Latest news with #energyprojects
National Post
6 days ago
- Politics
- National Post
Andrew Richter: Carney fiddles as Canada literally burns
For the past decade, the Liberals have made climate change their top priority. This commitment has come at the cost of not only watching as other countries pursued economic opportunities that we passed up, it has also sparked a national unity crisis, as Alberta's anger has risen in response to Ottawa's unwillingness to approve new energy projects. Article content So Canadians might be surprised to hear that despite all the talk about climate change and this country's commitment to reducing carbon emissions, over the past few years, a huge new source of emissions has emerged — one that the Canadian government does not want to talk about. Article content Article content Article content That alone tells you that the source of the emissions is not the oil and gas industry. Rather, the source of these new emissions is this country's massive wildfire problem, which started making headlines in 2023, the worst wildfire season on record, and has been bad ever since. Article content Article content But what makes this issue even more concerning is that we lack the resources and strategy to fight these fires. Canada does not have a federal office that could formulate a national strategy for combating wildfires, nor do we have the personnel and equipment to combat them effectively. Rather, fighting wildfires is a provincial responsibility, one that the provinces have proven themselves incapable of doing effectively. Article content Given that, you might think that the federal government would be attempting to figure out ways to at least assist the provinces with a task they are clearly overwhelmed by. Sadly, you would be mistaken. Despite all that has happened over the past few years, the response of the federal government has been characterized by inaction. No major departmental changes have been made, no initiatives have been undertaken, nor have any major acquisitions been announced. And Canada still does not have a national disaster response agency. Article content Article content First, though, a bit of recent history. Canada's wildfire problem first attracted widespread attention in 2023, when massive fires broke out throughout much of the country. They burned through the summer and fall. Smoke from the fires gradually moved south, and ultimately affected not only major Canadian cities, but American ones, as well (recall the eerie photograph of Manhattan's skyline being shrouded in a dense haze of smoke). Article content Article content Air quality alerts became common, and people with asthma and other lung conditions were told to stay indoors for days at a time. For a country in which summers last only a few months, being told not to go outside adversely affected many people's quality of life. Still, despite the warnings, the country's emergency services were even busier than usual, as many people struggled with breathing issues. Article content The carbon emissions produced by the fires were stunning. A study published in the journal Nature in 2024 found that the fires released around 647 megatonnes of carbon. This number was larger than Canada's total emissions from all other sources, and the combined number made us one of the largest emitters in the world in 2023 (a ranking the Liberals tried hard to ignore).
Reuters
10-06-2025
- Business
- Reuters
Trump tax bill squeeze on clean power could raise energy bills
June 10 - President Trump's tax bill passed by the House of Representatives on May 22 is set to slow the country's clean energy expansion by accelerating the expiry of key tax credits introduced under the 2022 Inflation Reduction Act (IRA) and making them harder to access. The bill, which is now being debated by the Senate, shortens the window for developers to start and complete new clean energy projects in order to qualify for a production tax credit (PTC) or an investment tax credit (ITC). Developers would have to begin construction within 60 days of the bill's enactment and the project must become operational before the end of 2028 in order to access the tax credits. The inflation act stipulated these tax credits would be available until at least 2032. Solar and battery storage activity soared on the back of falling costs and tax credits but President Trump's rollback of clean energy support and prioritisation of fossil fuels will curb activity in the coming years, industry experts warn. "Requiring a range of advanced energy projects to commence construction within 60 days of enactment, along with moving up the 'placed in service' deadline to 2028, will pull the rug out from a host of projects in active development and effectively end use of the ITC & PTC going forward," Advanced Energy United, an association supporting low carbon power and transport, said in a statement. CHART: US planned power generation installs in 2025 If approved, the bill could see a surge in clean energy investments in the short-term as developers rush to meet new construction deadlines, followed by a "big drop," Gautam Jain, Senior Research Scholar, Center on Global Energy Policy at Columbia University, told Reuters Events. Approval of the bill would see a lot of projects trying to start construction within 60 days, John Powers, Schneider Electric's VP for Cleantech and Renewables, said. For companies with renewable energy or carbon reduction targets, 'it's the time to be proactive in the market,' Powers noted. Join hundreds of senior executives across energy, industry and finance at Reuters Events Global Energy Transition 2025. Beyond the short-term bump, the bill would "have an adverse impact on deployment," Jain warned. In the long run, this would likely lead to "higher electricity costs for consumers," he said, since the levelised cost of solar and other clean power sources have dropped significantly over the last 10 to 15 years and are often lower than the cost of gas-fired power. Import worries Trump's cutbacks to clean energy support and higher import tariffs and have created major uncertainty for developers and manufacturers. Clean power developer RWE has introduced higher requirements for future investments in the U.S. since the start