Min­is­ter won’t prom­ise bill won’t change

This article was written by Alessia Passafiume and was published in the Toronto Star on January 1, 2026.

With her gov­ern­ment under pres­sure to finally elim­in­ate boil­water advisor­ies in First Nations com­munit­ies, the fed­eral min­is­ter respons­ible for Indi­gen­ous ser­vices isn’t com­mit­ting to bring­ing back a defunct clean water bill in the new year as writ­ten — after two provinces objec­ted to it.

That bill, which died when the last fed­eral elec­tion was called, was draf­ted with input from First Nations and sought to ensure they could pro­tect fresh water sources on their own ter­rit­or­ies.

Prime Min­is­ter Mark Car­ney prom­ised chiefs at the Assembly of First Nations’ gath­er­ing early in Decem­ber that new clean water legis­la­tion would come in the spring.

The bill sought to ensure First Nations could pro­tect fresh water sources on their own ter­rit­or­ies

Indi­gen­ous Ser­vices Min­is­ter Mandy Gull­Masty told the Cana­dian Press last sum­mer she was com­mit­ted to rein­tro­du­cing the pre­vi­ous legis­la­tion — des­pite oppos­i­tion from the pro­vin­cial govern­ments in Alberta and Ontario, which warned in a media state­ment that rein­tro­du­cing the bill as writ­ten would “under­mine com­pet­it­ive­ness and delay project devel­op­ment.”

Gull­Masty vowed in the sum­mer the new bill would affirm First Nations have a human right to access clean drink­ing water. She did not explain how that might work after the pas­sage of legis­la­tion in June that speeds up the approval timeline for major infra­struc­ture projects and gives cab­inet the abil­ity to sidestep some envir­on­mental laws.

In a fol­lowup inter­view with the Cana­dian Press earlier in Decem­ber, Gull­Masty would not com­mit to includ­ing the same source water pro­tec­tions in the new bill. She also wouldn’t say if she is push­ing for those pro­tec­tions around the cab­inet table.

“I don’t want to put aside work that has pre­vi­ously been done. I think that’s found­a­tional. But I do think there has to be a com­pon­ent where you are hav­ing that region­al­ized approach,” she said.

“That bill, while it may not have been per­fect, I think has really put a lot of oppor­tun­ity on the table. When we come back in the spring, we will be announ­cing what the bill is going to look like.”

Car­ney prom­ised Cana­dians dur­ing the spring elec­tion cam­paign that his gov­ern­ment would move rap­idly to mater­i­ally improve their lives.

But many Indi­gen­ous lead­ers say the gov­ern­ment’s pro­gress on address­ing their own com­munit­ies’ crit­ical pri­or­it­ies slowed to a crawl over the past 12 months — that 2025 was a lost year for efforts to repair drink­ing water sys­tems, reform the child wel­fare sys­tem and erad­ic­ate tuber­cu­losis in the North.

In early 2016, the Cana­dian Human Rights Tribunal ruled that Ott­awa’s chronic under­fund­ing of First Nations child wel­fare ser­vices was dis­crim­in­at­ory because it meant kids liv­ing on­reserve were given fewer ser­vices than those liv­ing off­reserve.

The tribunal tasked Canada with reach­ing an agree­ment with First Nations to reform the sys­tem and com­pensate those who were torn from their fam­il­ies and put in foster care.

The Trudeau gov­ern­ment, fol­low­ing nego­ti­ations with the Chiefs of Ontario, Nish­nawbe Aski Nation and the Assembly of First Nations, presen­ted a $47.8 bil­lion com­pens­a­tion and reform pack­age in 2024. First Nations chiefs and their prox­ies voted to reject it that same year; many opposed it because the fund­ing would only be avail­able for 10 years and would be sub­ject to annual reviews.

After the tribunal ordered both sides to present it with new child wel­fare set­tle­ment plans by the end of Decem­ber, it ended up with two pro­pos­als. Ott­awa’s would provide $35.5 bil­lion in fund­ing up to 20332034, fol­lowed by an ongo­ing com­mit­ment of $4.4 bil­lion annu­ally. The First Nations pro­posal, mean­while, calls for the co­devel­op­ment of a stat­utory fund­ing mech­an­ism between First Nations and Ott­awa.

Gull­Masty told the Cana­dian Press she has spent a lot of time ana­lyz­ing the file, learn­ing what dif­fer­ent groups want and think­ing through approaches to reform.

“We’re obliged to respond to the tribunal, but we are also obliged to respond to com­munit­ies that are ask­ing for their own pro­cess,” she said.

Crit­ics decry PCs’ devel­op­ment plan

Province to cre­ate `spe­cial eco­nomic zones’ to off­set effects of U.S. tar­iffs

Premier Doug Ford, left, and Economic Development Minister Vic Fedeli are fasttracking development in Ontario with new regulations that allow the province to bypass local and provincial rules for “trusted proponents and projects.”

This article was written by Rob Ferguson and was published in the Toronto Star on January 1, 2026.

Ontario is pav­ing the way for Premier Doug Ford’s con­tro­ver­sial “spe­cial eco­nomic zones” in 2026 amid other changes that include mak­ing life tougher for impaired drivers and easier for skilled work­ers mov­ing here.

