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Biden's big, bold green spend sends shockwaves around the world, including Canada – CBC.ca

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U.S. President Joe Biden’s climate bill is only six months old, but its impact on the energy industry around the world continues to grow as pressure mounts on countries to offer similar subsidies toward green energy or risk losing out on valuable investment dollars.

The Inflation Reduction Act (IRA) is a multi-billion-dollar program that pledges government dollars toward developing low-carbon energy. The policy is aimed at boosting the country’s manufacturing sector and takes aim at China’s dominant position in the clean energy technology supply chain.

The legislation is regarded as the most ambitious climate bill ever passed in the U.S.  Still, the IRA could force governments around the world, including Canada, to introduce their own sweeping series of subsidies and have a much larger impact on climate change.

It’s a big wake-up call for world leaders, said Marcel van Poecke, head of Carlyle International Energy Partners, a global investment firm based in Washington, D.C.

“That is going to be very, very powerful, and in Europe, people are shocked, but I think it’s exactly what we need,” he said while on stage at CERAWeek, an energy conference in Houston. 

There are many facets of the IRA, such as tax incentives aimed at increasing the manufacturing of wind turbines, solar panels, and electric vehicle batteries. There are also subsidies to promote the development of hydrogen, biofuels and carbon capture and storage facilities. The financial supports are estimated to total nearly $60 billion US ($82.5 billion Cdn) over the next 10 years.

“The IRA will have the effect of really attracting capital back to the U.S. for the reasons and the results that it sort of needs,” Tengku Muhammad Taufik, CEO of Petronas, told the CERAWeek audience.

A man in a suit motions with his hand to while on stage at a conference.
Sanjiv Lamba, the chief executive of Linde, says the U.S. Inflation Reduction Act is a much better policy compared to what’s offered in Europe to promote low-carbon energy development. (CERAWeek by S&P Global)

The IRA is a policy that is easy to understand and offers clear incentives for industry, compared to a more complex system in Europe, said Sanjiv Lamba, the chief executive of Linde, a European industrial gas company.

“There’s no denying the fact that suddenly people have woken up with the IRA and said ‘Hey, we can do a lot more,'” said Lamba, who doesn’t think the European Union will be able to match the level of subsidies.

Carrot vs. stick

Canada has offered subsidies to promote low-carbon sources of energy, although its main policy to promote the decarbonization of the energy sector is the carbon tax. Putting a price on pollution is described by some experts as using a stick to motivate industry, while the IRA is like dangling a carrot.

“You can really feel that the rest of the world is looking at the Inflation Reduction Act and saying, ‘How are we going to participate?’ and that will help change the pace and accelerate transition,” said Lance Uggla, the chief executive of BeyondNetZero, a climate-focused private equity fund. Uggla is a former bank executive with TD and CIBC.

Three people speak on stage during an energy conference in Houston, Texas.
The Inflation Reduction Act was a big development in 2022, says Lance Uggla, the chief executive of BeyondNetZero, but how the world reacts to the policy will be important to watch this year. (Kyle Bakx/CBC)

In Canada, oilsands companies are pressuring the federal government to increase the level of financial support for building and operating carbon capture and storage facilities. Ottawa has already introduced a tax credit, although the government has admitted the policy is not as robust as the IRA.

Oilsands executives have formed a group called Pathways to Net Zero to work together cutting emissions. It’s also seeking provincial government subsidies in Alberta.

Cenovus Energy chief executive Alex Pourbaix spoke with CBC News in Houston  about subsidies for a proposed carbon capture project in northern Alberta, saying it will need support from both levels of government to move ahead.

“People just need to be very thoughtful about what failure would mean,” he said. “What we need is a little bit of help on the order of what we’re seeing in the U.S. with the IRA, and I would be very, very surprised if people didn’t see the value.”

WATCH | Why oilsands companies want more federal dollars to decarbonize:

New U.S. low-carbon energy subsidies put pressure on Canada to provide more funding too

15 hours ago

Duration 1:22

Cenovus Energy CEO Alex Pourbaix wants the federal government to provide more support toward carbon capture and storage projects to help cut emissions in the oilsands.

Canadian response

The next federal budget could include a commitment of more cash aimed at cutting greenhouse gas emissions and promoting low-carbon sources of energy.

In October, the government hinted at further action to boost subsidies as part of its fall economic statement, which said, “Canada will need to do even more to secure our competitive advantage and continue creating opportunities for Canadian workers. This challenge has become even more pressing with the United States’ recent passage of the Inflation Reduction Act.”

The oilpatch earned record profits in 2022 as commodity prices spiked following Russia’s invasion of Ukraine. The industry has faced criticism for not using those profits to move quickly enough to respond to climate change.

Some industry executives in the U.S. have questioned the effectiveness of the IRA because of the permitting process in the country, which they say takes much too long. The climate law has plenty of potential, but it could stumble without improvements to speed up the permit system for energy projects.

