Ottawa’s new ‘climate disclosures’ another investment killer

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

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Economy

Trump declares national energy emergency

Published on January 20, 2025

Todayville

From The Center Square

By Elyse S. Apel

President Donald Trump signed an executive order Monday night declaring a national energy emergency.

Trump announced the order earlier in the day during his Inauguration Speech.

“We will drill baby drill,” Trump said. “We will bring prices down, fill our strategic reserves up again right to the top, and export American energy all over the world. We will be a rich nation again and it is that liquid gold under our feet that will help to do it.”

The order states that high energy prices are an “active threat to the American people.”

“The policies of the previous administration have driven our Nation into a national emergency, where a precariously inadequate and intermittent energy supply, and an increasingly unreliable grid, require swift and decisive action,” the order said. “In light of these findings, I hereby declare a national emergency.”

To solve high prices and remedy the “numerous problems” with America’s energy infrastructure, the order stated that the delivery of energy infrastructure must be “expedited” and the nation’s energy supply facilitated “to the fullest extent possible.”

This was one of many executive orders the president signed on his first day in office.

In another order signed Monday night, Trump declared it was time to unleash American energy.

“In recent years, burdensome and ideologically motivated regulations have impeded the development of these resources, limited the generation of reliable and affordable electricity, reduced job creation, and inflicted high energy costs upon our citizens,” the order said. “It is thus in the national interest to unleash America’s affordable and reliable energy and natural resources.”

All this will be done through encouraging energy exploration, the elimination the electric vehicle mandates, and safeguarding “the American people’s freedom to choose from a variety of goods and appliances.”

The order promises these measures will “restore American prosperity,” “establish our position as the leading producer,” and “protect the United States’s economic and national security and military preparedness.”

In an earlier signing of executive orders in front of a crowd of supporters at the Capital One Arena, Trump signed an executive order withdrawing the United States from the Paris Climate Accords.

Elyse Apel is an apprentice reporter with The Center Square, covering Georgia and North Carolina. She is a 2024 graduate of Hillsdale College.

Elyse S. Apel

Alberta

Trump delays implementation 25% tariffs: Premier Smith response

Published on January 20, 2025

Government of Alberta

Alberta Premier Danielle Smith issued the following statement, welcoming the U.S. tariff reprieve and calling for strategic action:

“Alberta is pleased to see that today President Donald Trump has decided to refrain from imposing tariffs on Canadian goods at this time as they study the issue further.

“We appreciate the implied acknowledgement that this is a complex and delicate issue with serious implications for American and Canadian workers, businesses and consumers given the integration of our markets, along with our critical energy and security partnership.

“Avoiding tariffs will save hundreds of thousands of Canadian and American jobs across every sector. As an example, declining to impose U.S. tariffs on Canadian energy preserves the viability of dozens of U.S. refineries and facilities that upgrade Alberta crude, and the jobs of tens of thousands of Americans employed at them.

“Despite the promising news today, the threat of U.S. tariffs is still very real. As a country, we need to immediately take the following steps to preserve and strengthen our economic and security partnership with the United States, and to avoid the future imposition of tariffs:

Focus on diplomacy and refrain from further talk of retaliatory measures, including export tariffs or cutting off energy to the U.S. Having spoken with the President, as well as dozens of governors, senators, members of congress and allies of the incoming administration, I am convinced that the path to a positive resolution with our U.S. allies is strong and consistent diplomacy and working in good faith towards shared priorities. The worst possible response to today’s news would be the federal government or premiers declaring “victory” or escalating tensions with unnecessary threats against the United States.
Negotiate ways to increase what Canadians and Americans buy from one another. As an example, the United States should look at purchasing more oil, timber and agricultural products from Canada, while Canada should look at purchasing more American gas turbines, military equipment and the computer hardware needed to build our growing AI data centre sector. Finding ways to increase trade in both directions is critical to achieving a win-win for both countries.
Double down on border security. Within the next month, all border provinces should either by themselves, or in partnership with the federal government, deploy the necessary resources to secure our shared border from illegal drugs and migration.
Announce a major acceleration of Canada’s 2 per cent of GDP NATO target. This is clearly a shared priority that benefits both of our nations. There is no excuse for further delay.
Crack down on immigration streams and loopholes that are known to permit individuals hostile to Canada and the United States to enter our country, and restore immigration levels and rules to those under former Prime Minister Stephen Harper.
Immediately repeal all federal anti-energy policies (production cap, Clean Electricity Regulations, Impact Assessment Act [Bill C-69]) and fast track Northern Gateway and Energy East projects pre-approvals.”