Friends of Science Challenges Bank of Canada Governor Over Ignored Risks to Canadian Businesses

Friends of Science Confronts Bank of Canada Governor

In a bold move, the Friends of Science Society has issued a direct challenge to Governor Tiff Macklem of the Bank of Canada in response to his recent speech delivered on September 23, 2025, in Saskatoon, Saskatchewan. This speech, which addressed the evolving landscape of global trade and market strategies, sparked significant concern from the independent organization, particularly regarding its dismissal of serious threats posed by the Carbon Border Adjustment Mechanism (CBAM) and the renewed carbon taxes that threaten the livelihood of Canadian businesses.

Context of the Challenge

During his presentation to the Saskatchewan Trade and Export Partnership and the Greater Saskatoon Chamber of Commerce, Macklem claimed that Canadians simply needed to “roll up their sleeves” to adapt to the changing trade environment. Friends of Science, however, argued that this perspective overlooks the critical issues that many Canadian businesses are facing, particularly those in sectors heavily affected by carbon regulations. This sentiment was encapsulated in an open letter directed to Macklem, where they urged him to reconsider his optimistic outlook and recognize the challenges ahead, especially as global policies move towards stricter environmental regulations.

In a prior press statement dated January 30, 2025, Friends of Science Society highlighted the federal government's inclination towards syncing Canada's climate policies with the European Union's CBAM. Robert Lyman, a former federal public servant, cautioned that this convergence of policies could provoke strong reactions from trade partners, particularly the United States. This potential backlash adds another layer of urgency to the situation, as Canadian businesses navigate this precarious trade landscape.

Impending Risks from CBAM

The looming implementation of the EU’s CBAM, scheduled to take effect January 1, 2026, will further complicate matters for Canadian businesses. CNBC recently reported that this new carbon border tax aims to impose substantial costs on imports to ensure compliance with EU environmental standards. Friends of Science argues that this mechanism will disproportionately impact industries that cannot quickly adjust to rapid changes in the regulatory environment.

Macklem has also been criticized for frequently labeling ongoing tariff disputes with the United States as a