Article from Canadians For Affordable Energy, AffordableEnergy.ca
As I continue to offer comment on the whole Net Zero by 2050 discussion, I am starting with a series of pieces to lay some groundwork. My recent blog, Net Zero Part One: Defining the Terms explained the challenges with the language used by the “Net Zero” lobby.
Today’s blog digs a bit further on the problematic language behind the Net Zero by 2050 agenda.
The advocates of Net Zero by 2050 talk in very rosy terms about how they want to eliminate the bad practices.
In particular, they say their plan is to de-carbonize society and thereby eliminate carbon dioxide pollution. Trudeau’s carbon taxes are all about achieving these ends. You have to pay more, but that’s necessary because Trudeau says we need to de-carbonize and eliminate carbon dioxide pollution.
But stop and think about that.
Trudeau and his ideological allies are twisting language here to advance their agenda. This is part of a trend of course – remember the Liberals don’t use the term tax when describing their carbon taxes, instead calling them by misleading terms such as “Clean Fuel Standard” or “CFS”. It isn’t only a Trudeau trend either – Conservative Party leader Erin O’Toole has endorsed carbon taxes in his so-called climate plan but insists on calling them by other names. And so the trend continues in respect to terms like de-carbonization and carbon dioxide pollution.
First, remember from high school science that carbon is an abundant element and every living thing contains it. You can’t de-carbonize the world, nor should you want to: doing so would bring a very quick end to any life on the planet. That is enabling a bad outcome, not ending a bad practice. De-carbonization has become a term of common usage. But using it suggests you support an incoherent agenda. Reducing emissions is one thing and can have merit, but de-carbonization is incoherent.
Second (and still from high school science) remember that carbon dioxide is a molecule that is essential for life: plants thrive on it, we exhale it with every breath we have. CO2 levels swing up and down over centuries and millennia and geologic cycles in ways we are only beginning to understand. We know human activity is producing a lot of CO2 right now, but the levels are well below what they have been in the past. And as societies become more affluent, they become more efficient in their use of resources and the CO2 levels per unit of human activity drop.
Moreover, we have observed in the last few decades a dramatic increase in global green vegetation cover. That makes sense. CO2 is food for plants – just go to a greenhouse and note how they try to heighten CO2 levels to improve growth rates – so more CO2 means more abundant forests, more productive farms, etc. This isn’t pollution: this is life.
But saying these things – obvious things I remind you, that we learned as adolescents – gets you into trouble these days. The Net Zero crowd wants to deny the obvious as a means to advance their green agenda. It is easy to fall into the trap of using the language of “de-carbonization” or “carbon dioxide pollution” but both terms lead down a deceptive road that is inconsistent with the science we know, and ultimately leading to a more and more costly society.
Trudeau’s carbon taxes – as expensive as they are – are just a foretaste of what the misleading language around Net Zero really means: less affordable energy, higher food bills, and a higher cost of living.
Net Zero Part 3 will be published on Todayville Tuesday, June 8
An 18 year veteran of the House of Commons, Dan is widely known in both official languages for his tireless work on energy pricing and saving Canadians money through accurate price forecasts. His Parliamentary initiatives, aimed at helping Canadians cope with affordable energy costs, led to providing Canadians heating fuel rebates on at least two occasions.
Widely sought for his extensive work and knowledge in energy pricing, Dan continues to provide valuable insights to North American media and policy makers. He brings three decades of experience and proven efforts on behalf of consumers in both the private and public spheres. Dan is committed to improving energy affordability for Canadians and promoting the benefits we all share in having a strong and robust energy sector.
An 18 year veteran of the House of Commons, Dan is widely known in both official languages for his tireless work on energy pricing and saving Canadians money through accurate price forecasts. His Parliamentary initiatives, aimed at helping Canadians cope with affordable energy costs, led to providing Canadians heating fuel rebates on at least two occasions.
Widely sought for his extensive work and knowledge in energy pricing, Dan continues to provide valuable insights to North American media and policy makers. He brings three decades of experience and proven efforts on behalf of consumers in both the private and public spheres. Dan is committed to improving energy affordability for Canadians and promoting the benefits we all share in having a strong and robust energy sector.
At a time when Canadians are grappling with epic housing supply and affordability challenges, the data show that homebuilding continues to come up short in some parts of the country including in several metro regions where most newcomers to Canada settle.
In both the Greater Toronto area and Metro Vancouver, housing starts have languished below levels needed to close the supply gaps that have opened up since 2019. In fact, the last 12-18 months have seen many planned development projects in Ontario and British Columbia delayed or cancelled outright amid a glut of new unsold condominium units and a sharp drop in population growth stemming from shifts in federal immigration policy.
At the same time, residential real estate sales have also been sluggish in some parts of the country. A fall-off in real estate transactions tends to have a lagged negative effect on construction investment—declining home sales today translate into fewer housing starts in the future.
While Prime Minister Carney’s Liberal government has pledged to double the pace of homebuilding, the on-the-ground reality points to stagnant or dwindling housing starts in many communities, particularly in Ontario and B.C. In July, the Canada Mortgage and Housing Corporation (CMHC) revised down its national forecast for housing starts over 2025/26, notwithstanding the intense political focus on boosting supply.
A slowdown in residential construction not only affects demand for services provided by homebuilders, it also has wider economic consequences owing to the size and reach of residential construction and the closely linked real estate sector. Overall, construction represents almost 8 per cent of Canada’s economy. If we exclude government-driven industries such as education, health care and social services, construction provides employment for more than one in 10 private-sector workers. Most of these jobs involve homebuilding, home renovation, and real estate sales and development.