of the year, a spokesperson told Reuters Events. RWE owns and operates over 10 GW of US clean power capacity and has over 4 GW under construction. "In addition to a stable incentive framework, all necessary federal permits must be in place, all relevant tariff risks mitigated and projects must have secured offtake at the time of the investment decision," the spokesperson said. "Only if these conditions are met will further investments be possible, given the uncertain policy environment.' CHART: Levelised cost of US utility-scale solar Developers are concerned about another restriction in Trump's tax bill that would prevent developers and manufacturers from gaining tax credits if they source components from foreign entities of concern (FEOC). This includes China, a key global supplier of components for solar, wind and battery storage. The bill has slowed the expansion of U.S. clean energy manufacturing as suppliers await clarity before making investments in new factories. Developers and manufacturers are already facing higher costs due to hikes in import tariffs imposed by President Trump. Developers had feared the bill would also restrict the transferability of tax credits, a mechanism which has expanded financing sources for small and mid-size developers, but following a last-minute change this was left intact for the life cycle of the tax credits. The bill also reflected more kindly on nuclear power developers by giving them a later deadline of breaking ground by the end of 2028 in order to qualify for tax credits. Trump wants to accelerate a new wave of nuclear plant construction and on May 23 he ordered the U.S. Nuclear Regulatory Commission (NRC) to streamline regulations and fast-track new licenses for reactors. In March, the DOE reissued a tender for $900 million of federal funding towards light water reactor (LWR) SMR technology (Gen III+), removing a requirement for community engagement. Senate scrutiny Trump has said he wants Senate approval and a final bill on his desk by July 4 but many Republican Senators have seen benefits from the tax credits in their states and the bill may be adapted and sent back to the House. The Senate tends to be a moderating force in comparison to the House, David A. Sausen, partner at Arnold and Porter, noted. 'I think there's some hope that some of the more extreme measures here will be dialed back,' he told Reuters Events. For exclusive insights on the energy transition, sign up to our newsletter. The clean energy sector has called for less drastic changes to the tax credits along with greater clarity on the foreign entity measures, which could take time. The foreign entity rules would take effect on January 1, 2026, under the current bill. 'I'm getting a lot of concern from clients that it's going to be very difficult to interpret these (foreign entity) rules,' Sausen said. The current language of the rules is "fundamentally unworkable," Advanced Energy United said. The foreign entity rules must be clarified and should not deter manufacturing investment, Schneider Electric's Chief Policy Officer Jeannie Salo told Reuters Events. 'Let's remember the underlying goals of the want a tax policy to bring down the deficit, of course, but they want a tax policy that's going to attract more manufacturing and investment into the United States," Salo said. "We need to make sure that there aren't provisions in the bill that inadvertently disrupt that goal.'
CTV News
06-06-2025
- Business
- CTV News
N.B. Official Opposition accuses premier of ignoring potential for ‘province building project'
Premier Susan Holt says New Brunswick is at the forefront of multiple 'nation building' energy projects following this week's First Ministers' meeting in Saskatoon, while interim Progressive Conservative Leader Glen Savoie says the governing Liberals are ignoring natural resource development within the province. 'She's interested in national building project. How about a province building project?' said Savoie about Holt during Friday's question period. Savoie said the Liberals and Holt have historically stood in the way of natural resource development in New Brunswick, mentioning pipelines and shale gas exploration. Holt responded to Savoie's comments during question period, saying the Progressive Conservatives weren't effective on developing natural resources while in power. 'He's said they always supported this development. But did they get it done? No,' said Holt. 'Our government is pragmatic. We're looking at what's in front of us and what opportunities will benefit New Brunswick.' Holt has heralded federal support for prioritizing the Eastern Energy Partnership as a success from the First Ministers' meeting. The partnership which would transmit hydro and wind power from Atlantic Canada and Quebec to Western Canada and New England. Holt also said there were positive conversations with Quebec Premier François Legault about extending a natural gas pipeline from Quebec City to New Brunswick. 'We have opportunities to take advantage of the resources that Canada has already developed and already unlocked for the benefit of our province as well,' said Holt. 'We're looking at what we can do tomorrow, where's the investment opportunity, what's going to benefit New Brunswickers, and how we can use our strengths to succeed nationally and internationally.' At the First Ministers' meeting, Alberta Premier Danielle Smith indicated she was focused on developing potential oil pipeline routes from her province to northern British Columbia and Hudson Bay to avoid any route through Quebec. Holt said she was interested in what role New Brunswick could play as an eastern market if a pipeline did go to Hudson Bay. 'With a $600-million deficit, you'd think she'd get on board and develop our resources here,' said Savoie, about Holt. 'They would rather pipe a pipeline in because of their NIMBY policies, their 'not in my backyard' policies, that say it's okay for Alberta to profit from its natural resource development but not New Brunswick.' Friday was the last day of the first session of the 61st Legislature. Legislature The New Brunswick legislature is pictured. (Source: Nick Moore/CTV News Atlantic) For more New Brunswick news, visit our dedicated provincial page.
