Energy
When Vancouver reverses ban on natural gas appliances, it’s time to talk about energy choices
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From EnergyNow.ca
By Stewart Muir of Resource Works
More News and Views From Resource Works Here
The Practicality of Energy Choice in Vancouver
Vancouver’s decision to reverse the ban on natural gas appliances in new homes should serve as the beginning of a necessary conversation about energy system choices
In a city like Vancouver, where the mountains meet the sea and the urban skyline reflects both our history and our aspirations, policy decisions are often a reflection of our values. Yet, sometimes, even the best intentions can lead us down a perilous path. The recent decision by the City of Vancouver to restore freedom of choice for heating water and space in our homes, reversing an earlier ban on natural gas, is a move I support.
Housing affordability was a major deciding factor, but to me this turn of events – one the nation is watching – also marks a step away from a simplistic and potentially regressive approach to climate action, one that could have stymied our efforts to decarbonize in a meaningful way.
Let me be clear: climate change is real, and the need to reduce emissions is urgent. However, the original gas ban, while well-intentioned, was not the answer. Banning natural gas from our homes might have seemed like a bold move, but it ignored the nuances of our energy system and the challenges we face in transitioning to a low-carbon future.
The gas ban was a decision that felt good for those deeply concerned about climate action; a personal stand against fossil fuels. But feelings alone do not build resilient energy systems, nor do they account for the complex interplay of technologies and fuels that will be necessary to achieve our climate goals. Natural gas, particularly when blended with renewable gases like hydrogen, can and should play a role in our energy future. The idea of banning it outright was akin to throwing the baby out with the bathwater.
Consider this: hydrogen, a zero-emissions fuel, is already the focus of enormous national and international investment. Canada is positioning itself as a leader in hydrogen production and technology, recognizing its potential to decarbonize sectors that are otherwise difficult to electrify. Banning natural gas infrastructure would have made it difficult, if not impossible, to integrate hydrogen into our energy mix when the technology matures.
Similarly, renewable natural gas, produced from organic waste, relies on the very distribution networks that a gas ban would have dismantled. The infrastructure for delivering gas to our homes is not a relic of the past but a vital component of our future energy system, one that could deliver clean, low-carbon fuels to millions of Canadians.
Let’s not forget the practical realities of energy demand. Suppose gas was revoked as an option for homes in Canada; the energy required to replace it would necessitate the entirety of our current solar and wind capacity several times over. This is not hyperbole—it’s a fact. And it doesn’t even account for the intermittency of these renewable sources, which means they cannot be relied upon to meet demand at all times.
In British Columbia, we’re already seeing the strain on our electricity system. We’ve become net importers of electricity, a situation that underscores the limits of our current infrastructure. As demand continues to rise—for electric vehicles, air conditioning, and the energy-hungry applications of artificial intelligence—our grid is buckling under the pressure. Tens of billions of dollars in upgrades are required, and these projects will take years to complete. Meanwhile, our neighboring provinces and states are facing similar challenges, leading to a regional energy crunch.
This diagram of Canada’s energy system provides, under close examination, a sober realization of how things work:
There is a lot to take in here, showing as it does the sources of all the energy in Canadian life (on the left) and how they flow into particular uses (right).
In grey shading on the right, the box labelled “Rejected Energy” represents energy that goes to waste. It is a staggering five times the amount of all types of energy used in our homes. I can understand that this area of high potential is hard to create excitement about. Nonetheless, it is a real source of ongoing progress, represented by ever more efficient ways of using fuels and upgrading equipment, and we aren’t talking about it.
Energy experts understand that banning a single type of energy without considering the broader system is not just imprudent; it’s dangerous. It could lead to shortages, higher costs, and ultimately, a failure to achieve our climate goals. Yet, I also recognize the appeal of actions that seem to offer immediate, tangible results. There’s a strong emotional pull in taking control of what happens in our own homes, in feeling like we’re doing our part.
