Published Jan 30, 2025 • Last updated 2 hours ago • 2 minute read
You can save this article by registering for free here. Or sign-in if you have an account.
Prime Minister Justin Trudeau’s devotion to carbon reduction comes with significant costs to Canadians.Photo by Heywood Yu /The Canadian Press file
Article content
On its first day in office, the Trump administration withdrew from the Paris climate agreement and began a regulation effort aimed largely at the energy sector. Meanwhile, the Trudeau government wants to reduce Canada’s greenhouse gas (GHG) emissions by at least 40% below 2005 levels by 2030 to satisfy its commitment to the Paris agreement that Trudeau signed back in 2016.
Advertisement 2
This advertisement has not loaded yet, but your article continues below.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
Unlimited online access to articles from across Canada with one account and fewer ads.
Get exclusive access to the Calgary Sun ePaper, an electronic replica of the print edition that you can share, download and comment on.
Enjoy insights and behind-the-scenes analysis from our award-winning journalists.
Support local journalists and the next generation of journalists.
Daily puzzles including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
Unlimited online access to articles from across Canada with one account.
Get exclusive access to the Calgary Sun ePaper, an electronic replica of the print edition that you can share, download and comment on.
Enjoy insights and behind-the-scenes analysis from our award-winning journalists.
Support local journalists and the next generation of journalists.
Daily puzzles including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
Access articles from across Canada with one account.
Share your thoughts and join the conversation in the comments.
Enjoy additional articles per month.
Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
Access articles from across Canada with one account
Share your thoughts and join the conversation in the comments
Enjoy additional articles per month
Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
Article content
Recommended Videos
Article content
But far from “building a strong economy” and making Canada “more competitive,” as the government claims, its Emissions Reduction Plan (ERP) will hurt Canada’s already struggling economy while failing to meet its own emission reduction targets.
In essence, the ERP has two components. The first one, and probably the most well-known to Canadians, is the carbon tax, which places a cost on fossil fuel use based on the amount of GHG emissions produced. The tax increased to $80 per tonne on April 1, 2024 and is scheduled to reach $170 per tonne by 2030.
The second — and least discussed — ERP component is the Trudeau government’s cascade of regulatory measures and mandates including requirements for fuel producers and importers to reduce the carbon content of their fuels, and electric vehicle mandates that require all new (light-duty) vehicles sold to be zero-emission by 2035 (with interim targets of 20% by 2026 and 60% by 2030). Additional measures include restrictions on fertilizer use in agriculture, emissions caps in the oil and gas industry, energy efficiency mandates for buildings, and more. With more regulations come increased costs to producers, and these costs are largely passed to consumers in the form of higher prices.
Calgary Sun Headline News
Get the latest headlines, breaking news and columns.
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Thanks for signing up!
A welcome email is on its way. If you don’t see it, please check your junk folder.
The next issue of Calgary Sun Headline News will soon be in your inbox.
We encountered an issue signing you up. Please try again
Article content
Advertisement 3
This advertisement has not loaded yet, but your article continues below.
Article content
But aside from vague and unsupported claims that the ERP will strengthen the economy, the government hasn’t provided a detailed assessment of the plan’s costs and benefits. In other words, while the government has outlined how it plans to reduce emissions — carbon taxes, regulations, mandates — we still don’t know how much these policies will cost or how they will benefit Canadians. But a recent study published by the Fraser Institute evaluate the economic and environmental impacts of the ERP.
According to the study’s projections, the carbon tax alone will cost $1,302 per worker annually by 2030, reduce employment by an estimated 57,000 jobs, and shrink the Canadian economy by 1.5% compared to a scenario without the ERP. Considering the economy grew just by 1.3% in 2023, this cost is significant.
Advertisement 4
This advertisement has not loaded yet, but your article continues below.
Article content
After you account for the ERP’s additional regulatory measures and mandates, the economic cost rises. By 2030, the full implementation of the ERP — which includes the carbon tax, regulatory measures and mandates — will shrink the economy by 6.2%, cost Canadian workers $6,700 annually, and reduce employment by 164,000 jobs. Alberta, of course, will bear a large portion of these costs.
To make matters worse, the ERP will still fall short of the Trudeau government’s 2030 emission-reduction target. According to the study, the ERP will reduce Canada’s GHG emissions by about 26.5% between 2019 and 2030, achieving only approximately 57% of the government’s target. In short, Trudeau’s climate plan won’t deliver the economic growth or environmental impact the government anticipates.
Canadians should understand the costs of the Trudeau government’s Emissions Reduction Plan (ERP), which won’t achieve its targets while making Canadians worse-off. Any government should reject climate targets and policies where Canadians are merely an afterthought