The world is undergoing a paradigm shift, both politically and economically. This article is the second in a four-part series that examines several changes, including the energy transition opportunity, evolving dynamics with emerging markets, and how North America can leverage its comparative advantages to strengthen its position in the global market.
Bumper profits in the hydrocarbons industry should not obscure the fact that we are headed toward a greener future. While not everything that glitters will be gold, the overarching reality is that demand for electricity is expected to grow seven times faster than demand for other end-use energy sources.
And it’s not just the West. In 2022, China’s investments in renewable energy surpassed those of the United States by nearly four times, at US$546-billion. This is the same country that is producing and exporting more electric vehicles than anywhere else in the world.
If you don’t believe this, just look at the activity of financial institutions, for example. At COP26, the UN climate change conference in 2021, financial institutions with more than $130-trillion in assets under management committed to reaching, before 2050, a state of net-zero carbon emissions among the companies they invest in or lend to. This commitment will fundamentally change the way they deploy capital.
Concerns about high electricity generation costs and uncertainty regarding production and storage capacity are gradually being mitigated by technological improvements. With continuous scientific advances and increasing government supports, the costs of both solar and wind energy have plummeted below traditional fuels in some jurisdictions.
With any emergent industry, there’s inherent uncertainty. But consider this: not long ago, solar and wind energy generation were prohibitively expensive and solely reliant on government subsidies. Today, these technologies are cheaper, politically attractive and supported by an abundant inflow of institutional capital, with many big players amassing multibillion-dollar funds to deploy across renewable portfolios.
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Canada Introduces New Rules to Transition to Renewable EnergyThe Canadian government has introduced new rules aimed at ensuring that non-emitting power becomes the backbone of the country's transition to a low-carbon economy. The rules prioritize flexibility, allowing the continued use of fossil fuels during times of high consumer demand and grandfathering existing gas-fueled power plants. However, the proposed regulations have faced opposition, with Alberta Premier Danielle Smith calling them unconstitutional and irresponsible.
Source: globebusiness - 🏆 31. / 66 Read more »
Canadian Government Introduces Regulations to Drive Transition to Clean EnergyThe Canadian government has introduced regulations aimed at making the electricity grid net-zero by 2035. While the regulations may slightly increase the cost of energy, federal officials believe that the savings from moving away from fossil fuels will offset this. The Environment and Climate Change Department estimates that the average household energy bill will increase by $35 to $61 per year by 2040, with only two percent of this increase being attributed to the regulations. The government plans to cover up to half of the cost of the regulations through tax credits, low-cost financing, and other funds. It is expected that Canadians will spend 12 percent less on energy by 2050. However, conservatives are critical of the 2035 target and the potential cost it may impose on consumers.
Source: BNNBloomberg - 🏆 83. / 50 Read more »
The Urgent Need for Rapid Transition to Renewable EnergyGeoff Strong and Richard van der Jagt emphasize the necessity of swiftly replacing fossil fuel energy with renewable energy sources such as solar, wind, geothermal, and hydroelectric power. They also stress the importance of discontinuing support for fossil fuels.
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Canada's Net-Zero Energy Plan Faces Opposition from Fossil Fuel Heavy AreasCanada's plan to transition to a net-zero energy grid is facing opposition from fossil fuel heavy areas of the country. The move is seen as crucial for Canada's economic competitiveness, energy transition, and climate change efforts. However, the Alberta and Saskatchewan governments are against the plan. Federal officials argue that the slight increase in energy costs will be offset by the savings from moving away from fossil fuels. Critics argue that the regulations will lead to higher electricity bills, but economists emphasize the need for a cost-benefit analysis in achieving net-zero.
Source: GlobalNational - 🏆 81. / 51 Read more »
Canadian Government Introduces Regulations to Transition to Clean ElectricityThe Canadian government has proposed regulations to transition the electricity grid to net-zero by 2035. While the regulations may slightly increase energy costs, the government plans to offset this through tax credits and low-cost financing. Environment and Climate Change Canada estimates that the national average household energy bill will increase by $35 to $61 per year if the regulations are adopted, but by 2040, only two percent of that increase will be due to the regulations. The government expects that as people move away from fossil fuels, the increases in energy costs will be offset. Overall, Canadians are projected to spend 12 percent less on energy by 2050.
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Canada Aims to Transition to Non-Carbon-Emitting Power SourcesThe Canadian government has unveiled draft regulations to transition the majority of the country's power grid to non-carbon-emitting sources. With already one of the cleanest electricity grids in the world, Canada aims to meet increasing demand while reducing dependency on fossil fuels. The move is expected to result in a slight increase in household energy bills, but savings from reduced fossil fuel usage, such as recharging electric vehicles, are projected to offset the increase.
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