Tausi Insider

The economic update that was meant to shed light on how Canada will compete with new clean-spending measures in the United States and elsewhere has instead sowed confusion about one of the key elements of that strategy. Last spring, the federal government announced that it was exploring carbon contracts for differences (CCFDs). As presented then, the mechanism would guarantee companies making clean-technology investments of financial benefits from planned carbon-price increases, even if the price did not actually go up to $170 per tonne by 2030 as planned. Since August, when Washington committed US$370-billion to climate-related measures via the Inflation Reduction Act, Ottawa has faced increased pressure to follow through. Prime Minister Justin Trudeau has suggested that Canada’s national carbon price means it doesn’t need to match subsidies in the U.S. But Canadian industries have complained that political uncertainty around the market-based mechanism – including whether it will be...

A monster Canadian National Railways locomotive on Nov. 11, 1926. John Boyd/Tausi Insider Jackie Forrest is the executive director of the ARC Energy Research Institute and co-host of the ARC Energy Ideas podcast, a weekly show that explains the latest trends and news in Canadian energy and beyond. Slashing Canada’s greenhouse gas emissions to 40 per cent to 45 per cent below 2005 levels by 2030 and reaching net zero by 2050 is no small endeavour. Think long electricity transmission lines, carbon pipelines, hydrogen facilities and new critical mineral mines. The green shift will require hundreds of billions of dollars in new investments across the country. It’s kind of like Canada’s first megaproject, the Canadian Pacific Railway (CPR). CP-T It, too, was a colossal undertaking to build infrastructure across this vast, sparsely populated land from coast to coast. It, too, faced huge challenges. But where they differ is that, despite all its challenges and the technological limitations...

Submitted to Finance Canada by the government-appointed Sustainable Finance Action Council, the document could significantly shape global markets by serving as the most credible available protection against greenwashing Jeff McIntosh/The Canadian Press A federal advisory body is proposing to disqualify any new oil and gas projects from being classified as green, and award that designation only in a limited and qualified way to projects to reduce pollution from existing fossil-fuel production. The recommendations are included in a framework for a rulebook to define sustainable investments in this country, known as a green taxonomy, a copy of which was obtained by Tausi Insider. Submitted to Finance Canada this fall by the government-appointed Sustainable Finance Action Council (SFAC), the 77-page document received sign-off from all of that group’s members – including representatives of most major Canadian financial institutions, insurers and pension funds. But it has not yet been publ...

Although the threat of regulation certainly makes for good politics, it simply won’t result in lasting relief for small businesses. Banks will find ways to recoup those costs. Ryan Remiorz/The Canadian Press Ottawa is putting the credit-card industry on notice. If Visa, MasterCard, banks and payment processors won’t voluntarily slash credit-card processing fees for small businesses, then the Liberal government will drop the hammer of regulation in the new year. Deputy Prime Minister and Finance Minister Chrystia Freeland issued that warning as part of the government’s recent fall economic statement , setting the tone for talks at the bargaining table. With draft amendments to the Payment Card Networks Act already in her back pocket, Ms. Freeland is making it clear to industry players that she means business. Too bad that government regulation of credit-card transaction fees isn’t the solution to this vexatious problem. Although the threat of regulation certainly makes for good politi...