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Economy

Canada should not want to lead the world on climate change policy

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8 minute read

From the Fraser Institute

By Ross McKitrick

Some commentators in the media want the the federal Conservatives to take a leadership position on climate, and by extension make Canada a world leader on the journey to the low-carbon uplands of the future. This would be a mistake for three reasons.

First, unlike other areas such as trade, defence or central banking, where diplomats aim for realistic solutions to identifiable problems, in the global climate policy world one’s bona fides are not established by actions but by willingness to recite the words of an increasingly absurd creed. Take, for example, United Nations Secretary General António Guterres’ fanatical rhetoric about the “global boiling crisis” and his call for a “death knell” for fossil fuels “before they destroy our planet.” In that world no credit is given for actually reducing emissions unless you first declare that climate change is an existential crisis, that we are (again, to quote Guterres) at the “tip of a tipping point” of “climate breakdown” and that “humanity has become a weapon of mass extinction.” Any attempt to speak sensibly on the issue is condemned as denialism, whereas any amount of hypocrisy from jet-setting politicians, global bureaucrats and celebrities is readily forgiven as long as they parrot the deranged climate crisis lingo.

The opposite is also true. Unwillingness to state absurdities means actual accomplishments count for nothing. Compare President Donald Trump, who pulled out of the Paris treaty and disparaged climate change as unimportant, to Prime Minister Justin Trudeau who embraced climate emergency rhetoric and dispatched ever-larger Canadian delegations to the annual greenhouse gabfests. In the climate policy world, that made Canada a hero and the United States a villain. Meanwhile, thanks in part to expansion of natural gas supplies under the Trump administration, from 2015 to 2019 U.S. energy-based CO2 emissions fell by 3 per cent even as primary energy consumption grew by 3 per cent. In Canada over the same period, CO2 emissions fell only 1 per cent despite energy consumption not increasing at all. But for the purpose of naming heroes and villains, no one cared about the outcome, only the verbiage. Likewise, climate zealots will not credit Conservatives for anything they achieve on the climate file unless they are first willing to repeat untrue alarmist nonsense, and probably not even then.

On climate change, Conservatives should resolve to speak sensibly and use mainstream science and economic analysis, but that means rejecting climate crisis rhetoric and costly “net zero” aspirations. Which leads to the second problem—climate advocates love to talk about “solutions” but their track record is 40 years of costly failure and massive waste. Here again leadership status is tied to one’s willingness to dump ever-larger amounts of taxpayer money into impractical schemes loaded with all the fashionable buzzwords. The story is always the same. We need to hurry and embrace this exciting economic opportunity, which for some reason the private sector won’t touch.

There are genuine benefits to pursuing practical sensible improvements in the way we make and use fossil fuels. But the current and foreseeable state of energy technology means CO2 mitigation steps will be smaller and much slower than was the case for other energy side-effects such as acid rain and particulates. It has nothing to do with lack of “political will;” it’s an unavoidable consequence of the underlying science, engineering and economics. In this context, leadership means being willing sometimes to do nothing when all the available options yield negative net benefits.

That leads to the third problem—opportunity cost. Aspiring to “climate leadership” means not fixing any of the pressing economic problems we currently face. Climate policy over the past four decades has proven to be very expensive, economically damaging and environmentally futile. The migration of energy-intensive industry to China and India is a very real phenomenon and more than offsets the tiny emission-reduction measures Canada and other western countries pursued under the Kyoto Protocol.

The next government should start by creating a new super-ministry of Energy, Resources and Climate where long-term thinking and planning can occur in a collaborative setting, not the current one where climate policy is positioned at odds with—and antagonistic towards—everything else. The environment ministry can then return its focus to air and water pollution management, species and habitat conservation, meteorological services and other traditional environmental functions. The climate team should prepare another national assessment but this time provide much more historical data to help Canadians understand long-term observed patterns of temperature and precipitation rather than focusing so much on model simulations of the distant future under implausible emission scenarios.

The government should also move to extinguish “climate liability,” a legal hook on which dozens of costly nuisance lawsuits are proliferating here and elsewhere. Canada should also use its influence in the UN Intergovernmental Panel on Climate Change to reverse the mission creep, clean out the policy advocacy crowd and get the focus back on core scientific assessments. And we should lead a push to move the annual “COPs”—Conferences of the Parties to the Rio treaty—to an online format, an initiative that would ground enough jumbo jets each year to delay the melting of the ice caps at least a century.

Finally, the new Ministry of Energy, Resources and Climate should work with the provinces to find one region or municipality willing to be a demonstration project on the feasibility of relying only on renewables for electricity. We keep hearing from enthusiasts that wind and solar are the cheapest and best options, while critics point to their intermittency and hidden costs. Surely there must be one town in Canada where the councillors, fresh from declaring a climate crisis and buying electric buses, would welcome the chance to, as it were, show leadership. We could fit them out with all the windmills and solar panels they want, then disconnect them from the grid and see how it goes. And if upon further reflection no one is willing to try it, that would also be useful information.

In the meantime, the federal Conservatives should aim merely to do some sensible things that yield tangible improvements on greenhouse gas emissions without wrecking the economy. Maybe one day that will be seen as real leadership.

Business

Canada Hits the Brakes on Population

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The Opposition with Dan Knight

Dan Knight's avatar Dan Knight

The population drops for the first time in years, exposing an economy built on temporary residents, tuition cash, and government debt rather than real productivity

Canadians have been told for years that population decline was unthinkable, that it was an economic death spiral, that only mass immigration could save us. That was the line. Now the numbers are in, and suddenly the people who said that are very quiet.

