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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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Automotive

Current EV strategy charging ahead to failure

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Dan McTeague  Written By Dan McTeague

For years now I’ve been saying that electric vehicles, and EV mandates, are bad for Canada.

Back in 2020, when the then-CEO of Toyota, Akio Toyoda, voiced his concerns that governments were moving too fast in their push for an all-electric car market when there were other good options available which didn’t require the same multi-billion dollar infrastructure overhaul or increase in electricity generation, I asked why we weren’t listening to a man who knows his own business.

When Europe found itself in an energy crisis in the winter of 2022, and the Swiss government asked its citizens to avoid driving their EVs, even considering an outright ban, to protect their fragile electricity grid, I said that with our already-strained grid we were seeing our future playing out before us in Switzerland and mandates or no, consumers just wouldn’t stand for it.

And more recently, as stories have piled up of EVs’ vulnerability to the cold — “We got a bunch of dead robots out here,” as one frustrated EV owner put it, surrounded by frozen EVs that had run out of juice while waiting for a charge in a cold snap — I’ve asked over and over again, why on earth our government is trying to force the large scale adoption of an automobile technology which functions so poorly in a normal Canadian winter.

I take no pleasure in being proved right, but nearly every day brings about a new story of EVs failing to meet the lofty expectations our leaders have set for them.

  • Recent headlines have trumpeted the difficulties EV drivers are having getting their cars fixed, because so few mechanics know how to work on them.
  • People are finding that the resale value of their EV is falling at a much faster rate than their neighbour’s reliable internal combustion engine vehicle.
  • Rental car companies like Hertz have been taking major losses after over-investing in EVs, that no one wants to rent. Apparently people don’t like the idea of pinning their vacation on a car they might not be able to charge.
  • And major auto manufacturers have been significantly scaling back their annual EV production, despite impending mandates which will force consumers to buy their product in just over a decade.

Even with the generous government subsidies handed to Ford in order to produce made-in-Canada electric SUVs, that company has decided to push their release date for the vehicles back two years — a decision that means layoffs for the majority of the 2,700 workers at the plant, according to the Globe and Mail. GM has followed suit, with recent  reports  claiming that they are “having a second look” at plans to build EV motors at their plant in St. Catherines, Ontario.

Those companies are beginning to accept reality, something various nations around the world have started to do, as well. The U.K., Germany, Italy, and other European countries, as well as the U.S., have had resistance to EV mandates play a big role in their politics lately. The Biden campaign was even forced to issue a statement saying, “There is no ‘EV mandate,’” after Donald Trump predicted to Detroit autoworkers that the White House’s pro-EV policies would put them out of work.

In the face of all of this, the Trudeau government continues to double down, reaffirming mandates and shovelling more and more tax dollars into the EV fire.

They should know better.

And maybe they do.

But maybe the dollars and the promises to their activist friends have just gotten so big that they feel like they can’t change course now.

Or maybe they are just too stubborn to admit that people like me were right all along, that they bet big and they bet wrong. And they can’t say they weren’t warned.

Buckle up.

Dan McTeague is President of Canadians for Affordable Energy

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Dan McTeague

The Carbon Tax is part of a bigger plan to change the way you live

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From Canadians for Affordable Energy

Dan McTeague Written By Dan McTeague

On April 1, the carbon tax is going to rise from $65 per tonne to $80 per tonne, and it seems Canadians are noticing this jump more than those of the past few years.

Back in 2019, the Trudeau government announced its 566% carbon tax hike, starting at $15 per tonne and increasing yearly until 2030, when it would reach a staggering $170 per tonne. It received some attention at the time, but there was not a great deal of pushback. Presumably the numbers were too abstract to catch people’s attention and 2030 seemed a long way off.

But today things are different. It helps that Conservative Party leader Pierre Poilievre has been campaigning aggressively against the tax, with rallies and petitions to ‘Axe the Tax.’

Even Liberal premiers, such as Andrew Furey of Newfoundland and Labrador, have been pleading with Justin Trudeau to hit pause on the increase. In fact, a total of seven premiers in the country have spoken out against the tax, asking for a delay in its increase.

That’s because they recognize the tax is hurting Canadians. The cost of everything has gone up. It’s gotten so tough for businesses that some restaurants have begun adding a ‘carbon tax’ line item to the final bill. And if Canadians think it is bad now, wait until 2030 when the carbon tax will more than double its current rate.

The other reason people are more aware of the increase is because, well, the tax is working. It’s doing what it was designed to do, though maybe not in the way you might think. The goal is not simply to reduce emissions — in fact emissions have gone up. The goal is actually more nefarious than that. Let me explain.

The carbon tax is one of the pillars of the United Nations, World Economic Forum (WEF) Net-Zero-by 2050 agenda. In order to achieve their objective, they need all of us to fundamentally alter the way we live our daily lives. They want us to drive less, fly less, eat less meat (and more bugs). The carbon tax is a punitive means of achieving this.

In fact, the Trudeau government’s own Healthy Climate, Healthy Economy plan articulates the logic of the tax quite well when it says, “The principle is straightforward: a carbon price establishes how much businesses and households need to pay for their pollution. The higher the price, the greater the incentive to pollute less, conserve energy and invest in low-carbon solutions.”

It’s worth noting that they’re using a pretty loose definition of ‘pollution’ here, because we all know that carbon dioxide is not a pollutant — it is a gas which makes life on earth possible.

Even so, their intention is clearly stated — they figure that, if the price of fuelling up your car, going on a vacation and heating your home gets high enough, you will have to drastically alter the way you live your day-to-day life.

You will stop flying, cut back on driving, use fewer appliances. And really, you’ll just get used to having less money, until — following the slippery slope to its conclusion — you will “own nothing and be happy,” in the words of that infamous WEF tweet.

Which is to say, the carbon tax is a punishment for participating in normal economic activity, for living a regular life. Of course, for the time being you can catch a break if you live in Atlantic Canada and heat your home with oil, but if you live in the prairies and heat your home with natural gas, sorry, but you’re out of luck. You aren’t in a Liberal riding, after all!

And even then, the Liberals and their activist friends are banking on Canadians reducing their carbon emissions in order to achieve their Net Zero 2050 target.

So good for Pierre Poilievre, Andrew Furey and the other premiers for pushing back on the carbon tax.

But let’s not forget that, as noxious as it is, it’s only one small part of the Liberals’ Net Zero agenda.

Eliminating the carbon tax is merely cutting off one head of the hydra. If Canada’s political leaders are really concerned with affordability, then they need to target the monster’s heart.

It’s time that we not only axe the tax, but we need to scrap Net Zero.

Dan McTeague is President of Canadians for Affordable Energy

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