showcased its green bona fides by contributing to the effort to finance the green transition and climate change adaptation in poor countries—a task expected to require developed countries to collectively spend $110 billion to $300 billion per year by 2035. Our delegation announced Canada would lead by example, making a $1billion donation to the effort.
Guilbeault and Stewart gave $10 million to Conservation International’s “Limpopo Transfrontier Conservation Area” project. They “invested” another $2.5 million in the World Wildlife Fund’s “Building Resilient Communities through Marine Conservation in Madagascar” project.
Guilbeault may indeed be angling for that UN job I mentioned in my last EnergyNow column. Read it Here Canada made a $1.25 million payment directly to the office of UN Secretary General, António Guterres. The donation is supposed to assist Guterres in his efforts to encourage countries to get their “Nationally Determined Contributions” handed in on time.
In a podcast conversation with Jordan Peterson several months ago, Danielle Smith noted the accelerated pace of the Liberal government’s announcement and implementation of new environmental policies detrimental to Alberta’s oil and gas sectors and the economies of both Alberta and Canada.
Smith said one of the effects of enacting so many new environmental measures would be to make it extremely difficult for the next government to reverse them all in its first term. This probably was one of the reasons behind the rush to get so much done this past year.
Peterson added a psychological dimension to the discussion. He suggested Guilbeault and Trudeau were behaving like wounded narcissists. They were acting like egomaniacs who recognized their time in office was coming to an end and wanted to do as much as possible in the time they had left to pad their reputations as “do or die” climate warriors. They were striving to guarantee their legacies as planet-saving heroes.
They are probably both right. But Smith’s assessment speaks more directly to the practical challenges a new Conservative government will confront while trying to unwind the morass of legislation and regulations needlessly hampering the growth of environmentally responsible resource development in the west. It is an effort by the outgoing government to make their anti-oil legacy tamper proof.
Simply wading through the legislative quagmire and assessing where reform is most urgent and readily achievable will take time and effort. The wheels of parliament can turn slowly. No doubt some of the bureaucrats employed by the Liberals are true believers—frightened of the “impending climate apocalypse” and unlikely to expedite changes to environmental legislation and regulations. And, there could be multi-year contracts with consultants and other suppliers and long-term funding arrangements with companies and NGOs that will be difficult to unwind.
Let’s not forget the inevitable legal challenges that will threaten to hold up the reform process. Environmental groups and other special interests can be expected to use the courts to block efforts to reverse Liberal government policy. Ideally, the new government will cut off funding support for anti-oil environmental groups. Then at least supporters of the gas and petroleum sectors won’t be sued by activists funded with our tax dollars.
Then there are all the other important things governments are required to do and a limited amount of time to do them—drafting fiscally responsible budgets and dealing with the possibility of US tariffs on our exports come to mind as things near the top of the to-do list.
The highly anticipated Poilievre government may not be able to move as far and fast in reversing the Trudeau-Guilbeault legacy as we might like. They will face immense challenges and should be given a fair bit of slack if they can’t fix everything early in their first term.
*COP stands for Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC). The framework was adopted by the countries attending the UN sponsored Rio Earth Summit held at Rio de Janeiro, Brazil in 1992. The number in COP29 indicates it is the 29th annual post-Rio conference of the parties.
Alberta
Open letter to Ottawa from Alberta strongly urging National Economic Corridor
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Canada’s wealth is based on its success as a trading nation. Canada is blessed with immense resources spread across a vast country. It has succeeded as a small, open economy with an enviable standard of living that has been able to provide what the world needs.
Canada has been stuck in a situation where it cannot complete nation‑building projects like the Canadian Pacific Railway that was completed in 1885, or the Trans Canada Highway that was completed in the 1960s. With the uncertainty of U.S. tariffs looming over our country and province, Canada needs to take bold action to revitalize the productivity and competitiveness of its economy – going east to west and not always relying on north-south trade. There’s no better time than right now to politically de-risk these projects.
A lack of leadership from the federal government has led to the following:
- Inadequate federal funding for trade infrastructure.
- A lack of investment is stifling the infrastructure capacity we need to diversify our exports. This is despite federally commissioned reports like the 2022 report by the National Supply Chain Task Force indicating the investment need will be trillions over the next 50 years.
- Federal red tape, like the Impact Assessment Act.
- Burdensome regulation has added major costs and significant delays to projects, like the Roberts Bank Terminal 2 project, a proposed container facility at Vancouver, which spent more than a decade under federal review.
- Opaque funding programs, like the National Trade Corridors Fund (NTCF).
- Which offers a pattern of unclear criteria for decisions and lack of response. This program has not funded any provincial highway projects in Alberta, despite the many applications put forward by the Government of Alberta. In fact, we’ve gone nearly 3 years without decisions on some project applications.
- Ineffective policies that limit economic activity.
