The federal government is looking at how it could alter its carbon capture offerings to keep Canada’s energy industry competitive as the United States moves forward with a more aggressive plan to green its economy.
The U.S. is investing $369 billion US in energy security and climate change programs over the next decade through the Inflation Reduction Act (IRA).
That legislation also dramatically increases the tax credits available to facilities that capture and store carbon emissions. Carbon capture, utilization and storage (CCUS) has been a push from governments and industry as many countries work to decarbonize energy production.
“We want to make sure that Canadian companies remain competitive and that international investors that come to our jurisdiction are able to take full advantage of the tax credits,” Randy Boissonnault, the associate minister of finance and minister of tourism, told CBC News.
Narrowing the gap
“Our government is very seized with this issue of the Inflation Reduction Act and how to make sure we don’t have a big gap between our two countries.”
The finance department is examining the U.S. legislation and consulting with the industry to determine next steps, Boissonnault said.
Last week, Deputy Prime Minister Chrystia Freeland hinted there would be a response to the IRA in the upcoming fall economic statement and more in the next budget.
“We definitely want a solution that is done with industry, that makes sense to industry, because the good paying jobs in the future can be had here in Canada and we want them to be here in Canada. So we’re going to continue to work on it,” Boissonnault said.
Federal funding
Canada’s budget this spring promised immediate and long-term financial backing for CCUS, with a tax credit expected to cost $1.5 billion annually starting in 2026.
The federal government is pledging to cover 60 per cent of equipment used in direct air capture projects and 50 per cent for other types of CCUS projects. The tax credit also covers 37.5 per cent of other eligible equipment used for transport and storing the carbon dioxide.
With it came a reminder for the industry to not drag its feet on reducing emissions — the incentives will be halved in 2031 through 2040.
At the time, Canada’s plan was comparable to the Q45 carbon capture incentive in the U.S.
The new IRA has changed that.
Liberal MP Randy Boissonnault says he wants Canadian companies to remain competitive and that international investors that come to the jurisdiction are able to take full advantage of the tax credits. (Adrian Wyld/The Canadian Press)
“Canada really is at about half of where the [U.S. program] is under the Inflation Reduction Act,” said Mark Cameron, the vice-president of external relations with the Pathways Alliance, a group representing 95 per cent of oilsands producers.
Cameron added they’ve asked the federal government to look at adding to the existing CCUS programs, including allowing the investment tax credit to cover operating costs or introducing a production tax credit. And they’ll be looking for a nod to those requests in the fall economic update.
“If the government was to make changes to the investment tax credit or to supplement it with some additional measures, that would put us a lot closer to making final investment decisions on these projects,” he said.
“If we don’t get that kind of certainty by the middle of next year, then those timelines for 2030 are going to slip.”
Clean energy initiatives needed from provinces
The federal government’s emissions reduction plan would require the oil and gas sector to reduce its emissions by 42 per cent below 2019 levels by the end of the decade. It’s a feat the industry says is unrealistic. Pathways has committed to getting the participating companies to net-zero emissions by 2050.
But Ottawa also wants the provinces to step up with their own clean energy incentives.
“What we need is [Alberta] to come to the table and be very clear about what they’re going to put on the table for their carbon capture use and storage credit,” Boissonnault said.
CBC News has reached out to the Alberta government for comment.
The oilpatch is revelling in its most lucrative year ever, as high prices for oil and natural gas have delivered massive profits for companies — forecasting a $147-billion year after tax, according to the ARC Energy Research Institute.
Boissonnault added the government is also focused on hydrogen and critical mineral strategies, as well as battery production and semiconductors.
CALGARY – TC Energy Corp. has lowered the estimated cost of its Southeast Gateway pipeline project in Mexico.
It says it now expects the project to cost between US$3.9 billion and US$4.1 billion compared with its original estimate of US$4.5 billion.
The change came as the company reported a third-quarter profit attributable to common shareholders of C$1.46 billion or $1.40 per share compared with a loss of C$197 million or 19 cents per share in the same quarter last year.
Revenue for the quarter ended Sept. 30 totalled C$4.08 billion, up from C$3.94 billion in the third quarter of 2023.
TC Energy says its comparable earnings for its latest quarter amounted to C$1.03 per share compared with C$1.00 per share a year earlier.
The average analyst estimate had been for a profit of 95 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 7, 2024.
BCE Inc. reported a loss in its latest quarter as it recorded $2.11 billion in asset impairment charges, mainly related to Bell Media’s TV and radio properties.
The company says its net loss attributable to common shareholders amounted to $1.24 billion or $1.36 per share for the quarter ended Sept. 30 compared with a profit of $640 million or 70 cents per share a year earlier.
On an adjusted basis, BCE says it earned 75 cents per share in its latest quarter compared with an adjusted profit of 81 cents per share in the same quarter last year.
“Bell’s results for the third quarter demonstrate that we are disciplined in our pursuit of profitable growth in an intensely competitive environment,” BCE chief executive Mirko Bibic said in a statement.
“Our focus this quarter, and throughout 2024, has been to attract higher-margin subscribers and reduce costs to help offset short-term revenue impacts from sustained competitive pricing pressures, slow economic growth and a media advertising market that is in transition.”
Operating revenue for the quarter totalled $5.97 billion, down from $6.08 billion in its third quarter of 2023.
BCE also said it now expects its revenue for 2024 to fall about 1.5 per cent compared with earlier guidance for an increase of zero to four per cent.
The company says the change comes as it faces lower-than-anticipated wireless product revenue and sustained pressure on wireless prices.
BCE added 33,111 net postpaid mobile phone subscribers, down 76.8 per cent from the same period last year, which was the company’s second-best performance on the metric since 2010.
It says the drop was driven by higher customer churn — a measure of subscribers who cancelled their service — amid greater competitive activity and promotional offer intensity. BCE’s monthly churn rate for the category was 1.28 per cent, up from 1.1 per cent during its previous third quarter.
The company also saw 11.6 per cent fewer gross subscriber activations “due to more targeted promotional offers and mobile device discounting compared to last year.”
Bell’s wireless mobile phone average revenue per user was $58.26, down 3.4 per cent from $60.28 in the third quarter of the prior year.
This report by The Canadian Press was first published Nov. 7, 2024.
TORONTO – Canada Goose Holdings Inc. trimmed its financial guidance as it reported its second-quarter revenue fell compared with a year ago.
The luxury clothing company says revenue for the quarter ended Sept. 29 totalled $267.8 million, down from $281.1 million in the same quarter last year.
Net income attributable to shareholders amounted to $5.4 million or six cents per diluted share, up from $3.9 million or four cents per diluted share a year earlier.
On an adjusted basis, Canada Goose says it earned five cents per diluted share in its latest quarter compared with an adjusted profit of 16 cents per diluted share a year earlier.
In its outlook, Canada Goose says it now expects total revenue for its full financial year to show a low-single-digit percentage decrease to low-single-digit percentage increase compared with earlier guidance for a low-single-digit increase.
It also says it now expects its adjusted net income per diluted share to show a mid-single-digit percentage increase compared with earlier guidance for a percentage increase in the mid-teens.
This report by The Canadian Press was first published Nov. 7, 2024.
