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Economy

Canada must seize opportunities of the climate economy

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Jan De Silva is the president and CEO of the Toronto Region Board of Trade

Canadian policymakers today face a litany of challenges unlike any encountered in the last decade: Putin’s war in Ukraine, record inflationary pressures, a looming global recession and the battle to get ahead of the ongoing climate crisis.

It’s this latter crisis that will have disproportionate, long-term impacts on Canada’s economy. The good news is that the climate crisis is not merely a massive challenge we must solve; it’s also a multi-trillion-dollar economic opportunity for our region, its businesses and workforce.

Consider these two facts alone: the global cleantech market is projected to exceed US$3.3 trillion in 2022, accounting for 2% of global GDP. On a global scale, bold climate action could deliver more than US$26 trillion in economic benefits in the lead-up to 2030.

Canada has a head start in the race to lead the emerging climate economy, with world-leading innovators and a booming tech sector. Earlier this year, research firm Startup Genome recognized the Toronto-Waterloo corridor, Vancouver and Calgary as the country’s best cleantech start-up ecosystems. In fact, clean technology products represented 3.3% of Canada’s total GDP in 2020, accounting for almost 323,000 jobs. Notably, 13 Canadian companies made the prestigious 2022 Global Cleantech 100 list: no small feat for an economy of our size.

Now is the time for Canadian governments at every level – and from every political stripe – to capitalize on this economic opportunity. By adapting and implementing climate strategies today and homegrown technologies, we can reach our climate targets by 2040 and lay the underpinnings for a stronger, more internationally competitive economy as we emerge from today’s period of acute economic uncertainty.

The Board of Trade’s in-depth conversations with our members have shown us that businesses are ready to invest in reducing their emissions but require a stable and competitive policy environment to do so.

Clean technology investments often have high upfront capital costs and long payback periods. Governments at all levels should introduce a more comprehensive set of incentives to de-risk business investments in clean technology solutions.

Federal cleantech investment tax credits should be stackable, transferable and applicable to a wide range of cleantech investments. Provinces such as Ontario should also provide targeted support of electricity rate guarantees to secure investment in large electrification projects – such as the current proposal to introduce a more affordable interruptible electricity rate for hydrogen production.

For smaller and medium-sized manufacturers in particular, these investments in decarbonization, while highly desirable, are less commercially attractive, particularly in today’s high interest rate environment.

American climate economy

Recent developments in the United States have changed the global landscape for climate action; we risk losing investments and jobs to our southern neighbour without a robust policy response.

In August, U.S. President Joe Biden signed the Inflation Reduction Act into law. The legislation will result in dramatic investments to meet U.S. climate change goals through a mix of tax incentives, grants and loan guarantees aimed at boosting clean energy and transportation.

The legislation contains some of the most robust clean energy tax credit programs in North American history – a fact that is not lost on Canadian businesses looking south for expansion.

When she delivered the federal government’s fall economic statement in early November, Deputy Prime Minister Chrystia Freeland called for a “green industrial transformation comparable in scale only to the Industrial Revolution itself.”

The mini-budget provided more details on several key measures to boost Canada’s competitiveness in these sectors, including business tax credits for clean technology and hydrogen investments and the creation of a $15-billion Canada Growth Fund targeted at domestic businesses that invest in the net-zero economy.

These new initiatives are a start, but more is needed.

The federal budget this spring will need to include measures to materially support key climate economy and advanced manufacturing investments to stem the southward flow of capital because of the Inflation Reduction Act. The budget should enhance tax credits for carbon capture and storage technologies to be more competitive with the new Inflation Reduction Act provisions.

With reputable cleantech innovators, willing businesses and ambitious climate goals, the Toronto region has what it takes to be a North American leader in the climate economy. Toronto-based clean technology developers, such as e-Zinc, ecobee and Li-Cycle, have already proven their capacity for practical, real-world, results-driven innovation. And many organizations such as ArcelorMittal Dofasco, the University of Toronto and Toronto Pearson Airport have already taken impressive steps to green their operations.

Globally, the climate economy has the hallmarks of a new goldrush: the next frontier. With the U.S. now making unprecedented investments in the climate economy, Canadian policymakers, in partnership with the business community, must leverage the “climate economy” narrative to avoid being left behind. Now is the time to seize the opportunity for our country’s growth and competitiveness over the coming decade and beyond.

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A timeline of events in the bread price-fixing scandal

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Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.

Here’s a timeline of key events in the bread price-fixing case.

Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.

Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.

Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.

Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).

Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.

June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.

Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”

Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.

July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.

Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)

The Canadian Press. All rights reserved.

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S&P/TSX composite up more than 250 points, U.S. stock markets also higher

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TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.

The S&P/TSX composite index was up 254.62 points at 23,847.22.

In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.

The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.

The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.

The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Construction wraps on indoor supervised site for people who inhale drugs in Vancouver

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VANCOUVER – Supervised injection sites are saving the lives of drug users everyday, but the same support is not being offered to people who inhale illicit drugs, the head of the BC Centre for Excellence in HIV/AIDS says.

Dr. Julio Montaner said the construction of Vancouver’s first indoor supervised site for people who inhale drugs comes as the percentage of people who die from smoking drugs continues to climb.

The location in the Downtown Eastside at the Hope to Health Research and Innovation Centre was unveiled Wednesday after construction was complete, and Montaner said people could start using the specialized rooms in a matter of weeks after final approvals from the city and federal government.

“If we don’t create mechanisms for these individuals to be able to use safely and engage with the medical system, and generate points of entry into the medical system, we will never be able to solve the problem,” he said.

“Now, I’m not here to tell you that we will fix it tomorrow, but denying it or ignoring it, or throw it under the bus, or under the carpet is no way to fix it, so we need to take proactive action.”

Nearly two-thirds of overdose deaths in British Columbia in 2023 came after smoking illicit drugs, yet only 40 per cent of supervised consumption sites in the province offer a safe place to smoke, often outdoors, in a tent.

The centre has been running a supervised injection site for years which sees more than a thousand people monthly and last month resuscitated five people who were overdosing.

The new facilities offer indoor, individual, negative-pressure rooms that allow fresh air to circulate and can clear out smoke in 30 to 60 seconds while users are monitored by trained nurses.

Advocates calling for more supervised inhalation sites have previously said the rules for setting up sites are overly complicated at a time when the province is facing an overdose crisis.

More than 15,000 people have died of overdoses since the public health emergency was declared in B.C. in April 2016.

Kate Salters, a senior researcher at the centre, said they worked with mechanical and chemical engineers to make sure the site is up to code and abidies by the highest standard of occupational health and safety.

“This is just another tool in our tool box to make sure that we’re offering life-saving services to those who are using drugs,” she said.

Montaner acknowledged the process to get the site up and running took “an inordinate amount of time,” but said the centre worked hard to follow all regulations.

“We feel that doing this right, with appropriate scientific background, in a medically supervised environment, etc, etc, allows us to derive the data that ultimately will be sufficiently convincing for not just our leaders, but also the leaders across the country and across the world, to embrace the strategies that we are trying to develop.” he said.

Montaner said building the facility was possible thanks to a single $4-million donation from a longtime supporter.

Construction finished with less than a week before the launch of the next provincial election campaign and within a year of the next federal election.

Montaner said he is concerned about “some of the things that have been said publicly by some of the political leaders in the province and in the country.”

“We want to bring awareness to the people that this is a serious undertaking. This is a very massive investment, and we need to protect it for the benefit of people who are unfortunately drug dependent.” he said.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press. All rights reserved.

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