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Wanted—a federal leader who will be honest about ‘climate’ policy

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7 minute read

From the Fraser Institute

By Ross McKitrick

Poilievre’s anti-carbon tax rallies are popular, but what happens after we axe the tax? If he plans to replace it with regulatory measures aimed at achieving the same emission cuts he should tell his rally-goers that what he has in mind will hit them even harder than the tax they’re so keen to scrap.

Pierre Poilievre is leading anti-carbon tax rallies around the country, ginning up support for an old-fashioned tax revolt. In response, Justin Trudeau went to Calgary and trumpeted—what’s this?—his love of free markets. Contrasting the economic logic of using a carbon tax instead of regulatory approaches for reducing greenhouse gases, the prime minister slammed the latter: “But they all involve the heavy hand of government. I prefer a cleaner solution, a market-based solution and that is, if you’re behaving in a way that causes pollution, you should pay.” He added that the Conservatives would instead rely on the “heavy hand of government through regulation and subsidies to pick winners and losers in the economy as opposed to trusting the market.”

Amen to that. But someone should tell Trudeau that his own government’s Emission Reduction Plan mainly consists of heavy-handed regulations, subsidies, mandates and winner-picking grants. Within its 240 pages one finds, yes, a carbon tax. But also 139 additional policies including Clean Fuels Regulations, an electric vehicle mandate that will ban gasoline cars by 2035, aggressive fuel economy standards that will hike their cost in the meantime, costly new emission targets specifically for the oil and gas, agriculture, heavy industry and waste management sectors, onerous new energy efficiency requirements both for new buildings and renovations of existing buildings, new electricity grid requirements, and page upon page of subsidy funds for “clean technology” firms and other would-be winners in the sunlit uplands of the new green economy.

Does Trudeau oppose any of that? Hardly. But if he does, he could prove his bona fides regarding carbon pricing by admitting that the economic logic only applies to a carbon tax when used on its own. He doesn’t get to boast of the elegance of market mechanisms on behalf of a policy package that starts with a price signal then destroys it with a massive regulatory apparatus.

Trudeau also tried to warm his Alberta audience up to the carbon tax by invoking the menace of mild weather and forest fires. In fairness it was an unusual February in Calgary (which is obviously a sign of the climate emergency because we never used to get those). The month began with a week of above-zero temperatures hitting 5 degrees Celsius at one point, then there was a brief cold snap before Valentine’s Day, then the daytime highs soared to the low teens for nine days and the month finished with soupy above zero conditions. Weird.

Oops, that was 1981.

This year was weirder—February highs were above zero for 25 out of 28 days, 8 of which were even above 10 degrees C.

Oops again, that was 1991. Granted, February 2024 also had its mild patches, but not like the old days.

Of course, back then warm weather was just weather. Now it’s a climate emergency and Canadians demand action. Except they don’t want to pay for it, which is the main problem for politicians when trying to come up with a climate policy that’s both effective and affordable. You only get to pick one, and in practice we typically end up zero for two. You can claim your policy will yield deep decarbonization while boosting the economy, which almost every politician in every western country has spent decades doing, but it’s not true. With current technology, affordable policies yield only small temporary emission reductions. Population and economic growth swamp their effects over time, which is why mainstream economists have long argued that while we can eliminate some low-value emissions, for the most part we will just have to live with climate change because trying to stop it would cost far more than it’s worth.

Meanwhile the policy pantomime continues. Poilievre’s anti-carbon tax rallies are popular, but what happens after we axe the tax? If he plans to replace it with regulatory measures aimed at achieving the same emission cuts he should tell his rally-goers that what he has in mind will hit them even harder than the tax they’re so keen to scrap.

But maybe he has the courage to do the sensible thing and follow the mainstream economics advice. If he wants to be honest with Canadians, he must explain that the affordable options will not get us to the Paris target, let alone net-zero, and even if they did, what Canada does will have no effect on the global climate because we’re such small players. Maybe new technologies will appear over the next decade that change the economics, but until that day we’re better off fixing our growth problems, getting the cost of living down and continuing to be resilient to all the weather variations Canadians have always faced.

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Ottawa foresees a future of despair for Canadians. And shrugs

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This article supplied by Troy Media.

