Biden's big, bold green spend sends shockwaves around the world, including Canada – CBC.ca
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.
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.
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:
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.
Canada’s carbon pricing is going up again. What it means for your wallet – Global News
Canadians in some provinces and territories will soon be paying a little bit more at the gas station as a federal carbon price is set to go up starting Saturday.
The fuel charge is rising by 30 per cent from $50 per tonne of emissions to $65 on April 1. This will translate to an increase of roughly three cents per litre for gas, reaching a total of 14 cents per litre.
The scheduled increase will apply in Ontario, Manitoba, Saskatchewan, Alberta, Yukon and Nunavut.
Meanwhile, the carbon price jump will go into effect in Newfoundland and Labrador, Nova Scotia, and Prince Edward Island on July 1.
Canadians will see high oil, gas prices through 2023, experts say: ‘A very expensive time’
Canada began pricing carbon pollution in 2019.
The move is part of Ottawa’s commitment to tackle climate change with a goal to reach net-zero carbon emissions by 2050.
Canadians will see high oil and gas prices through 2023
While Canadians will see an increase at the pumps, the carbon price increase is not expected to have a huge impact on their gas expenses, said Hadrian Mertins-Kirkwood, a senior researcher with the Canadian Centre for Policy Alternatives.
“It’s an incremental increase, but it’s not actually going to be a huge change year-over-year that people will notice ,” he told Global News.
For individuals, it could mean a $1 jump per tank depending on how big the vehicle is, Mertins-Kirkwood estimated. For businesses too, it’s “not a major expense,” he said.
Mertins-Kirkwood said things like oil market fluctuations and gas taxes have a much bigger impact on energy costs.
“Those swings are way bigger than the carbon price.”
What else is changing?
The carbon price increase comes amid some temporary relief for Canadians with lower gas prices reported in February after record-high costs last year. Gas prices in Canada surpassed $2 per litre for the first time ever last year.
On a monthly basis, Canadian drivers paid one per cent less for gas in February, Statistics Canada said in its latest report released on March 21. Overall, gas prices dropped by 4.7 per cent in February – which was the first yearly decline since Jan 2021, StatCan reported.
The agency said the year-over-year decline is partially attributed to the significant jump in prices seen in February 2022 amid Russia’s invasion of Ukraine.
The Canadian national average for gas prices stood at 150.8 cents per litre on Friday morning, according to GasBuddy. The CAA’s estimate for Friday was 149 cents per litre.
The carbon tax will not only raise gas prices, but could make its way into Canadian pocketbooks in other ways too.
Federal budget increases airport security fees
For instance, aviation gasoline in the four provinces is also going up by roughly 3.5 cents a litre to a total of almost 16 cents per litre, which could potentially mean higher airfares down the line.
However, the rates for aviation gasoline and aviation turbo fuel will remain unchanged in the territories due to the “high reliance” on air transportation, the federal government says.
Light fuel oil, which is used in household equipment, is increasing to 17 cents per litre – an increment of nearly four cents.
Carbon pricing can have also ripple effects on food prices, other grocery items and shipped goods experts say, as Canada’s truck-based transportation industry will be spending more money to fill up the tank.
“It’s possible it could have an impact on things like shipping, but it’s a relatively minor impact,” said Mertins-Kirkwood.
Will rebates make a difference?
Ottawa has claimed that eight out of 10 Canadian families will get more money back than they pay under the federal carbon pricing plan because of the Climate Action Incentive.
Canadians can claim CAI payments by filing annual federal taxes.
Prime Minister Trudeau urges Alberta to contribute to carbon-capture incentives
Mertins-Kirkwood said most households, except those earning a high income, are “better off” from the carbon pricing due to the government rebate which recycles revenue back to families.
However, the Parliamentary Budget Officer (PBO), an independent watchdog, said in a report last year that a bulk of Canadian households over the long term will see a “net loss” from the federal carbon pricing by 2030-31.
The PBO said that Albertans in the top income quintile would pay the largest net cost from the carbon tax, while the lowest-income quintile households in Saskatchewan stand to see the largest net gain via the rebate.
— With files from Global News’ Craig Lord
More on Canada
© 2023 Global News, a division of Corus Entertainment Inc.
Two families found dead trying to enter US from Canada: Police – Al Jazeera English
Authorities have launched an investigation following the discovery of eight bodies in a marshy area of the St Lawrence River in Quebec near Canada’s border with the United States.
The Akwesasne Mohawk Police Service said six bodies were found about 5pm (21:00 GMT) on Thursday in the marsh in Tsi Snaihne, Akwesasne. Two more were discovered on Friday.
At a news conference on Friday, deputy police chief Lee-Ann O’Brien said the dead belonged to two families — one of Romanian descent with Canadian passports, the other Indian. One child under the age of three was among the fatalities, she said.
