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Canada could help wean Europe from Russian oil and gas by shipping clean hydrogen

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OTTAWA — Canada could ship clean hydrogen to Europe in the future to help wean it from its dependency on Russian oil and gas, say federal ministers.

At meetings with G7 counterparts in Berlin this week, Natural Resources Minster Jonathan Wilkinson and Environment Minister Steven Guilbeault said Canada is investing in the development of clean hydrogen, which could help Europe reduce its reliance on Vladimir Putin’s regime for energy.

Canada also played a key role in persuading the G7 — which includes the United States — to phase out international financing of fossil fuel projects by the end of the year, the federal government said. Canada made its own commitment to do so at the COP26 climate-change conference in Glasgow last year.

The pledge at the G7 meeting was part of a package of measures agreed upon to combat climate change, including global action to phase out coal-fired power.

Wilkinson and Guilbeault also pushed for a G7 “hydrogen action pact,” focused on the role hydrogen can play as a clean energy source for the future.

The government has been supporting the development of clean hydrogen, a low-carbon fuel, including in Atlantic Canada, which is closer to Europe than Alberta and Saskatchewan, making it easier to ship.

“Canada remains steadfast in leading the global energy markets and security to ensure support for the international community,” Wilkinson said in a statement.

European countries, including Germany, have made it clear they want to be less reliant on Russian oil and gas.

Earlier this month, EU president Ursula von der Leyen announced a plan to phase out all Russian oil from Europe by early next year, in protest of Putin’s invasion of Ukraine. But Hungary, which is heavily reliant on Russian fossil fuel, has been opposing the move.

In an interview from Berlin, Guilbeault said “in the short term,” Canada may be able to supply European countries with liquefied natural gas as an alternative to energy from Russia.

But “in the middle or long term,” Canada could play a crucial part in supplying Europe with hydrogen.

“Germany, for example, is dependent 55 per cent on Russian gas, and they don’t want that any more. They wanted to diminish and eliminate dependencies to Russian gas,” he said.

Guilbeault said Canada is already one of the largest producers of hydrogen in the world.

“We can be a player, an important player in the hydrogen economy if we seize those opportunities,” he said.

After the meeting ended he said in a statement: “G7 leaders have clearly said that securing energy security and fighting climate change are mutually reinforcing goals.”

The G7 is made up of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States, with the European Union also attending meetings.

In Berlin, G7 nations made significant progress on the global phaseout of coal-fired power, and decarbonizing electricity systems by 2035, the federal government said.

David Ryfisch, international climate policy lead at advocacy group Germanwatch, said the “decarbonization” of electricity sectors “represents a major breakthrough and a clear signal for more renewables and energy efficiency investments.”

“What is lacking is an explicit date for a coal phaseout,” he said. “In order to be able to put pressure on other major emitters to get out of coal, the G7 needs to be very clear that they will end coal by 2030.”

G7 members agreed to double climate financing to help developing countries become greener, as part of the $100-billion commitment.

Guilbeault also argued at the G7 for measures to protect biodiversity and a new legally-binding global agreement to reduce plastic waste.

Last year, the environment minister announced plans to ban harmful single-use plastics in Canada.

This report by The Canadian Press was first published May 27, 2022.

 

Marie Woolf and Mia Rabson, The Canadian Press

 

 

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Transat AT reports $39.9M Q3 loss compared with $57.3M profit a year earlier

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MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.

The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.

The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.

Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.

On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.

Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:TRZ)

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Dollarama keeping an eye on competitors as Loblaw launches new ultra-discount chain

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Dollarama Inc.’s food aisles may have expanded far beyond sweet treats or piles of gum by the checkout counter in recent years, but its chief executive maintains his company is “not in the grocery business,” even if it’s keeping an eye on the sector.

“It’s just one small part of our store,” Neil Rossy told analysts on a Wednesday call, where he was questioned about the company’s food merchandise and rivals playing in the same space.

“We will keep an eye on all retailers — like all retailers keep an eye on us — to make sure that we’re competitive and we understand what’s out there.”