Troy Media By Lee Harding

A government report envisions Canadians foraging for food by 2040. Ottawa offers no solutions, just management of national decline

An obscure but disturbing federal report suggests Canadians could be foraging for food on public lands by 2040.

Policy Horizons Canada released the dire forecast on Jan. 7, 2025, in a report entitled Future Lives: Social Mobility in Question. It went largely unnoticed at the time, but its contents remain deeply concerning and worth closer examination.

Policy Horizons Canada is a little-known federal think-tank within the public service that produces long-term strategic foresight to guide government decision-making. Though not a household name, its projections can quietly shape policies at the highest levels. It  describes itself as the government’s “centre of excellence in foresight,” designed to “empower the Government of Canada with a future-oriented mindset and outlook to strengthen decision making.” Its current head is Kristel Van der Elst, former head of strategic foresight at the World Economic Forum.

The report warns that the “powerful promise” that anyone can get an education, work hard, buy property and climb the social and economic ladder is slipping away. Instead of a temporary setback, the authors argue, downward mobility could become the norm. They liken Canada’s future to a board game with “more snakes than ladders.”

“In 2040, upward social mobility is almost unheard of in Canada,” the report states. “Hardly anyone believes that they can build a better life for themselves, or their children, through their own efforts. However, many worry about sliding down the social order.”

While these scenarios aren’t firm predictions, foresight reports like this are intended to outline plausible futures. The fact that federal bureaucrats see this as realistic is revealing—and troubling.

Post-secondary education, the report suggests, will lose its appeal. Rising costs, slow adaptation to labour market needs, long program durations and poor job prospects will push many away. It predicts that people will attend university more to join the “elite” than to find employment.

Home ownership will be out of reach for most, and inequality between those who own property and those who don’t will drive “social, economic, and political  conflict.” Inheritance becomes the only reliable path to prosperity, while a new aristocracy begins to look down on the rest.

The gap between what youth are told to want and what they can realistically expect will widen, fuelling frustration and apathy. As automation and artificial intelligence expand, many traditional white-collar jobs will be replaced by machines or software. “Most people (will) rely on gig work and side hustles to meet their basic needs,” the report warns.

This leads to one of the darkest predictions: “People may start to hunt, fish, and forage on public lands and waterways without reference to regulations. Small scale agriculture could increase.”

The authors don’t propose solutions. Instead, they ask: “What actions could be taken now to maximize opportunities and lessen the challenges related to reduced and/or downward social mobility in the future?”

That question should concern us. Policymakers aren’t being asked how to prevent the collapse of social and economic mobility but how to manage its
fallout. Are those envisioning Canada’s future more interested in engineering a controlled implosion than fostering hope and opportunity?

Yes, artificial intelligence will bring challenges and change. But there is no excuse for despair in a country as rich in natural resources as Canada. Besides, the 2021 income data used in the report predates even the release of the first version of ChatGPT.

If policymakers are serious about restoring upward mobility, they must prioritize Canada’s resource economy. Ports, pipelines, oil and gas development, and mining are essential infrastructure for prosperity. When these sectors are strangled by overregulation, investment dries up—and so do jobs. The oil patch  remains one of the fastest paths from poverty to wealth. Entry-level jobs in the field require training and safety courses, not four-year degrees.

Similarly, post-secondary education doesn’t need to be as expensive or time consuming as it is now. We should return to models where nurses could earn certification in two years instead of being funnelled into extended university programs. And if governments required universities to wind down defined benefit pension plans, tuition would fall fast.

Unfortunately, there’s a real risk that policymakers will use reports like this to justify more wealth-killing socialism. A home equity tax, for example, might be pitched to avoid future tensions between renters and homeowners. Such a tax would require Canadians to pay an annual levy based on the increased value of their home even if they haven’t sold it. These policies don’t build wealth—they punish it, offering temporary relief in place of lasting progress.

Unless we choose a more sensible path, the controlled demolition of Canada will continue.

Lee Harding is a research fellow for the Frontier Centre for Public Policy.

