By Steve Scherer
OTTAWA (Reuters) –Canada said on Monday it plans to cut carbon emissions more aggressively and issue its first green bonds, part of a global push for more action on climate change.
Ottawa’s budget for the fiscal year ending next March sets a new target to cut emissions by 2030 to 36% below 2005 levels, more ambitious than its previous 30% goal. Canada has a net zero emissions target of 2050.
An even more ambitious 2030 target will be set “in the coming days”, the budget says, probably when Prime Minister Justin Trudeau attends a virtual leaders summit on climate starting on Thursday. It will be hosted by U.S. President Joe Biden, who has put new focus on fighting climate change.
Trudeau has said he wants to “build back better” after the pandemic, but critics have said Canada, the world’s fourth-largest oil producer, may lag the United States if more action is not taken.
“In 2021, job growth means green growth,” Finance Minister Chrystia Freeland said in a speech to lawmakers.
Canada has a carbon pricing scheme but has failed to meet past climate pledges, which have met resistance from politicians who say the targets threaten the oil industry’s future.
In a bid to get the energy sector to pivot toward lower emissions, the budget offers tax credits for capital invested in carbon capture utilization and storage projects, and for hydrogen production, though it said the rate of the incentive would be determined in coming months.
Ottawa will also issue its first green bonds this year to fund projects aimed at fighting climate change. Some C$5 billion will be issued, or about 2% of total government bond issuance during the current fiscal year.
The budget includes C$17.6 billion ($14.1 billion) to support what the government calls a “green recovery”.
That includes investments in companies that specialize in green technologies, as well as a 50% reduction in income tax rates for businesses that manufacture zero-emission technologies, and a C$5 billion top-up to a fund used to invest in and attract green tech companies, including zero-emissions carmakers.
“There are definitely jobs to be found by focusing on technologies like carbon capture, electric vehicles, and clean tech generally,” said Trevin Stratton, chief economist at the Canadian Chamber of Commerce.
The carbon reduction plan will also offer interest-free loans to homeowners of up to C$40,000 to improve energy efficiency.
($1 = 1.2526 Canadian dollars)
(Reporting by Steve Scherer; Editing by Amran Abocar and David Gregorio)
Toronto Stock Exchange rises 0.64% to 19,310.74
* The Toronto Stock Exchange’s TSX rises 0.64 percent to 19,310.74
* Leading the index were Ero Copper Corp <ERO.TO>, up 13.6%, Nexgen Energy Ltd, up 12.6%, and Denison Mines Corp, higher by 10.5%.
* Lagging shares were Kinaxis Inc, down 5.2%, Ballard Power Systems Inc, down 3.9%, and Cominar REIT, lower by 3.5%.
* On the TSX 132 issues rose and 93 fell as a 1.4-to-1 ratio favored advancers. There were 30 new highs and 1 new low, with total volume of 246.0 million shares.
* The most heavily traded shares by volume were Enbridge Inc, Suncor Energy Inc and Manulife Financial Corp.
* The TSX’s energy group rose 3.28 points, or 2.7%, while the financials sector climbed 2.69 points, or 0.8%.
* West Texas Intermediate crude futures fell 0.58%, or $0.38, to $65.31 a barrel. Brent crude fell 0.29%, or $0.2, to $68.68.
* The TSX is up 10.8% for the year.
This summary was machine generated May 5 at 21:03 GMT.
Merkel wants Europe, United States to aim for new trade deal
BERLIN (Reuters) – A trade agreement between the United States and the European Union would “make a lot of sense”, German Chancellor Angela Merkel said in a speech in which she welcomed the United States’ return to the multilateral fold under President Joe Biden.
German enthusiasm for a trade deal and stronger transatlantic ties may have to contend with a more cautious approach in France, where President Emmanuel Macron has made a priority of reducing European reliance on rival superpowers.
Merkel said that while Germany had no interest in a world divided into camps as it was in the Cold War, it was good that the United States, Europe’s “most important ally”, stood alongside Europe in rivalries with China and Russia.
“I have always supported a trade agreement between the United States of America and the European Union,” she told a Berlin conference on the future of transatlantic ties.
“We have trade agreements with so many of the world’s regions. It would make a lot of sense to develop such a trade agreement here, similar to what we have done with Canada,” she added.
