Most Canadians are aware that under the Liberal government for the past decade, our country has spent many more of our tax dollars on so-called “green” programs than in previous years. We have also been told for years that “the environment and the economy go hand in hand”, implying that all of those expensive green policies would result in wonderful new well-paying jobs in the future green economy. Current Liberal PM Mark Carney is continuing this line of reasoning, stating that Canada must pursue a number of carbon-related taxes and punitive regulatory regimes for the fossil fuel sector or our exports will simply not be welcome in other countries.
A recent Fraser Institute study entitled “The State of the Green Economy” puts the lie to this reasoning with hard numbers. It’s a very sobering read for any Canadian still gullible enough to think that these policies are worthwhile for Canada. Instead, they have accomplished little to nothing for the environment, cost taxpayers a fortune and trashed Canada’s economy. Certainly, there are many friends of the Liberal government who found these policies extremely worthwhile as they lined their pockets at taxpayers’ expense. Average Canadians? Not so much.
The Fraser report notes that overall spending on the green economy by the federal government skyrocketed from $600 million during the year prior to Trudeau taking office in fiscal 2014/2015 to $23 billion in 2024/2025. In addition to these funds spent, a number of new regulations were also introduced during the Trudeau years to hamstring oil and gas energy projects, such as banning tankers on the West Coast, an emissions cap on the oil and gas sector, cancelled pipelines, the Electric Vehicle mandate, and the twin carbon taxes – consumer and industrial – among others. The only way in which Canada was transformed by all of these measures was to move from being a solid economic performer with a well-off middle class to a stagnating country with a declining standard of living and a struggling middle class. A number of provinces worsened the damage by imposing their own green policies.
In terms of all that benefit to the economy that was supposed to arise from an avalanche of green spending, the share of the economy of the green sector was 3.1 per cent in 2014. By 2023, that share had only increased to 3.6 per cent despite all the dollars spent and regulations imposed. As far as all those wonderful green jobs promised, there were only 68,000 jobs created for the $158 billion spent – just under $2.5 million per job. And the overall economy stagnated. Merely handing out $2.5 million to a bunch of Canadians would have had a more positive economic impact. Canadians’ standard of living as indicated by GDP per capita was actually lower in mid-2025 relative to 2019. Yet we are still being fed the line by Carney that the only way forward for Canada is more of these failures.
The Fraser analysis identifies a major part of the reason for our economy’s poor performance to be the collapse of private business investment. They note that this was taking place long before Trump’s tariffs, which is now erroneously blamed by the Liberals and many Canadians as the cause of our problems. The uncertainly caused by all of our carbon taxes, regulations and other policies that prevent major projects from being approved has, not surprisingly, driven away most anyone who wanted to do business in Canada. The only businesses which, over the last few years, attempted to establish or expand facilities in Canada were those that received massive subsidies from government. Yet even those folks who were promised billions by the federal and some provincial governments aren’t remaining in Canada as we are so uncompetitive with other countries. The EV battery plants are an excellent example of this, but not the only one.
Even the Liberal government itself has admitted that the unrealistic targets set by the Trudeau government for greenhouse gas (GHG) emissions reduction will not be met within the timelines advertised. Not even close. In fact, the only meaningful period of GHG reduction was during the pandemic when the economy ground to a halt. It’s unlikely Canadians would be willing to experience that disaster again for minimal gains for the climate. Clearly the environment and the economy do not go hand in hand, at least not in a positive way. More green spending and economic decline do, however, clearly go hand in hand. What is incredible is, for all the factual evidence disproving the climate cultists’ many claims, there remains even one Canadian left to vote in favour of it.
She has published numerous articles in journals, magazines & other media on issues such as free trade, finance, entrepreneurship & women business owners. Ms. Swift is a past President of the Empire Club of Canada, a former Director of the CD Howe Institute, the Canadian Youth Business Foundation, SOS Children’s Villages, past President of the International Small Business Congress and current Director of the Fraser Institute. She was cited in 2003 & 2012 as one of the most powerful women in Canada by the Women’s Executive Network & is a recipient of the Queen’s Silver & Gold Jubilee medals.
