Energy, climate, and economics — A smarter path for Canada

By Resource Works senior fellow Jerome Gessaroli

Canada has set ambitious climate goals, aiming to cut its greenhouse-gas emissions by 40 to 45 per cent by 2030, and to hit net-zero emissions by 2050.

Now a senior fellow at Resource Works, Jerome Gessaroli, argues that Canada is over-focusing internally on reducing greenhouse-gas emissions, when we should “look at cooperating with developing countries to jointly reduce emissions.”

He continues: “And we do that in a way that helps ourselves. It helps meet our own goals. That’s through Article 6 of the Paris Accord, allowing countries to share emission reduction credits from jointly developed projects.”

Reduction on a global scale

Article 6, says Gessaroli, means this: “We can work towards meeting our own emission goals, and can help developing countries meet theirs. We can do it in a way that’s much more efficient. We get a lot more bang for our buck than if we are trying to just do it domestically on our own.”

The point is that, in the end, emissions are reduced on a global scale — as he stressed in a five-part series that he wrote for Resource Works last November.

And in a study for the Macdonald-Laurier Institute (where he is a senior fellow) he wrote: “The benefits could be large. Canada could reduce emissions by 50 per cent more if it carried out methane reduction projects both internationally and domestically, rather than solely in Canada.”

But is Ottawa interested?

Gessaroli says the federal government expressed interest in Article 6 in 2019 — but has not moved since then.

“They barely looked at it. Since this requires government-to-government coordination, it needs Ottawa’s initiative. But there doesn’t seem to be too much interest, too much appetite in that.”

All Ottawa has said so far is: “Going forward, Canada will explore these and other similar options to strengthen international co-operation and generate incentives for further emission reductions.”

Gessaroli on Resource Works

Gessaroli has been working with Resource Works since he first spoke with our Stewart Muir, following a letter that Muir wrote in The Vancouver Sun in 2022: ‘Gas has key role to play in meeting 1.5C climate targets.’

Gessaroli saw in Resource Works advocacy for responsible resource development “for the people, the citizens of BC, in an environmentally responsible manner and in a manner that’s efficient, driven by the private sector.”

And: “Resource Works supports responsible resource development, not uncritical expansion. We have these resources. We should develop them, but in a way that benefits society, respects nature, respects the local peoples, and so that wide elements of society can benefit from that resource development.”

Gessaroli on electric vehicles

Gessaroli hit a shared interest with Resource Works in a 2024 paper for its Energy Futures Institute, critiquing BC’s plan to require that all new vehicles sold in the province must be electric zero-emission vehicles (ZEVs) by 2035.

For one thing, he wrote, BC would need to spend $1.8 billion to provide electric charging points for the vehicles. And billions more would be required to provide expanded power generation and transmission systems.

“The Government of BC should adjust or rescind its mandated targets for new minimum zero-emission vehicle sales.”

And on ZEV subsidies

Stewart Muir and Barry Penner, chair of the Energy Futures Institute, wrote a guest column last October in Business in Vancouver. They cited Gessaroli’s paper above, and noted: “According to Gessaroli, meeting BC’s ZEV targets will require an additional 2,700 gigawatt hours of electricity by 2030, and 9,700 gigawatt hours by 2040—almost equal to the output of two Site C dams.”

Gessaroli has also looked at the subsidies BC offers (up to $4,000) to people who buy an electric vehicle.

“The subsidies do help. They do incentivize people to buy EVs. But it’s a very costly way to reduce carbon emissions, anywhere upwards of $600, $700, even $800 a tonne to eliminate one tonne of carbon.

“When you look at the social cost of carbon, the government uses a figure around $170 a tonne. That’s the damage done from every tonne of carbon emitted into the atmosphere. So we’re paying $800 to remove one tonne of carbon when that same tonne of carbon does damage of about $170. That doesn’t sound like a very cost-effective way of getting rid of carbon, does it?”

Gessaroli on Donald Trump’s policies

Gessaroli says tariffs on imports are not the only benefit that Donald Trump plans for U.S. industry that will hurt Canada.

