The Canadian government is in talks with heavy industrial emitters about ways to ensure Ottawa's planned carbon price increases will remain in place even if Prime Minister Justin Trudeau's Liberal government is voted out of power.
Federal Natural Resources minister Jonathan Wilkinson told Reuters most of the discussions have focused on "carbon contracts for differences." These contracts set a price on tradable carbon credits, which heavy emitters can get if they reduce pollution. If the market price for the credit falls below the minimum in the contract, the government would make up the difference.
Guaranteeing the value of reducing emissions would be a "game-changer" for investors in capital-intensive projects, RBC Capital Markets said in a note.Canada's carbon price is set to rise to C$170 a tonne by 2030 from C$50 a tonne currently, and is key to Ottawa's commitment to cut emissions 40-45% below 2005 levels by 2030 and reach net-zero by 2050.
A contract with the government guaranteeing a minimum price would mitigate that risk, said Mark Cameron, an adviser to the Oil Sands Pathways Alliance to Net Zero, which represents Canada's biggest oil sands producers.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
AFS Announces Filmmakers for its Artist Intensive ProgramRising local directors meet with industry experts to finesse future films.
Read more »
Rivian electric truck reservations increasing despite price hikes and production delaysRivian has received 10,000 additional reservations for its electric vehicles since raising prices in March. The automaker expects to build 25,000 vehicles during 2022.
Read more »
Rivian To Build 25,000 EVs This Year, Has Secured 10,000 Reservations Since Price Hike | CarscoopsRivian To Build 25,000 EVs This Year, Has Secured 10,000 Reservations Since Price Hike | Carscoops carscoops
Read more »
Spring has sprung, but Canadian home sales on ice after Bank of Canada forces rate hikesDramatic drops from Vancouver to Halifax in April after increase in mortgage rates.
Read more »
Biden blames Russia's war in Ukraine for food supply shortages and price hikesPresident Joe Biden on Wednesday blamed Russia's invasion of Ukraine for domestic price hikes and global food supply shortages, praising American farmers for being the 'breadbasket of democracy' amid the war.
Read more »
VinFast announces EV battery subscription prices for Canada | Car News | Auto123VinFast announces the subscription prices of its batteries for its VF 8 and VF 9 models in Canada. Auto123 has the details.
Read more »