Fwd: Mark Carney gets his first resignation

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Canadian Prime Minister Mark Carney is nearly nine months into his tenure. He spent years building his climate bona fides on the global stage. But since taking over the role, he’s become more open to fossil fuels

Now, the first minister from his cabinet has resigned. Steven Guilbeault — a climate champion in his own right — quit his position last week, citing a split with Carney over a deal made with the government of oil-rich Alberta. Today’s newsletter brings you some of Guilbeault’s first comments since tendering his resignation. 

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Pipeline politics

By Akshat Rathi and Danielle Bochove

Canada is unlikely to reach its net-zero goal due to recent policy changes, said Liberal Party politician Steven Guilbeault, who resigned last week from Prime Minister Mark Carney’s cabinet on account of the shift.

Steven Guilbeault Photographer: David Kawai/Bloomberg

The country was already struggling to bend its emissions curve enough to meet targets over the next decade, Guilbeault told Akshat Rathi in an interview for Bloomberg’s podcast Zero. But a deal between the federal government and the oil-rich province of Alberta jeopardizes the country’s legally binding 2050 net-zero commitment, he said.

“With what has been announced, there’s no way Canada can meet its 2030, even its 2035, climate-change objectives,” he said. “And frankly, I doubt that we could even be carbon neutral by 2050.”

Last month’s memorandum of understanding states that Canada and Alberta remain committed to achieving net-zero greenhouse gas emissions by 2050. But it also promises federal support for one or more new oil pipelines from the province’s tar sands, and opens the door to ending a moratorium on oil tankers off British Columbia’s north coast.

The deal includes a promise to offer tax credits for enhanced oil recovery, a method by which carbon dioxide is injected into the ground to extract oil that would otherwise be inaccessible. Industry proponents tout such production as more sustainable because of the CO2 it stores.

“Some of my colleagues, including some ex-cabinet colleagues, see this as a silver bullet. Like we’ll start producing decarbonized oil,” Guilbeault said. “Hold on a second.” Oil production is responsible for only a fraction of the emissions arising from the fossil fuel. Most is added to the atmosphere when the oil is burned, which this technology isn’t able to capture.

Even so, he doubts a new oil pipeline will materialize. “I don’t believe that a pipeline is going to be built, largely for economical reasons,” he said.

An ex-Greenpeace activist who was once arrested for scaling Toronto’s CN Tower during a protest, Guilbeault was the Liberal government’s culture minister and before that, the environment minister under Prime Minister Justin Trudeau. After Carney was elected in April, he became increasingly concerned about the direction of climate policy and the MOU proved the final straw.

Guilbeault said the attempt to placate Alberta is also fueling a “more robust” separatist movement in his home province of Quebec.

The former minister was responsible for convincing Green Party leader Elizabeth May to support Carney’s recent budget, on the understanding that it did not include fossil fuel subsidies. In a Canadian TV interview after Guilbeault’s resignation, May said she was heartbroken but not surprised given Carney’s decision to add the tax credits to the MOU shortly after the budget came out.

“Your word has to mean something,” she said. “When the budget specifically said there will be no subsidies for enhanced oil recovery and 10 days later a deal with the Alberta premier breaks that, there are some larger questions at play here.”

Guilbeault said he was “puzzled” by Carney’s about-face. “I wouldn’t say that the prime minister lied to me, but what the leader of the Green Party said is true,” he said. “I don’t care that the Alberta government wanted it. It should not have been there in the first place.”

Read the full story on Bloomberg.com. 

Canadian climate headwinds

$35 billion
The amount Royal Bank of Canada said it would commit to low-carbon energy by the end of the decade. The bank — which is Canada's largest — said earlier this year it wouldn't report on its progress toward meeting that goal, though, reflecting the growing challenges for sustainable finance.

Knowledge is power?

"He should know better because he knows the climate science."
Jessica Green
Political scientist, University of Toronto
Green added that Carney "doubling down on fossil fuels" would hurt the Canadian economy and the climate.

