Economy
Hydro-Québec applauds the publication of the Plan for a Green Economy – Canada NewsWire
MONTRÉAL, Nov. 16, 2020 /CNW Telbec/ – The Plan for a Green Economy tabled today by the Québec government is a major milestone in the reduction of greenhouse gas (GHG) emissions. Hydro-Québec will play a key role in the implementation of this plan, which will create wealth for the province and facilitate the transition to a low-carbon economy.
“Québec’s GHG emissions are already lower than those of other regions in North America, and the Plan for a Green Economy will help us make further improvements in this area,” commented Hydro-Québec’s President and CEO, Sophie Brochu. “Hydro-Québec intends to act as a catalyst in this vast collective initiative.”
The following objectives set forth in the Plan are particularly noteworthy:
- increasing electricity exports, which will help neighboring jurisdictions achieve their own GHG reduction targets;
- attracting companies wishing to benefit from our green energy to the province;
- electrifying buildings to a greater extent;
- intensifying transportation electrification efforts;
- converting off-grid systems to renewable energy sources;
- producing green hydrogen.
We have enough energy available to power the electrification of the Québec economy. That said, the Plan clearly states that greater electrification will create pressure on the grid during peak winter periods. To limit growth in demand during such peaks, it will be necessary to manage electricity use intelligently.
Hydro-Québec has what it takes to do so and plans to implement various measures to meet the challenge.
- We will intensify our energy efficiency initiatives, in particular through our subsidiary Hilo, which rewards customers for their energy-saving efforts.
- We will work jointly with Énergir to deploy a complementary strategy aimed at reducing GHG emissions from buildings to the greatest extent possible without developing costly new infrastructure.
- We will support innovation to develop technological solutions adapted to the Québec context.
SOURCE Hydro-Québec
For further information: Maxence Huard-Lefebvre, Hydro-Québec, 514 289-5005
Related Links
Economy
Biden's Hot Economy Stokes Currency Fears for the Rest of World – Bloomberg
As Joe Biden this week hailed America’s booming economy as the strongest in the world during a reelection campaign tour of battleground-state Pennsylvania, global finance chiefs convening in Washington had a different message: cool it.
The push-back from central bank governors and finance ministers gathering for the International Monetary Fund-World Bank spring meetings highlight how the sting from a surging US economy — manifested through high interest rates and a strong dollar — is ricocheting around the world by forcing other currencies lower and complicating plans to bring down borrowing costs.
Economy
Opinion: Higher capital gains taxes won't work as claimed, but will harm the economy – The Globe and Mail
Alex Whalen and Jake Fuss are analysts at the Fraser Institute.
Amid a federal budget riddled with red ink and tax hikes, the Trudeau government has increased capital gains taxes. The move will be disastrous for Canada’s growth prospects and its already-lagging investment climate, and to make matters worse, research suggests it won’t work as planned.
Currently, individuals and businesses who sell a capital asset in Canada incur capital gains taxes at a 50-per-cent inclusion rate, which means that 50 per cent of the gain in the asset’s value is subject to taxation at the individual or business’s marginal tax rate. The Trudeau government is raising this inclusion rate to 66.6 per cent for all businesses, trusts and individuals with capital gains over $250,000.
The problems with hiking capital gains taxes are numerous.
First, capital gains are taxed on a “realization” basis, which means the investor does not incur capital gains taxes until the asset is sold. According to empirical evidence, this creates a “lock-in” effect where investors have an incentive to keep their capital invested in a particular asset when they might otherwise sell.
For example, investors may delay selling capital assets because they anticipate a change in government and a reversal back to the previous inclusion rate. This means the Trudeau government is likely overestimating the potential revenue gains from its capital gains tax hike, given that individual investors will adjust the timing of their asset sales in response to the tax hike.
Second, the lock-in effect creates a drag on economic growth as it incentivizes investors to hold off selling their assets when they otherwise might, preventing capital from being deployed to its most productive use and therefore reducing growth.
Budget’s capital gains tax changes divide the small business community
And Canada’s growth prospects and investment climate have both been in decline. Canada currently faces the lowest growth prospects among all OECD countries in terms of GDP per person. Further, between 2014 and 2021, business investment (adjusted for inflation) in Canada declined by $43.7-billion. Hiking taxes on capital will make both pressing issues worse.
Contrary to the government’s framing – that this move only affects the wealthy – lagging business investment and slow growth affect all Canadians through lower incomes and living standards. Capital taxes are among the most economically damaging forms of taxation precisely because they reduce the incentive to innovate and invest. And while taxes on capital gains do raise revenue, the economic costs exceed the amount of tax collected.
Previous governments in Canada understood these facts. In the 2000 federal budget, then-finance minister Paul Martin said a “key factor contributing to the difficulty of raising capital by new startups is the fact that individuals who sell existing investments and reinvest in others must pay tax on any realized capital gains,” an explicit acknowledgment of the lock-in effect and costs of capital gains taxes. Further, that Liberal government reduced the capital gains inclusion rate, acknowledging the importance of a strong investment climate.
At a time when Canada badly needs to improve the incentives to invest, the Trudeau government’s 2024 budget has introduced a damaging tax hike. In delivering the budget, Finance Minister Chrystia Freeland said “Canada, a growing country, needs to make investments in our country and in Canadians right now.” Individuals and businesses across the country likely agree on the importance of investment. Hiking capital gains taxes will achieve the exact opposite effect.
Economy
Nigeria's Economy, Once Africa's Biggest, Slips to Fourth Place – Bloomberg
Nigeria’s economy, which ranked as Africa’s largest in 2022, is set to slip to fourth place this year and Egypt, which held the top position in 2023, is projected to fall to second behind South Africa after a series of currency devaluations, International Monetary Fund forecasts show.
The IMF’s World Economic Outlook estimates Nigeria’s gross domestic product at $253 billion based on current prices this year, lagging energy-rich Algeria at $267 billion, Egypt at $348 billion and South Africa at $373 billion.
-
Media10 hours ago
DJT Stock Rises. Trump Media CEO Alleges Potential Market Manipulation. – Barron's
-
Media12 hours ago
Trump Media alerts Nasdaq to potential market manipulation from 'naked' short selling of DJT stock – CNBC
-
Investment10 hours ago
Private equity gears up for potential National Football League investments – Financial Times
-
Media24 hours ago
DJT Stock Jumps. The Truth Social Owner Is Showing Stockholders How to Block Short Sellers. – Barron's
-
Business24 hours ago
Tofino, Pemberton among communities opting in to B.C.'s new short-term rental restrictions – Vancouver Sun
-
Business23 hours ago
A sunken boat dream has left a bad taste in this Tim Hortons customer's mouth – CBC.ca
-
News22 hours ago
Best in Canada: Jets Beat Canucks to Finish Season as Top Canadian Club – The Hockey News
-
News21 hours ago
Ontario Legislature keffiyeh ban remains, though Ford and opposition leaders ask for reversal – CBC.ca