Canada Goes Green!!!

Understanding the Cost of Climate Action

Justin Trudeau and the Liberal government have published a Road Map that lays out how we will meet these very aggressive Targets. All Canadian Citizens will face financial hardship and the Canadian Economy will be devastated to a point that makes the Covid-19 Pandemic Turndown look like a minor bump in the road. Either intentionally or unintentionally following the Road Map will damage the middle class and will widen the gap between the Have's and the Have Not'" target="_blank">Source

Canada's Path to Meet Paris Accord Targets

The Road Map showing the target reduction in GHG emissions in a number of categories.
Note that the starting point is 815 MMT and not the 730 MMT stated above.
The 815 MMT is the predicted emissions in 2030 if we did nothing. The growth comes from increased population, increased GDP, etc.

  • Every subsidy, gift or grant that the Canadian government hands out is payed for by the taxpayer.
    • Some are paid directly through taxes. This includes Income Tax, Capital Gains Taxes, Carbon Taxes, Road Use taxes, GST, HST, etc. etc.
    • The remaining funds are from Government Treasury instruments that the Canadian Government issues and directly adds to the national debt.
    • All interest on the national debt is paid by the taxpayer. He/she also pays the taxes necessary to repay the bonds at maturity. Although new bonds can be issued to replay the mature bonds, eventually the supply of borrowed funds will dry up.
    • A situation that must be avoided is when new Treasury Bonds must be issued to cover the interest on existing bonds.
  • Every time a new standard is created and enforced, it adds to the cost of goods and services paid by the consumer.
    • Setting new standards invariably results in the purchase of new equipment, supplies, or modifications to existing equipment.
    • Manufacturers, distributors and other businesses must pay higher prices for less value. This is eventually passed down to the consumer due to a "trickle down" effect.
  • Taxes imposed on manufacturers, distributors and all other businesses are passed down the consumer as increased costs for goods and services. No company will ever absorb these taxes by reducing profit.
    • Any company that absorbs increased expenses at the cost of profit will lose shareholders or eventually shut down.
  • There are many ways a company can mitigate rising costs to protect profits:
    • Increase the price of goods they sell.
    • Reduce the package quantity. For example if they are selling cookies at 24 per package, they can reduce it to 18 for a 25% savings.
    • Reduce the wages of their employees. This can include laying off older employees so they can hire younger people at lower wages.
    • Redesign the product to reduce materials. This usually shortens the lifespan of the product so the customer has to replace it.
    • Move production off-shore.
    • By materials from off-shore where suppliers do not pay a price on carbon.
  • The end result is the consumer will either pay more or receive less.

Canadian Consumers are being fleeced

  • Everyone using Fossil Fuels to heat their Home and to drive a gas or diesel vehicle is charged a Punitive Carbon Tax
    • The Carbon Tax is charged directly on your Utility Bill
    • The Tax Rate for heating fuels will peak at $50.00 per GJ in 2022. The average Canadian using 125 GJ/year for their residence will pay $350.00 per year.
    • The Tax Rate for gasoline will peak at $0.18/liter. For the average Canadian driving 15000 km/year @ 10 L/100 km, they will pay $ 270.00 per year.
    • The purpose of the Tax is supposedly to encourage Canadians to cut back their usage of fossil fuels and therefore emissions. In practice, the Tax has little effect on energy usage, but does reduce disposable income which reduces spending on goods and services and therefore the economy.
    • According to Natural Resources Canada lowering the temperature two to three degrees Celsius is optimal for saving energy and keeping your home comfortable. A good guide is to program 17°C when you are sleeping or not at home, and 20°C when you are awake and at home.
      This can save you up to 8%, so for the couple in our example they will save 125 GJ x $6.00/GJ x 0.08 = $60 per year. Would that encourage you to reduce the level of comfort in your home if you are not already doing this?
  • You Pay Carbon Taxes for Electricity but you will not see it on your utility bill
    • The energy producer pays the Carbon Tax and passes it onto the consumer in the price of electricity.
    • The Carbon Tax amount varies with the type of fuel used. Coal is almost double that of Natural Gas.
    • Because of the way energy marketing works, the total Carbon Tax for all fuels is spread over the market.
    • ALL Carbon Taxes are Ultimately Paid by the Consumer
  • The rebate Canadians receive on their tax return does not compensate for the taxes they pay!
    • In the previous examples, the average Canadian is paying $350 + $270 = $620 per year
    • A couple will get back $666 on the Climate Rebate when they file income taxes so they are $46 ahead......
    • But not so fast! Canadians are also paying a Carbon Tax on their electricity. This will continue forever, as Wind and Solar are subject to severe capacity shortfalls due to our northern location.
    • But that is not all! The Carbon Tax is also paid by every manufacturer, processor, farmer and business in Canada.
    • This hidden carbon tax adds to the cost of everything we buy. No business can afford to absorb the extra cost without passing it down to the consumer. Subsidies by the government do not help because this again is passed back down to the taxpayer.
  • But there is one exception to this! Goods that are manufactured outside of Canada are not hampered by a punitive carbon tax. This makes their products cheaper than the equivalent product manufactured in Canada. Canadian business will no longer be competitive leading to cutbacks and unemployment