Zawya
03-06-2025
- Business
- Zawya
Climate risk mitigation: Why early warning systems in energy, infrastructure sectors are vital?
Among the greatest threats facing infrastructure development today is climate change. To mitigate the associated risks for all sector stakeholders, there is a pressing need to make better use of modern technologies and to establish contractual frameworks that are appropriately structured from the outset. KwaZulu-Natal's recent history is informative. Heavy rains and flooding in 2024 caused over 40 deaths and significant infrastructure damage. This followed extreme flooding in the province in 2022, which resulted in over 400 deaths in what has reportedly been described as among the worst floods ever recorded in the province's history. On both occasions, tens of thousands of people were displaced from their homes, with infrastructure damage caused by the 2022 floods alone estimated at over R15bn. As the world adjusts to climate change, two notable trends are becoming increasingly apparent in the infrastructure and energy sectors: the greater use of early warning systems and more robust contractual provisions to address extreme climate events. A contracting party has a positive duty to take steps to mitigate risks and any resulting damages. This duty is particularly important within the suite of agreements that support major infrastructure and energy projects. In this context, early warning systems, especially to address the devastating effects of climate change, such as flooding, may play a critical role. These trends are part of wider developments within the regulatory framework, with banks and insurers adjusting to changes in climate-related risks and disclosure obligations to ensure fund stability, and workplaces adapting to promote safety and sustainability. Early warning systems are a bulwark against climate change risk A case study on the impact of early warning systems can be found in Somalia. Between 2023 and 2024, the Somali government partnered with the United Nations Office for Disaster Risk Reduction (UNDRR) and other stakeholders to establish a multi-hazard early warning system. In 2023, flooding in Somalia reportedly affected 2.4 million people, displaced over 1.2 million, and caused more than $193m (approximately R3.5bn) in damages. In 2024, although flooding continued, the early warning systems enabled Somalia to significantly reduce the damage and displacement experienced in the previous year. According to the UNDRR, the 2024 floods affected only 160,000 people and displaced 37,000, with financial losses also significantly curtailed. Closer to home, a study published in early 2025 focused on the Hennops River catchment area in Centurion, near Pretoria. Researchers applied flood hazard monitoring, modelling systems, machine learning, and geospatial tools to enhance climate change risk management in the area. The study found that flood frequency has increased every two years, primarily due to climate change's impact on rainfall patterns, intensity, and frequency. It concluded that areas with 'low elevations ranging from less than 1305m to 1430m in the catchment area are at a higher risk of flooding because of their proximity to the Hennops River'. Insurers may soon require institutional policyholders to implement early warning systems as a condition for coverage. This requirement is likely to extend to the broader infrastructure and energy sectors and should be considered during contract negotiations and risk assessment. Funders and investors may also mandate such systems to safeguard asset value, reduce project delays, and limit reliance on indemnity claims, which can give rise to costly and protracted litigation. Viewed through a dispute resolution lens, these developments underscore the importance of incorporating appropriate risk mitigation and monitoring obligations in infrastructure and energy project contracts. Infrastructure contracts are increasingly focused on risk mitigation As stakeholders adapt to the growing risks posed by climate change, the contracting phase has become a critical point for effective risk management. Clients are increasingly focused on two key areas: more precise allocation of liability and clearly defined conditions for triggering force majeure clauses and obligations that follow. The renewed emphasis on force majeure stems from its heightened relevance during the Covid-19 pandemic, when it was widely invoked to defer contractual performance. Given the high costs, lengthy approval processes, and extended construction periods typical of infrastructure and energy projects, these ventures are particularly vulnerable to unforeseen disruptions – even before accounting for the increasing impact of climate change. This raises key questions that parties should consider from the outset, such as: - What force majeure, indemnity, and damages provisions are appropriate? - Should environmental risks be proactively monitored using technology to mitigate potential loss of life or project damage? - If early warning systems detect a flooding risk, does a duty arise to limit ensuing damage? - What are the consequences if such technology fails? As climate risk becomes increasingly embedded in project planning, lead times may lengthen as parties devote more time to assessing both the risks of entering into a contract and the consequences of potential climate-related events. These risks are likely to become more prevalent, making their proactive consideration during the contracting process a critical priority for all stakeholders. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Yahoo
