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

Dan McTeague

Published

3 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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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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The Carbon Tax is part of a bigger plan to change the way you live

Energy / 7 months ago

Trudeau government doubles down on unaffordability – Carbon Tax set to increase April 1st

Energy / 8 months ago

Take Notice – Question the Net Zero Agenda, and You’re Out the Door

Economy

Ottawa’s new ‘climate disclosures’ another investment killer

Published on November 3, 2024

Todayville

From the Fraser Institute

By Matthew Lau

The Trudeau government has demonstrated consistently that its policies—including higher capital gains taxes and a hostile regulatory environment—are entirely at odds with what investors want to see. Corporate head offices are fleeing Canada and business investment has declined significantly since the Trudeau Liberals came to power.

According to the Trudeau government’s emissions reduction plan, “putting a price on pollution is widely recognized as the most efficient means to reduce greenhouse gas emissions.” Fair enough, but a reasonable person might wonder why the same politicians who insist a price mechanism (i.e. carbon tax) is the most efficient policy recently announced relatively inefficient measures such “sustainable investment guidelines” and “mandatory climate disclosures” for large private companies.

The government claims that imposing mandatory climate disclosures will “attract more private capital into Canada’s largest corporations and ensure Canadian businesses can continue to effectively compete as the world races towards net-zero.” That is nonsense. How would politicians Ottawa know better than business owners about how their businesses should attract capital? If making climate disclosures were a good way to help businesses attract capital, the businesses that want to attract capital would make such disclosures voluntarily. There would be no need for a government mandate.

The government has not yet launched the regulatory process for the climate disclosures, so we don’t know exactly how onerous it will be, but one thing is for sure—the disclosures will be expensive and unnecessary, imposing useless costs onto businesses and investors without any measurable benefit, further discouraging investment in Canada. Again, if the disclosures were useful and worthwhile to investors, businesses seeking to attract investment would make them voluntarily.

Even the government’s own announcement casts doubt that increasing business investment is the likely outcome of mandatory climate disclosures. While the government says it’s “sending a clear signal to corporate boards and shareholders, at home and around the world, that Canada is their trusted partner for putting private capital to work in the race to net-zero,” most investors are not looking to put private capital to work to combat climate change. Most investors want to put their capital to work to earn a good financial return, after adjusting for the risk of the investment.

This latest announcement should come as no surprise. The Trudeau government has demonstrated consistently that its policies—including higher capital gains taxes and a hostile regulatory environment—are entirely at odds with what investors want to see. Corporate head offices are fleeing Canada and business investment has declined significantly since the Trudeau Liberals came to power. Capital per worker in Canada is declining due to weak business investment since 2015, and new capital per-Canadian worker in 2024 is barely half of what it is in the United States.

It’s also fair to ask, in the face of these onerous polices—where are the environmental benefits? The government says its climate disclosures are needed for Canada to progress to net-zero emissions and “uphold the Paris climate target of limiting global warming to 1.5°C above pre-industrial levels,” but its net-zero targets are neither feasible nor realistic and the economics literature does not support the 1.5 degrees target.

Finally, when announcing the new climate disclosures, Trudeau Environment Minister Steven Guilbeault said they are an important stepping stone to a cleaner economy, which is a “major economic opportunity.” Yet even the Canada Energy Regulator (a federal agency) projects net-zero policies would reduce real GDP per capita, increase inflation of consumer prices and reduce residential space (in other words, reduce living standards).

A major economic opportunity that will increase business investment? Surely not—mandatory climate disclosures will only further reduce our standard of living and impose useless costs onto business and investors, with the sure effect of reducing investment.

Author:

Matthew Lau

Adjunct Scholar, Fraser Institute

Business

Premiers fight to lower gas taxes as Trudeau hikes pump costs

Published on November 1, 2024

Todayville

From the Canadian Taxpayers Federation

By Jay Goldberg

Thirty-nine hundred dollars – that’s how much the typical two-car Ontario family is spending on gas taxes at the pump this year.

You read that right. That’s not the overall fuel bill. That’s just taxes.

Prime Minister Justin Trudeau keeps increasing your gas bill, while Premier Doug Ford is lowering it.

Ford’s latest gas tax cut extension is music to taxpayers’ ears. Ford’s 6.4 cent per litre gas tax cut, temporarily introduced in July 2022, is here to stay until at least next June.

Because of the cut, a two-car family has saved more than $1,000 so far. And that’s welcome news for Ontario taxpayers, because Trudeau is planning yet another carbon tax hike next April.

Trudeau has raised the overall tax burden at the pumps every April for the past five years. Next spring, he plans to raise gas taxes by another three cents per litre, bringing the overall gas tax burden for Ontarians to almost 60 cents per litre.

While Trudeau keeps hiking costs for taxpayers at the pumps, premiers of all stripes have been stepping up to the plate to blunt the impact of his punitive carbon tax.

Obviously, Ford has stepped up to the plate and has lowered gas taxes. But he’s not alone.

In Manitoba, NDP Premier Wab Kinew fully suspended the province’s 14 cent per litre gas tax for a year. And in Newfoundland, Liberal Premier Andrew Furey cut the gas tax by 8.05 cents per litre for nearly two-and-a-half years.

It’s a tale of two approaches: the Trudeau government keeps making life more expensive at the pumps, while premiers of all stripes are fighting to get costs down.

Families still have to get to work, get the kids to school and make it to hockey practice. And they can’t afford increasingly high gas taxes. Common sense premiers seem to get it, while Ottawa has its head in the clouds.

When Ford announced his gas tax cut extension, he took aim at the Liberal carbon tax mandated by the Trudeau government in Ottawa.

Ford noted the carbon tax is set to rise to 20.9 cents per litre next April, “bumping up the cost of everything once again and it’s absolutely ridiculous.”

“Our government will always fight against it,” Ford said.

But there’s some good news for taxpayers: reprieve may be on the horizon.

Federal Conservative leader Pierre Poilievre’s promises to axe the carbon tax as soon as he takes office.

With a federal election scheduled for next fall, the federal carbon tax’s days may very well be numbered.

Scrapping the carbon tax would make a huge difference in the lives of everyday Canadians.

Right now, the carbon tax costs 17.6 cents per litre. For a family filling up two cars once a week, that’s nearly $24 a week in carbon taxes at the pump.

Scrapping the carbon tax could save families more than $1,200 a year at the pumps. Plus, there would be savings on the cost of home heating, food, and virtually everything else.

While the Trudeau government likes to argue that the carbon tax rebates make up for all these additional costs, the Parliamentary Budget Officer says it’s not so.

The PBO has shown that the typical Ontario family will lose nearly $400 this year due to the carbon tax, even after the rebates.

That’s why premiers like Ford, Kinew and Furey have stepped up to the plate.

Canadians pay far too much at the pumps in taxes. While Trudeau hikes the carbon tax year after year, provincial leaders like Ford are keeping costs down and delivering meaningful relief for struggling families.