The electoral victory of Justin Trudeau, the son of former Canadian Premier Pierre Trudeau, may have caused American energy leaders to sit up and take notice. Trudeau’s victory caps a resurgence for the left-wing New Democratic Party who have been out of power since 2006. Trudeau plans to initiate a series of clean energy reforms that will cause grave concern to the major fossil fuel companies north and south of the border. Trudeau has already refused to comment whether he will support the proposed Energy East pipeline that will transport oil from Western Canada to its eastern seaboard.
Trudeau’s policies could mark a significant shift from previous Canadian energy policy, whose conservative government under Stephen Harper pledged to make Canada an energy superpower. This strategy occurred in tandem with the shale revolution in the United States that led to heavy investment in fracking and a shift towards a new hydrocarbon bloc that could threaten OPEC’s supremacy. The country’s proximity to the Arctic would also make the country a key stakeholder in Arctic energy development, propelling it towards geopolitical and economic eminence.
The dramatic decrease in world oil prices has undermined this policy and resulted in growing numbers of unemployment across Canada’s energy sector. Ahead of the UN Climate Change Summit this December, Trudeau represents a national and continental shift towards clean energy that will emphasise energy efficiency and reducing carbon emissions. Along with the Obama Administration’s Clean Power Plan, Trudeau’s new government could offer investment incentives to renewable energy industries and place fresh regulations on fossil fuel companies who have enjoyed a free reign under the Harper government.
The announcement of the Mexican government this week that it plans to quadruple its wind energy capacity by 2030 with an estimated $46 billion investment signals a seismic turn to clean energy by the North American bloc. Following the privatisation of Pemex in 2014, it seemed hydrocarbons would remain the dominant energy industry for the long-term with the plans of offshore development in the Atlantic and Pacific, not to mention the emergence of the United States as an energy exporter to rival OPEC and Russian dominance.
The three national leaders could now represent an ominous force for Big Oil across North America who will be forced to adjust their corporate practices and agree to emission reductions that will threaten their long-term profitability.
Trudeau is a skilled and charismatic politician who will mobilise all the resources at his disposal to cultivate a national energy strategy that will meet a global agenda committing to combating climate change. North American energy suddenly looks an entirely different beast, much to the woe of the fossil fuel lobby.
Justin Trudeau photo courtesy of Shutterstock
