The draft clean electricity regulations, released last week, serve as a warning that neither the provinces nor industry nor common sense will stand in the way of the federal government’s commitment to meeting the radical emissions targets agreed to in Paris in 2015. Whether the Liberals will successfully force power grids to achieve net zero by 2035 is far from certain, but one thing seems clear: the climate agenda has put the final nail in the coffin of deregulation. Big government is here to stay.
The draft regulations
were immediately attacked by the premiers of Alberta and Saskatchewan as being “unconstitutional” and “unachievable.” Although there have been varying estimates of how much the transformation will cost — with Environment Minister Steven Guilbeault disingenuously claiming Canadians
will save money by switching away from fossil fuels (which his carbon tax has artificially inflated in price) — there can be little question that it would be an expensive undertaking for the Prairie provinces.
The draft clean electricity regulations, released last week, serve as a warning that neither the provinces nor industry nor common sense will stand in the way of the federal government’s commitment to meeting the radical emissions targets agreed to in Paris in 2015. Whether the Liberals will...
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Unlike British Columbia, Manitoba, Quebec and Newfoundland, they
are not endowed with the geographical features that permit an abundance of hydroelectricity. Nor do they have a legacy of nuclear power, like Ontario does. Saskatchewan
currently relies on fossil fuels for more than three-quarters of its electricity supply.
Alberta also relies heavily on fossil fuels, but
is considerably greener than a decade ago. The province had planned to
phase out coal generation by 2030, but has managed to make the transition ahead of schedule (something that’s almost unheard of in government), with its last coal plant due to be decommissioned later this year.
Most of the coal has been replaced with gas-fired generators, which produces half as much greenhouse gasses. It’s thus not possible to say that Alberta hasn’t been doing its part to try to reduce the country’s overall emissions. But that’s clearly not good enough for the Liberals, which will stop at nothing to attain the
Paris Agreement’s misguided target of achieving net zero by 2050….
which the Liberal/NDP modified to 2035 because…something or another.
Not content to let the carbon tax incentivize market players to find ways to reduce emissions, the government has also imposed industry-specific emissions caps on oil and gas, introduced clean fuel standards, banned the sale of new
gas-powered vehicles by 2035 and made it virtually impossible to build new energy infrastructure, all while giving tens of billions of taxpayer dollars to favoured industries to produce products demanded by governments, rather than consumers.
Ottawa’s ever-changing rules do not provide the type of stability businesses need to make long-term investments — not just in energy and electrical generation, but in other sectors of the economy, as well. This is likely one of the reasons why Canada has seen a sharp decline in
gross business investment since the Liberals took office in 2015.