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Why oil and gas heating bans for new homes are a growing trend – CBC News

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Vancouver and Quebec recently banned certain kinds of fossil fuel-based heating in new home construction. Similar — and, in some cases more extensive — bans are happening around the world, from Norway to New York City. The goal? To cut CO2 emissions from buildings by replacing fossil fuel burning with electric heating. But are such bans necessary? And what impact will they have on people who live in those cities? Here’s a closer look.

Where are fossil fuel heating bans happening in Canada so far?

At least two jurisdictions have implemented recent restrictions on fossil fuel heating:

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This map shows the energy sources used for heating in different provinces in 2015. (CER/Statistics Canada)

Why are fossil fuels for heating being banned now?

It’s happening now because of attempts to: 

Reaching net-zero emissions by 2050 is a key goal of the Paris Agreement on climate change. Canada itself has also committed to reaching net-zero emissions by 2050.

During the recent United Nations COP26 climate summit in Glasgow, Canada and more than 80 other countries signed a Global Methane Pledge to cut emissions of methane — a greenhouse gas far more potent than carbon dioxide — by at least 30 per cent below 2020 levels by 2030.

WATCH | Joe Biden promises major global cut to methane: 

Biden promises major global cut to methane

3 months ago

Duration 4:55

U.S. President Joe Biden pledged a 30 per cent global cut in methane by 2030, an effort to reduce a huge source of greenhouse gases. (Evan Vucci/The Associated Press) 4:55

How would banning fossil fuel heating help Canada and the world reach net zero?

In 2019, buildings were the third largest source of greenhouse gas emissions in Canada, after oil and gas and transport.

Space and water heating represent about 85 per cent of residential greenhouse gas emissions and 68 per cent of commercial emissions.

A 2021 report from the Canadian Institute for Climate Choices on different ways to get Canada to net zero said its modelling consistently shows “electrification of heating as a necessary part of the transition to net zero in Canada’s building sector.”

It’s a strategy endorsed by the International Energy Agency (IEA), an intergovernmental organization affiliated with the Organization for Economic Co-operation and Development that’s focused on secure and sustainable energy.

The IEA recommended in May that bans on new fossil fuel boilers need to start being introduced globally in 2025 and that most old buildings and all new ones must comply with zero-carbon-ready building energy codes. That’s because the lifetime of heating equipment can be a couple of decades.

Local/municipal gas bans and state laws prohibiting restrictions on gas in the U.S. as of Jan. 29, 2022. (S&P Global Market Intelligence)

How would banning fossil fuel heating help to cut methane emissions?

Methane is emitted in the production of all fossil fuels, including coal and heavy oil, even if it isn’t collected for use in the process.

It’s also the main component — 95 per cent — of natural gas, the source of 52 per cent of the energy used to heat Canadian homes in 2018.

LISTEN | Cooking without gas: Why cities are cutting methane from homes: 

What On Earth29:58Cooking without gas: why cities are cutting methane from homes

Some municipalities are taking natural gas out of buildings in a shift to a greener future. Laura Lynch checks in on two towns on either side of Lake Ontario, both leading the way. 29:58

Chris Bataille is an associate researcher with the Institute for Sustainable Development and International Relations (IDDRI), a think-tank based in Paris, and an adjunct professor at Simon Fraser University in British Columbia who researches decarbonization of the economy.

Bataille said the entire system is leaky right from the production wells to consumers’ stoves and furnaces. Eliminating methane from people’s homes would reduce leaks throughout the system.

WATCH | The first step in cutting methane emissions is better ways of measuring them: 

The first step in reducing methane emissions are better ways of measuring them, researchers say

10 months ago

Duration 1:57

The federal government has made big investments in reducing methane emissions from oil and gas operations, but researchers say you can’t reduce what you can’t measure, and there are better ways to measure methane. 1:57

What is replacing fossil fuel heating?

In most cases, fossil fuel combustion is being replaced with electric heating. That can include more traditional but less efficient options, such as baseboard heaters and electric furnaces. However, there has been a big push to instead choose more efficient heat pumps. The Canadian Institute for Climate Choices report found that to drive deeper emissions cuts, the switch to heat pumps “would play an essential and growing role.”

Are similar bans being implemented in other parts of the world?

Yes. They’re most widespread in Europe, which imports 90 per cent of its gas, mostly from Russia, representing a strategic vulnerability beyond climate change itself.

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Some of the leaders include Denmark, which banned installation of oil-fired boilers and natural gas heating in new buildings in 2013, and is now subsidizing the electrification of older buildings, and Norway, which banned the use of oil heating in 2020 and has almost completely electrified its building heating.

Meanwhile, in the United States, there are bans in dozens of municipalities. The largest is in New York City. It passed legislation in December that bans fuel-burning systems in new buildings and major renovations. The ban includes heating, hot water and cooking appliances, although there are exceptions for laundromats and commercial kitchens. It goes into effect on Dec. 31, 2023, for buildings fewer than seven storeys, and on July 1, 2027 for taller buildings.

