From the Fraser Institute

By Kenneth P. Green

Recently, without much fanfare, Senator Rosa Galvez re-pitched a piece of legislation that died on the vine when former prime minister Justin Trudeau prorogued Parliament in January. Her “Climate-Aligned Finance Act” (CAFA), which would basically bring a form of BDS (Boycott, Divestment, and Sanctions) to Canada’s oil and gas sector, would much better be left in its current legislative oblivion.

CAFA would essentially treat Canada’s oil and gas sector like an enemy of the state—a state, in Senator Galvez’ view, where all values are subordinate to greenhouse gas emission control. Think I’m kidding? Per CAFA, alignment with national climate commitments means that everyone engaged in federal investment in “emission intensive activities [read, the entire oil and gas sector] must give precedence to that duty over all other duties and obligations of office, and, for that purpose, ensuring the entity is in alignment with climate commitments is deemed to be a superseding matter of public interest.”

In plain English, CAFA would require anyone involved in federal financing (or federally-regulated financing) of the oil and gas sector to divest their Canadian federal investments in the oil and gas sector. And the government would sanction those who argue against it.

There’s another disturbing component to CAFA—in short, it stacks investment decision-making boards. CAFA requires at least one board member of every federally-regulated financial institution to have “climate expertise.” How is “climate expertise” defined? CAFA says it includes people with experience in climate science, social science, Indgineuous “ways of knowing,” and people who have “acute lived experience related to the physical or economic damages of climate change.” (Stacking advisory boards like this, by the way, is a great way to build public distrust in governmental advisory boards, which, in our post-COVID world, is probably not all that high. Might want to rethink this, senator.)

Clearly, Senator Galvez’ CAFA is draconian public policy dressed up in drab finance-speak camouflage. But here’s what it would do. By making federal investment off-limits to oil and gas companies, it would quickly put negative pressure on investment from both national and international investors, effectively starving the sector for capital. After all, if a company’s activities are anathema to its own federal regulators or investment organs, and are statutorily prohibited from even verbally defending such investments, who in their right minds would want to invest?

And that is the BDS of CAFA. In so many words, it calls on the Canadian federal government to boycott, divest from, and sanction Canada’s oil and gas sector—which powers our country, produces a huge share of our exports, and employs people from coast to coast. Senator Galvez would like to see her Climate-Aligned Finance Act (CAFA) resurrected by the Carney government, whose energy policy to-date has been less than crystal clear. But for the sake of Canadians, it should stay dead.

Kenneth P. Green

Senior Fellow, Fraser Institute

From Conservative Party Communications

After a Lost Liberal Decade of rising costs and slow growth, Mark Carney wants you to think his government has moved on from Justin Trudeau’s failed policies.

Unfortunately for Canadians, Carney has no interest in scrapping one of his predecessor’s most reckless and costly ideas: a zero-emissions vehicle (ZEV) mandate starting next year that will ultimately ban Canadians from buying gas-powered cars by 2035.

As the required percentage of ZEV sales increases each year, the government wants to force manufacturers and importers to buy costly credits of up to $20,000 for every EV they are short of the Liberals’ quota – a huge expense that will ultimately be passed on to, and paid by Canadian consumers.

That’s why Conservatives have introduced a motion to end this harmful scheme, ensuring Canadians can continue to buy the kind of car they need at a price they can afford.

EVs are great for many families, who should always be free to purchase the vehicle of their choice. But for many Canadians – who live in cold environments or travel long distances – they can be practically useless, especially without the infrastructure to power them.

One government report estimated that changes to Canadian infrastructure required to support a transition to ZEVs could cost up to $300 billion by 2040. On top of the costs already imposed on manufacturers and buyers, this policy will require billions in new tax dollars and government debt.

No wonder one 2024 survey found two thirds of Canadians find the 2035 target is unrealistic.

As unjust tariffs threaten an automotive sector which contributes billions to our GDP, the Liberals continue to put their elitist, top-down ideology ahead of the livelihoods of hundreds of thousands of proud Canadian workers.

While Carney talks about change, Conservatives are here to deliver. That’s why we’re fighting to repeal the ZEV mandate, scrap the industrial carbon tax and cancel Liberal fuel standards. We trust Canadians – not Ottawa’s Liberal elite – to make the best decisions for themselves and their families.

It’s time to put Canadians back in the driver’s seat.