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Trudeau government doubles down on unaffordability – Carbon Tax set to increase April 1st

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From Canadians for Affordable Energy

Dan McTeague Written By Dan McTeague

The Trudeau government’s Net Zero carbon tax is set to increase once again on April 1st. This increase of 23% will, of course, mean higher fuel prices. Canadians can expect on average to pay an additional 3.5 cents per litre in gasoline and 4.5 cents per litre in diesel. So Canadians will spend on average almost 20 cents per litre more every time we fill up our family vans, work trucks, or commuter cars, all because of the carbon tax. Moreover, this increase will also be felt across-the-board, in all of life’s necessities, from food prices to heating costs.

According to CEA President Dan McTeague, “despite multiple pleas from premiers across the country to at least push back the increase, the Trudeau government continues to double down on this punitive and costly tax.” He added, “They are so beholden to their Net Zero green ideology that they are blinded to the struggles of everyday Canadians.”

CEA conducts daily gas price predictions for major centres across Canada. According to our predictions on Saturday, gas prices will go from $1.56.9 to $1.62.9 on Monday, April 1st in Toronto as a result of this carbon tax hike.

Other areas will see prices that will jump as a result of the carbon tax hike on April 1st:

Ottawa $1.56.9 to $1.62.9

Winnipeg $1.39.9 to $1.43.9

Regina $1.54.9 to $1.58.9

Vancouver $2.01.9 to $2.07.9

Alberta will be hit even harder with the reintroduction of the provincial gas tax on April 1st. Calgary will go from $1.54.9 to $162.9 and Edmonton from $1.51.9 to $1.59.9.

The carbon tax will continue to increase every year until it hits $170 a ton by 2030. That is more than double the current rate. “This tax is trying to fundamentally alter the way Canadians live. It is designed to punish them for carrying out everyday activities like driving to work and heating their homes. It’s unconscionable for this government to continue hurting Canadians in this way. It’s time to axe the carbon tax and scrap Net Zero.”

Keeping energy services affordable must be an ongoing public policy priority for all levels of government. Founded in 2016, Canadians for Affordable Energy is a not-for-profit organization committed to speaking out on this issue so there is an informed debate, and the interests of all Canadians are heard.

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.

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Economy

Federal government remains intransigent on emissions cap despite dire warnings of harm

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From the Fraser Institute

By Kenneth P. Green

In the face of heavy opposition from Canada’s premiers to Prime Minister Trudeau’s carbon tax, one might have hoped that the prime minister would moderate some of his government’s extreme climate policies. But alas, on a recent swing through Alberta, he threw cold water on any hope of moderation.

When asked in a meeting with a who’s who of Alberta’s energy sector if he might drop the forthcoming cap on greenhouse gas emissions specific to the oil and gas industry, Trudeau reportedly replied “not a chance.” That’s a shame, because it was an opportunity for Canada (and Alberta) to dodge another bullet aimed at its economic heart, and an opportunity to reduce some of the rancor between the West and Ottawa.

And in fact, there are many good reasons to drop the GHG cap.

In a recent report, the Conference Board of Canada estimated oil and gas production cuts due to the cap would lead to a permanent decline in Canada’s real GDP of between 0.9 per cent (the report’s most likely outcome) to 1.6 per cent (its least likely outcome) relative to the baseline in 2030. Which means a loss of $22.8 billion to $40.4 billion in 2012 dollars. In Alberta, real GDP by between 3.8 per cent and 6.7 per cent (or $16.3 billion to $28.5 billion). These are devastating impacts, hand-waved away by the prime minister.

Moreover, the report estimates total employment declines nationally by between 82,000 and 151,000 in 2030. A large part of this unemployment will land in Alberta where the report estimates total employment in the province would decline by between 54,000 and 91,500 jobs. And between 2030 and 2040, employment in Alberta will be between 66,300 and 102,600 lower per year (on average). Again, these are huge economic damages disregarded by the prime minister.

Lastly, as shown in a 2023 study published by the Fraser Institute, even if the proposed cap achieved the emissions reductions government predicts, the reduction would equal four-tenths of one per cent of global emissions, a reduction unlikely to have any impact on the climate in any detectable manner, and hence, to offer only equally undetectable environmental, health or safety benefits.

