Economy
Reliance on fossil fuels remains virtually unchanged despite trillions for ‘clean energy’
From the Fraser Institute
By Elmira Aliakbari, Julio Mejía, and Jason Clemens
” after tens of trillions of dollars spent on the transition away from fossil fuels, consumption declined by 3.8 percentage points as a share of total global energy. “
At COP28, the recent United Nations climate change conference in the United Arab Emirates, bureaucrats, politicians and activists from nearly 200 countries gathered to push for a “transition away from fossil fuels” and continue and indeed expedite efforts to achieve a global net-zero “carbon footprint” by 2050. However, despite significant spending on clean energy, the world’s dependence on fossil fuels remains largely unaffected, calling into question how realistic the commitment to zero emissions by 2050 is in the real world.
The UN staged the first “COP” conference in Berlin in 1995, marking the beginning of a collaborative international effort of energy transition and decarbonization. According to one report, global investment in renewable energy totalled US$7 billion in 1995.
Today, according to the latest data from the International Energy Agency (IEA), investment in “clean energy” by both governments and private industry reached more than US$1.7 trillion in 2023. That’s roughly the equivalent of the entire Australian economy this year. This spending includes more than just renewable power (wind, solar, etc.), which totalled $659 billion in 2023, but also electric vehicles, battery storage, nuclear, carbon capture and more.
More broadly, according to the IEA numbers, from 2015 to 2023, governments and industry worldwide have spent $11.7 trillion (inflation-adjusted) on clean energy. For context, this is basically the equivalent of all the goods and services produced in Germany, Japan and the United Kingdom combined in 2023. Simply put, an extraordinary amount of money and resources have been allocated to the transition away from fossil fuels for the better part of three decades.
So, what’s the return on this investment?
According to data from the Statistical Review of World Energy, from 1995 to 2022, the amount of fossil fuels (oil, gas and coal) consumed worldwide actually increased by 58.6 per cent. Specifically, oil consumption increased by 34.2 per cent, natural gas by 86.7 per cent and coal by 72.7 per cent.
There was, however, a small decline in the share of total energy provided by oil, gas and coal during that time period, falling from 85.6 per cent of total energy use in 1995 to 81.8 per cent in 2022. In other words, after tens of trillions of dollars spent on the transition away from fossil fuels, consumption declined by 3.8 percentage points as a share of total global energy.
Meanwhile, renewables increased from 0.6 per cent of total energy to 7.5 per cent over the same period but both nuclear and hydro declined (6.5 per cent to 4.0 per cent and 7.3 per cent to 6.7 per cent, respectively). In other words, the 3.8-percentage point decline in fossil fuels as a share of total energy in 2022 was offset by a net increase in clean energy of the same amount.
In addition to the massive amounts of spending, much of it paid for by taxpayers, this transition has come with other costs. Renewable sources such as wind and solar are not always available and therefore require back-up energy systems. Lack of investment in back-up systems and required infrastructure has resulted in marked price increases in energy and/or blackouts in parts of Europe and the United States.
At COP28, conference attendees including Canada’s Environment Minister Steven Guilbeault pledged to reach net-zero emissions—that our economy will emit no greenhouse gas emissions or offset its emissions—in 26 years. But given the trillions spent, the limited progress in reducing global reliance on fossil fuels, and the price increases and reduced energy reliability in countries that have meaningfully transitioned, that goal seems unrealistic in the real world.
Authors:
From LifeSiteNews
Saskatchewan has become the first Canadian province to free itself entirely of the carbon tax.
On March 27, Saskatchewan Premier Scott Moe announced the removal of the provincial industrial carbon tax beginning April 1, boosting the province’s industry and making Saskatchewan the first carbon tax free province.
Under Moe’s direction, Saskatchewan has dropped the industrial carbon tax which he says will allow Saskatchewan to thrive under a “tariff environment.”
“I would hope that all of the parties running in the federal election would agree with those objectives and allow the provinces to regulate in this area without imposing the federal backstop,” he continued.
The removal of the tax is estimated to save Saskatchewan residents up to 18 cents a liter in gas prices.
The removal of the tax will take place on April 1, the same day the consumer carbon tax will reduce to 0 percent under Prime Minister Mark Carney’s direction. Notably, Carney did not scrap the carbon tax legislation: he just reduced its current rate to zero. This means it could come back at any time.
Furthermore, while Carney has dropped the consumer carbon tax, he has previously revealed that he wishes to implement a corporation carbon tax, the effects of which many argued would trickle down to all Canadians.
The Saskatchewan Association of Rural Municipalities (SARM) celebrated Moe’s move, noting that the carbon tax was especially difficult on farmers.
“I think the carbon tax has been in place for approximately six years now coming up in April and the cost keeps going up every year,” SARM president Bill Huber said.
“It puts our farming community and our business people in rural municipalities at a competitive disadvantage, having to pay this and compete on the world stage,” he continued.
“We’ve got a carbon tax on power — and that’s going to be gone now — and propane and natural gas and we use them more and more every year, with grain drying and different things in our farming operations,” he explained.
“I know most producers that have grain drying systems have three-phase power. If they haven’t got natural gas, they have propane to fire those dryers. And that cost goes on and on at a high level, and it’s made us more noncompetitive on a world stage,” Huber decalred.
The carbon tax is wildly unpopular and blamed for the rising cost of living throughout Canada. Currently, Canadians living in provinces under the federal carbon pricing scheme pay $80 per tonne.
As the federal government removes the consumer carbon tax, the Canadian Taxpayers Federation is calling on all party leaders to oppose all carbon taxes, including the hidden tax on business.
“Canadians fought hard to force Ottawa to back down on its consumer carbon tax and now the fight moves to stopping the hidden carbon tax on business,” said Franco Terrazzano, CTF Federal Director. “Canadians can’t afford a carbon tax on business that pushes up prices at the gas station and makes it harder for our businesses to compete while they’re already struggling with a trade war.”
Today, the federal government cut the consumer carbon tax rate to $0. This will reduce taxes by about 17 cents per litre of gasoline, 21 cents per litre of diesel and 15 cents per cubic metre of natural gas.
The federal government still imposes an industrial carbon tax on oil and gas, steel and fertilizer businesses, among others.
During the Liberal Party leadership race, Prime Minister Mark Carney said he would “improve and tighten” the industrial carbon tax and “extend the framework to 2035.”
Just 12 per cent of Canadians believe businesses pay most of the cost of the industrial carbon tax, according to a Leger poll commissioned by the CTF. Meanwhile, 70 per cent said businesses would pass most or some carbon tax costs on to consumers.
Conservative Party Leader Pierre Poilievre said he will “repeal the entire carbon tax law, including the tax on Canadian businesses and industries.”
“Carbon taxes on refineries make gas more expensive, carbon taxes on utilities make home heating more expensive and carbon taxes on fertilizer plants increase costs for farmers and that makes groceries more expensive,” Terrazzano said. “Canadians know Poilievre will end all carbon taxes and Canadians know Carney’s carbon tax costs won’t be zero.
“Carney owes Canadians a clear answer: How much will your carbon tax cost?”
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