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Dan McTeague

New Carbon Tax, Same Price Tags


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Dan McTeague 

Written By Dan McTeague

We must keep energy affordable for Canadian families. I have been saying this for years. But despite this simple message, some politicians still don’t get it.

Justin Trudeau’s Liberal government keeps insisting on one new expensive energy policy after another, and all of these efforts are designed to make energy unaffordable for Canadians.

One of Trudeau’s latest initiatives is his “Second Carbon Tax,” also known as the “Clean Fuel Standard,” or “CFS.”

We’ve dubbed the Clean Fuel Standard a Second Carbon Tax because that is exactly what it is –   simply another tax grab that will only make life more unaffordable for Canadians.

Trudeau’s friends in the media barely mention this new tax, so it falls to Canadians for Affordable Energy and a few like-minded people to alert Canadians to this latest assault on your pocketbook.

To this end, CAE is publishing a new report authored by economist Ross McKitrick on the Clean Fuel Standard a.k.a the ‘Second Carbon Tax’. You may recall I wrote about the Clean Fuel Standard a few years ago when it was first proposed.

The Clean Fuel Standard is a tax that aims to reduce the carbon intensity of liquid fuels used in transportation (gasoline, diesel) by 15% by 2030. This will be done by blending ethanol into traditional liquid fuels, and by the use of carbon credits which will be available to those switching to electric vehicles or increasing EV infrastructure.

The report released by LFX Associates ‘Economic Analysis of the 2022 Federal Clean Fuels Standard’ shows us just how expensive and ineffective this policy will be.

The conservative estimate is an increase of 2.2-6.5% per household. In real money terms this will an extra tax of $1,277 a year per worker.

In provinces that rely more heavily on liquid fuel sources such as oil – like Newfoundland and New Brunswick- these prices will be higher.

What a time to increase energy bills for families.

This new carbon tax is being released at a time of soaring household costs. Grocery prices have skyrocketed. Families are struggling to afford the basic necessities for their home. Now the government is going to make it even more expensive.

And will this policy be effective? Will it reduce emissions and bring Canada into a green renewable future?

No. No, it will not.

While locally (in Canada) emissions may go down, there will be no global reduction in greenhouse gas (GHG) emissions. That is because the ethanol used to dilute our liquid fuels will most likely be imported from the United States. US based ethanol has a higher lifetime carbon intensity than gasoline. To extract, store it, ship it, etc. produces more emissions than what would be produced by using gasoline to fill our cars.

This new “Second Carbon Tax” will not reduce emissions. But it will allow Justin Trudeau to state that he has reduced Canada’s carbon intensity footprint. Unfortunately, any such reduction resulting from this tax will be achieved on the backs of working Canadians.

This policy will not help Canadians lead better lives. But it will make it more expensive to drive your car to the grocery store, to hockey practices, to medical appointments, and to work.

And, contrary to the government’s claim that there will be virtually no effect on GDP, the impact of this new tax on the Canadian economy will be significant. By 2030 the Canadian GDP will be about 1.3 percent lower than without the CFS. In other words, we can expect that Trudeau’s new CFS carbon tax will actually harm the Canadian economy. Unemployment, higher cost of living and further diversion of investments from Canada will put downward pressure on government revenue. This will lead to an increase in the consolidated government deficit in every year of the policy’s implementation. The extra government debt accumulated by 2040 because of the Clean Fuel Standard is estimated to reach as high as $95.2 billion.

You may feel like I am starting to sound like a broken record. Believe me, I feel like that too. My message is always consistent: bad government policies mean prices go up for Canadian families, and Canadian families should not be punished for the sake of our government’s phony global image as climate heroes.

But that is because policies like the Clean Fuel Standard will have real, serious, even detrimental effects for Canadian families.

A new tax on energy?  A second carbon tax, on top of the already disastrous and ever-increasing carbon tax that Trudeau insists on forcing Canadians to pay? Yep. Because, well, because it’s 2022.

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Dan McTeague

We are on a Net Zero collision course

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Dan McTeague

Written By Dan McTeague

Welcome to 2024 where the threat of looming power outages in a resource-rich, developed country is a reality. And we have Justin Trudeau and his ideologically-driven caucus to thank for it.

In the past month alone, Alberta has issued four emergency alerts warning consumers to reduce demand or the grid could face the risk of rotating power outages. Residents were urged in one alert to immediately limit their electrical use to essential needs only.

According to the Alberta Energy System Operator (AESO,) which manages the grid, the alert was due to sustained cold temperatures. Alberta’s grid is more vulnerable in the winter due to the decreased opportunity to generate solar power with the shorter days and of course because during extreme cold, there is usually less opportunity for wind power generation.

Thank goodness for hydrocarbons since over those days more than 80% of Alberta’s power came from natural gas and to a lesser extent, coal.

This situation in Alberta should serve as a warning for the rest of the country.

That’s because the Trudeau government is aggressively moving forward with their Clean Electricity Regulations which mandate that by 2035 the Canadian grid be zero emissions. This means the entire country will increasingly be reliant on unreliable energy sources.

