Update
Since the last post a great deal has happened in the provincial government’s approach to climate. The recognition that climate change is a serious financial and economic matter, not just “political” was provided by Bank of Canada Deputy Governor Timothy Lane in a speech a couple weeks ago in Montreal. Lane observed:
climate change itself and actions to address it will have material and pervasive effects on Canada’s economy and financial system. While many of these will play out over many decades, I will argue that they are already starting to become important. So, the Bank needs to consider these effects as we deliver on our mandate to promote the economic and financial well-being of Canadians.
The Deputy Governor placed considerable emphasis on getting the price of carbon right. Key to supporting Canada’s response to climate change is to find the right incentives to:
- encouraging the use of existing technologies to reduce carbon emissions,
- inspiring the development of new technologies, and
- helping shift consumption and investment toward those goods and services that require less carbon to produce.
In support of these incentives is the importance of greater transparency meaning better disclosure of a companies’ future economic prospects in an era of reduced carbon emissions and production. This is especially important for oil reserves that might become uneconomic (i.e. Exxon-Mobil’s massive write-off of its Kearl Lake oilsands asset).
Other articles found below point to a recognition among institutional investors, like AIMCo, that renewable energy sources are becoming economic and will challenge carbon-based electricity production. Other articles report the NDP’s plan to “distribute freebies” in the form of energy efficient LED lights and energy efficiency measures. There is also more evidence that Alberta’s Energy Regulator is getting tougher on industry “laggards.”