As such, the economic consequences of declining housing starts are far-reaching and include reduced demand for goods and services produced by suppliers to the homebuilding industry, lower tax revenues for all levels of government, and slower economic growth. The weakness in residential investment has been a key factor pushing the Canadian economy close to recession in 2025.
Moreover, according to Statistics Canada, the value of GDP (in current dollars) directly attributable to housing reached $238 billion last year, up slightly from 2023 but less than in 2021 and 2022. Among the provinces, Ontario and B.C. have seen significant declines in residential construction GDP since 2022. This pattern is likely to persist into 2026.
Statistics Canada also estimates housing-related activity supported some 1.2 million jobs in 2024. This figure captures both the direct and indirect employment effects of residential construction and housing-related real estate activity. Approximately three-fifths of jobs tied to housing are “direct,” with the rest found in sectors—such as architecture, engineering, hardware and furniture stores, and lumber manufacturing—which supply the construction business or are otherwise affected by activity in the residential building and real estate industries.
Spending on homebuilding, home renovation and residential real estate transactions (added together) represents a substantial slice of Canada’s $3.3 trillion economy. This important sector sustains more than one million jobs, a figure that partly reflects the relatively labour-intensive nature of construction and some of the other industries related to homebuilding. Clearly, Canada’s economy will struggle to rebound from the doldrums of 2025 without a meaningful turnaround in homebuilding.
Ship containers are stacked at the Panama Canal Balboa port in Panama City, Saturday, Sept. 20, 2025. The Panama Canals is one of the most significant trade infrastructure projects ever built. CP Images photo
Q&A with Gary Mar, CEO of the Canada West Foundation
Building a stronger Canadian economy depends as much on how we move goods as on what we produce.
Gary Mar, CEO of the Canada West Foundation, says economic corridors — the networks that connect producers, ports and markets — are central to the nation-building projects Canada hopes to realize.
He spoke with CEC about how these corridors work and what needs to change to make more of them a reality.
Gary Mar, CEO of the Canada West Foundation. Photo for the Canadian Energy Centre
CEC: What is an economic corridor, and how does it function?
Gary Mar: An economic corridor is a major artery connecting economic actors within a larger system.
Consider the road, rail and pipeline infrastructure connecting B.C. to the rest of Western Canada. This infrastructure is an important economic corridor facilitating the movement of goods, services and people within the country, but it’s also part of the economic corridor connecting western producers and Asian markets.
Economic corridors primarily consist of physical infrastructure and often combine different modes of transportation and facilities to assist the movement of many kinds of goods.
They also include social infrastructure such as policies that facilitate the easy movement of goods like trade agreements and standardized truck weights.
The fundamental purpose of an economic corridor is to make it easier to transport goods. Ultimately, if you can’t move it, you can’t sell it. And if you can’t sell it, you can’t grow your economy.
CEC: Which resources make the strongest case for transport through economic corridors, and why?
Gary Mar: Economic corridors usually move many different types of goods.
Bulk commodities are particularly dependent on economic corridors because of the large volumes that need to be transported.
Some of Canada’s most valuable commodities include oil and gas, agricultural commodities such as wheat and canola, and minerals such as potash.
Rail cars carry commodities through Saskatchewan. Photo courtesy CN Rail
CEC: How are the benefits of an economic corridor measured?
Gary Mar: The benefits of economic corridors are often measured via trade flows.
For example, the upcoming Roberts Bank Terminal 2 in the Port of Vancouver will increase container trade capacity on Canada’s west coast by more than 30 per cent, enabling the trade of $100 billion in goods annually, primarily to Asian markets.
Corridors can also help make Canadian goods more competitive, increasing profits and market share across numerous industries. Corridors can also decrease the costs of imported goods for Canadian consumers.
For example, after the completion of the Trans Mountain Expansion in May 2024 the price differential between Western Canada Select and West Texas Intermediate narrowed by about US$8 per barrel in part due to increased competition for Canadian oil.
This boosted total industry profits by about 10 per cent, and increased corporate tax revenues to provincial and federal governments by about $3 billion in the pipeline’s first year of operation.
CEC: Where are the most successful examples of these around the world?
Gary Mar: That depends how you define success. The economic corridors transporting the highest value of goods are those used by global superpowers, such as the NAFTA highway that facilitates trade across Canada, the United States and Mexico.
The Suez and Panama canals are two of the most significant trade infrastructure projects ever built, facilitating 12 per cent and five per cent of global trade, respectively. Their success is based on their unique geography.
Canada’s Asia-Pacific Gateway, a coordinated system of ports, rail lines, roads, and border crossings, primarily in B.C., was a highly successful initiative that contributed to a 48 per cent increase in merchandise trade with Asia from $44 million in 2006 to $65 million in 2015.
China’s Belt and Road initiative to develop trade infrastructure in other countries is already transforming global trade. But the project is as much about extending Chinese influence as it is about delivering economic returns.
Piles of coal awaiting export and gantry cranes used to load and unload containers onto and from cargo ships are seen at Deltaport, in Tsawwassen, B.C., on Monday, September 9, 2024. CP Images photo
CEC: What would need to change in Canada in terms of legislation or regulation to make more economic corridors a reality?
Gary Mar: A major regulatory component of economic corridors is eliminating trade barriers.
The federal Free Trade and Labour Mobility in Canada Act is a good start, but more needs to be done at the provincial level to facilitate more internal trade.
Other barriers require coordinated regulatory action, such as harmonizing weight restrictions and road bans to streamline trucking.
By taking a systems-level perspective – convening a national forum where Canadian governments consistently engage on supply chains and trade corridors – we can identify bottlenecks and friction points in our existing transportation networks, and which investments would deliver the greatest return on investment.