Mike Henchen is the principal of the carbon-free buildings program at RMI, a U.S.-based think-tank focused on the clean energy transition. He said such policies are popular at the municipal level in the U.S. because cities want to take climate change action, and building codes are something over which they have jurisdiction.

Why is new construction being targeted?

New construction is being targeted largely because electrification of a new home is cheap and relatively simple, Bataille said. He estimates it would add between $5,000 and $20,000 to the cost of a home, which is “virtually nothing” on the scale of the total average Canadian home price of $720,850.

In comparison, retrofitting an older home could cost up to $100,000, he estimates.

Henchen said targeting new buildings also stops the emissions problem from getting worse by preventing the installation of new fossil fuel infrastructure. And it helps to expand the market and industry expertise for solutions such as heat pumps.

What is the natural gas industry’s response to bans?

The industry has lobbied hard against them. There are now state laws pre-emptively outlawing municipal gas bans in close to 20 U.S. states, eliminating one option for local climate action, Henchen said.

“These are certainly backed and encouraged by the gas industry, which is concerned about losing some of their market and especially some of their growth with new customers,” he added.

The Canadian Gas Association says it disagrees with bans on energy sources “because they take away customers’ ability to choose what is best for them, based on their needs and circumstances.” It told CBC’s What On Earth that they also kill opportunities for developing solutions such as renewable natural gas (RNG), hydrogen and carbon capture. RNG is derived from biological sources such as food waste from plants that absorbed carbon as they grew and therefore can be theoretically carbon-neutral.

LISTEN | FortisBC is proposing renewable natural gas for every home connected to the gas system: 

5:23FortisBC is proposing “renewable natural gas” for every new home connected to the gas system

FortisBC is proposing “renewable natural gas” for every new home connected to the gas system. But what would that mean for carbon emissions? And is it in line with Vancouver’s emissions targets? 5:23

Enbridge Inc. says the company sees itself as a “bridge to a cleaner energy future,” and its approach is “to continue to provide people with the energy they need while taking steps to reduce the carbon content of the natural gas we distribute” through technologies such as RNG and hydrogen.

FortisBC, which delivers natural gas and electricity to customers in British Columbia, successfully lobbied for Vancouver to allow an exception for renewable natural gas in its new regulations. Doug Slater, the utility’s vice-president of external and Indigenous relations, said that will allow customers to gradually decarbonize using existing gas infrastructure. It aims to have 15 per cent of its gas supply from renewable sources by 2030.

Are these gas bans working? And are they enough?

“They definitely work in eliminating the burning of fossil fuels in new buildings,” Henchen said.

But both he and Bataille acknowledged that they’re not enough to decarbonize cities.

Henchen said governments also need to stop allowing gas companies to subsidize the expansion of gas infrastructure and the connection of new customers through existing customers’ bills (something that’s happening in Ontario). He said there are already proposals in Colorado and California that will require customers to pay the full cost of new gas connections.

Policies are also needed to electrify existing buildings, and gas bans alone aren’t the right solution, given the cost of retrofits, Bataille said. “We do need some sort of federal and provincial support for people to switch,” he said.

Some municipalities, such as Halton Hills, Ont., and Ithaca, N.Y., are already offering support in the form of zero-interest loans for retrofits.

In the meantime, Bataille urges homeowners to think ahead about decarbonization of their heating systems. He suggests they look at hybrid gas and electric heat pump systems now and take the option to use renewable natural gas if the option is offered.

“Those kinds of things really do help — and they help build the market in the long run.”

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Tesla Promises Cheap EVs by 2025 | OilPrice.com – OilPrice.com

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Tesla Promises Cheap EVs by 2025 | OilPrice.com



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Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

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Tesla has promised to start selling cheaper models next year, days after a Reuters report revealed that the company had shelved its plans for an all-new Tesla that would cost only $25,000.

The news that Tesla was scrapping the Model 2 came amid a drop in sales and profits, and a decision to slash a tenth of the company’s global workforce. Reuters also noted increased competition from Chinese EV makers.

Tesla’s deliveries slumped in the first quarter for the first annual drop since the start of the pandemic in 2020, missing analyst forecasts by a mile in a sign that even price cuts haven’t been able to stave off an increasingly heated competition on the EV market.

Profits dropped by 50%, disappointing investors and leading to a slump in the company’s share prices, which made any good news urgently needed. Tesla delivered: it said it would bring forward the date for the release of new, lower-cost models. These would be produced on its existing platform and rolled out in the second half of 2025, per the BBC.

Reuters cited the company as warning that this change of plans could “result in achieving less cost reduction than previously expected,” however. This suggests the price tag of the new models is unlikely to be as small as the $25,000 promised for the Model 2.

The decision is based on a substantially reduced risk appetite in Tesla’s management, likely affected by the recent financial results and the intensifying competition with Chinese EV makers. Shelving the Model 2 and opting instead for cars to be produced on existing manufacturing lines is the safer move in these “uncertain times”, per the company.