  • Canada's strategy to reduce building emissions include:
    • Develop a “net-zero energy ready” model building code, with the goal that provinces and territories adopt it by 2030.
    • Develop a model code for existing buildings to help guide energy efficiency improvements during renovations, with the goal that all provinces and territories adopt it.
    • Develop tools to support the aim of requiring labelling of building energy use by as early as 2019.
    • Use funds from the $2 billion Low Carbon Economy Fund and green infrastructure investments to help interested provinces and territories expand their efforts to improve building energy performance.
    • Set new standards for heating equipment and other key technologies.
    • Support Indigenous communities and governments as they improve the energy efficiency of their buildings.
  • Each strategy will add to the costs to renovate, build and maintain buildings.
    • All increased costs are ultimately passed down to the consumer as higher prices.
    • When increased costs are applied to commercial businesses, they will be passed onto the consumer through increased prices for goods and services.
    • Canada will pay to support some of these strategies through incentives, subsidies or outright payments. Ultimately these expenditures will be passed down to the taxpayer either directly or through increased interest costs on the national debt.

  • One strategy makes sense.
    • Reducing oil and gas methane emissions by 40 to 45 percent by 2025 is a good thing and needs to done. However, the level of success for this effort is debatable as Canada already has the cleanest gas and oil production in the world today.
    • In many cases, produced gases that contain methane are vented from the production casing. This is necessary to allow the oil to produce. Where possible, this produced gas is collected at the well had and sent to the plant for processing. Sometimes this is not economic to do and the produced gases will be flared at the wellsite.
    • Therefore reducing methane emissions in some cases will directly reduce production volumes and there for our trade balance with other countries.
  • Another strategy is to develop a Clean Fuel Standard.
    • A new fuel standard will result in refineries having to expand existing facilities.
    • Increasing the cost of fuel will ultimately be passed down to the consumer, manufacturers, distributers and all other businesses. The increased cost will be born by the consumer.
  • Nobody is suggesting that we are free to pollute, but we need to make sure the regulations and standards that we impose actually serve a purpose and the gain is worth the pain.

  • The Road Map lists the following actions to achieve this.
    • Phasing out pollution from coal-fired electricity by 2030
    • Setting new standards for natural-gas electricity
    • Increasing investment in renewable energy
    • Increasing investment in transmission lines and smart grids
    • Supporting rural and remote communities to reduce reliance on diesel
    • Putting a price on carbon pollution from fossil-fuel-based electricity
  • The generation of Electricity will become increasingly expensive over time. These extra costs will be born by the consumer either directly through increased Utility Bills or indirectly through increased prices for all goods and services as businesses pass the extra costs down to the consumer.
    • Canada's Coal fired electricity generation is some of the cleanest in the World. There is no justification for abandoning it.
    • Likewise, natural-gas fired electricity generation is very clean. Adding more stringent rules and regulations only serves to increase the price for all Canadians.
    • Renewable energy is a dead end and is not feasible in Canada. See Solar Power FAQ's and Wind Power FAQ's to learn why.
    • Installing Wind and Solar generation facilities requires extensive additions to the transmission and distribution infrastructure. Because there is no justification for installing Wind or Solar, this just increases the cost of electricity to the consumer.
    • Moving toward Electric Vehicles will increase the consumers electrical demand. This will require that local transmission and distribution infrastructure to be expanded to meet the higher demand. Again, this cost will be born by the consumer who has already had to invest heavily in adding a charging station and additional electrical capacity to his/her home.
    • Reducing reliance on Diesel Generation is a good objective and may be achievable in some locations. However, as many communities currently using diesel to generate their electricity are in Northern Canada, neither solar or wind power is feasible. Diesel back up will still be required so the reduction in GHG emissions will be very small. In these cases, there is no justifications for this.
    • Carbon is not a pollutant! Never has been and never will be. It is a basic building block of all life on earth. Charging a tax on carbon is simply another way for the government to raise tax revenue. This will be paid for by the consumer in the costs for goods and services.
    • In many cases the impact of these objectives can be hidden from the Canadian Citizen by subsidising the upgrade and installation costs through subsidies. These subsidies will ultimately be paid for by the taxpayer, who will have no idea of what he/she has just paid for. It is a version of the shell game with the government always the winner.