The Conference Board report, and other studies of the likely high costs and non-existent climate benefits of the pending cap on oil and gas emissions, would offer cover for the prime minister if he backed away from what’s clearly an ill-considered climate policy poised to wreak massive economic harms to Canada, particularly in the West. Apparently, however, he’s unwilling to acknowledge reality and change course.

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Energy

Canada Has All the Elements to be a Winner in Global Energy — Now Let’s Do It

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Mike Rose is Chair, President and CEO of Tourmaline Oil Corp.

From EnergyNow.ca

By Mike Rose of Tourmaline Oil Corp.

There has never been a more urgent time to aggressively develop Canada’s massive resource wealth

There has never been a more urgent time to aggressively develop Canada’s massive resource wealth. An increasingly competitive world is organizing into new alliances that are threatening our traditional Western democracies.

Weaker or underperforming countries may be left behind economically and, in some cases, their sovereignty may be compromised. We cannot let either scenario happen to Canada.

Looking inward, our country has posted among the weakest economic growth of all G20 nations over the past decade — we are at real risk of delivering a materially diminished standard of living to our children and subsequent future generations.

Canada is blessed with one of the largest and most diverse natural resource endowments in the world. It’s not just oil and gas; it’s uranium, precious metals, rare earth elements, enormous renewable forests, a vast fertile agricultural land base and, of course, the single-largest freshwater reserve on the planet.

This is nothing new; Canada has been regarded as a resource-extraction economy for a long time, but over the past two decades we’ve been slowing down and finding reasons to not advance new projects. While looking ahead to an exciting new future economy is enticing, the majority of our easily accessible resource wealth remains largely untapped. Our Canadian resource sectors are the most capital-efficient, technologically advanced and environmentally responsible in the world. We’ve got the winning combination.

Canada has among the largest, lowest-cost natural gas reserves in the world — we’re already the fourth-largest producer. With consistent regulatory support, we can rapidly evolve into a leader in the growing global LNG business.

This country produces among the lowest-emission natural gas in the world and technology adaptation is widening the gap. A 10 bcf/day Canadian LNG industry targeted to displace coal-fired electrical generation in Asia would offset the vast majority of emissions from the entire domestic oil and gas industry. Contemplating a cap on the Canadian natural gas industry is actually damaging to the global environment, as growing demand will be met by jurisdictions with higher associated emissions.

As developed economies look at electrification to accelerate emissions reduction, nuclear power is becoming increasingly attractive. Canada is already one of the largest uranium producers in the world and has long possessed one of the most efficient and safest reactor designs. This is an advantage we created for ourselves several decades ago; it’s time to harvest this opportunity.

The rare earth elements required for a growing solar industry and battery requirements associated with electrification are abundant in certain regions in Canada — for example, a large new mining opportunity is emerging in Ontario. We should make that happen. One of the great outcomes of accelerating our multi-sector resource opportunity is that the economic benefits will be enjoyed across the country; all Canadians will share in it.

The Canadian agricultural industry has been long regarded as a world leader in efficiency, yield and technical innovation. Global food security and affordability are rapidly emerging issues, and Canada has a role to play here, as well. Not only could we make it more attractive for Canadian producers to grow output and explore novel new transportation corridors to feed more of the world, we have a large, well-established, globally competitive fertilizer industry.

There are many more future resource wealth opportunities we could be capitalizing on. The list is as long as the imagination of our well-educated and entrepreneurial resource sector workforce.

Enormous amounts of capital are required for these projects, and that global capital is most certainly available. These pools of capital will flow into Canada if we demonstrate a willingness to consistently support the Canadian resource sector at provincial and federal government levels.

Accelerating domestic multi-sector resource development provides solutions to many of the problems currently facing Canada. We’ll be playing to strengths that we have established and evolved over many decades. We are the most efficient and technologically advanced in the full spectrum of resource development. Adoption and innovative adaptation of the continuous march of technology advancements will only make us better.

To paraphrase: We can take advantage of what’s between our ears to do an even better job of developing what’s beneath our feet.

Mike Rose is Chair, President and CEO of Tourmaline Oil Corp.

In an ongoing monthly series presented by the Calgary Herald and Financial Post, Canadian business leaders share their thoughts on the country’s economic challenges and opportunities.

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