Trudeau's Pipeline 'Weak Sauce'
Well, it looks like the Trudeau Government is throwing in the towel on the Keystone pipeline. On Wednesday evening the Prime Minister released a statement saying “We are disappointed but acknowledge the President’s decision to fulfil his election campaign promise on Keystone XL.” Ben Woodfinden is exactly right:
As I mentioned earlier in the week, Trudeau's initial approach was to argue that Biden's anti-climate change instincts were admirable but misguided, since the project had addressed the issues which most troubled environmentalists at the outset. It seemed as though Trudeau was attempting to employ his own green bona fides to give Biden cover to back down on Keystone, but to no avail. So, as in the case of Pfizer's failing to deliver Canada's contracted vaccine doses, Justin has decided to just put up his well-manicured hands and say, in essence, 'We're a small country, what can I do?'
Never mind that Canada's unemployment and labor participation rates are down, and the jobs Keystone XL generates for the resource sector are desperately needed.
Source: Statistics Canada
Trudeau would do well to remember the old saying, '[W]hen America sneezes, Canada gets a cold.' Both countries have weathered the lockdowns better than one would have thought back in March. That's why they are still going on (even if some of their most ardent apologists have started to back away from them).
But they've only done so well by taking on enormous amounts of new debt, the bill for which will begin to come due sooner than anyone thinks. This will no doubt cause serious problems for the U. S., but America's sheer size and its extremely diverse economy will provide a cushion that the smaller and resource-dependent Canada just won't have.
So what should Trudeau do? Well, some of the aggressiveness he showed when America's last president put a ten percent tariff on Canadian aluminum (part of a push which led Trump to drop the duty a month later) would be welcome. Of course, Trump was not a CBC-approved American the way Joe Biden is, and consequently Trudeau would have to expend real political capital -- perhaps more than he has -- to similarly fight for his nation's interests.
A more realistic hope might be for his making a sustained case for Keystone XL as beneficial for both of our countries at a time of real economic distress. The Heartland Institute's Steven Milloy has a good brief against Biden's Keystone cancellation which lays out many of the points that Trudeau could make. After establishing that the environmental effects of Keystone XL would be negligible, Milloy explains that,
According to the U. S . Chamber of Commerce, the Keystone XL will:
- Produce 20,000 well-paying jobs during manufacturing and construction;
- Increase personal income for all America workers by $6.5 billion during the lifetime of the project.
- Generate an estimated $138.4 million in annual property tax revenue for state governments and local entities where the pipeline is located;
- Create $585 million in new taxes for communities among the pipeline route;
- Create more than $5.2 billion in property taxes during the lifetime of the pipeline.
- Generate additional private sector investment of around $20 billion on food, lodging, fuel, vehicles, equipment, construction supplies and services.
Consequently, for Milloy, "the revocation of the Keystone XL permit will be the exaltation of imaginary global climate benefits over real ones to U. S. workers and communities." Needless to say, the same could be said on the Canadian side.
Unfortunately, it seems as though Trudeau has officially folded. TC Energy -- which owns the pipeline -- have already announced a halt on construction and thousands of layoffs. More's the pity.
Biden to Execute Keystone Pipeline via E.O.
The Biden campaign's strategy was to hide their candidate in the basement while letting a fawning press make the case for him as president. This case was short on substance and long on impression, particularly the impression that the former V.P. is a moderate, working-class guy and a statesman who would restore America's reputation in the world and restrain the Bernie Sanders/Elizabeth Warren/AOC wing of the party.
Well, with the election over Biden's priorities are starting to become clear. They are anything but moderate and, insofar as they unnecessarily antagonizing one of our closest allies, neither are they statesmanlike.
This past weekend a memo written by incoming chief of staff Ron Klain was released which outlines the executive orders Biden plans to implement immediately upon taking over the White House. Highlights on this list -- which the Associated Press calls "a 10-day blitz of executive actions... to redirect the country in the wake of Donald Trump’s presidency without waiting for Congress" -- include immigration reform; a national face mask mandate (mandating that they be worn on all federal property and "during interstate travel," whatever that means in practice); and an extension of the moratorium on evictions and foreclosures and the "pause" on student loan payments.
Among the memo's most consequential items is the bullet point which reads "Roll back Trump enviro actions via EO (including rescind Keystone XL pipeline permit)." That is, on his first day in office tomorrow Biden plans to employ the "pen and phone" tactic to kill a multimillion dollar international project that employs tens of thousands of people (in two countries!) in the midst of a pandemic-created recession. This is madness.