“All are believed to have been attempting illegal entry into the US from Canada,” O’Brien said at the press conference.
Later that day, the chief of the Akwesasne Mohawk Police Service, Shawn Dulude, said that one of the two additional bodies recovered was that of an infant from the Romanian family.
The deaths came one week after the United States and Canada announced the expansion of a border agreement granting them the authority to expel asylum seekers who cross the nations’ shared border at unofficial points of entry.
O’Brien said the bodies were found near a capsized boat belonging to a missing man from the Akwesasne Mohawk community, which stretches along both sides of the St Lawrence River, with land in Ontario and Quebec on the Canadian side, and in New York state.
Authorities were awaiting the results of post-mortem and toxicology tests to determine the cause of death.
Marco Mendicino, Canada’s minister of public safety, said the Canadian Coast Guard and the Quebec provincial police force were assisting Akwesasne police in their investigation.
“The news coming out of Akwesasne is heartbreaking,” the minister wrote on Twitter. “I’ve reached out to Grand Chief Abram Benedict to express our condolences. As we await more details, my thoughts are with the loved ones of those lost.”
Canadian Prime Minister Justin Trudeau also expressed his condolences to the families. “This is a heartbreaking situation, particularly given the young child that was among them,” he told reporters.
“We need to understand properly what happened, how this happened and do whatever we can to ensure that we’re minimising the chances of it happening again.”
Last month, the Akwesasne Mohawk Police Service and the Saint Regis Mohawk Tribal Police reported a recent increase in undocumented entries through their lands and waterways. The statement said some people required hospitalisation.
In January, the police force noted that people involved in human smuggling had attempted to use shorelines along the Saint Lawrence River in the area.
‘Put human lives at risk’
Trudeau unveiled the expanded border deal, known as the Safe Third Country Agreement (STCA), last week during US President Joe Biden’s first official visit to Canada since taking office.
Since 2004, the STCA has forced asylum seekers to make claims for protection in the first country they arrive in — either the US or Canada, but not both.
That has meant that people already in the US could not make an asylum claim at an official port of entry into Canada, or vice versa, and allowed border authorities to uniformly turn people back at official land crossings.
The expanded agreement unveiled on March 24 closed a loophole in the STCA that previously allowed asylum seekers who crossed into Canada at unofficial points along the border to have their protection claims assessed once they were on Canadian soil.
The White House said last week that the restrictions would now also be applied “to migrants who cross between the ports of entry”.
Advocates slammed the move, saying applying the STCA to the entire 6,416km (3,987-mile) land border between the US and Canada would not prevent people from seeking to cross, but would only force them to take more dangerous routes.
The news coming out of Akwesasne is heartbreaking.
I’ve reached out to Grand Chief Abram Benedict to express our condolences.
As we await more details, my thoughts are with the loved ones of those lost.
— Marco Mendicino (@marcomendicino) March 31, 2023
Migrant justice advocates laid the blame for the most recent deaths on policymakers.
“The Safe Third Country Agreement (STCA) and other immigration laws are meant to deter migration from the global south by making border crossing deadly,” Nazila Bettache, a member of the Caring for Social Justice Collective, said in a statement on Friday.
“Let’s be clear, these deaths were predictable and predicted — and in that sense they are intentional.”
Samira Jasmin, spokesperson for the Solidarity Across Borders advocacy group, added that “these immigration policies put human lives at risk! We cross borders for a better world and instead face death”.
Local authorities disputed the idea that the closure played a role in the most recent deaths.
“Right now what I can tell you is this has nothing to do with that closure,” O’Brien said. “These people were believed to be gaining entry into the US. It’s completely opposite.”
The STCA applies in both directions, however, and US Border Patrol processed 3,577 people who crossed into the US irregularly from Canada last year, CBS News recently reported, citing government data.
Earlier this year, a family of four from India — including two children — were found frozen to death in the central Canadian province of Manitoba near the border with the US.
Authorities said they had attempted to cross over the border by foot on January 19 during severe winter weather and died from exposure.
A Haitian asylum seeker who came to Quebec via a popular, informal border crossing known as Roxham Road was also found dead at the frontier in late 2022 after attempting to go back to the US to rejoin his family.
Terrible – and just days after the US/Canada deal.
Again and again, we see punitive + deterrence-based asylum policies have horrifying and tragic consequences.
Consequences borne by migrants fleeing persecution. Consequences that are getting harder to describe as unintentional. https://t.co/mouezQ6cRF
— Danilo Zak (@DaniloZak) March 31, 2023
Police recover 2 more bodies from St. Lawrence River near Ontario-Quebec border – CBC.ca
Eight people are dead after they tried on Thursday to cross the St. Lawrence River into the United States near Akwesasne — a community which straddles Quebec, Ontario and New York state — according to officials. One other person is still missing.
