Carney's Climate Competitiveness

Predictions for Forthcoming Climate Policy

For the past month, Canada’s Prime Minister Mark Carney has been talking about “climate competitiveness”, which in the age of President Donald Trump seems like an oxymoron. But hear me out; this is a message to signal alignment with EU, UK, and other net zero minded jurisdictions in juxtaposition to the “energy abundance” direction of the United States.

Two weeks ago Carney teased a “climate competitiveness” framework was forthcoming. Chances are something will be coming before the budget—a suite of policies around the concept of “climate competitiveness”. This list is not exhaustive -- I haven’t included the various possible “innovation funds” or clean-tech venture funds that would be considered “investments” rather than taxpayer spending and subsidies.

Thus, I believe the “Climate Competitiveness” framework could include the following, some of which may be included in the November 4th budget:

1. Enhanced industrial carbon tax, perhaps even a superceding of the provincial programmes.
2. A Carbon Border Adjustment Mechanism (CBAM) -- aligns with EU policy.
3. Mandatory climate disclosures (probably phased in like the EU) -- aligns with EU policy.
4. Enhanced “clean fuel standards”.
5. Renewable contracts for difference -- aligns with UK/EU policy.
6. Decarbonization investment tax credits.
7. Carbon offset/trading market -- aligns with UK/EU policy.
8. Natural Assets Framework that could feed into carbon credit trading.
9. Methane Emissions Performance Standards -- aligns with EU policy.
10. Possibly a “low carbon” trade corridor with Mexico and EU -- this would be slightly different than a CBAM.

*Bonus* 11. Support for Article 6 — Global Carbon Price and Carbon Market (related to point 7).

Please add your predictions in the comments!