- Measures that pit environmental and economic objectives in stark opposition to one another instead of seeking innovative win-win solutions hinder Canada’s overall productivity and investment climate. One example is the moratorium on shipping crude through northern B.C. waters, which effectively ended Enbridge’s Northern Gateway proposal and has limited Alberta’s ability to ship its oil to Asian markets.
In a federal leadership vacuum, Alberta has worked to advance economic corridors across Canada. In April 2023, Alberta, Saskatchewan and Manitoba signed an agreement to collaborate on joint infrastructure networks meant to boost trade and economic growth across the Prairies. Alberta also signed a similar economic corridor agreement with the Northwest Territories in July 2024. Additionally, Alberta would like to see an agreement among all 7 western provinces and territories, and eventually the entire country, to collaborate on economic corridors.
Through our collaboration with neighbouring jurisdictions, we will spur the development of economic corridors by reducing regulatory delays and attracting investment. We recognize the importance of working with Indigenous communities on the development of major infrastructure projects, which will be key to our success in these endeavours.
However, provinces and territories cannot do this alone. The federal government must play its part to advance our country’s economic corridors that we need from coast to coast to coast to support our economic future. It is time for immediate action.
Alberta recommends the federal government take the following steps to strengthen Canada’s economic corridors and supply chains by:
- Creating an Economic Corridor Agency to identify and maintain economic corridors across provincial boundaries, with meaningful consultation with both Indigenous groups and industry.
- Increasing federal funding for trade-enabling infrastructure, such as roads, rail, ports, in-land ports, airports and more.
- Streamlining regulations regarding trade-related infrastructure and interprovincial trade, especially within economic corridors. This would include repealing or amending the Impact Assessment Act and other legislation to remove the uncertainty and ensure regulatory provisions are proportionate to the specific risk of the project.
- Adjusting the policy levers that that support productivity and competitiveness. This would include revisiting how the federal government supports airports, especially in the less-populated regions of Canada.
To move forward expeditiously on the items above, I propose the establishment of a federal/provincial/territorial working group. This working group would be tasked with creating a common position on addressing the economic threats facing Canada, and the need for mitigating trade and trade-enabling infrastructure. The group should identify appropriate governance to ensure these items are presented in a timely fashion by relative priority and urgency.
Alberta will continue to be proactive and tackle trade issues within its own jurisdiction. From collaborative memorandums of understanding with the Prairies and the North, to reducing interprovincial trade barriers, to fostering innovative partnerships with Indigenous groups, Alberta is working within its jurisdiction, much like its provincial and territorial colleagues.
We ask the federal government to join us in a new approach to infrastructure development that ensures Canada is productive and competitive for generations to come and generates the wealth that ensures our quality of life is second to none.
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Devin Dreeshen
Devin Dreeshen was sworn in as Minister of Transportation and Economic Corridors on October 24, 2022.
Business
Argentina’s Javier Milei gives Elon Musk chainsaw
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MxM News
Quick Hit:
Elon Musk made a dramatic appearance at the Conservative Political Action Conference (CPAC) on Thursday, wielding a chromed-out chainsaw gifted by Argentina’s President Javier Milei. The prop symbolized Musk’s commitment to slashing bureaucratic red tape through his Department of Government Efficiency (DOGE).
Key Details:
- Musk received the chainsaw from Milei before his sit-down interview at CPAC in Maryland.
- The chainsaw was engraved with Milei’s catchphrase, “Viva la libertad carajo!” which translates to “Long live freedom, Goddammit!”
- Musk brandished the chainsaw on stage, declaring it the “chainsaw for bureaucracy” to a cheering conservative crowd.
Diving Deeper:
Argentina’s President Javier Milei presented the symbolic chainsaw to Elon Musk ahead of his interview at CPAC, reinforcing their shared vision of reducing governmental influence. The chainsaw, emblazoned with Milei’s signature slogan, was meant to represent Musk’s mission with the Department of Government Efficiency (DOGE) to cut waste, fraud, and abuse within federal agencies.
Musk enthusiastically accepted the gift and held it aloft, declaring it the “chainsaw for bureaucracy.” The bold gesture was well-received by the conservative audience, with Musk adding a simple yet effective rallying cry: “Chainsaw!” The theatrics were in line with his commitment to DOGE’s mission of downsizing federal bureaucracy, drawing inspiration from Milei’s aggressive government-cutting measures in Argentina.
Milei’s fiscal conservatism has gained international attention, influencing Musk’s approach to DOGE. The Argentine president’s radical budget cuts and advocacy for limited government resonate with Musk’s goals for the United States. By symbolically passing the chainsaw to Musk, Milei reinforced a partnership rooted in economic freedom and governmental reform.
Musk later posted a photo of himself with the chainsaw on his social media platform, X, captioning it, “This is a real picture,” underscoring his commitment to his bureaucratic overhaul agenda. The image quickly went viral, amplifying the message of aggressive government reform.
The bold display at CPAC not only solidified Musk’s role as a disruptor within the political landscape but also strengthened the ideological bond between Musk and Milei, signaling an international alliance against government inefficiency.
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