Police recovered two more bodies from the river Friday, after discovering six bodies and an overturned boat during a missing person search Thursday afternoon.
The bodies are those of six adults and two children: one under the age of three who had a Canadian passport, the other an infant who was also a Canadian citizen, according to Shawn Dulude, the police chief for the nearby Kanien’kehá:ka community of Akwesasne. Dulude spoke to reporters at a Friday news conference.
They were found in a marsh on the riverbank.
They are believed to have been an Indian family and a Romanian family who were attempting to cross into the U.S., according to police.
Casey Oakes, 30, an Akwesasne resident, remains missing, police said. Oakes was last seen on Wednesday around 9:30 p.m. ET boarding a small, light blue vessel, leaving Cornwall Island. He was dressed in black, wearing a black face mask and a black tuque.
He was later reported missing, leading to the search efforts that found the bodies. Oakes is a person of interest in the case, said Dulude.
Police located Oakes’s vessel near the bodies, Lee-Ann O’Brien, the deputy chief of police for the Akwesasne Mohawk police service, said on Friday morning. Akwesasne is about 120 kilometres west of Montreal.
The IDs of the victims have not yet been released, pending notification of their next of kin.
A storm brought high winds and sleet into the area on Wednesday night. “It was not a good time to be out on the water,” O’Brien said.
“It could have been anything that caused this tragedy,” he said. “It could have been a faulty boat, it could have been human error and that the investigation will determine.”
Kevin Sturge Lazore, captain of the Akwasasne Fire Department’s Station 3, sent 15 volunteer firefighters to search the river on Thursday after Oakes’s family reported him missing. Another dozen or so volunteers from other stations in the community joined the effort.
The firefighters recovered the boat, its hull dented on the bottom as if it had hit ice or a rock, Lazore said.
He and O’Brien said the boat was small, and wouldn’t have been able to safely carry seven or eight people.
“What that boat could handle and the amount of people in it, it doesn’t make a pretty picture,” Lazore said, standing by the fire department dock on the water.
Friday morning, the water was calm and mirror-like. “It can change in the blink of an eye,” Lazore said, noting waves were more than a metre high Wednesday night.
“The river is always the major concern…. Our elders tell us, always be careful, especially in the spring, with the runoff, the current is stronger and the water is freezing.”
Other attempted crossings
The volunteer firefighters were only searching for one person when they discovered the first six bodies.
“It’s hitting them now,” Lazore said, adding they had begun a debrief Thursday evening to process what they had seen, but were interrupted by a call for a structure fire.
Thursday wasn’t the first time Lazore’s team has been called on to search for missing people who have tried to cross the border.
He said they rescue people attempting to enter the U.S. or Canada over the river and its tributaries about three or four times a year.
“It gets hard. It wears the guys down.”
Almost exactly a year ago, they rescued a group of six Indian nationals who had just made it into the United States on the river when the boat they were in hit a shallow bank and got stuck.
They were able to stand up in the boat and were rescued by the volunteers and Akwasasne Police Department — which received $6.5 million from the Quebec government last year to help it deal with the increased flow of human smuggling in the area.
“They were lucky. It could have been a lot worse,” Lazore said.
The fire station is next to a recreation centre where community members gathered Friday afternoon. They sit across a road from the Tsi’Snaihne River.
A police helicopter circled above.
Next to the fire station, a group of men lit a sacred fire early that morning and kept it going throughout the day. Lazore said the fire was to honour the families and Oakes.
Smuggling on the rise
O’Brien, the deputy police chief, said the community has seen an uptick in human smuggling into the U.S. There have been 48 incidents so far this year, she said.
But the recent deaths had nothing to do with the closure of the Roxham Road illegal border crossing, she added.
“That closure was people seeking refuge, leaving the U.S. to Canada. These people were believed to be gaining entry into the U.S. It’s completely the opposite.”
Most of those who try to enter the U.S. through the area are Indian and Romanian families, she said, but she said she “had no idea” why that was the case.
Ryan Brissette, a public affairs officer with U.S. Customs and Border Patrol, says the agency had seen a “massive uptick in encounters and apprehensions” at the border.
The agency saw more than eight times as many people try to cross from Canada into the U.S. in 2022 compared to previous years, he said. Many of them — more than 64,000 — came through Quebec or Ontario into New York.
“Comparing this area in the past, this is a significant number,” Brissette said.
“There’s a lot of different reasons as to why this is happening, why folks are coming all of a sudden through the northern border. I think a lot of them think it’s easier, an easy opportunity and they just don’t know the danger that it poses, especially in the winter months.”
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