If this isn’t a sign of a shift in the economy, I don’t know what is

The first day of President Joe Biden’s term saw the cancellation of the Keystone pipeline. Immediately here in Canada, Conservative politicians were aghast and eager to point blame. I wrote about this here. Then things got worse for them.

Last week, GM announced a landmark decision that they would shift their entire fleet to electric by 2035. In Europe, Volvo has pledged to produce only electric cars. As well Volkswagen, in an effort to put Dieselgate behind them has put forward their ID line of vehicles to rebrand themselves as environmentally friendly once again. In fact just about every major automobile manufacturer in the world is producing an electric model and putting brand power behind it. All except for Chrysler, but we’ll discuss that another time.

So did I bring this up to point out the uselessness of encouraging oil production? Yes and no. In Canada, we simply dig the oil out of the ground and pump it to other countries for them to refine and then buy it back. It’s inefficient and costly to us as consumers. Our current pipelines in existence are sufficient to maintain our energy needs for the foreseeable future.

The real kick is in electricity production. At the start of his mandate, Doug Ford killed the Green Energy Act, citing it was responsible for the increase costs of energy production in the province. As a result, it has put a strain on energy production in Ontario, as renewable energy projects were cancelled, with no replacement in sight. This was one of the purposes of the Act in the first place, to provide a steady sustainable stream of energy for a growing economy, with the plan over time that market forces would bring costs and pricing down.

This is all leading to a perfect storm of shortage and incapacity. In the United States, predictions are being made that supply will not meet demand as more and more electric vehicles fill the roads. Currently, I don’t see how this will not be reflected here in Canada. It’s time for us to talk plainly. The free market is deciding this one for us all. Major industry is clearly putting it’s money behind sustainable energy and new technologies. The age of oil and gas powered energy is coming to an end. Accept it.

Have you? Good, cause now comes the hard work. As the market leads it’s efforts towards sustainable goods and services, our infrastructure needs meet the demand. Ontario was on the path to becoming a stable leader in this new economy. The Green Energy Act would’ve been able to set up a foundation in Ontario to create long term sustainable energy production, as well as help to build an industry of green technology which would be in a prime position today to capitalise on the current trend. Yes for once in history, government was ahead of the curve.

Efforts must be made now to encourage Ontario’s manufacturing and energy sectors into green sustainable production. Otherwise, we will be at the mercy of market forces and forced to pay a premium to catch up. Let’s build up our supply to meet the coming demand.

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