Dan McTeague
The Carbon Tax ship is sinking
From Canadians for Affordable Energy
In a shocking turn of events, just weeks before the upcoming provincial election, Eby said that if re-elected his government would end the provincial carbon tax on consumers, provided the federal government removed the “legal backstop” that requires them to keep a tax in place.
Here’s a surprising development – the Carbon Tax, which was a keystone policy of the Green Left just a few short years ago is now a political pariah. Though, for some of us, it isn’t so surprising.
As you will recall, the federal Carbon Tax back was one of the Trudeau Liberals’ first announcements upon taking power. It was meant to set the tone for their commitment to tackling the “climate crisis,” and achieving net zero carbon emissions. The policy required that all provinces and territories which did not have their own carbon pricing scheme in place would have one imposed on them by Ottawa.
The Carbon Tax had buy-in from Green apologists all over the country, including many Conservative politicians. You may recall Patrick Brown, former leader of the Ontario Progressive Conservative Party, stunning an audience of PC Members in 2016 when he announced. “Climate change is a fact… We have to do something about it, and that something includes putting a price on carbon.” Ever the political opportunist, Brown had bought into the notion that you can’t win if you aren’t in favor of a carbon tax.
And that is how it was sold. The carbon tax was inevitable. And it would come with all sorts of environmental benefits – ending forest fires, floods, and combatting all manner of bad weather. Plus, the price would mainly be paid by greedy corporations. The average Canadian, they said, would actually be getting more money back on the tax rebate than they’d paid in the first place. In their telling, the carbon tax sounded like it was all carrots and no sticks!
Of course, that was too good to be true. There were, in fact, plenty of sticks. Sky-high gas prices, heating bills, food prices, and an overall increase in our cost of living. Eventually the Parliamentary Budget Office issued a report which confirmed what many Canadians had already learned, that the tax would be a net loss for most households, with the middle class being particularly hard hit.
No wonder public support started to wane, and then to spiral. Even Trudeau’s desperate rebranding – he started calling the tax “pollution pricing” – couldn’t save it.
A Leger poll released earlier this year revealed that 7 in 10 Canadians do not support the Carbon Tax. It helps that Conservative Party leader Pierre Poilievre has made ‘Axe the Tax’ a cornerstone of his campaign, consistently making the case that the Carbon Tax is harming consumers and making the country less competitive.
What was once considered the unsinkable Carbon Tax is now taking on water. And lots of it.
We saw early signs of this earlier this year when the annual Carbon Tax increase, scheduled for April 1st, was loudly opposed by a number of premiers. Even Liberal premiers, such as Andrew Furey of Newfoundland and Labrador, pleaded with Justin Trudeau to hit pause on the increase.
More recently, NDP Leader Jagmeet Singh has been waffling on the tax as currently structured, suggesting that it has “put the burden on the backs of working people.” Of course, as the Conservatives like to remind him, Singh voted in favor of this same tax twenty-four times in the House of Commons.
But perhaps the most significant nail in the carbon tax coffin came courtesy BC Premier David Eby. Remember that it was BC, under the Liberal premier Gordon Campbell, who implemented the first Carbon Tax in 2008 – not just the first in Canada, but rather, the provincial government claims, the first “revenue neutral” Carbon Tax in the world!
The Carbon Tax has been a hallmark of BC’s climate policies for nearly two decades. But in a shocking turn of events, just weeks before the upcoming provincial election, Eby said that if re-elected his government would end the provincial carbon tax on consumers, provided the federal government removed the “legal backstop” that requires them to keep a tax in place.
With Eby’s main opposition also pledged to repeal, it seems that even in the policy’s birthplace, no one wants to touch the carbon tax with a ten foot pole!
Now Eby defended the move by claiming essentially that the Trudeau Liberals’ fumbling of the issue has “badly damaged” what he says was the political consensus on the carbon tax. But the reality is that this was bound to happen eventually. In my capacity as President of Canadians for Affordable Energy, I’ve been warning Canadians for years that Trudeau’s carbon tax increase, compounded by his Clean Fuel Standard, which I’ve dubbed the Second Carbon Tax, would not only raise the price of fuel, but would increase the price of all goods, groceries included.
Once Canadians saw what the tax actually cost, and felt its devastating impact on their ability to make ends meet, to fill their gas tanks, heat their homes, and feed their families, they were bound to turn against it. This is exactly what we’re seeing now. And with elections looming, as go the voters so go the politicians who need their votes.
It seems the Carbon Tax is sinking and the rats are jumping ship.
Dan McTeague is President of Canadians for Affordable Energy.
Alberta
Ford and Trudeau are playing checkers. Trump and Smith are playing chess
By Dan McTeague
Ford’s calls for national unity – “We need to stand united as Canadians!” – in context feels like an endorsement of fellow Electric Vehicle fanatic Trudeau. And you do wonder if that issue has something to do with it. After all, the two have worked together to pump billions in taxpayer dollars into the EV industry.
