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Natural Gas Steel (USA) vs. Carbon-Free Steel (Mark Carney’s Canada) — The Death of ESG and the Coming Collapse of Canada’s Steel Industry – August 9, 2025

Posted on August 9, 2025 by RichInWriters

It’s August 2025, and I’m still struck by how quickly Donald Trump has reshaped the U.S. economy in his second term. By cutting regulations, Trump has unleashed private-sector innovation that had long been smothered by government red tape. Industries that were once restricted from making efficiency-driven improvements are now free to apply technology to solve problems—cleaner air in the U.S. being one clear example.


 

Efficiency reduces pollution. That’s a simple truth, and it mirrors a biblical principle: when Jesus Christ speaks of peace, it’s inherently cheaper, more efficient, and more productive—but everyone has to work toward the same goal. For Christians who actually read and study Scripture, God’s nature is innovation. And that’s why censorship and overregulation kill progress.

The ESG Trap: Mark Carney’s Regulatory Vision

Canada under Prime Minister Mark Carney is moving in the opposite direction. His vision isn’t rooted in efficiency—it’s built on managing capital allocation through bureaucracy. This forces innovators into politically favored directions, enriching a select group of insiders while leaving other innovations to wither.

This is where the “devil is in the details”: regulations aren’t designed to unleash productivity—they’re designed to control it. And nowhere is this clearer than in the contrast between natural gas steel in the United States and carbon-free steel in Canada.

Natural Gas Steel: Market-Driven and Efficient

Natural gas is exactly what it sounds like—a naturally occurring mixture of gaseous hydrocarbons, primarily methane, with small amounts of other compounds. When used in steel production, it offers an efficient, proven, and market-driven solution that reduces emissions compared to traditional coal-based methods—without adding layers of costly bureaucracy.

Carbon-Free Steel: Complex, Costly, and Bureaucratic

By contrast, carbon-free steel is a politically engineered project. It includes methods like:

  • Hydrogen-based reduction using green hydrogen from renewable energy.
  • Electric arc furnaces (EAFs) powered by renewables and scrap steel.
  • Molten oxide electrolysis to separate oxygen from iron ore with electricity.

Each of these steps adds layers of cost, compliance, and regulatory oversight. And with ESG-driven politics, the rules can change at any time—meaning an already expensive process becomes unpredictable and unattractive to investors.

The result? More paperwork, more bureaucrats, and more waste at every level. If one method is deemed “not green enough,” the goalposts move again, driving up costs and uncertainty until the industry collapses under its own inefficiency.

Why Canada’s Steel Industry Will Suffer

Natural gas steel in the U.S. will maintain a competitive advantage for three main reasons:

  1. Technological efficiency lowers production costs.
  2. Market flexibility allows rapid adaptation without political interference.
  3. Even if labor costs rise due to unions, efficiency offsets those increases.

In contrast, Canada’s carbon-free steel industry is set up for failure. Over time, Canadian steel producers will likely shift operations outside Canada to escape the ESG stranglehold. The domestic industry will shrink, and tariffs on foreign steel will only drive consumer prices higher.

The Political Factor: Carney’s ESG vs. Trump’s Infrastructure

Donald Trump is not a libertarian—he still spends heavily—but he spends like a developer, investing in domestic infrastructure to set up a post-Trump boom. By contrast, Mark Carney’s ESG agenda piles layers of regulation onto an already highly regulated energy sector.

ESG might work in low-regulation, low-cost labor markets—but in Canada’s expensive, overregulated environment, it’s a recipe for stagnation.

Property Rights Erosion: A Red Flag for Investors

Canada’s reputation for weak property rights is another blow to its competitiveness. Consider:

  • British Columbia’s land transfers to First Nations groups, including developed properties funded by taxpayers.
  • The Trucker Convoy crackdown, when Deputy Prime Minister Chrystia Freeland targeted not only bank accounts but also auto insurance—making dissenters uninsurable and unable to access their own money.

For investors, these actions signal that property and capital are not safe in Canada. By comparison, the U.S. looks far more secure for long-term investment.

Deficit Spending in a Welfare State

Canada’s political class still acts as if the nation is wealthy, passing new laws and property restrictions without considering their impact on productivity or investment. But deficit spending in a welfare-heavy economy accelerates decline. Without austerity, industries like steel will die, inflation will rise, and the Canadian dollar (Loonie) will weaken.

I don’t expect housing prices to drop—instead, I expect all other prices to rise to match the devalued currency. The most painful part will be the foreign exchange rate. While Canada isn’t the only struggling country, its domestic mismanagement could make the Loonie increasingly unstable.

Conclusion: Innovation vs. Bureaucracy

The U.S., with natural gas steel and deregulation, is positioning itself for an industrial revival. Canada, with carbon-free steel and ESG bureaucracy, is marching toward industrial decline. If Canada’s leadership doesn’t reverse course, its steel industry will be destroyed—and the ESG model will go down with it.

Consider making Jesus Christ your Lord and Savior today.
Through Christ, we build not just material prosperity, but lasting, meaningful abundance rooted in truth and righteousness.

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