The world is undergoing a rapid and dramatic shift away from fossil fuels, and Canada seems to be stuck in the past. While nations across the globe are embracing clean energy and electric vehicles (EVs) as a path to energy security and climate action, our country's political and economic priorities remain firmly rooted in the fossil fuel industry. This disconnect is not only concerning but also potentially catastrophic for Canada's future.
The evidence is everywhere. The European Union is doubling down on clean energy, with measures including electricity tax cuts and increased investments in renewables. Electric vehicle sales are soaring in Europe, Australia, and New Zealand, while more than 40 countries are rationing energy due to the war in the Middle East and the resulting spike in oil and gas prices. South Korea's President Lee Jae Myung has warned that the country's future is at risk if it continues to rely on fossil fuels.
Despite these global trends, Canada's national debate is still dominated by fossil fuel exports. We're building LNG terminals and oil pipelines, and providing taxpayer subsidies to diesel-engine pickup manufacturers. Last week, Ottawa signed an accord with Alberta that watered down Trudeau-era carbon policies and paved the way for a new oil pipeline.
What's particularly striking is how out of step the United States is with global trends. The Trump administration has opened protected federal land to drilling, rolled back fuel consumption standards for vehicles, and cancelled major renewable power projects. It's unclear whether this is a misguided economic vision or just a desire to reverse the priorities of the previous administration. Regardless, the name of the game in the U.S. is still fossil fuels, and American consumers are paying more for everything as a direct result.
In contrast, countries like China and India are rapidly electrifying their economies. Chinese drivers put 37,000 electric vehicles on the road every day, and India is targeting 30% EV use by 2030. European supermajor Shell has described global oil demand peaking within the next decade and entering permanent decline in every scenario.
So, where does that leave Canada? We must not follow the Trump administration in doubling down on fossil fuels. Instead, we must heed the nations we hope to sell oil and gas to and realize they're working hard to stop buying them. Energy companies make the superficial argument that Canada is a secure supplier in a chaotic world, but Canada doesn't set global prices. Our oil and gas got expensive too when Russia invaded Ukraine, and when the U.S. and Israel attacked Iran.
The smart play for drivers, utilities, and nations around the world is to rely on domestically generated electricity, be it hydroelectricity, wind, or solar. It's no use being a secure supplier of a product people no longer need because cheaper alternatives are available. Canada itself, and not just our oil and gas companies, risks a massive strategic miscalculation in all this. We risk a future where the world economy has passed us by.
Taxpayers' dollars should not be spent subsidizing oil and gas infrastructure that could well become stranded assets. The federal government should concentrate on what's best for all Canadians. That means EVs, heat pumps, and low-cost renewable electricity. Canadians need our Prime Minister to understand the scope and urgency of the challenge to electrify the nation. We must keep pace with the global energy transition - otherwise, Canada's energy crisis may just be getting started.
