This article originally appeared in the Financial Post. Below is an excerpt from the article.
By Philip Cross, October 30, 2025
This year is shaping up as a turning point in restoring sanity to public policy. Nowhere is the change more evident than in attitudes to green energy policies, once the rallying cry for left-wing parties in North America. Support has collapsed for three pillars of green energy advocacy: building electric vehicles to eliminate our need for oil pipelines and refineries; using the financial clout of the Net-Zero Banking Alliance to force firms to eliminate carbon emissions; and legally mandating the shift from fossil fuels to green energy.
This turning away from green energy policies is reflected in how industrial policy underpinning electric vehicles (EV) has been discredited over the past year. Companies are delaying or abandoning the building of EV assembly and battery plants, mainly because EV sales are slumping following withdrawal of the artificial stimulus of government subsidies in both Canada and the U.S. Walking away from these investments leaves governments on the hook for billions of dollars they rashly pledged in support of EV projects.
In Quebec, Northvolt stopped work on a $7-billion battery plant, electric bus manufacturer Lion Electric filed for bankruptcy, and the Ultium CAM consortium paused plans to expand production of materials for batteries to be used in GM vehicles, which in turn led the giant mining company Vale to cancel plans for a nickel sulfate plant to supply these batteries. In Ontario, Honda delayed $15 billion of investments to build EV assembly plants and supply them with batteries, while Ford postponed its EV assembly plant plans after its EV division posted losses of $12 billion over the past two and a half years. Just last week, GM stopped producing electric delivery vans at its Ingersoll plant due to slack demand that had “nothing to do with tariffs or trade,” according to GM Canada’s president.
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Philip Cross is a senior fellow at the Macdonald-Laurier Institute.