Over the last decade and as consumers have more recently sought deals, Dollarama’s food merchandise has expanded to include bread and pantry staples like cereal, rice and pasta sold at prices on par or below supermarkets.

However, the competition in the discount segment of the market Dollarama operates in intensified recently when the country’s biggest grocery chain began piloting a new ultra-discount store.

The No Name stores being tested by Loblaw Cos. Ltd. in Windsor, St. Catharines and Brockville, Ont., are billed as 20 per cent cheaper than discount retail competitors including No Frills. The grocery giant is able to offer such cost savings by relying on a smaller store footprint, fewer chilled products and a hearty range of No Name merchandise.

Though Rossy brushed off notions that his company is a supermarket challenger, grocers aren’t off his radar.

“All retailers in Canada are realistic about the fact that everyone is everyone’s competition on any given item or category,” he said.

Rossy declined to reveal how much of the chain’s sales would overlap with Loblaw or the food category, arguing the vast variety of items Dollarama sells is its strength rather than its grocery products alone.

“What makes Dollarama Dollarama is a very wide assortment of different departments that somewhat represent the old five-and-dime local convenience store,” he said.

The breadth of Dollarama’s offerings helped carry the company to a second-quarter profit of $285.9 million, up from $245.8 million in the same quarter last year as its sales rose 7.4 per cent.

The retailer said Wednesday the profit amounted to $1.02 per diluted share for the 13-week period ended July 28, up from 86 cents per diluted share a year earlier.

The period the quarter covers includes the start of summer, when Rossy said the weather was “terrible.”

“The weather got slightly better towards the end of the summer and our sales certainly increased, but not enough to make up for the season’s horrible start,” he said.

Sales totalled $1.56 billion for the quarter, up from $1.46 billion in the same quarter last year.

Comparable store sales, a key metric for retailers, increased 4.7 per cent, while the average transaction was down2.2 per cent and traffic was up seven per cent, RBC analyst Irene Nattel pointed out.

She told investors in a note that the numbers reflect “solid demand as cautious consumers focus on core consumables and everyday essentials.”

Analysts have attributed such behaviour to interest rates that have been slow to drop and high prices of key consumer goods, which are weighing on household budgets.

To cope, many Canadians have spent more time seeking deals, trading down to more affordable brands and forgoing small luxuries they would treat themselves to in better economic times.

“When people feel squeezed, they tend to shy away from discretionary, focus on the basics,” Rossy said. “When people are feeling good about their wallet, they tend to be more lax about the basics and more willing to spend on discretionary.”

The current economic situation has drawn in not just the average Canadian looking to save a buck or two, but also wealthier consumers.

“When the entire economy is feeling slightly squeezed, we get more consumers who might not have to or want to shop at a Dollarama generally or who enjoy shopping at a Dollarama but have the luxury of not having to worry about the price in some other store that they happen to be standing in that has those goods,” Rossy said.

“Well, when times are tougher, they’ll consider the extra five minutes to go to the store next door.”

This report by The Canadian Press was first published Sept. 11, 2024.

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U.S. regulator fines TD Bank US$28M for faulty consumer reports

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TORONTO – The U.S. Consumer Financial Protection Bureau has ordered TD Bank Group to pay US$28 million for repeatedly sharing inaccurate, negative information about its customers to consumer reporting companies.

The agency says TD has to pay US$7.76 million in total to tens of thousands of victims of its illegal actions, along with a US$20 million civil penalty.

It says TD shared information that contained systemic errors about credit card and bank deposit accounts to consumer reporting companies, which can include credit reports as well as screening reports for tenants and employees and other background checks.

CFPB director Rohit Chopra says in a statement that TD threatened the consumer reports of customers with fraudulent information then “barely lifted a finger to fix it,” and that regulators will need to “focus major attention” on TD Bank to change its course.

TD says in a statement it self-identified these issues and proactively worked to improve its practices, and that it is committed to delivering on its responsibilities to its customers.

The bank also faces scrutiny in the U.S. over its anti-money laundering program where it expects to pay more than US$3 billion in monetary penalties to resolve.

This report by The Canadian Press was first published Sept. 11, 2024.

Companies in this story: (TSX:TD)

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