  • Actions listed in the Road Map are:
    • Making historic investments in public transit
    • providing over $182 million in funding for electric and alternative-fuel infrastructure
    • having established light-duty zero-emission vehicles policy sales targets of 10 percent by 2025, 30 percent by 2030, and 100 percent by 2040
    • providing a purchase incentive of up to $5,000 on eligible zero-emission vehicles
    • increasing the stringency of emissions standards for passenger vehicles and most trucks
    • developing cleaner fuels for vehicles
  • Many of these strategies rely on public funds to make them feasible.
    • All subsidies from public funds are ultimately paid for by the taxpayer.
    • Subsidies only pay for a portion of the cost (enough to make it economical). The remainder of the costs will be passed down to the consumer.
  • Increased regulations and standards increase the cost of goods and services which are then paid for by the consumer.
    • Increasing the stringency of emission standards directly add to the cost of vehicles. They affect both personal vehicles and transportation vehicles of all types including trucks, rail and shipping. Once again, the consumer pays.
    • Developing cleaner fuels will require additional equipment and processes in refineries. This will ultimately increase the cost of fuels unnecessarily.
  • Electric Vehicles (EVs) look good right now, but the advantage and appeal will disappear over time.
    • At this time, EVs Cost less to operate than gas or diesel. To see your potential savings Use our EV Calculator. You decide if the savings are worth the inconvenience of driving an EV.
    • Maintenance costs are typically less, but battery replacement is costly and disposal of the old battery is a growing issue. Recycling is possible, but will be expensive and costs will be passed down to the consumer.
    • Trade-in/resale value of your current gas vehicle will be greatly reduced in a flooded used car market.
    • See section "Upward Pressure on Electricity Prices" for insight around how Road Taxes will affect EVs.
    • EVs are a great option for people who live in cities and do not travel on the highway very often.
    • Long distance travel may be challenging depending on the route. However, the network of commercial charging stations is growing all the time.
    • It takes 30 minutes to charge your battery at a 50kw commercial charging station. This can add hours to a long distance trip. As more people buy electric vehicles, you may experience lineups, especially on highly travelled routes.
      • Commercial charging stations bill by the minute and are typically 10% - 30% more expensive than home charging. Ontario is currently $17.00 per hour

      Lithium Mine vs. Oil Sands Wellsite

    • Infrastructure costs and demand will continue to increase electricity prices over time increasing the cost to operate an EV. At the same time falling demand will reduce the price of gasoline and diesel. This may make EVs more expensive that gas/diesel.
      • The average residential electricity use in Canada is 11,135 Kwh per year. Source
      • Using a 7 kw/240 VAC typical home charging station for 8 hours for a standard charge, a total of 56 kwh will be consumed.
      • Based on a 2020 Tesla Model 3 driven 15000 km/year., the average residence will consume 3200 Kwh per year. This will add 28% to yearly electricity use.
    • Many homes have 2 vehicles. In that case, 6400 Kwh per year will be added to average usage which will increase from 11,135 Kwh per year to 17,535 Kwh per year (57%)
    • With average demand increasing between 28% and 56% the infrastructure supplying homes will require upgrading at the consumer's expense. Many areas will also require transmission line and equipment upgrades by the provider to handle the increased load. These costs will be passed down to the consumer.
  • Large Transport Trucks can be electrified and several manufactures have them under development. Only test vehicles are currently in service.
    • They will require very large battery packs to handle the weight of vehicle and freight. This will reduce the capacity to haul goods.
    • Trucks will require lengthy charging times. This will reduce the number of loads per day. Stop by a major truck stop and observe how many trucks are filling with diesel. Think about what the place would be like if charging every truck took 1-2 hours or more.
    • Truckers get paid by the loaded mile and not many become rich. Requiring extended charging time will dramatically reduce their income.