It is “procedurally impossible” for the country to transition to cleaner and more sustainable forms of energy, said ConocoPhillips chief executive Ryan Lance, even if the IRA makes those types of projects more economical.

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Looking for the next mystery bestseller? This crime bookstore can solve the case

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WINNIPEG – Some 250 coloured tacks pepper a large-scale world map among bookshelves at Whodunit Mystery Bookstore.

Estonia, Finland, Japan and even Fenwick, Ont., have pins representing places outside Winnipeg where someone has ordered a page-turner from the independent bookstore that specializes in mystery and crime fiction novels.

For 30 years, the store has been offering fans of Agatha Christie’s Hercule Poirot or Arthur Conan Doyle’s Sherlock Holmes a place to get lost in whodunits both old and new.

Jack and Wendy Bumsted bought the shop in the Crescentwood neighbourhood in 2007 from another pair of mystery lovers.

The married couple had been longtime customers of the store. Wendy Bumsted grew up reading Perry Mason novels while her husband was a historian with vast knowledge of the crime fiction genre.

At the time, Jack Bumsted was retiring from teaching at the University of Manitoba when he was looking for his next venture.

“The bookstore came up and we bought it, I think, within a week,” Wendy Bumsted said in an interview.

“It never didn’t seem like a good idea.”

In the years since the Bumsteds took ownership, the family has witnessed the decline in mail-order books, the introduction of online retailers, a relocation to a new space next to the original, a pandemic and the death of beloved co-owner Jack Bumsted in 2020.

But with all the changes that come with owning a small business, customers continue to trust their next mystery fix will come from one of the shelves at Whodunit.

Many still request to be called about books from specific authors, or want to be notified if a new book follows their favourite format. Some arrive at the shop like clockwork each week hoping to get suggestions from Wendy Bumsted or her son on the next big hit.

“She has really excellent instincts on what we should be getting and what we should be promoting,” Micheal Bumsted said of his mother.

Wendy Bumsted suggested the store stock “Thursday Murder Club,” the debut novel from British television host Richard Osman, before it became a bestseller. They ordered more copies than other bookstores in Canada knowing it had the potential to be a hit, said Michael Bumsted.

The store houses more than 18,000 new and used novels. That’s not including the boxes of books that sit in Wendy Bumsted’s tiny office, or the packages that take up space on some of the only available seating there, waiting to be added to the inventory.

Just as the genre has evolved, so has the Bumsteds’ willingness to welcome other subjects on their shelves — despite some pushback from loyal customers and initially the Bumsted patriarch.

For years, Jack Bumsted refused to sell anything outside the crime fiction genre, including his own published books. Instead, he would send potential buyers to another store, but would offer to sign the books if they came back with them.

Wendy Bumsted said that eventually changed in his later years.

Now, about 15 per cent of the store’s stock is of other genres, such as romance or children’s books.

The COVID-19 pandemic forced them to look at expanding their selection, as some customers turned to buying books through the store’s website, which is set up to allow purchasers to get anything from the publishers the Bumsteds have contracts with.

In 2019, the store sold fewer than 100 books online. That number jumped to more than 3,000 in 2020, as retailers had to deal with pandemic lockdowns.

After years of running a successful mail-order business, the store was able to quickly adapt when it had to temporarily shut its doors, said Michael Bumsted.

“We were not a store…that had to figure out how to get books to people when they weren’t here.”

He added being a community bookstore with a niche has helped the family stay in business when other retailers have struggled. Part of that has included building lasting relationships.

“Some people have put it in their wills that their books will come to us,” said Wendy Bumsted.

Some of those collections have included tips on traveling through Asia in the early 2000s or the history of Australian cricket.

Micheal Bumsted said they’ve had to learn to be patient with selling some of these more obscure titles, but eventually the time comes for them to find a new home.

“One of the great things about physical books is that they can be there for you when you are ready for them.”

This report by The Canadian Press was first published on Sept. 15, 2024.



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Labour Minister praises Air Canada, pilots union for avoiding disruptive strike

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MONTREAL – Canada’s labour minister is praising both Air Canada and the union representing about 5,200 of its pilots for averting a work stoppage that would have disrupted travel for hundreds of thousands of passengers.

Steven MacKinnon’s comments came in a statement shared to social media shortly after Canada’s largest air carrier announced it had reached a tentative labour deal with the Air Line Pilots Association.

MacKinnon thanked both sides and federal mediators, saying the airline and its pilots approached negotiations with “seriousness and a resolve to get a deal.”

The tentative agreement averts a strike or lockout that could have begun as early as Wednesday for Air Canada and Air Canada Rouge, with flight cancellations expected before then.

The airline now says flights will continue as normal while union members vote on the tentative four-year contract.

Air Canada had called on the federal government to intervene in the dispute, but Prime Minister Justin Trudeau said Friday that would only happen if it became clear no negotiated agreement was possible.

This report from The Canadian Press was first published Sept. 15, 2024.

Companies in this story: (TSX:AC)

The Canadian Press. All rights reserved.