There’s no doubt about it: Donald Trump’s threat of a blanket 25% tariff on Canadian goods (to be established if the Canadian government fails to take sufficient action to combat drug trafficking and illegal crossings over our southern border) would be catastrophic for our nation’s economy. More than $3 billion in goods move between the U.S. and Canada on a daily basis. If enacted, the Trump tariff would likely result in a full-blown recession.
It falls upon Canada’s leaders to prevent that from happening. That’s why Justin Trudeau flew to Florida two weeks ago to point out to the president-elect that the trade relationship between our countries is mutually beneficial.
This is true, but Trudeau isn’t the best person to make that case to Trump, since he has been trashing the once and future president, and his supporters, both in public and private, for years. He did so again at an appearance just the other day, in which he implied that American voters were sexist for once again failing to elect the nation’s first female president, and said that Trump’s election amounted to an assault on women’s rights.
Consequently, the meeting with Trump didn’t go well.
But Trudeau isn’t Canada’s only politician, and in recent days we’ve seen some contrasting approaches to this serious matter from our provincial leaders.
First up was Doug Ford, who followed up a phone call with Trudeau earlier this week by saying that Canadians have to prepare for a trade war. “Folks, this is coming, it’s not ‘if,’ it is — it’s coming… and we need to be prepared.”
Ford said that he’s working with Liberal Finance Minister Chrystia Freeland to put together a retaliatory tariff list. Spokesmen for his government floated the idea of banning the LCBO from buying American alcohol, and restricting the export of critical minerals needed for electric vehicle batteries (I’m sure Trump is terrified about that last one).
But Ford’s most dramatic threat was his announcement that Ontario is prepared to shut down energy exports to the U.S., specifically to Michigan, New York, Wisconsin, and Minnesota, if Trump follows through with his plan. “We’re sending a message to the U.S. You come and attack Ontario, you attack the livelihoods of Ontario and Canadians, we’re going to use every tool in our toolbox to defend Ontarians and Canadians across the border,” Ford said.
Now, unfortunately, all of this chest-thumping rings hollow. Ontario does almost $500 billion per year in trade with the U.S., and the province’s supply chains are highly integrated with America’s. The idea of just cutting off the power, as if you could just flip a switch, is actually impossible. It’s a bluff, and Trump has already called him on it. When told about Ford’s threat by a reporter this week, Trump replied “That’s okay if he does that. That’s fine.”
And Ford’s calls for national unity – “We need to stand united as Canadians!” – in context feels like an endorsement of fellow Electric Vehicle fanatic Trudeau. And you do wonder if that issue has something to do with it. After all, the two have worked together to pump billions in taxpayer dollars into the EV industry. Just over the past year Ford and Trudeau have been seen side by side announcing their $5 billion commitment to Honda, or their $28.2 billion in subsidies for new Stellantis and Volkswagen electric vehicle battery plants.
Their assumption was that the U.S. would be a major market for Canadian EVs. Remember that “vehicles are the second largest Canadian export by value, at $51 billion in 2023 of which 93% was exported to the U.S.,”according to the Canadian Vehicle Manufacturers Association, and “Auto is Ontario’s top export at 28.9% of all exports (2023).”
But Trump ran on abolishing the Biden administration’s de facto EV mandate. Now that he’s back in the White House, the market for those EVs that Trudeau and Ford invested in so heavily is going to be much softer. Perhaps they’d like to be able to blame Trump’s tariffs for the coming downturn rather than their own misjudgment.
In any event, Ford’s tactic stands in stark contrast to the response from Alberta, Canada’s true energy superpower. Premier Danielle Smith made it clear that her province “will not support cutting off our Alberta energy exports to the U.S., nor will we support a tariff war with our largest trading partner and closest ally.”
Smith spoke about this topic at length at an event announcing a new $29-million border patrol team charged with combatting drug trafficking, at which said that Trudeau’s criticisms of the president-elect were, “not helpful.” Her deputy premier Mike Ellis was quoted as saying, “The concerns that president-elect Trump has expressed regarding fentanyl are, quite frankly, the same concerns that I and the premier have had.” Smith and Ellis also criticized Ottawa’s progressively lenient approach to drug crimes.
(For what it’s worth, a recent Léger poll found that “Just 29 per cent of [Canadians] believe Trump’s concerns about illegal immigration and drug trafficking from Canada to the U.S. are unwarranted.” Perhaps that’s why some recent polls have found that Trudeau is currently less popular in Canada than Trump at the moment.)
Smith said that Trudeau’s criticisms of the president-elect were, “not helpful.” And on X/Twitter she said, “Now is the time to… reach out to our friends and allies in the U.S. to remind them just how much Americans and Canadians mutually benefit from our trade relationship – and what we can do to grow that partnership further,” adding, “Tariffs just hurt Americans and Canadians on both sides of the border. Let’s make sure they don’t happen.”
This is exactly the right approach. Smith knows there is a lot at stake in this fight, and is not willing to step into the ring in a fight that Canada simply can’t win, and will cause a great deal of hardship for all involved along the way.
While Trudeau indulges in virtue signaling and Ford in sabre rattling, Danielle Smith is engaging in true statesmanship. That’s something that is in short supply in our country these days.