Tesla is also cutting prices, as many other EV makers are doing amid a palpable decline in sales in key markets such as Europe, where the phaseout of subsidies has hit demand for EVs seriously. The cut is of about $2,000 on all models that Tesla currently sells.

By Charles Kennedy for Oilprice.com

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Why the Bank of Canada decided to hold interest rates in April – Financial Post

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Article content

Divisions within the Bank of Canada over the timing of a much-anticipated cut to its key overnight interest rate stem from concerns of some members of the central bank’s governing council that progress on taming inflation could stall in the face of stronger domestic demand — or even pick up again in the event of “new surprises.”

“Some members emphasized that, with the economy performing well, the risk had diminished that restrictive monetary policy would slow the economy more than necessary to return inflation to target,” according to a summary of deliberations for the April 10 rate decision that were published Wednesday. “They felt more reassurance was needed to reduce the risk that the downward progress on core inflation would stall, and to avoid jeopardizing the progress made thus far.”

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Others argued that there were additional risks from keeping monetary policy too tight in light of progress already made to tame inflation, which had come down “significantly” across most goods and services.

Some pointed out that the distribution of inflation rates across components of the consumer price index had approached normal, despite outsized price increases and decreases in certain components.

“Coupled with indicators that the economy was in excess supply and with a base case projection showing the output gap starting to close only next year, they felt there was a risk of keeping monetary policy more restrictive than needed.”

In the end, though, the central bankers agreed to hold the rate at five per cent because inflation remained too high and there were still upside risks to the outlook, albeit “less acute” than in the past couple of years.

Despite the “diversity of views” about when conditions will warrant cutting the interest rate, central bank officials agreed that monetary policy easing would probably be gradual, given risks to the outlook and the slow path for returning inflation to target, according to the summary of deliberations.

Article content

They considered a number of potential risks to the outlook for economic growth and inflation, including housing and immigration, according to summary of deliberations.

The central bankers discussed the risk that housing market activity could accelerate and further boost shelter prices and acknowledged that easing monetary policy could increase the likelihood of this risk materializing. They concluded that their focus on measures such as CPI-trim, which strips out extreme movements in price changes, allowed them to effectively look through mortgage interest costs while capturing other shelter prices such as rent that are more reflective of supply and demand in housing.

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They also agreed to keep a close eye on immigration in the coming quarters due to uncertainty around recent announcements by the federal government.

“The projection incorporated continued strong population growth in the first half of 2024 followed by much softer growth, in line with the federal government’s target for reducing the share of non-permanent residents,” the summary said. “But details of how these plans will be implemented had not been announced. Governing council recognized that there was some uncertainty about future population growth and agreed it would be important to update the population forecast each quarter.”

• Email: bshecter@nationalpost.com

Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here.

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Meta shares sink after it reveals spending plans – BBC.com

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Woman looks at phone in front of Facebook image - stock shot.

Shares in US tech giant Meta have sunk in US after-hours trading despite better-than-expected earnings.

The Facebook and Instagram owner said expenses would be higher this year as it spends heavily on artificial intelligence (AI).

Its shares fell more than 15% after it said it expected to spend billions of dollars more than it had previously predicted in 2024.

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Meta has been updating its ad-buying products with AI tools to boost earnings growth.

It has also been introducing more AI features on its social media platforms such as chat assistants.

The firm said it now expected to spend between $35bn and $40bn, (£28bn-32bn) in 2024, up from an earlier prediction of $30-$37bn.

Its shares fell despite it beating expectations on its earnings.

First quarter revenue rose 27% to $36.46bn, while analysts had expected earnings of $36.16bn.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said its spending plans were “aggressive”.

She said Meta’s “substantial investment” in AI has helped it get people to spend time on its platforms, so advertisers are willing to spend more money “in a time when digital advertising uncertainty remains rife”.

More than 50 countries are due to have elections this year, she said, “which hugely increases uncertainty” and can spook advertisers.

She added that Meta’s “fortunes are probably also being bolstered by TikTok’s uncertain future in the US”.

Meta’s rival has said it will fight an “unconstitutional” law that could result in TikTok being sold or banned in the US.

President Biden has signed into law a bill which gives the social media platform’s Chinese owner, ByteDance, nine months to sell off the app or it will be blocked in the US.

Ms Lund-Yates said that “looking further ahead, the biggest risk [for Meta] remains regulatory”.

Last year, Meta was fined €1.2bn (£1bn) by Ireland’s data authorities for mishandling people’s data when transferring it between Europe and the US.

And in February of this year, Meta chief executive Mark Zuckerberg faced blistering criticism from US lawmakers and was pushed to apologise to families of victims of child sexual exploitation.

Ms Lund-Yates added that the firm has “more than enough resources to throw at legal challenges, but that doesn’t rule out the risks of ups and downs in market sentiment”.

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