Step­ping up the push to fast­track devel­op­ment to off­set eco­nomic dam­age from U.S. Pres­id­ent Don­ald Trump’s tar­iffs, new reg­u­la­tions tak­ing effect Thursday let the province bypass local and pro­vin­cial rules for “trus­ted pro­ponents and projects.”

But crit­ics are wor­ried pro­tec­tions for the envir­on­ment, work­ers, wild­life, endangered spe­cies, Indi­gen­ous com­munit­ies and their treat­ies will be watered down in what they dub “no law” zones.

Ford, who is keen to develop the vast Ring of Fire’s crit­ical min­eral depos­its in north­west­ern Ontario for elec­tric vehicles, defence projects and other indus­tries, argued too much red tape would hold projects back at a crit­ical time.

“We need to get mov­ing, folks,” he told report­ers when Bill 5, legis­la­tion estab­lish­ing the zones, passed in June.

“We aren’t going to sit back and wait 15 years to get shovels in the ground while the whole world is eat­ing our lunch,” he added, not­ing that’s how long it can take to open a mine in Ontario.

Eco­nomic Devel­op­ment Min­is­ter Vic Fed­eli sig­nalled two weeks ago that the province is work­ing with “inter­ested part­ners” to des­ig­nate the first sites.

“Spe­cial eco­nomic zones will bol­ster Ontario’s advant­age by cut­ting red tape, accel­er­at­ing approvals and pro­tect­ing the jobs and indus­tries that keep our province resi­li­ent and com­pet­it­ive,” he said.

The zones will be a “crit­ical tool to accel­er­ate major nation­build­ing projects and secure job­cre­at­ing invest­ments that deliver last­ing prosper­ity for our work­ers,” Fed­eli said.

He pledged to main­tain the province’s stand­ards for envir­on­mental pro­tec­tions and to con­sult with rel­ev­ant parties — includ­ing Indi­gen­ous com­munit­ies, some of which were vig­or­ously opposed to Bill 5.

Oppos­i­tion parties aren’t buy­ing Fed­eli’s assur­ances about the zones, which can be des­ig­nated any­where in the province, such as on prime farm­land.

“You can­not trust this gov­ern­ment to give them­selves unlim­ited powers,” said New Demo­crat Leader Marit Stiles, cit­ing the Pro­gress­ive Con­ser­vat­ive gov­ern­ment’s $8.28­bil­lion Green­belt land swap scan­dal now under crim­inal invest­ig­a­tion by the RCMP.

Green Leader Mike Schreiner issued his own warn­ing given that Ford is under fire for his $2.5­bil­lion Skills Devel­op­ment Fund that gave hefty pay­outs to hun­dreds of groups with low­ranked applic­a­tions — with Labour Min­is­ter David Pic­cini now under invest­ig­a­tion by Ontario’s integ­rity com­mis­sioner over it.

“Spe­cial eco­nomic zones will open the door to back­room deals and insider giveaways, while Indi­gen­ous rights, envir­on­mental pro­tec­tions, worker rights and local demo­cracy suf­fer,” Schreiner said.

Under the reg­u­la­tions filed Dec. 16, Fed­eli must be con­vinced projects are “eco­nom­ic­ally sig­ni­fic­ant or stra­tegic­ally import­ant” and that pro­ponents have “a good record of com­ply­ing with legal require­ments” such as health and safety for work­ers, the envir­on­ment and fin­an­cial stand­ards. (The same goes for any sub­con­tract­ors a cor­por­a­tion or other pro­ponent hires to work on a project.) In addi­tion, Fed­eli must be con­vinced pro­ponents “do not pose a secur­ity risk” and he must con­sent to any change in the con­trol of a com­pany build­ing a project.

Also in regard to Ontario’s eco­nomy, the province is now allow­ing cer­ti­fied pro­fes­sion­als — includ­ing health­care work­ers, archi­tects, engin­eers, land sur­vey­ors and elec­tri­cians — from other Cana­dian jur­is­dic­tions to start jobs in Ontario shortly after arriv­ing.

They can work on a pro­vi­sional basis until their cer­ti­fic­a­tions are form­ally recog­nized by the rel­ev­ant Ontario reg­u­lat­ory author­it­ies. The change is inten­ded to help employ­ers in Ontario get the skilled work­ers they need.

Mean­while, Ontario is also tak­ing aim at drivers who get behind the wheel when they shouldn’t. Amend­ments to the High­way Traffic Act now impose life­time sus­pen­sions for any­one con­victed of impaired driv­ing caus­ing death.

Other meas­ures include man­dat­ory remedial edu­ca­tion for drivers after first­time alco­hol and drug occur­rences, longer road­side sus­pen­sions for driv­ing under the influ­ence, auto­matic man­dat­ory min­imum licence sus­pen­sions upon con­vic­tion for stunt driv­ing and life­time licence sus­pen­sions upon a third con­vic­tion for vehicle theft.

