dailynewsnblog
Welcome to Economic Insights, a twice-weekly newsletter focusing on major projects and the Canadian economy at large.
Stories we are following:
- OTTAWA and ALBERTA have reached a tentative agreement on methane regulations. The deal sees the province maintain oversight and locks in a five year extension to meet federal targets, as promised in last fall’s MOU.
- The CANADA INFRASTRUCTURE BANK (CIB) is pushing back against allegations of partisan bias regarding a multi-million dollar loan to a NOVA SCOTIA wind farm. CIB CEO EHREN CORY says the investment followed rigorous independent due diligence and was based on the merits of the project.
Methane meeting of the minds
OTTAWA and ALBERTA claim they’ve found common ground on one piece of the emissions puzzle, releasing an agreement-in-principle on methane on Wednesday.
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- Two to go: The agreement is one of the four provincial and federal governments hoped to reach by April 1. A deal on project assessment was made in early March. Carbon pricing and carbon capture are the next ones up – but they’re a lot more contentious.
- A breakthrough: Under the methane deal, the federal government will defer to ALBERTA’s regulations provided they achieve a 75 per cent reduction of 2014 levels by 2035.
- Independent monitoring: A third party will be hired to model and analyze methane emissions following reports the provincial and federal governments were working with different numbers.
- The stakes: Methane is considered one of the most potent greenhouse gases. OTTAWA wants to see a 72 per cent reduction in methane emissions from the 2012 level by 2030.
CIB defends its books
The CANADA INFRASTRUCTURE BANK found itself in the hot seat this week, defending a $206 million loan to the 150 megawatts MERSEY RIVER WIND project in NOVA SCOTIA against claims that the financing was politically motivated.
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- The accusation: Opposition MPs, including CONSERVATIVES and BLOC QUÉBÉCOIS, launched a self-initiated and at times abrasive probe into allegations that some key people involved in the project are related to former LIBERALS.
- Due diligence: CIB counsel FRÉDÉRIC DUGUAY says standard national guidance was followed when considering previous roles in public office among some in the leadership of the project developer RENEWALL.
“With respect to these individuals, the public office that was held was more than the five-year look-back guidelines, and that’s a factor that we assess as part of a risk assessment,” he said.
- Normal interest rates: CIB CEO EHREN CORY says there were no conflicts of interest, and the loan’s terms are competitive and comparable to market rates for similar projects.
- Monopoly breaker: NOVA SCOTIA’s Progressive-Conservative Premier TIM HOUSTON is a big advocate for the project, saying it’s emerging as a solid alternative to NOVA SCOTIA POWER, a monopoly that has increased residential rates many times over past consecutive years, including a recently proposed 8 per cent hike.
By the numbers
$4,459: The price of gold on Thursday, a surprising rebound after a sharp selloff linked to the U.S.-ISRAEL war on IRAN.
15: Number of projects officially referred to the MAJOR PROJECTS OFFICE for further assessment and consultation.
70 per cent: The share of EVs among all new cars sold in NEPAL.
Major projects watch
— A SENATE committee report calls on PARLIAMENT to split budget bills into financial and non-financial measures, so it can have more time to study clauses that could be controversial. It cites expropriation measures in the High Speed Rail Act as an example. FINANCE CANADA tells iPolitics it will give the proposal “thoughtful consideration” but that it’s up to PARLIAMENT to change parliamentary procedures and practices.
— The MONTREAL PORT AUTHORITY is celebrating a new connection to Latin American markets via a new direct container service in the shipping rotation of CMA CHM’s CAGEMA.
— HYDRO QUEBEC has issued a Request for Information to assess options for the supply and transmission of electricity generated by offshore wind farms off NOVA SCOTIA. It wants to find out more on timelines, costs, transmission and technological options. A very exciting development for the WIND WEST project, as per our previous reporting: Failing to secure demand contracts could stifle offshore wind ambitions in the Maritimes.
Headlines