02-06-2025
- Business
- Yahoo
Carney and premiers meet to talk fast-tracking national interest projects
SASKATOON, Sask. — Prime Minister Mark Carney will meet with premiers in Saskatoon today to discuss efforts to knock down trade barriers and fast-track projects deemed as benefiting the national interest. Carney had asked the 13 provincial and territorial leaders to come up with major infrastructure and energy projects that could be fast-tracked for approvals under a new federal process. The premiers will spend part of Monday's meeting receiving an overview of the proposed process set to be introduced through legislation by the end of June. Under the proposed bill, details of which were shared for consultation with First Nations groups, including the Assembly of First Nations, the federal Liberal government would establish a major projects office through which selected proposals would flow for approvals. The proposed legislation would allow projects to be deemed as carrying national significance to be exempt from certain steps of the existing approvals process. Carney has promised to shrink the timeframe for approvals of major infrastructure and energy projects to two years, down from five. But which projects could make the list is what the premiers are looking to hear from Carney and that will be the topic of discussion when the leaders meet behind closed doors. Alberta Premier Danielle Smith has said an oil pipeline from Alberta to British Columbia's coast 'must be on the initial list.' Should it not be, it would not only send a bad signal to investors, but also 'send an unwelcome signal to Albertans concerned about Ottawa's commitment to national security,' she wrote in a letter to Carney on May 16, which her office released last Saturday. Separatist sentiments have been rising in both Alberta and Saskatchewan. For his part, Carney has said he wants Canada to become an 'energy superpower.' As he meets with premiers, he faces calls from the CEOs of major Canadian energy companies, as well as Smith and Saskatchewan Premier Scott Moe, to scrap policies critics say are hostile to pipeline development, such as the tanker ban off the coast of northern British Columbia and the Impact Assessment Act. A spokesman for Moe has confirmed that a pipeline carrying conventional energy was among the projects the premier, who is playing host to the first ministers' meeting in Saskatoon, pitched to Ottawa. A government source familiar with the matter, speaking on the condition of background, said the federal government is not offering a 'blank cheque' to premiers through the new approvals process, but that the federal government would consider providing financial support on a 'case-by-case' basis. Other proposals include Manitoba Premier Wab Kinew's push for federal support to make the Port of Churchill into a trade corridor and Ontario Premier Doug Ford's pitch to mine the Ring of Fire for critical minerals and build a tunnel under Highway 401. Nova Scotia Premier Tim Houston is also seeking support to grow his province's offshore wind capacity, while Yukon Premier Ranj Pillai is looking to develop an electricity grid connection with British Columbia, with both jurisdictions recently signing a memorandum of understanding. 'We're looking forward to discussing the short-list with our colleagues across the country,' wrote Laura Seeley, a spokeswoman for Pillai, in an email. B.C. Premier David Eby told National Post in a statement that the efforts of the 13 premiers to boost the country's economy and create jobs 'must be expedited in the face of a global trade war.' Carney has made growing Canada's economy through building new projects and removing trade barriers one of his top priorities as prime minister. In speaking to Carney last Friday, Eby said he told the prime minister his province has 'several projects that are shovel-ready' and that his NDP government tabled legislation aimed at removing internal trade barriers. Improving interprovincial trade is one of the key focuses of Monday's meeting between Carney and the premiers. Another topic likely to overshadow the meeting is U.S. President Donald Trump's latest threat to increase tariffs on foreign steel and aluminum to 50 per cent on June 4, up from its current 25 per cent. Intergovernmental Affairs Minister Dominic LeBlanc will be on hand, as will Internal Trade Minister Chrystia Freeland and Energy and Natural Resources Minister Tim Hodgson. Carney has promised to introduce legislation to reduce all federal trade barriers by Canada Day. Those measures are expected to be ushered in through the same bill establishing the fast-tracked approvals process. On the eve of Monday's meeting, Ford signed a memorandum of understanding with Saskatchewan, Alberta and Prince Edward Island, where provinces committed to working to increase the mobility of workers, goods and services between their jurisdictions. Monday's meeting between Carney and the premiers is the first to happen in person since the Liberals were elected to a fourth minority government on April 28. National Post staylor@ Get more deep-dive National Post political coverage and analysis in your inbox with the Political Hack newsletter, where Ottawa bureau chief Stuart Thomson and political analyst Tasha Kheiriddin get at what's really going on behind the scenes on Parliament Hill every Wednesday and Friday, exclusively for subscribers. Sign up here. Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. 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