Merkel’s transatlantic coordinator Peter Beyer told Reuters in February that Germany and the new U.S. administration should “think big” and aim for an ambitious agenda including a trade deal to abolish industrial tariffs and a WTO reform to increase pressure on China.
The European Union has put reform of the World Trade Organization at the heart of its trade strategy for the next decade, saying global rules on commerce must be greener, take more account of state subsidies and be enforced.
The EU itself feels bruised by trade wars, Brexit and what it sees as unfair competition from China, which it perceives as a “systemic rival”, and is taking more assertive measures to enforce global trade rules and ensure a level playing field.
Merkel said that despite issues with its ratification in the EU, the bloc’s planned investment agreement with China, the comprehensive agreement on investment (CAI), is a “very important undertaking, because it gives us more reciprocity in market access”.
At the same time, it was necessary to address “the whole range of issues” with China, including its human rights record, she added.
The EU executive has hailed the CAI, struck at the very end of 2020, as a means to secure better access for European companies to Chinese markets and redress unbalanced economic ties.
But concerns over China’s human and labour rights record and scepticism from the United States had already cast doubt on the deal’s approval process even before Chinese blacklisting of five members of the European Parliament in tit-for-tat sanctions.
(Reporting by Thomas Escritt, Paul Carrel and Michael Nienaber; EDiting by Giles Elgood)
Canadian dollar posts three-year high as risk appetite climbs
By Fergal Smith
TORONTO (Reuters) – The Canadian dollar strengthened to its highest level in more than three years against its U.S. counterpart on Wednesday, supported by improved investor sentiment and the Bank of Canada‘s recent shift to more hawkish guidance.
The Dow Jones Industrial Average hit a record high as the market recovered from a steep tech sell-off, after investors were encouraged by U.S. Treasury Secretary Janet Yellen’s new comments on interest rates and a positive private jobs report.
“Risk-on conditions” and the recent move higher in commodity prices bolstered the Canadian dollar,” Ronald Simpson, managing director, global currency analysis at Action Economics, said in a note. “In addition, the BoC’s tapering of its QE program appears to have shifted USD-CAD’s trading range down a notch.”
Last month, the Bank of Canada cut the pace of its bond purchases and signaled it could hike interest rates in late 2022.
Further clues to the central bank’s policy outlook could come from Canada‘s April employment report, due for release on Friday.
The Canadian dollar was trading 0.2% higher at 1.2280 to the greenback, or 81.43 U.S. cents, having touched its strongest intraday level since February 2018 at 1.2252.
U.S. crude oil futures settled 0.1% lower at $65.63 a barrel as traders used weekly inventory figures as an excuse to pull back from the recent rally. Oil is one of Canada‘s major exports.
Home sales in Toronto, Canada‘s most populous city, fell nearly 13% in April from March. That bucked the regular spring trend, as demand began to ease after months of blistering growth.
Canadian government bond yields were mixed across the curve, with the 10-year little changed at 1.521%.
(Reporting by Fergal Smith; Editing by Kirsten Donovan and Nick Zieminski)
Canada sends medical supplies to India as COVID-19 overwhelms country’s health care – Global News
Coronavirus: What's happening in Canada and around the world on Wednesday – CBC.ca
The latest news on COVID-19 developments in Canada for Wednesday, May 5, 2021 – moosejawtoday.com
Silver investment demand jumped 12% in 2019
Iran anticipates renewed protests amid social media shutdown
Europe kicks off vaccination programs | All media content | DW | 27.12.2020 – Deutsche Welle
Health15 hours ago
Alberta confirms first death linked to AstraZeneca vaccine
News17 hours ago
Canada taken to court over COVID policy that pushes asylum-seekers to U.S.
News17 hours ago
Alberta toughens COVID-19 restrictions
News16 hours ago
New Zealand parliament says Uyghur rights abuses taking place in China
Economy13 hours ago
Canadian dollar posts three-year high as risk appetite climbs
Health12 hours ago
Younger people filling up COVID-19 intensive care
Media13 hours ago
Britney Spears calls recent documentaries about her ‘hypocritical’
News14 hours ago
U.S. among first foreign countries to join EU defence project, diplomats say