Troy Media empowers Canadian community news outlets by providing independent, insightful analysis and commentary. Our mission is to support local media in helping Canadians stay informed and engaged by delivering reliable content that strengthens community connections and deepens understanding across the country

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Economy

Canada’s Energy Wealth Is Bleeding South

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From the Frontier Centre for Public Policy

By Marco Navarro-Genie

Without infrastructure, Canada is losing billions while the U.S. cashes in on our oil and gas

Canada’s energy wealth is stuck in traffic, and our American neighbours are cashing in. It’s worse than that. Canada is bleeding millions of dollars daily because it lacks the infrastructure to export its natural resources efficiently.

While our oil and gas continue to flow—mainly to the United States—provinces like Alberta and British Columbia are forced to sell at steep discounts. This isn’t just an economic inefficiency; it’s a structural failure of national policy. The beneficiaries? American businesses and their governments which pocket the profits and tax revenues that should be circulating through the Canadian economy. This is no way to achieve economic sovereignty for Canada.

With U.S. interests reaping the rewards, this should have been a central talking point when Prime Minister Carney met with President Trump earlier this month.

Ottawa often offers the recent completion of the Trans Mountain Expansion (TMX) pipeline as an example of federal support for the energy sector. But such claims are misleading. Kinder Morgan, a private enterprise, had initially planned to build the extension without a penny from taxpayers. It withdrew only after being crippled by federal regulatory delays and political uncertainty.

Ottawa stepped in not as a benevolent saviour to help Albertans, but to prevent lawsuits and save face—ultimately overpaying for the pipeline and watching construction costs balloon to nearly six times the original estimate.

To now declare this bungled project a “gift” to Alberta, as a recent op-ed in the Toronto Star did, is not only tone-deaf: it’s an insult. It ignores the fact that Alberta’s taxpayers helped finance the very project Ottawa botched. It also reveals an astonishing lack of understanding of the historical, economic and political dynamics at play between Ottawa and Western Canada.

The tragedy is that TMX, despite its importance, is insufficient. Our infrastructure bottlenecks remain. With each passing day, Canada forfeits wealth that could fund essential improvements in health care, education and national defence.

According to the Frontier Centre for Public Policy, which has developed a real-time tracker to monitor these losses, the price differential between what we could earn on global markets versus what we settle for domestically adds up to $26.5 billion annually.

Ottawa’s reluctance to greenlight new infrastructure is a primary cause of this problem. Ironically, the losses from this reluctance in a single year would be enough to pay for another TMX, mismanaged or not. The solution lies in a national commitment to building utility corridors: designated routes that facilitate the movement of energy, goods and services unhindered across provincial boundaries.

Carney’s recent promise to remove all interprovincial trade barriers by July 1 is a nice soundbite. But unless it includes meaningful infrastructure commitments, it is bound to fail like every other rhetorical flourish before it.

Canadians should be rightly skeptical. After all, what Ottawa has failed to achieve in the 157 years since Confederation is unlikely to be accomplished in the next 60 days.

The political math doesn’t help either. The Bloc Québécois holds the balance of power in the 45th Parliament, and its obstructionist stance on national pipeline development ensures the advent of more gridlock, not less. The federal government continues to uphold Bill C-69—dubbed the “no-pipelines bill”—further entrenching the status quo.

Meanwhile, Canada remains in the absurd position of relying on U.S. infrastructure to transport oil from the West to Ontario and Quebec. This undermines our economic independence, energy security and national sovereignty. No amount of “elbows up” will correct this enormous gap.

If the prime minister is serious about transforming Canada’s economic landscape and making the country strong, he must bypass the Bloc by cooperating with the Official Opposition. A grand bargain focused on utility corridors, interprovincial infrastructure and national trade efficiency would serve Alberta, Saskatchewan, and every Canadian who depends on a strong and self-reliant economy.

The stakes are high. We need a more productive country to face challenges within Canada and from abroad. Billions in lost revenue could fund new hospitals, more schools and better military readiness.

Instead, along with the limited exports of oil and gas, we’re exporting great opportunities to middlemen—and greater economic strength—south of the border.

The path forward is clear. A strong, self-reliant Canada needs infrastructure. It needs corridors. It needs leadership.

Marco Navarro-Genie is the vice president of research at the Frontier Centre for Public Policy. He is coauthor, with Barry Cooper, of Canada’s COVID: The Story of a Pandemic Moral Panic (2023).

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