Statistics Canada reports that between July 1 and October 1, 2025, Canada’s population fell by 76,068 people, a decline of 0.2 percent, bringing the total population to 41,575,585. This is not a rounding error. It is not a model projection. It is an official quarterly population loss, outside the COVID period, confirmed by the federal government’s own data

The reason matters. This did not happen because Canadians suddenly stopped having children or because of a natural disaster. It happened because the number of non‑permanent residents dropped by 176,479 people in a single quarter, the largest quarterly decline since comparable records began in 1971. Permit expirations outpaced new permits by more than two to one. Outflows totaled 339,505, while inflows were just 163,026

That is the so‑called growth engine shutting down.

Permanent immigration continued at roughly the same pace as before. Canada admitted 102,867 permanent immigrants in the quarter, consistent with recent levels. Births minus deaths added another 17,600 people. None of that was enough to offset the collapse in temporary residency. Net international migration overall was negative, at minus 93,668

And here’s the part you’re not supposed to say out loud. For the Liberal‑NDP government, this is bad news. Their entire economic story has rested on population‑driven GDP growth, not productivity. Add more people, claim the economy is growing, borrow more money, and run the national credit card a little harder. When population growth reverses, that illusion collapses. GDP per capita does not magically improve. Housing shortages do not disappear. The math just stops working.

The regional numbers make that clear. Ontario’s population fell by 0.4 percent in the quarter. British Columbia fell by 0.3 percent. Every province and territory lost population except Alberta and Nunavut, and even Alberta’s growth was just 0.2 percent, its weakest since the border‑closure period of 2021

Now watch who starts complaining first. Universities are already bracing for it. Study permit holders alone fell by 73,682 people in three months, with Ontario losing 47,511 and British Columbia losing 14,291. These are the provinces with the largest university systems and the highest dependence on international tuition revenue

You’re going to hear administrators and activists say this is a crisis. What they mean is that fewer students are paying international tuition to subsidize bloated campuses and programs that produce no measurable economic value. When the pool of non‑permanent residents shrinks, departments that exist purely because enrollment was artificially inflated start to disappear. That’s not mysterious. That’s arithmetic.

For years, Canadians were told that any slowdown in population growth was dangerous. The truth is more uncomfortable. What’s dangerous is building a national economic model on temporary residents, borrowed money, and headline GDP numbers while productivity stagnates. The latest StatsCan release doesn’t just show a population decline. It shows how fragile the story really was, and how quickly it unravels when the numbers stop being padded.

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Business

White House declares inflation era OVER after shock report

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MXM logo MxM News 

The White House on Thursday declared a decisive turn in the inflation fight, pointing to new data showing core inflation has fallen to its lowest level in nearly five years — a milestone the administration says validates President Donald Trump’s economic reset after inheriting what it calls a historic cost-of-living crisis from the Biden era. In a statement accompanying the report, White House Press Secretary Karoline Leavitt said inflation “came in far lower than market expectations,” drawing a sharp contrast with the 9 percent peak under President Joe Biden and arguing the numbers reflect sustained relief for American households. “Core inflation is at a new multi-year low, as prices for groceries, medicine, gas, airfare, car rentals, and hotels keep falling,” Leavitt said, adding that lower prices and rising paychecks are expected to continue into the new year.

According to the White House, core inflation — widely viewed by economists as the most reliable gauge because it strips out volatile food and energy costs — is now down roughly 70 percent from its Biden-era high. Officials noted that if inflation continues at the pace of the last two months, it would be running at an annualized rate of about 1.2 percent, well below the Federal Reserve’s 2 percent target. The report also highlighted broad-based price moderation across consumer staples and services, with declines in groceries, dairy, fruits and vegetables, prescription drugs, clothing, airfares, natural gas, car and truck rentals, and hotel prices. Average gas prices have fallen to multi-year lows, while rent inflation has dropped to its lowest level since October 2021, a shift the administration attributes in part to tougher enforcement against illegal immigration and reduced pressure on housing demand.

Wages, the White House says, are rising alongside easing prices. Private-sector workers are on track to see real wages increase by about $1,300 in President Trump’s first full year back in office, clawing back purchasing power lost during the inflation surge of the previous administration. Gains are strongest among blue-collar workers, with annualized real earnings up roughly $1,800 for construction workers and $1,600 for manufacturing employees. Administration officials also took aim at critics who warned Trump’s tariff policies would reignite inflation, arguing the data shows no demonstrable inflationary impact despite repeated predictions from Wall Street and academic economists.

Even commentators across the media spectrum acknowledged the strength of the report. CNBC’s Steve Liesman called it “a very good number,” while CNN’s Matt Egan said it was “another step in the right direction.” Harvard economist Ken Rogoff described the reading as “a better number than anyone was expecting,” adding, “There’s no other way to spin it.” Bloomberg’s Chris Anstey noted the figure came in two-tenths below the lowest estimate in a survey of 62 economists, calling it “remarkable,” while The Washington Post’s Andrew Ackerman wrote that inflation “cooled unexpectedly,” easing pressure on household budgets.

For the White House, the message was blunt: the inflation era is over. Officials framed Thursday’s report as proof that Trump has followed through on his promise to defeat the cost-of-living crisis he inherited, laying what they called the groundwork for a strong year ahead. As the president told the nation this week, the administration insists the progress is real — and that, in his words, the best is yet to come.

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