  • Infrastructure such as roadways are currently paid for with taxes added to the price at the pump when the consumer purchases fuel
    • As people switch from Gas & Diesel to electric vehicles, this funding must be replaced.
    • Will the government add an "EV tax" for vehicles? Will we pay a surcharge to register our vehicles?
    • If not, then electricity prices for all will increase.
    • A new Consumer Reports analysis shows that of the 26 US states that currently impose EV fees, 11 charge more than the amount owners of similar gas-powered cars pay in gas taxes, and three charge more than twice the amount. And the trend is potentially for more EV fees: Among the 12 US states considering proposals, 10 would have fees greater than what a driver on average would pay in gas taxes. Seven of those states would ratchet up the fees over time to twice the amount.Source
  • For many provinces, the hydrocarbon energy industry provides crucial revenue.
    • This revenue pays for schools, social programs and general operating costs of the government to mention a few
    • If we move away from hydrocarbons, this revenue will decrease and will have to be made up from other sources
    • And there is only one other source!! The Canadian consumer and taxpayer.

  • Increased costs to heat your home PLUS increased mortgage payments as home prices rise will substantially reduce disposable income.
  • As disposable income shrinks, the impact on the Canadian economy will be severe:
    • You will not be able to dine out as often. Many restaurants will be forced to close due to reduced revenues.
    • You will have to reduce spending for goods and services such as furniture, appliances, etc.
    • You will seek cheaper alternatives for groceries.
    • You may not be able to afford that boat or RV.
    • There will be less money for travel and vacations.
    • There will be less money to help your children attend university.
    • The price for new residential housing will increase. It will be more difficult to qualify for a mortgage (higher cost + less disposable income.
    • There are many more effects. Just think of your current lifestyle. What will you be able to afford if your utility costs sky rocket?
  • The cost of running a business will increase.
    • Business will see a similar increase in Utility costs.
    • Transportation costs will increase.
    • Shipping companies will be forced to convert to electric trucks. This will reduce capacity driving up costs.
    • Canadian companies will be affected more than international companies that can produce goods more cheaply. Small local businesses will suffer the most.
  • Business sales will decrease as Canadian's disposable income shrinks.
    • Customers will tend to select cheaper products. This will drive Canadian Businesses to move offshore.
    • Purchases will be deferred or people will go without the extras
    • Remember that every time you chose a cheaper product made outside of Canada, you contribute directly to the emissions of other countries (China, India, ...) that are not constrained by the Paris Accord!
    • Many businesses will close their doors, leading to high unemployment. A vicious circle as reduced incomes will lead to less spending and more business losses.
  • The 2020 Covid-19 Pandemic showed us how a small temporary reduction in spending lead to business failures and unemployment.
    • The great toilet paper shortage of 2020 showed how the perception of a shortage will cause people to act in ways that surprise us.
    • Remember that increased business costs and government taxes are ultimately passed on to the consumer and/or taxpayer. That is YOU!

  • Like other business, Farmers and Producers will see increased utility and fuel costs.
  • Conversion to electric power is difficult and not practical for most farm equipment.
  • The Fisheries will experience the same effects.
  • Carbon Taxes will increase steadily pushing up the cost of utilities and fuel.
  • Methane is considered CO2e and reduction is an objective of the government.
    • To cut total greenhouse gases, pressure will be applied to consumers to reduce their consumption of Beef, Pork and Chicken.
    • Eggs and dairy are also major contributors to green house gases.
    • Increased costs and reduced sales will kill the family farm and push commercial farms off-shore. This will push emissions out of Canada, but will not reduce them globally.
    • Grain farmers will be affected, and will see increased fuel and transportation costs.