And last month, the Trudeau Liberals implemented their Electric Vehicle Availability Standard, which mandates all new light-duty cars and trucks must be zero emission by 2035 as well. In other words, after 2035 forget about purchasing a new gas-powered car or diesel-driven truck. Welcome to Trudeau’s Net Zero world!

Many Canadians are wondering how we are going to produce the energy to power our cars along with everything else in our lives, especially in the depths of the cold winter months.

And the answer is simply, “we can’t.”

We are on a collision course of the Liberal government’s making. In their ideological zeal to achieve Net Zero, they seem to have been completely unhinged from reality.

As I like to remind people, Canada contributes 1.5% of global greenhouse gas (GHG) emissions.  Even if we halted all use of fossil fuels in our country it would have no global effect on world CO2 levels.

We can see the consequences of this pursuit of Net Zero, in Europe. Germany has frantically put coal power back on the grid in order to meet electricity demand. The UK is slamming the breaks on EVs and stepping up North Sea oil exploration. Italy is spending billions trying to fill its energy gaps with natural gas from Libya.

We are staring down the barrel of an upcoming election and if we want to ensure our quality of life, we need a major course correction. This does not mean delaying the implementation of EV regulations, or emissions caps, or even simply pushing back Net Zero target dates.

No. We need a party that will stand up against Net Zero and its related policies. We need a government that will see that this is a suicide mission we need to abandon entirely, not simply punt down the road.

Let’s hope we don’t have to wait for the worst-case scenario before Canadians finally realize the standard of living and access to affordable energy cannot be taken for granted. We truly are on a collision course with reality, due to ideological government policies that will have a crippling effect on our economy and way of life.

Dan McTeague is President of Canadians for Affordable Energy

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Dan McTeague

Call out ‘net zero’ for what it is, a scam

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From Canadians for Affordable Energy

Dan McTeague

Written By Dan McTeague

Net Zero emissions by 2050. Have you heard this line? It is increasingly hard to miss. Every trendy business, bank, corporation and government boasts about their commitment to it. But what exactly do they mean by it?

In short, Net Zero by 2050 means our country either emits no greenhouse gases or offsets whatever it does emit through measures such as buying carbon credits or investing in carbon capture technology.

Net Zero has been a central project of groups such as the World Economic Forum, the United Nations and other globalist institutions. They’ve spent the past several years pressuring governments around the world to commit to Net Zero and to make those commitments legally binding, so it will be difficult for elected officials to roll them back in the future.

That’s what’s happening here in Canada. This has been a major priority for Justin Trudeau. The Liberals have spent years championing the push to Net Zero, mandating it by law in 2021.

But law or not, Net Zero isn’t actually going to happen.

It is a ludicrous goal, in part because achieving it would be unimaginably expensive. So expensive, in fact, governments the world over don’t even attempt to estimate the total cost. Whenever they’re asked, they just say “the cost of doing nothing will be higher.” But if they don’t know how expensive their own plan is, how on earth could they know that it would be cheaper than not doing it?

External estimates place the cost for Canada alone somewhere in the neighborhood of $2 trillion. That number is so staggering it is impossible to fully comprehend it. It is more than our nation’s entire Gross Domestic Product! Look at it this way — that is the equivalent of spending $1 a second for 63,417 YEARS.

But the fact Net Zero will ultimately fail doesn’t mean attempting it isn’t going to negatively affect your daily life. It will.

Under the umbrella of Net Zero you’ll find,

  • Carbon taxes
  • Clean Fuel Standards
  • Just Transition
  • Emissions caps
  • Cancelled pipelines
  • Electrification strategies
  • Gas and diesel car bans
  • Electric vehicle subsidies
  • Costly building codes
  • Curtailed food production

The list goes on and on.

But beyond the economic impact and the personal hardship, we must remember the end game of this Green Agenda isn’t really about reducing carbon emissions. No, it is much more insidious than that.

At the heart of this Net Zero movement is a desire to fundamentally change our economy and way of life. They are looking for a complete transition from the economy that has made Canada the great nation that it is.

“You will own nothing and be happy.” Remember those words attributed to Klaus Schwab, head of the World Economic Forum (WEF)? Well take those words to heart, because he means it.

The implications of Net Zero are broad and overreaching. And they will have the effect of fundamentally affecting our quality of life.

It will make energy more expensive. It will raise the cost of everything. It will make us less competitive in the global economy, especially against countries such as China because, you will not be surprised to learn, China has not signed on to this suicide pact. (But they are keen for other countries to stifle their economy in pursuit of this absurd goal, not least because they produce 70% of the world’s solar panels.)

Net Zero regulations, policies and mandates are a direct assault on affordable energy, and an affordable way of life. That is the goal of the Green agenda, and if they have their way, Canada, its standard of living and its way of life will suffer.

Net Zero is a scam.

Dan McTeague is President of Canadians for Affordable Energy

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