dailynewsnblog
Welcome to Economic Insights, a twice-weekly newsletter focusing on major projects and the Canadian economy at large.
Stories we are following:
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OTTAWA and NEWFOUNDLAND AND LABRADOR are still locked in negotiations over who will cover the international fees for the BAY DU NORD oil project. Environment Minister JULIE DABRUSIN is casting doubt on the reported $1-billion price tag.
- DABRUSIN told a House committee Thursday she is “fighting every day” to maintain the industrial carbon price, blaming Conservatives for creating “uncertainty” on this federal policy.
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Indigenous advisors at the MAJOR PROJECTS OFFICE (MPO) are pushing back against claims of “tokenism,” insisting their work is meaningful.
- Prime Minister MARK CARNEY refers three new Arctic projects to the MPO ahead of a defence-focused trip to NORWAY.
NEWFOUNDLAND AND LABRADOR celebrated a “major milestone” last week for Equinor’s BAY DU NORD project, finalizing deals on benefits and royalties in which OTTAWA picks up the tab for UN fees. Officials with the province told CP last week those could hit $1 billion— but the feds say they haven’t settled on a final amount.
- The issue: Because the project sits outside Canada’s exclusive economic zone, it triggers payments to the International Seabed Authority under the UN Convention on the Law of the Sea (UNCLOS).
- The pushback: Minister JULIE DABRUSIN told MPs that “journalists can say what they wish,” but maintained that negotiations are ongoing and no specific figure has been locked in. Meanwhile, critics argue that having taxpayers foot UN fees bill international oil companies constitutes an indefinite subsidy.
- The timeline: Proponent EQUINOR isn’t expected to make a final investment decision until 2027, leaving plenty of time for the “who pays how much” debate to simmer.
Indigenous advisors say they’re making a difference at the Major Projects Office
Four of the MAJOR PROJECTS OFFICE (MPO)’s Indigenous advisors took to the stage at the Canadian Club in Toronto Wednesday to explain their role in the OTTAWA‘s streamlining agenda.
- The sentiment: Advisor KLUANE ADAMEK acknowledged the risk of being seen as a “token” body but insisted the council is working at the “forefront” of project development. Despite having no finalized terms of reference after half a year, members say they are already providing an Indigenous lens on project briefs.
- Real talk: JP GLADU used the platform to call for more than just advice; he’s pushing for more capital. Gladu questioned if the $10-billion CANADA INDIGENOUS LOAN GUARANTEE PROGRAM is enough to cover the “half a trillion dollars” in investment required to bring major projects online.
By the numbers
$130: The federal government’s projected minimum carbon price per tonne by 2030.
11: The number of members currently sitting on the MPO’s Indigenous Advisory Council (IAC).
$89,315: The flat rate paid to IAC members to cover time and travel expenses for eight in-person meetings over two years.
Major projects watch
— Prime Minister MARK CARNEY says the federal government is moving ahead with a new plan backed by more than $40 billion in investments in Canada’s Arctic. That includes building four new northern operational support hubs in Whitehorse, Resolute Bay, Rankin Inlet and Cambridge Bay, along with upgrades to existing infrastructure.
— New referrals alert! CARNEY also says he’s referring three new projects to the MAJOR PROJECTS OFFICE: the MACKENZIE VALLEY HIGHWAY proposal, with construction beginning in the summer, a new Arctic economic and security corridor made of 400 km all season road from the SLAVE GEOLOGICAL PROVINCE to NUNAVUT‘s border, and the proposed TALTSON HYDRO EXPANSION.
— ALBERTA is exploring plans to build a second electricity intertie with BRITISH COLUMBIA and potentially extend connections north toward YUKON, ALBERTA Minister NATHAN NEUDORF tells The Hub.
— The Financial Post reports that Canadian agricultural brokerage firms are struggling to find traders for export products out of VANCOUVER, as grain originally bound for the Middle East is now redirected to Chinese and Indian markets where a shift in supply could weaken demand for Canadian crops like peas and lentils.
— Meanwhile, the PORT OF VANCOUVER is handling a record amount of cargo, bolstered by China, according to the Globe and Mail.
Headlines