“He also wants to reduce tax rates, 15% for US manufacturers, and allow full deductibility for equipment purchases. You reduce regulations and red tape on companies while lowering their tax rates. They’re already competitive to begin with. Well, they’re going to be even more competitive, more innovative.”

For Canada, he says: “Get rid of the government heavy hand of overtaxing and enforcing inefficient and ineffective regulations. Get rid of all of that. Encourage competition in the marketplace. And over time, we’d find Canadians can be quite innovative and quite competitive in our own right. And we can hold our own. We can be better off.

“And there’d be more tax revenues being generated by the government. With the tax revenue, you can build the roads, build the hospitals, improve the healthcare system, things like that.

“But without this type of vibrant economic type activity, you’re going to get the stagnation we’re seeing right now.”

About Jerome Gessaroli

Gessaroli leads the Sound Economic Policy Project at the B.C. Institute of Technology. He is the lead Canadian co-author of Financial Management: Theory and Practice, a widely used textbook. His writing has appeared in many Canadian newspapers.

Stewart Muir, CEO of Resource Works, highlights Gessaroli’s impact: “Jerome brings a level of economic and policy analysis that cuts through the noise. His research doesn’t just challenge assumptions—it provides a roadmap for smarter, more effective climate and energy policies.

“Canada needs more thinkers like him, who focus on pragmatic solutions that benefit both the environment and the economy.”

Gessaroli and Karen, his wife of 34 years, live in Vancouver and enjoy cruising to unwind. In his downtime, Gessaroli reads about market ethics and political economy — which he calls his idea of relaxation.

Related Topics:#JeromeGessaroli #ResourceWorks EnergyCllmateEconomics SmarterPathForCanada

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Alberta

The Canadian Energy Centre’s biggest stories of 2025

Published on December 30, 2025

Todayville

From the Canadian Energy Centre

Canada’s energy landscape changed significantly in 2025, with mounting U.S. economic pressures reinforcing the central role oil and gas can play in safeguarding the country’s independence.

Here are the Canadian Energy Centre’s top five most-viewed stories of the year.

5. Alberta’s massive oil and gas reserves keep growing – here’s why

The Northern Lights, aurora borealis, make an appearance over pumpjacks near Cremona, Alta., Thursday, Oct. 10, 2024. CP Images photo

Analysis commissioned this spring by the Alberta Energy Regulator increased the province’s natural gas reserves by more than 400 per cent, bumping Canada into the global top 10.

Even with record production, Alberta’s oil reserves – already fourth in the world – also increased by seven billion barrels.

According to McDaniel & Associates, which conducted the report, these reserves are likely to become increasingly important as global demand continues to rise and there is limited production growth from other sources, including the United States.

4. Canada’s pipeline builders ready to get to work

Photo courtesy Coastal GasLink

Canada could be on the cusp of a “golden age” for building major energy projects, said Kevin O’Donnell, executive director of the Mississauga, Ont.-based Pipe Line Contractors Association of Canada.

That eagerness is shared by the Edmonton-based Progressive Contractors Association of Canada (PCA), which launched a “Let’s Get Building” advocacy campaign urging all Canadian politicians to focus on getting major projects built.

“The sooner these nation-building projects get underway, the sooner Canadians reap the rewards through new trading partnerships, good jobs and a more stable economy,” said PCA chief executive Paul de Jong.

3. New Canadian oil and gas pipelines a $38 billion missed opportunity, says Montreal Economic Institute

Steel pipe in storage for the Trans Mountain Pipeline expansion in 2022. Photo courtesy Trans Mountain Corporation

In March, a report by the Montreal Economic Institute (MEI) underscored the economic opportunity of Canada building new pipeline export capacity.

MEI found that if the proposed Energy East and Gazoduq/GNL Quebec projects had been built, Canada would have been able to export $38 billion worth of oil and gas to non-U.S. destinations in 2024.

“We would be able to have more prosperity for Canada, more revenue for governments because they collect royalties that go to government programs,” said MEI senior policy analyst Gabriel Giguère.

