“Starting out from a position like that is not the way to enter a discussion in good faith,” said Alberta’s minister of environment and protected areas
EDMONTON — Ottawa is threatening the provinces by suggesting it will withhold federal funding from electricity projects that don’t reduce greenhouse-gas emissions, says Alberta’s minister of environment and protected areas.
“We see (Federal Energy and Natural Resources Minister Jonathan) Wilkinson saying it isn’t his style to have fights and wanting to work with the provinces and have a national conversation,” Rebecca Schulz said Tuesday.
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“Announcing in a press conference a threat to withhold funding isn’t really the right way to start a conversation.”
Earlier Tuesday in Vancouver, Wilkinson said billions of dollars in tax credits and grants will be tied to progress toward Ottawa’s target for a net-zero electricity grid by 2035.
“To access the tax credit will require that we are moving in the direction of a non-emitting grid,” he said.
That’s an ultimatum, said Schulz.
“Starting out from a position like that is not the way to enter a discussion in good faith.”
Saskatchewan’s minister for SaskPower, Don Morgan, said the federal position will increase electricity costs.
“By withholding the very funding meant to help provinces reach the Trudeau government’s net-zero targets, Saskatchewan’s customers will see a dramatic impact on their rates,” he said in a statement.
Neither Saskatchewan nor Alberta say they can meet the 2035 goal, preferring to set it off until 2050.
Wilkinson said provinces will be afforded flexibility in how they achieve the earlier target.
“We are cognizant of the need for the regulations to provide sufficient flexibility,” he said. “Every province and territory has different needs.”
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He said talks between Ottawa and the provinces have already begun, including with Alberta Premier Danielle Smith.
Blake Schaffer, an energy economist at the University of Calgary, said much will depend on exemptions granted within the regulations, which are expected to be released this month. He said Canada’s rules are expected to be similar to those in the United States.
“Both Canada and the U.S., when they talk about clean power, both have in their plans very significant carve-outs and exemptions to recognize the need for flexibility,” he said.
The U.S., for example, contains provisions to allow old power plants to run out their life as well as for fossil fuel generation that only runs occasionally.
“From everything I’m hearing, (Canada’s) similarly contains much-needed flexibility.”
Schaffer said Canada’s rules could contain carve-outs for industrial facilities that generate their own power from waste heat _ a big slice of Alberta’s power generation.
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Meeting the federal 2035 target will be a stiff challenge, said Schaffer. But not necessarily impossible.
“You haven’t even heard what the final terms are yet,” he said.
Provinces, especially those with emissions-heavy grids, have much at stake. An analysis from Clean Energy Canada, a clean energy think tank at Simon Fraser University, has calculated that those jurisdictions are in line for a third more funding than those provinces that have cleaner power.
The group also said provinces with non-fossil-fuel-powered grids tend to have lower and more stable power prices.
This report by The Canadian Press was first published Aug. 8, 2023.
TOKYO (AP) — Japanese technology group SoftBank swung back to profitability in the July-September quarter, boosted by positive results in its Vision Fund investments.
Tokyo-based SoftBank Group Corp. reported Tuesday a fiscal second quarter profit of nearly 1.18 trillion yen ($7.7 billion), compared with a 931 billion yen loss in the year-earlier period.
Quarterly sales edged up about 6% to nearly 1.77 trillion yen ($11.5 billion).
SoftBank credited income from royalties and licensing related to its holdings in Arm, a computer chip-designing company, whose business spans smartphones, data centers, networking equipment, automotive, consumer electronic devices, and AI applications.
The results were also helped by the absence of losses related to SoftBank’s investment in office-space sharing venture WeWork, which hit the previous fiscal year.
WeWork, which filed for Chapter 11 bankruptcy protection in 2023, emerged from Chapter 11 in June.
SoftBank has benefitted in recent months from rising share prices in some investment, such as U.S.-based e-commerce company Coupang, Chinese mobility provider DiDi Global and Bytedance, the Chinese developer of TikTok.
SoftBank’s financial results tend to swing wildly, partly because of its sprawling investment portfolio that includes search engine Yahoo, Chinese retailer Alibaba, and artificial intelligence company Nvidia.
SoftBank makes investments in a variety of companies that it groups together in a series of Vision Funds.