This is why I’m calling for more energy education and diverse conversations that are constructive, respectful, and grounded in reality. We need to move beyond the tired narrative of “faceless corporations” versus the environment. The truth is, the people in both policy and industry are striving for the same outcome: a world with lower emissions and better outcomes for all.
The City of Vancouver’s decision to reverse the gas ban is a wise one, but it should be just the beginning. I urge the city to initiate a robust process of energy education, one that equips residents with the knowledge they need to make informed decisions about their energy use. And as a resident of this city, I am more than willing to take part in this vital conversation.
Our future depends on it.
Stewart Muir is the Founder and CEO of Resource Works.
Alberta
Open letter to Ottawa from Alberta strongly urging National Economic Corridor
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Canada’s wealth is based on its success as a trading nation. Canada is blessed with immense resources spread across a vast country. It has succeeded as a small, open economy with an enviable standard of living that has been able to provide what the world needs.
Canada has been stuck in a situation where it cannot complete nation‑building projects like the Canadian Pacific Railway that was completed in 1885, or the Trans Canada Highway that was completed in the 1960s. With the uncertainty of U.S. tariffs looming over our country and province, Canada needs to take bold action to revitalize the productivity and competitiveness of its economy – going east to west and not always relying on north-south trade. There’s no better time than right now to politically de-risk these projects.
A lack of leadership from the federal government has led to the following:
- Inadequate federal funding for trade infrastructure.
- A lack of investment is stifling the infrastructure capacity we need to diversify our exports. This is despite federally commissioned reports like the 2022 report by the National Supply Chain Task Force indicating the investment need will be trillions over the next 50 years.
- Federal red tape, like the Impact Assessment Act.
- Burdensome regulation has added major costs and significant delays to projects, like the Roberts Bank Terminal 2 project, a proposed container facility at Vancouver, which spent more than a decade under federal review.
- Opaque funding programs, like the National Trade Corridors Fund (NTCF).
- Which offers a pattern of unclear criteria for decisions and lack of response. This program has not funded any provincial highway projects in Alberta, despite the many applications put forward by the Government of Alberta. In fact, we’ve gone nearly 3 years without decisions on some project applications.
- Ineffective policies that limit economic activity.
- Measures that pit environmental and economic objectives in stark opposition to one another instead of seeking innovative win-win solutions hinder Canada’s overall productivity and investment climate. One example is the moratorium on shipping crude through northern B.C. waters, which effectively ended Enbridge’s Northern Gateway proposal and has limited Alberta’s ability to ship its oil to Asian markets.
In a federal leadership vacuum, Alberta has worked to advance economic corridors across Canada. In April 2023, Alberta, Saskatchewan and Manitoba signed an agreement to collaborate on joint infrastructure networks meant to boost trade and economic growth across the Prairies. Alberta also signed a similar economic corridor agreement with the Northwest Territories in July 2024. Additionally, Alberta would like to see an agreement among all 7 western provinces and territories, and eventually the entire country, to collaborate on economic corridors.
Through our collaboration with neighbouring jurisdictions, we will spur the development of economic corridors by reducing regulatory delays and attracting investment. We recognize the importance of working with Indigenous communities on the development of major infrastructure projects, which will be key to our success in these endeavours.
However, provinces and territories cannot do this alone. The federal government must play its part to advance our country’s economic corridors that we need from coast to coast to coast to support our economic future. It is time for immediate action.
Alberta recommends the federal government take the following steps to strengthen Canada’s economic corridors and supply chains by:
- Creating an Economic Corridor Agency to identify and maintain economic corridors across provincial boundaries, with meaningful consultation with both Indigenous groups and industry.
- Increasing federal funding for trade-enabling infrastructure, such as roads, rail, ports, in-land ports, airports and more.
- Streamlining regulations regarding trade-related infrastructure and interprovincial trade, especially within economic corridors. This would include repealing or amending the Impact Assessment Act and other legislation to remove the uncertainty and ensure regulatory provisions are proportionate to the specific risk of the project.
- Adjusting the policy levers that that support productivity and competitiveness. This would include revisiting how the federal government supports airports, especially in the less-populated regions of Canada.