As I’ve written before, Trump is playing chess while Justin Trudeau and Doug Ford are playing checkers. They should take note of Smith’s strategy. Honey will attract more than vinegar, and if the long history of our two countries tell us anything, it’s that diplomacy is more effective than idle threats.
Dan McTeague is President of Canadians for Affordable Energy.
Dan McTeague
COP29 was a waste of time
From Canadians For Affordable Energy
The twenty-ninth edition of the U.N. Climate Change Committee’s annual “Conference of the Parties,” also known as COP29, wrapped up recently, and I must say, it seemed a much gloomier affair than the previous twenty-eight. It’s hard to imagine a more downcast gathering of elitists and activists. You almost felt sorry for them.
Oh, there was all the usual nutty Net-Zero-by-2050 proposals, which would make life harder and more expensive in developed countries, and be absolutely disastrous for developing countries, if they were even partially implemented. But a lot of the roughly 65,000 attendees seemed to realize they were just spewing hot air.
Why were they so down? It couldn’t be that they were feeling guilty about their own hypocrisy, since they had flown in, many aboard private jets, to the Middle Eastern petrostate of Azerbaijan, where fossil fuels count for two-thirds of national GDP and 90% of export revenues, to lecture the world on the evils of flying in planes and prospering from the extraction of oil and natural gas. Afterall, they did the same last year in Dubai and there was no noticeable pang of guilt there.
It’s likely that Donald Trump’s recent reelection had a lot to do with it. Living as they do in a media bubble, our governing class was completely blindsided by the American people’s decision to return their 45th president to the White House. And the fact that he won the popular vote this time made it harder to deny his legitimacy. (Note that they’ve never questioned the legitimacy of Justin Trudeau, even though his party has lost the popular vote in the past two federal elections. What’s the saying about the modern Left? “If they didn’t have double standards, they’d have no standards at all.”)
Come January, Trump is committed to (once again) pulling the U.S. out of the Paris Climate Accords, to rolling back the Biden Administration’s anti-fracking and pro-EV regulations, and to giving oil companies the green light to extract as much “liquid gold” (his phrase) as possible, with an eye towards making energy more affordable for American consumers and businesses alike. The chance that they’ll be able to leech billions in taxpayer dollars from the U.S. Treasury while he’s running the show is basically zero.
But it wasn’t just the return of Trump which has gotten the climate brigade down. After a few years on top, environmentalists have been having one setback after another. Green parties saw a huge drop off in support in the E.U. parliament’s elections this past June, losing one-third of their seats in Brussels.
And wherever they’ve actually been in government, in Germany and Ireland for instance, the Greens have dragged down the popularity of the coalitions they were part of. That’s largely because their policies have been like an arrow to the heart of those nations’ economies – see the former industrial titan Germany, where major companies like Volkswagen, Siemens, and the chemical giant BASF are frantically shifting production to China and the U.S. to escape high energy costs.
But while voters around the world are kicking climate ideologues to the curb, there are still a few places where they’re managing to cling to power for dear life.
Here in Canada, for instance, Justin Trudeau and Steven Guilbeault steadfastly refuse to consider revisiting their ruinous Net Zero policies, from their ever-increasing Carbon Tax, to their huge investments in Electric Vehicles and the mandates which will force all of us to buy pricey, unreliable EVs in just over a decade, and to the emissions caps which seek to strangle the natural resource sector on which our economy depends.
Minister Guilbeault was all-in on COP29, heading the Canadian delegation, which “hosted 65 events showcasing Canada’s leadership on climate action, nature-based solutions, sustainable finance, and Canadian clean technologies—while discussing gender equality, youth perspectives, and the critical role of Indigenous knowledge and climate leadership” and stood up for Canadian values such as “2SLGBTQI+” and “gender inclusivity.” Once again, in Azerbaijan, which has been denounced for its human rights abuses.
And no word yet on the cost of all of this – for last year’s COP28 the government – or should I say the taxpayers – spent $1.4M on travel and accommodations alone for the 633 member delegation. That number, not counting the above mentioned events, are sure to be higher, as Azerbaijan is much less of a travel destination than Dubai, and so has fewer flights in and available hotel rooms.
At the same time all of this was going on, Trudeau was 12,000 kms away in Rio de Janeiro, Brazil, telling an audience that carbon taxation is a “moral obligation” which is more important than the cost of living: “It’s really, really easy when you’re in a short-term survive, [to say] I gotta be able to pay the rent this month, I’ve gotta be able to buy groceries for my kids, to say, OK, let’s put climate change as a slightly lower priority.”
This is madness, and it underscores how tone-deaf the prime minister is, and also why current polling looks so good for the Conservatives that Pierre Poilievre might as well start measuring the drapes at the PMO.
He has the Trudeau Liberals’ obsessive pursuit of Net Zero policies in large part to thank for that.
The world is waking up to the true cost of the Net Zero ideology, and leaving it behind. That doesn’t mean the fight is over – the activists and their allies in government are going to squeeze as many tax dollars out of this as they possibly can. But the writing is on the wall, and their window is rapidly closing.
Dan McTeague is President of Canadians for Affordable Energy.
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