“I believe everybody’s winning with these kinds of infrastructure projects.”

2. Keyera ‘Canadianizes’ natural gas liquids with $5.15 billion acquisition

Keyera Corp.’s natural gas liquids facilities in Fort Saskatchewan, Alta. Photo courtesy Keyera Corp.

In June, Keyera Corp. announced a $5.15 billion deal to acquire the majority of Plains American Pipelines LLP’s Canadian natural gas liquids (NGL) business, creating a cross-Canada NGL corridor that includes a storage hub in Sarnia, Ontario.

The acquisition will connect NGLs from the growing Montney and Duvernay plays in Alberta and B.C. to markets in central Canada and the eastern U.S. seaboard.

“Having a Canadian source for natural gas would be our preference,” said Sarnia mayor Mike Bradley.

“We see Keyera’s acquisition as strengthening our region as an energy hub.”

1. Explained: Why Canadian oil is so important to the United States

Enbridge’s Cheecham Terminal near Fort McMurray, Alberta is a key oil storage hub that moves light and heavy crude along the Enbridge network. Photo courtesy Enbridge

The United States has become the world’s largest oil producer, but its reliance on oil imports from Canada has never been higher.

Many refineries in the United States are specifically designed to process heavy oil, primarily in the U.S. Midwest and U.S. Gulf Coast.

According to the Alberta Petroleum Marketing Commission, the top five U.S. refineries running the most Alberta crude are:

Marathon Petroleum, Robinson, Illinois (100% Alberta crude)
Exxon Mobil, Joliet, Illinois (96% Alberta crude)
CHS Inc., Laurel, Montana (95% Alberta crude)
Phillips 66, Billings, Montana (92% Alberta crude)
Citgo, Lemont, Illinois (78% Alberta crude)

Energy

Rulings could affect energy prices everywhere: Climate activists v. the energy industry in 2026

Published on December 29, 2025

Todayville

From The Center Square

By Andrew Rice

Anti-oil and gas advocates across the country have pursued litigation in recent years attempting to force the fossil fuel industry to pay for decades of financial damages the advocates claim were caused by climate change.

Several cases have been dismissed while others advanced through court systems, with some being considered before the U.S. Supreme Court in 2026. Critics of the litigation call it “woke lawfare” and an attempt to force progressive political policies via the judicial system.

Critics also argue the lawsuits threaten U.S. energy independence and, depending on outcomes, will have sweeping impacts on every American.

Here are some of those cases.

Chevron USA Inc. v. Plaquemines Parish, Louisiana

On Jan. 12, 2026, the U.S. Supreme Court will hear oral arguments in Plaquemines Parish, Louisiana, vs. Chevron USA Inc. The case questions to what extent a state court can litigate against an oil company for its production of oil even if it obtained federal permits to produce the oil.

The litigation challenges activities of the oil companies dating back to World War II in some cases. Chevron argued the lawsuit was flawed, claiming that the activities in question were permitted, legal, and often conducted under federal direction – particularly those tied to national security during World War II.

A Plaquemines Parish jury in April ordered Chevron to pay $744 million in damages for its role in the degradation of the state’s coastal wetlands. Environmental activists celebrated the verdict. It was the first of 42 lawsuits filed since 2013 by parishes across coastal Louisiana to go to trial.

The Trump administration’s Justice Department stepped in on Chevron’s side, urging the Supreme Court to move the case from state court to federal court.

Business groups and energy advocates warned the verdict will drive jobs and investment out of Louisiana. The Louisiana Association of Business and Industry called the decision “shortsighted,” saying it would “brand Louisiana as a state that will extort the most recognizable companies on earth for billions of dollars, decades later.”

O.H. Skinner, executive director of Alliance for Consumers, told the Center Square the case seeks to score large settlements from the energy industry and stop oil production.

“The case arises from a broader campaign of woke lawfare in which activists and municipal governments seek to use courtrooms to determine what companies are allowed to produce and what consumers can buy,” Skinner said.