To move forward expeditiously on the items above, I propose the establishment of a federal/provincial/territorial working group. This working group would be tasked with creating a common position on addressing the economic threats facing Canada, and the need for mitigating trade and trade-enabling infrastructure. The group should identify appropriate governance to ensure these items are presented in a timely fashion by relative priority and urgency.
Alberta will continue to be proactive and tackle trade issues within its own jurisdiction. From collaborative memorandums of understanding with the Prairies and the North, to reducing interprovincial trade barriers, to fostering innovative partnerships with Indigenous groups, Alberta is working within its jurisdiction, much like its provincial and territorial colleagues.
We ask the federal government to join us in a new approach to infrastructure development that ensures Canada is productive and competitive for generations to come and generates the wealth that ensures our quality of life is second to none.
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Devin Dreeshen
Devin Dreeshen was sworn in as Minister of Transportation and Economic Corridors on October 24, 2022.
Business
New climate plan simply hides the costs to Canadians
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From the Fraser Institute
Mark Carney, who wants to be your next prime minister, recently released his plan for Canada’s climate policies through 2035. It’s a sprawling plan (climate plans always are), encompassing industrial and manufacturing emissions, vehicle emissions, building emissions, appliance emissions, cross-border emissions, more “green” energy, more “heat pumps” replacing HVAC, more electric vehicle (EV) subsidies, more subsidies to consumers, more subsidies to companies, and more charging stations for the EV revolution that does not seem to be happening. And while the plan seeks to eliminate the “consumer carbon tax” on “fuels, such as gasoline, natural gas, diesel, home heating oil, etc.” it’s basically Trudeau’s climate plans on steroids.
Consider this. Instead of paying the “consumer carbon tax” directly, under the Carney plan Canadians will pay more—but less visibly. The plan would “tighten” (i.e. raise) the carbon tax on “large industrial emitters” (you know, the people who make the stuff you buy) who will undoubtedly pass some or all of that cost to consumers. Second, the plan wants to force those same large emitters to somehow fund subsidy programs for consumer purchases to offset the losses to Canadians currently profiting from consumer carbon tax rebates. No doubt the costs of those subsidy programs will also be folded into the costs of the products that flow from Canada’s “large industrial emitters,” but the cause of rising prices will be less visible to the general public. And the plan wants more consumer home energy audits and retrofit programs, some of the most notoriously wasteful climate policies ever developed.
But the ironic icing on this plan’s climate cake is the desire to implement tariffs (excuse me, a “carbon border adjustment mechanism”) on U.S. products in association with “key stakeholders and international partners to ensure fairness for Canadian industries.” Yes, you read that right, the plan seeks to kick off a carbon-emission tariff war with the United States, not only for Canada’s trade, but to bring in European allies to pile on. And this, all while posturing in high dudgeon over Donald Trump’s plans to impose tariffs on Canadian products based on perceived injustices in the U.S./Canada trade relationship.
To recap, while grudgingly admitting that the “consumer carbon tax” is wildly unpopular, poorly designed and easily dispensable in Canada’s greenhouse gas reduction efforts, the Carney plan intends to double down on all of the economically damaging climate policies of the last 10 years.
But that doubling down will be more out of sight and out of mind to Canadians. Instead of directly seeing how they pay for Canada’s climate crusade, Canadians will see prices rise for goods and services as government stamps climate mandates on Canada’s largest manufacturers and producers, and those costs trickle down onto consumer pocketbooks.
In this regard, the plan is truly old school—historically, governments and bureaucrats preferred to hide their taxes inside of obscure regulations and programs invisible to the public. Canadians will also see prices rise as tariffs imposed on imported American goods (and potentially services) force American businesses to raise prices on goods that Canadians purchase.
The Carney climate plan is a return to the hidden European-style technocratic/bureaucratic/administrative mindset that has led Canada’s economy into record underperformance. Hopefully, whether Carney becomes our next prime minister or not, this plan becomes another dead letter pack of political promises.
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