THIS WEEK

What today's budget could mean for climate, why the U.S. and Canada could be teaming up to 'buy clean,' and the two new EVs coming to Canada (with caveats)

CPC CLIMATE PLAN

A Conservative plan

Last week, for the first time in its history, the Conservative Party of Canada released a real climate plan—one that could keep Canada aligned with its current international climate commitment.

This means that, also for the first time ever, every major party in Canada is taking climate change seriously. We hope that political disagreements going forward can now focus on how we do better, rather than on doing less. Perhaps most notably, the plan includes a version of carbon pricing and acknowledges the policy as one of the most economically efficient ways to reduce emissions.

But while the plan represents a significant step forward for the Conservative party and our national dialogue, its details do raise questions, including how it positions Canada for a net-zero 2050 and whether the party would also hit an increased climate target—something we expect will be announced this week. As Clean Energy Canada's Merran Smith told the Toronto Star, there are still serious uncertainties with the Conservative approach. Particularly its intention to review and reconsider the carbon price for heavy industry—a key component to the plan’s ability to meet the current climate target—in only two years. Read our full response to the new plan here.

Budget day

Today is budget day. What does it mean for our clean economic ambitions? This budget could be a “pivotal moment for Canada and climate change,” according to a recent op-ed. As Clean Energy Canada’s Merran Smith told the Globe and Mail, “The world is going carbon neutral and Canada can supply the building blocks to make that happen. There are huge opportunities for Canada here, especially with decarbonizing heavy industries, like steel, mining and cement.” And we’re not the only ones thinking about the clean industry opportunity, as this Globe and Mail op-ed points out: “Heading into the federal budget next week, a long-neglected term is back in fashion: industrial policy.” 


U.S.-Canada climate relations

Canada’s minister of environment and climate change and the U.S.’s special presidential envoy for climate held their second round of climate talks last week, touching on a host of key issues from climate targets, to zero-emission vehicles, to clean energy jobs. The two also discussed a potential Canadian and U.S. “Buy Clean” approach to “greening” government (where governments opt to buy clean products rather than more polluting ones), something we’ve long been a proponent of.


Emissions ambitions (and realities)

This week could see Canada set a new 2030 emissions target as rumours circulate that the federal government is planning to increase its target from 30% below 2005 levels to “more than 40%.” Canada increasing its climate ambitions would certainly be a positive development, especially in light of our latest national inventory report that showed Canada’s emissions slightly increased in 2019. 


Renewables outperforming fossil fuels

A new report from the International Energy Agency and Imperial College Business School investigating clean energy investment returns showed that, over the past five and 10 years, renewable power portfolios produced better (risk-adjusted) returns than fossil fuels. Renewable portfolios were also more resilient, outperforming their fossil fuel partners during the economic downturns caused by the pandemic.


What does net-zero mean for business?

Net-zero commitments are appearing thick and fast in the private sector as companies react to investor pressure to take action on climate. But a new study of Canadian companies on the S&P/TSX Composite Index finds that only 27% have published emissions targets, a proportion that’s lower than similar indexes made up of companies in the United States and the United Kingdom. This longer read from the Globe and Mail explores what these climate commitments really mean for Canadian businesses.


Magna motors ahead

Ontario-based auto parts manufacturer Magna International is going big on EVs, planning to become an “industry leader in North America'' while also aiming to be carbon neutral by the end of the decade. The company has been expanding its EV portfolio in recent months, with new plans in the works to build “modular electric vehicles” for Israeli startup REE, as well as deals with LG Electronics to make components for electric vehicles.


A hydrogen hub

Edmonton is now home to Canada’s first hydrogen hub, which is set to be a “focal point for developing a domestic industry that is projected to be worth $50-billion to $100-billion each year by 2050.” The hub’s organizers are already in talks with potential international clients, including Japan, South Korea, and California. The low emissions intensity of the hydrogen was flagged as one of the key factors enticing global buyers.


Two new EVs coming to Canada

Two new electric vehicles, the Mazda MX-30 and the Volkswagen ID.4, are soon to hit the Canadian market. Both cars are mid-sized SUVs with estimated prices of around $45,000, meaning both will likely qualify for the federal government’s EV rebate program. But there’s a catch. The new cars will only be available in B.C. and Quebec (at least at first), the two provinces with zero-emission vehicle standards that require increasing proportions of electric vehicles to be sold. The policy clearly works; time for the rest of Canada to get on board?


Bipartisan support for EV policy

A bipartisan Parliamentary Committee certainly thinks it’s time for the rest of Canada to embrace a standard. A new report from the committee has put forward a list of 13 recommendations to enable the federal government to meet its target of 100% zero-emission vehicle sales by 2040—and a ZEV standard, like Quebec’s and B.C.’s, is on the list. It would seem the Conservative party also thinks the time is right, with plans for a (albeit relatively weak) version of the standard included in its new climate plan.

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Clean Energy Review is a weekly digest of climate and clean energy news and insight from across Canada and around the world.

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