Suncor Energy Inc. v. Boulder

The nation’s highest court is still deciding whether it will hear arguments in Suncor Energy Inc. v. Boulder; a case to decide whether state and local governments can use nuisance laws to sue energy companies for activities that may cause climate change.

The case, originating in Colorado, centers around a City of Boulder and Boulder County lawsuit in state court against Suncor Energy claiming it misled the public in its activities that the local governments claim led to climate change effects.

Lawyers for Suncor Energy argue that allowing a case like this one to play out goes against protections in the Clean Air Act that prevent lawsuits from occurring against emitters from across state lines.

“Public nuisance can’t be used for global problems. It can be used for local problems,” Skinner told The Center Square. “That’s what it’s supposed to be used for.”

However, Skinner said many organizations that are pursuing climate change litigation are seeking to bankrupt energy companies with large monetary settlements. He said litigants will likely attempt to drain energy companies of their resources and use the funds to advocate certain ideological causes.

“These are highly ideological dark-money-funded, multi-faceted legal campaigns to bankrupt an entire industry and confiscate it for ideological reasons,” Skinner said.

City and County of Honolulu v. Sunoco

Similarly, in 2020, City and County of Honolulu v. Sunoco was one of the first examples of public nuisance lawsuits pursued in a state court. The city and county of Honolulu filed a lawsuit in 2020 accusing oil and gas companies, including Sunoco, Exxon Mobil, BP, Chevron and Shell, of misleading the public for decades about the dangers of climate change induced by burning fossil fuels.

The companies asked the U.S. Supreme Court to intervene in the case, but the court, without ruling on the merits, declined to do so in January.

While the case is based in Hawaii, Skinner said litigants there hope it will have far-reaching effects across the country.

“They’re not trying to stop behavior just in those states,” Skinner said. ”The thing that really freaks me out is how people in regular, everyday, real America are going to potentially be affected.”

The People of the State of California v. Exxon Mobil Corporation

Going a step further than Boulder and Honolulu, California Democrat Attorney General Rob Bonta filed a complaint against ExxonMobil in 2024 for what he says are its contributions to “the deluge of plastic pollution” affecting the state.

Exxon countersued, alleging “Bonta and the US Proxies – the former for political gain and the latter pawns for the Foreign Interests – have engaged in a deliberate smear campaign against ExxonMobil, falsely claiming that ExxonMobil’s effective and innovative advanced recycling technology is a ‘false promise’ and ‘not based on truth.,” American Tort Reform Foundation reported.

One of the foreign interests is IEJF, an Australian nonprofit that’s connected to an Australian mining conmpany “that competes with ExxonMobil in the low carbon solutions and energy transition markets, ATRF reported.

Skinner said the litigants in this case are attempting to significantly reduce plastic use throughout the state of California and potentially beyond.

“That’ll make your average person’s life dramatically harder, and it’ll make a lot of things a lot more expensive, and it’ll make having kids, like, brutal,” Skinner said.

Leon v. Exxon Mobil Corp.

Aside from monetary settlements, petitioners in this case also are seeking wrongful death claims against energy companies for their contributions to climate change. The case stems from a woman in Washington state who said her mother died from heat-related illness due to the exacerbated effects of climate change.

She is suing energy companies for their alleged creation of conditions over a period of decades that led to increased temperatures on the day her mother died.

Skinner told The Center Square this case is one of the more blatant examples of ideology affecting the way a litigant pursues cases.

“I think they care because a death is worth a lot of money,” Skinner said. “The climate homicide cases are one of the more far-fetched legal theories I’ve ever seen, because you’re leveling this incredibly staggering charge.”

Climate cases will continue to move through the court system, with one to be heard before the U.S. Supreme Court in early 2026.

Skinner is urging the U.S. Supreme Court and lower courts to rule in favor of energy companies across the country.

“We want the energy companies to win, not because they are perfect actors, but because the alternative is that our lives are governed day in and day out by woke trial lawyers, woke [nongovernmental organizations] and local governments,” Skinner said.