The company’s founder, Masayoshi Son, is a pioneer in technology investment in Japan. SoftBank Group does not give earnings forecasts.
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Yuri Kageyama is on X:
The Canadian Press. All rights reserved.
Shopify Inc. executives brushed off concerns that incoming U.S. President Donald Trump will be a major detriment to many of the company’s merchants.
“There’s nothing in what we’ve heard from Trump, nor would there have been anything from (Democratic candidate) Kamala (Harris), which we think impacts the overall state of new business formation and entrepreneurship,” Shopify’s chief financial officer Jeff Hoffmeister told analysts on a call Tuesday.
“We still feel really good about all the merchants out there, all the entrepreneurs that want to start new businesses and that’s obviously not going to change with the administration.”
Hoffmeister’s comments come a week after Trump, a Republican businessman, trounced Harris in an election that will soon return him to the Oval Office.
On the campaign trail, he threatened to impose tariffs of 60 per cent on imports from China and roughly 10 per cent to 20 per cent on goods from all other countries.
If the president-elect makes good on the promise, many worry the cost of operating will soar for companies, including customers of Shopify, which sells e-commerce software to small businesses but also brands as big as Kylie Cosmetics and Victoria’s Secret.
These merchants may feel they have no choice but to pass on the increases to customers, perhaps sparking more inflation.
If Trump’s tariffs do come to fruition, Shopify’s president Harley Finkelstein pointed out China is “not a huge area” for Shopify.
However, “we can’t anticipate what every presidential administration is going to do,” he cautioned.
He likened the uncertainty facing the business community to the COVID-19 pandemic where Shopify had to help companies migrate online.
“Our job is no matter what comes the way of our merchants, we provide them with tools and service and support for them to navigate it really well,” he said.
Finkelstein was questioned about the forthcoming U.S. leadership change on a call meant to delve into Shopify’s latest earnings, which sent shares soaring 27 per cent to $158.63 shortly after Tuesday’s market open.
The Ottawa-based company, which keeps its books in U.S. dollars, reported US$828 million in net income for its third quarter, up from US$718 million in the same quarter last year, as its revenue rose 26 per cent.
Revenue for the period ended Sept. 30 totalled US$2.16 billion, up from US$1.71 billion a year earlier.
Subscription solutions revenue reached US$610 million, up from US$486 million in the same quarter last year.
Merchant solutions revenue amounted to US$1.55 billion, up from US$1.23 billion.
Shopify’s net income excluding the impact of equity investments totalled US$344 million for the quarter, up from US$173 million in the same quarter last year.
Daniel Chan, a TD Cowen analyst, said the results show Shopify has a leadership position in the e-commerce world and “a continued ability to gain market share.”
In its outlook for its fourth quarter of 2024, the company said it expects revenue to grow at a mid-to-high-twenties percentage rate on a year-over-year basis.
“Q4 guidance suggests Shopify will finish the year strong, with better-than-expected revenue growth and operating margin,” Chan pointed out in a note to investors.
This report by The Canadian Press was first published Nov. 12, 2024.
Companies in this story: (TSX:SHOP)
The Canadian Press. All rights reserved.
TORONTO – RioCan Real Estate Investment Trust says it has cut almost 10 per cent of its staff as it deals with a slowdown in the condo market and overall pushes for greater efficiency.
The company says the cuts, which amount to around 60 employees based on its last annual filing, will mean about $9 million in restructuring charges and should translate to about $8 million in annualized cash savings.
The job cuts come as RioCan and others scale back condo development plans as the market softens, but chief executive Jonathan Gitlin says the reductions were from a companywide efficiency effort.
RioCan says it doesn’t plan to start any new construction of mixed-use properties this year and well into 2025 as it adjusts to the shifting market demand.
The company reported a net income of $96.9 million in the third quarter, up from a loss of $73.5 million last year, as it saw a $159 million boost from a favourable change in the fair value of investment properties.
RioCan reported what it says is a record-breaking 97.8 per cent occupancy rate in the quarter including retail committed occupancy of 98.6 per cent.
This report by The Canadian Press was first published Nov. 12, 2024.
Companies in this story: (TSX:REI.UN)
The Canadian Press. All rights reserved.
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