Connect with us

Hi, what are you looking for?

Commodities & Futures

Canada sets new 2030 carbon reduction target, to issue first green bond

Commodities1 hour ago (Apr 19, 2021 04:15PM ET)

(C) Reuters. FILE PHOTO: FILE PHOTO: Canadian flag flies in front of the Peace Tower on Parliament Hill in Ottawa

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. The Paris climate agreement had called on countries to announce additional cuts this year.

Prime Minister Justin Trudeau will take the new target to a virtual leaders summit on climate starting on Thursday and 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 prepared 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.

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 debt 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.

“What will be important is ensuring that the announcements today put in place the right incentives to spur private investment in these areas.”

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)

Canada sets new 2030 carbon reduction target, to issue first green bond

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Uncategorized

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt.

Uncategorized

Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione.

Uncategorized

Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum.

Uncategorized

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora.

Disclaimer: Buzzclever.com it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Buzz Clever. All Rights Reserved