As another Donald Trump presidency begins, Canada may see itself at a crossroads. In reality, looking beyond the next four years and the politics of our neighbour, there is still only one true road ahead, even if it is a little bumpier. And when it comes to our economy, a bumpy road is better than a dead end.
The energy transition is underway and unstoppable, and while there is a question of speed, the destination leaves no doubt. Our other largest trading partners, Europe and China, are all in, with the latter now seeing EV sales of around 50 per cent, a trend the International Energy Agency projects will displace six million barrels of oil a day in just five years.
Or about a year after Trump leaves office.
Indeed, as Trump announced has announced he will, once again, withdraw the U.S. from the Paris Agreement, it’s worth noting that only three nations globally have not ratified their participation: Iran, Libya and Yemen. It is the U.S. government under Trump that is going it alone and undermining its partners and allies.
Canada should not follow suit.
Canadians don’t need a knee-jerk economy. They need a sustainable economy. While the United States has long been our most important trading partner and ally, it is also a country of states, like California and New York, that understand intimately the dangers of climate change and opportunities for clean energy. They, too, intend to stay the course and build up their clean economies.
Meanwhile, $74 billion in ‘Trump-proof’ clean energy funding is already out the door, most of it to red states: factories are being built, critical minerals unearthed and recycled, renewable power added to the grid.
Even U.S. automakers recognize the global transition to EVs is inevitable and, in an unusual move for the industry, the big three now wish to be regulated, realizing that America’s EV-incentivizing tailpipe requirements (which also apply here in Canada) help even the playing field as they transition together.
Canada must also keep both eyes on the horizon. In a geopolitically-fluid world, this means strengthening relationships with like-minded allies. It also means working together here at home — building, for example, a more interprovincial, resilient energy grid. Clean energy is more secure energy, shielding consumers from price shocks and trade wars.
Additionally, Canada can protect its investments in building cleaner cars, homes, technologies and energy sources by supporting a stronger market at home through incentives, building codes, education and other measures.
In addition to guarding our national interests, there is no better way to support cash-constrained Canadians. EVs, heat pumps, smart thermostats and home energy systems are solutions that, once unlocked, pay back dividends month after month, often to the tune of hundreds of dollars.
Yes, Canada has a bumpier road ahead than it did on Monday, but it remains the only road with a real destination. When the pavement eventually smooths out — well, every EV driver knows they accelerate like the wind.
This post first appeared in Canada’s National Observer.