  • As the Canadian economy shrinks, there will be serious social implications.
    • Less spending equals increased unemployment which puts stress on Canadians.
    • The gap between have's and have not's will grow. How will we rationalize how people with low or fixed incomes will have to chose between putting food on their table or putting a roof over the heads.
    • There will be great disparity between people who live in colder area's of Canada and people who live where it is warmer all year. Someone who lives in Manitoba will pay far more for electricity and goods than someone who lives on Vancouver Island.
    • With less disposable income, Canadians will not be able to donate to charities and worthy causes.
    • Increasing pressure on Canadians will promote social unrest and support tribalism which in turn leads to prejudice and racism.
    • People will respond by turning inward to their families interests first over all others. A "circling the wagons" mentality.

    • We should remember the 2020 Covid-19 Pandemic! A small reduction in spending & employment caused significant social change. Unemployment and Social Unrest was a direct result. We only need to look at history to see where this can lead us as groups with agendas which are not in the best interest of the country can get a foothold.
    • Nuclear Power in Canada

  • Here is a typical production profile for solar energy in Alberta. Source
    • Solar energy is produced only during daylight hours. Daily production depends on hours of sunlight, cloud cover, angle of the sun and the ability of the solar panels to track the sun.
    • In Alberta which is second only to Saskatchewan for Solar Potential Source it is necessary to install at least 10 times the capacity that you are designing for (i.e. to produce 8 MW you must install 80 MW)
    • There is no economically feasible battery technology that can store the amount of power necessary to span solar energy over a 24 hour period. That means that a spinning reserve of hydrocarbon power will always be required.
    • There are a couple of options that may take the place of batteries.
      • It may be possible to blend a hydrogen plant with a solar plant or wind farm. During the day, excess power would be used to produce hydrogen which could then be burned to produce electricity. Construction costs would be staggering as they would need to install additional solar panels to power the hydrogen production facility PLUS build the hydrogen production facility AND the power generation facility.
      • A second option is hydro pumped storage. While solar and wind are generating power, excess hydro power can be used to pump water into a higher reservoir. When solar and wind die off, this water can then be used for extra power generation. There is currently one plant in Brazeau Alberta that is currently in the feasibility study stage.
    • For more information on Solar see: Click Here....

  • Here is a typical production profile for wind energy in Alberta. Source
    • Wind has the potential to produce day and night. However, it is still not reliable or consistent. Winds typically die down over night and into the early morning. The amount of energy produced depends on wind speeds which fluctuate all the time. Not all areas of Canada have consistent winds that can support wind farms.
    • In Alberta, it is necessary to install at least 5 times the capacity that you are designing for ( produce 8 MW you must install 40 MW)
    • For more information on Wind Power see: Click Here....

  • Power grids typically operate at a constant demand. It is therefore necessary to maintain a spinning reserve of fossil fuel power generation at all times. If that was not done, brown-outs and black-outs will become normal events for Canadians.
  • When governments give subsidies to make construction of wind or solar farms economical, the taxpayer is in effect paying for their power twice. Once through the subsidy for a facility that only produces a small portion of installed capacity and then for fossil fuel power when the wind or solar is not available.
  • At this time, there is no other practical technology to replace this spinning reserve with the exception of Hydro and/or Nuclear Power. Nuclear Power can be produced safely, but accidents if they happen tend to be rather spectacular! There is also a challenge to disposal of spent fuel rods.
  • Nuclear Power in Canada

    There is a stong coorelation between electricity prices and installed renewables (watts per capita)

    Coorelation between electricity pricing and renewables.

    Climate Activists will try to tell you that the cost of installing a Solar Power Plant or Wind Farm can cost less than a Natural Gas plant. This is based on a report that compared the Levelized Cost of Energy (LCOE) which was prepared using global facilites in lower latitudes that have significantly more sunshine and more reliable winds than we have in Canada. See LOCE - Is Renewable Energy Cheaper than Natural Gas?.

    We have been conditioned to think that Energy Companies like BP, Shell and ExxonMobil are the bad guys and only interested in producing oil and gas. This is far from the real truth. The objective of all Energy companies is to make money for their shareholders. They would sell buggy whips and wagons if that was profitable. When solar and wind really drop close to the same operating capacity, operability and cost of hydrocarbons, you can be guaranteed that they will jump on the opportunity and your will see their names on the gates of solar and wind facilities everywhere.