Canada vs. the Democrats.
Meanwhile, in Canada, the Trudeau government are scrambling to make the case that this move is unnecessary from an environmentalist perspective. Canada’s ambassador to the U.S., Kiersten Hillman, released a statement on Sunday saying "The government of Canada continues to support the Keystone XL project and the benefits that it will bring to both Canada and the United States.” She went on to stress that the Keystone project was more environmentally friendly than the one the Obama administration rejected in 2015:
Not only has the project itself changed significantly since it was first proposed, but Canada’s oilsands production has also changed significantly. Per-barrel oilsands (greenhouse gas) emissions have dropped 31 per cent since 2000, and innovation will continue to drive progress... Keystone XL fits within Canada’s climate plan at a time when our economic recovery is a top priority... there is no better partner for the U.S. on climate action than Canada as we work together for green transition.
Alberta Premier Jason Kenney took a slightly more aggressive tone, saying: "Should the incoming U.S. administration abrogate the Keystone XL permit, Alberta will work with [pipeline owners] TC Energy to use all legal avenues available to protect its interest in the project."
These appeals are unlikely to sway Team Biden, who are riding a wave of anti-Republican sentiment in the wake of the recent disturbance at the Capitol. They believe they have a window of opportunity to make some big, cost-free moves which will garner them goodwill with activists but will be forgotten by voters still focused on the Trump show.
This could well be a miscalculation on their part. The issues which gave rise to Trump in 2016 won't go away when he does. And the most important of those, the alienation of America's working class since the end of the Cold War, will be aggravated by virtue signaling environmentalist moves like the cancelation of Keystone.
In a recent article in the Toronto Sun, Lorrie Goldstein comments on a surprising fact: that Justin Trudeau, the dream political leader of the environmental lobby, is going to have to concede that Canada has missed the emissions reduction target it agreed to in 2009, while America -- after four years under Donald J. Trump -- will actually exceed that target. Says Goldstein:
This despite the fact Trump, unlike Trudeau, never imposed a national carbon tax on the U.S. Nor has any American president done so. Also, despite the fact Trump, unlike Trudeau, announced he was withdrawing from the 2015 Paris climate agreement in 2017, saying it was contrary to the economic interests of the U.S.
The 2009 targets, negotiated by the prime minister and the president's respective predecessors as part of the Copenhagen Accord, informally committed both nations to reduce emissions to 17 percent below 2005 levels by 2020. While America's emissions projections for 2020 are about 20 percent below 2005 levels, Canada's projections are down only 0.14 percent. For Canada to meet its commitments for 2020, Goldstein points out, "we would have to cut our current emissions by 123 million tonnes — the equivalent of the annual emissions from our entire agriculture sector and most of our electricity sector — in less than a month."
How could this be? Well, part of the story of America's success (if you could call it that) is the government imposed Covid-19 lockdowns. Goldstein mentions that U. S. emissions for 2020 are down roughly 10 percent from where they otherwise would have been without the lockdowns, which sounds great until you consider the economic devastation they also wrought. The cure in this case was far worse than the disease.
Of course, Canada also locked down and had an equivalent emissions drop. Which is to say, the pandemic doesn't even begin to tell the full story.
What actually happened is that, while the Trudeau government dove deep into virtue signaling environmentalist rhetoric, the U. S. allowed "market forces, innovation and [smart] energy policy" to do their work. Among other things, the U. S. leaned in hard to hydraulic fracturing, allowing us to gradually transition away from our reliance on coal towards natural gas, which "burns at half the carbon dioxide intensity of coal."
Meanwhile in Canada, Goldstein points out, "several provinces have banned fracking," bowing to anti-fracking sentiment in the green movement, while the Trudeau government has imposed a national carbon tax (and doubled it mid-way through a global pandemic), and put real political capital into transitioning away from oil and natural gas, which accounts for roughly 10 percent of the nation's GDP.
It'd be nice if more environmentalists started recognizing (as Michael Schellenberger has) that their preferred methods of addressing these issues are mostly hokum and started advocating for policies which actually work. Both don't hold your breath. Most of them are just hypocrites who mindlessly condemn President Trump as a Captain Planet-style villain, while lauding all of the Trudeaupian fluff.