The federal Conservative Party’s new platform, unveiled on Earth Day, sends shockwaves through Canada’s energy sector, particularly for municipalities like Peel, grappling with their green energy transition. The proposal, a stark contrast to the Liberal government’s approach, aims to reduce the national deficit significantly but raises eyebrows for its reliance on contentious savings, especially from dismantling environmental policies.
At the heart of the debate are the Clean Electricity Regulations (CER), finalized in December 2024, which aim to curb CO2 emissions from fossil fuel-based electricity generation. Environmental advocates, like Aliénor Rougeot from Environmental Defence, argue that the CER, despite its ambiguities, is a step forward. However, the Conservative Party plans to repeal key environmental policies, including the Impact Assessment Act, industrial carbon tax, federal electric vehicle (EV) mandate, and the oil and gas emissions cap. These rollbacks, projected to save billions, could dramatically reshape Canada’s energy landscape and climate change response.
The Impact Assessment Act, long criticized by Poilievre for stalling energy development, is first on the chopping block. The Conservatives claim its repeal could save nearly $1 billion over four years. However, this move could significantly impact the renewable energy sector, which falls under the Act’s purview. Scrapping the Act may streamline project approvals but could also lead to environmental deregulation, sparking debate over sustainable development.
The industrial carbon tax, a market-based approach to incentivize cleaner operations, is also under threat. The Canadian Climate Institute hails it as the most effective policy for cutting emissions by 2030. Its repeal, while saving $8.2 billion, could disrupt the market-driven push towards greener technologies and hinder Canada’s emission reduction targets.
The federal EV mandate, requiring a phased increase in zero-emission vehicle sales, is another contentious issue. Poilievre vows to scrap the mandate, arguing for consumer choice. Yet, Q2 2024 saw a 37.9% increase in zero-emission vehicle registrations, driven by consumer demand, not mandates. This raises questions about the market’s readiness for EVs and the potential impact on Canada’s transport-related emissions, the second highest in the country.
The oil and gas emissions cap, aiming to reduce emissions by 35% below 2019 levels, is also on the Conservative Party’s hit list. The cap’s repeal could save $3.95 billion but might embolden the oil and gas industry, Canada’s top emitter, to increase production without stringent emission controls. This move, coupled with the industry’s extensive lobbying efforts, particularly with Conservative MPs, could fortify the sector’s influence and reshape Canada’s emission trajectory.
The Conservative Party’s platform, while promising significant savings, poses profound questions about Canada’s commitment to climate change mitigation. The proposed repeals could disrupt the renewable energy sector’s growth, hinder market-driven pushes towards cleaner technologies, and embolden the oil and gas industry. Municipalities like Peel, navigating their green energy transition, will watch these developments closely. The federal landscape’s shift could necessitate provincial and local strategizing to maintain momentum towards a sustainable future.
Market players, both domestic and international, will scrutinize these developments. The repeal of environmental policies could spur investment in Canada’s oil and gas sector but might deter green energy investors, wary of the country’s commitment to sustainability. The Conservative Party’s platform, if enacted, could ripple through Canada’s energy markets, reshaping its emission trajectory and green energy transition. The coming months will reveal how stakeholders—from industry leaders to environmental advocates—respond to these potential shifts, sparking vigorous debate about Canada’s energy future.