This week’s Zero

In his new book Breakneck, tech analyst Dan Wang argues China’s engineering mindset has given it an edge in all sorts of domains, including climate technologies, while America’s lawyerly mindset is holding it back. This week on Zero, Wang tells Akshat Rathi what the world can learn from China and how the US could start to compete on green tech in the future.

Listen now, and subscribe on AppleSpotify or YouTube to get new episodes of Zero every Thursday.

Washington diary

President Donald Trump in the Oval Office during an announcement about relaxing fuel efficiency standards. Photographer: Will Oliver/EPA
  • The Trump administration proposed a new rollback of fuel efficiency standards, with Trump saying it was in the name of affordability. The proposal still must go through a formal rulemaking process and could be finalized next year. It represents the administration’s latest bid to unwind a suite of policies spurring electric vehicle production that Trump has derided as an “EV mandate.”
  • The Federal Emergency Management Agency ordered a group of employees on leave to return to work this week — then put them on leave again. Nearly 200 current and former staffers signed a whistleblower letter in August warning that cuts by President Donald Trump threatened the agency's ability to respond to disasters. The 14 employees who used their names were placed on paid administrative leave, pending an investigation. They were reinstated in late November. However, hours after CNN, Bloomberg and others reported their return to work, they were placed on leave again.
  • The Trump administration has renamed the National Renewable Energy Laboratory. The Golden, Colorado-based lab, which has spearheaded innovations in solar and wind power, will now be called the National Laboratory of the Rockies. The NREL site and references to the lab by its former names are still live, though. The national lab is one of 17 managed by the US Department of Energy.
  • And Trump’s war on renewables continued with a step to thwart the New England 1 wind farm planned off the coast of Massachusetts. The US Bureau of Ocean Energy Management asked a federal judge to send a key permit that was already granted back for further review. The move is part of a broader review of offshore wind projects ordered by the president and reflects the administration’s strong hostility toward the clean energy source.

More from Green

The US government plans to take more equity stakes in critical minerals companies, a White House official said Thursday, calling the once-rare move necessary to counter China’s dominance in the raw materials used in everything from semiconductors to MRI machines.

“I think they’re the norm from our perspective,” said Jarrod Agen, executive director of the National Energy Dominance Council, speaking at a forum in Washington. “There is a broad scope of different companies who are coming to us. They’re making the right case.”

Critical minerals such as gallium and cobalt are used in products ranging from iPhones to industrial magnets. They’re also vital for defense systems, including missile guidance, radar and jet engines, as well as batteries and other technologies needed to cut carbon pollution. Over the past year, the Trump administration has spent over $1 billion to take stakes in critical minerals and mining companies, often sending the companies’ stock prices soaring.

Read the full story, including key details about the deals. 

A sample of gallium. Photographer: Alex Kraus/Bloomberg

The UK is planning to spend big on the grid — and customers will feel the impact. The grid regulator signed off on £28 billion ($37 billion) of upfront funding, with total investment across electricity and gas infrastructure expected to hit £90 billion by 2031. That’ll translate to a £108 increase in the annual network charges added to bills.

India is considering an unprecedented increase in coal power capacity, potentially building new plants until at least 2047. That marks a major shift from current projections that see net additions peaking by 2035. 

A coal-fired power plant in Indonesia scheduled to close down early has reversed course. The government canceled the proposal because of the power plant’s remaining operational life, a minister said Friday, and Indonesia will search for other coal plants to retire.

Dozens of US states are preparing to build new electric car charging stations as money from a Biden-era infrastructure program to speed EV adoption gets flowing again, following a Trump administration freeze on the funds.

More from Bloomberg

  • Business of Food for a weekly look at how the world feeds itself in a changing economy and climate, from farming to supply chains to consumer trends
  • Hyperdrive for expert insight into the future of cars
  • Energy Daily for a daily guide to the energy and commodities markets that power the global economy
  • CityLab Daily for top stories, ideas and solutions, from cities around the world
  • Tech In Depth for analysis and scoops about the business of technology

Explore all Bloomberg newsletters.

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