  • A few years ago, cutting residential emissions by conversion to electricity was published. Subsequently it has been removed from the Road Map, but unless there is a miracle technological process invented, there is no doubt that they will look to the consumer and his/her home for further cuts.
    • The following shows projections from several years ago.
    • Solar Production
  • Electricity is significantly more expensing than Natural Gas, Propane and Fuel Oil.
    • To meet the target, households heating with Nat Gas, Propane or Fuel Oil must convert to Electric Heat, paid for by the consumer.
      • Convert to heat pumps - $6,000 - $16,000++ (temperatures down to 0 deg C)
      • Convert to baseboard heaters - $8,000 - $20,000++ (temperatures down to -10 deg C)
      • Convert to boiler/elec. furnace - $5,000 - $15,000++ (temperatures below -10 deg C)
      • Includes: Permits, Appliances, Wiring, Labor PLUS Expansion of Breaker Box.
        - may require upgrade at your expense, for transmission lines supplying your home.
    • Electricity is much more expensive than Natural Gas, Propane or Fuel Oil. Your Utility Bill will Increase Substantially
      • Expect your bill to increase 350% to 500% or more!
        A family now paying $160/mo. will be forced to pay $735 per month or more!
      • 278 kwh = 1 GJ of natural gas
        $6.00 (1 GJ) of natural gas is worth $40.00 - $95.00 of electricity depending on where you live!
      • 7.12 kwh = 1 liter of propane
      • 11.7 kwh = 1 liter of fuel oil


Calculate your New Utility Bill

From your Utility Bills, Add up Total Paid and Total Energy Used for both Hydrocarbon Fuels and Electricity.

  • A full 12 months will give the most accurate results.
  • Fewer Months are OK. Early Spring / Late Fall best represent your average billing.
  • Add up total heating energy used (GJ, liters or kg) AND Total Electricity (kwh) used now.
    Use the total you actually paid (incl. energy, distribution, admin, GST, etc.)

But Wait There's More! Canada has committed to giving $2.65 Billion ($2,650,000,000.00) Sources for Climate Mitigation.
That is ~ $286.00 for a family of four. How much of that will make it into the pocket of politicians and how much will get to the people who need it? Millions of people around the world need access to clean water, pumps to irrigate their fields and tractors to till, plant and harvest...Not solar panels.

Check out Canada's Federal Debt Today: Click Here We don't need to add to it!

  • It is important to keep an open mind and seek the truth. Be a "Critical Thinker" to differentiate between truth, misdirection and fake news. An informed consumer is a smart consumer.
    • There is a lot of information out there. Some of it is accurate, some is misleading and some is untrue. Do not take anything at face value. Always check the sources and verify the information through an independent source. Always treat Celebrities and spokespeople with scepticism!
    • Beware of facts and information that rely on emotion. Lots of things feel right, but are often wrong or misleading.
    • If you are convinced that there is no benefit for Canada by cutting emissions, speak up. Share this with family and friends. Write to your MP, post on social media, etc.
  • Shop wisely. Support Canadian Businesses. Remember that when you buy a product built in China, India or many other countries, you are indirectly contributing to greenhouse gas emissions.
    • When shopping, buy local first, provincial second and Canadian third. Do as much as possible to keep businesses afloat and Canadians employed.
    • Always check out products that say they are Canadian Made. In many cases, the final product is assembled or packaged in Canada, but the raw materials come from outside Canada.

I would encourage every Canadian to start asking the Climate Change Alarmists to show you the science. Show the data behind their protest signs. Disclose their sources of income. Don't believe anecdotal evidence and the farce that 97% of scientists agree. There are many highly qualified scientists and professionals that say there is NO Climate Emergency and have hard data to support their position.

  • Why don't you hear about this, why do we never hear anyone say "Everything is OK, Don't Worry, Be Happy"?
    • The Media will never say it because it does not generate readership and therefore revenue.
    • Universities and research groups will not say it because it would cut off funding .... No emergency = no funding!
    • Governments will not say it because with no emergency, they cannot use it to collect punitive taxes.
    • The financial world will not say it because there is a lot of money to be made. This includes Carbon Trading, green subsidies, etc.
    • Environmental and Activist groups will never say it because with no emergency, how are they going to collect donations to "Fix It".