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As plant-based milk becomes more popular, brands look for new ways to compete

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When it comes to plant-based alternatives, Canadians have never had so many options — and nowhere is that choice more abundantly clear than in the milk section of the dairy aisle.

To meet growing demand, companies are investing in new products and technology to keep up with consumer tastes and differentiate themselves from all the other players on the shelf.

“The product mix has just expanded so fast,” said Liza Amlani, co-founder of the Retail Strategy Group.

She said younger generations in particular are driving growth in the plant-based market as they are consuming less dairy and meat.

Commercial sales of dairy milk have been weakening for years, according to research firm Mintel, likely in part because of the rise of plant-based alternatives — even though many Canadians still drink dairy.

The No. 1 reason people opt for plant-based milk is because they see it as healthier than dairy, said Joel Gregoire, Mintel’s associate director for food and drink.

“Plant-based milk, the one thing about it — it’s not new. It’s been around for quite some time. It’s pretty established,” said Gregoire.

Because of that, it serves as an “entry point” for many consumers interested in plant-based alternatives to animal products, he said.

Plant-based milk consumption is expected to continue growing in the coming years, according to Mintel research, with more options available than ever and more consumers opting for a diet that includes both dairy and non-dairy milk.

A 2023 report by Ernst & Young for Protein Industries Canada projected that the plant-based dairy market will reach US$51.3 billion in 2035, at a compound annual growth rate of 9.5 per cent.

Because of this growth opportunity, even well-established dairy or plant-based companies are stepping up their game.

It’s been more than three decades since Saint-Hyacinthe, Que.-based Natura first launched a line of soy beverages. Over the years, the company has rolled out new products to meet rising demand, and earlier this year launched a line of oat beverages that it says are the only ones with a stamp of approval from Celiac Canada.

Competition is tough, said owner and founder Nick Feldman — especially from large American brands, which have the money to ensure their products hit shelves across the country.

Natura has kept growing, though, with a focus on using organic ingredients and localized production from raw materials.

“We’re maybe not appealing to the mass market, but we’re appealing to the natural consumer, to the organic consumer,” Feldman said.

Amlani said brands are increasingly advertising the simplicity of their ingredient lists. She’s also noticing more companies offering different kinds of products, such as coffee creamers.

Companies are also looking to stand out through eye-catching packaging and marketing, added Amlani, and by competing on price.

Besides all the companies competing for shelf space, there are many different kinds of plant-based milk consumers can choose from, such as almond, soy, oat, rice, hazelnut, macadamia, pea, coconut and hemp.

However, one alternative in particular has enjoyed a recent, rapid ascendance in popularity.

“I would say oat is the big up-and-coming product,” said Feldman.

Mintel’s report found the share of Canadians who say they buy oat milk has quadrupled between 2019 and 2023 (though almond is still the most popular).

“There seems to be a very nice marriage of coffee and oat milk,” said Feldman. “The flavour combination is excellent, better than any other non-dairy alternative.”

The beverage’s surge in popularity in cafés is a big part of why it’s ascending so quickly, said Gregoire — its texture and ability to froth makes it a good alternative for lattes and cappuccinos.

It’s also a good example of companies making a strong “use case” for yet another new entrant in a competitive market, he said.

Amid the long-standing brands and new entrants, there’s another — perhaps unexpected — group of players that has been increasingly investing in plant-based milk alternatives: dairy companies.

For example, Danone has owned the Silk and So Delicious brands since an acquisition in 2014, and long-standing U.S. dairy company HP Hood LLC launched Planet Oat in 2018.

Lactalis Canada also recently converted its facility in Sudbury, Ont., to manufacture its new plant-based Enjoy! brand, with beverages made from oats, almonds and hazelnuts.

“As an organization, we obviously follow consumer trends, and have seen the amount of interest in plant-based products, particularly fluid beverages,” said Mark Taylor, president and CEO of Lactalis Canada, whose parent company Lactalis is the largest dairy products company in the world.

The facility was a milk processing plant for six decades, until Lactalis Canada began renovating it in 2022. It now manufactures not only the new brand, but also the company’s existing Sensational Soy brand, and is the company’s first dedicated plant-based facility.

“We’re predominantly a dairy company, and we’ll always predominantly be a dairy company, but we see these products as complementary,” said Taylor.

It makes sense that major dairy companies want to get in on plant-based milk, said Gregoire. The dairy business is large — a “cash cow,” if you will — but not really growing, while plant-based products are seeing a boom.

“If I’m looking for avenues of growth, I don’t want to be left behind,” he said.

Gregoire said there’s a potential for consumers to get confused with so many options, which is why it’s so important for brands to find a way to differentiate themselves, whether it’s with taste, health, or how well the drink froths for a latte.

Competition in a more crowded market is challenging, but Taylor believes it results in better products for consumers.

“It keeps you sharp, and it forces you to be really good at what you’re doing. It drives innovation,” he said.

This report by The Canadian Press was first published Sept. 15, 2024.



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