Addi­tion­ally crack­ing down on auto theft, a new offence under the High­way Traffic Act provides for fines up to $100,000 and six months in jail for know­ingly provid­ing a false vehicle iden­ti­fic­a­tion num­ber when selling an auto­mobile. That’s in addi­tion to a licence sus­pen­sion of up to a year. (Fur­ther changes pro­posed in Novem­ber under “Andrew’s Law,” but not yet passed by the legis­lature, would impose a life­time driv­ing ban for any­one con­victed of dan­ger­ous driv­ing caus­ing death.)

Also tak­ing effect in 2026:

■ For homeown­ers, the Muni­cipal Prop­erty Assess­ment Cor­por­a­tion will now be able to send assess­ment notices by email.

■ Updates to the Ontario Fire Code require homeown­ers and land­lords to install work­ing car­bon monox­ide detect­ors on every floor of a res­id­ence. Some detect­ors mon­itor for both smoke and car­bon monox­ide.

■ Par­ents receiv­ing Cana­dian Dis­ab­il­ity Bene­fits will no long have those pay­ments con­sidered as income when determ­in­ing eli­gib­il­ity for child­care­fee sub­sidies.

Spe­cial eco­nomic zones will open the door to back­room deals and insider giveaways, while Indi­gen­ous rights, envir­on­mental pro­tec­tions, worker rights and local demo­cracy suf­fer. MIKE SCHREINER ONTARIO GREEN PARTY LEADER

How cheap solar power is transforming economies across Africa

This article was written by Somini Sengupta and was published in the Globe & Mail on January 1, 2026.

Solar panels are seen in Cape Town, South Africa, in December. Chinese solar panels are finding enormous markets in Africa, where around 600 million people lack reliable electricity.

Businesses, individuals flock to technology, forcing South African power utility to rethink licensing requirements

Ismet Booley, a dentist in Cape Town, had a serious problem a few years ago. Patients showed up for appointments, only to find the power had gone out.

No power meant no X-rays, no fillings, no root canals. “I just couldn’t work,” Dr. Booley said.

South Africans like Dr. Booley have found a remedy for power cuts that have plagued people in the developing world for years. Thanks to swiftly falling prices of Chinese-made solar panels and batteries, they now draw their power from the sun.

These aren’t the tiny, oldschool solar lanterns that once powered a light bulb or TV in rural communities. Today, solar and battery systems are deployed across a variety of businesses – auto factories and wineries, gold mines and shopping malls. And they are changing everyday life, trade and industry in Africa’s biggest economy.

This has happened at startling speed. Solar has risen from almost nothing in 2019 to roughly 10 per cent of South Africa’s electricity-generating capacity.

No longer do South Africans depend entirely on giant coalburning plants that have defined how people worldwide got their electricity for more than a century. That’s forcing the nation’s already beleaguered electric utility to rethink its business as revenues evaporate.

Joel Nana, a project manager with Sustainable Energy Africa, a Cape Town-based organization, called it “a bottom-up movement” to sidestep a generationsold problem. “The broken system is unreliable electricity, expensive electricity or no electricity at all,” he said. “We’ve been living in this situation forever.”

What’s happening in South Africa is repeating across the continent. Key to this shift: China’s ambition to lead the world in clean energy.

Over the past decade, while the United States ramped up fossil fuel exports, China has focused on dominating renewables. Today, Chinese companies make so many of the world’s solar panels, electric vehicles and batteries that they are slashing prices and scrambling to find buyers.

Tariffs have thwarted them somewhat in the United States and Europe, but they’re finding enormous new markets in Africa, where around 600 million people lack reliable electricity. Across the continent, solar imports from China rose 50 per cent the first 10 months of 2025, continuing a trend, according to a review of Chinese export data by Ember, a British energy-tracking group.

South Africa was the largest destination for Chinese solar, but not the only one. Sierra Leone imported the equivalent of more than half its total current electricity-generating capacity, and Chad, nearly half.

China has much to gain. Not least, new markets and new geopolitical influence. Its companies are doing more than just exporting. State-owned Power China is also building utility-scale solar farms in South Africa, as in other developing economies.

And now China is bidding on contracts from the state-owned utility, Eskom, to add 14,000 kilometres (about 8,700 miles) of transmission lines that South Africa desperately needs to move its increasing supply of solar power around the country.

“Obviously we don’t have money for that,” South Africa’s deputy minister for electricity and energy, Samantha GrahamMaré, said in an interview, referring to the hefty upfront costs of expanding the grid.

Who does? China. Chinese state-owned companies are among several international firms to bid on South Africa’s US$25-billion grid expansion, vying to build the lines and then make money, in part, by operating them. Chinese firms hold similar build-operate contracts in countries including Brazil and the Philippines.

The solar surge does little to address the most pressing social and economic problems of developing countries like South Africa, the need to generate new jobs for millions of young citizens. Installation labour is local, but the panels and batteries are almost all made in China.

“The economic trade-offs are significant,” said Marvellous Ngundu, a researcher with the Institute of Security Studies, a think tank in Pretoria. “Jobs are created elsewhere. South Africa consumes advanced green technologies without capturing the industrial benefits.”

The rapid shift by so many businesses and people to install their own panels and batteries is causing headaches for Eskom, the already troubled utility.

Every kilowatt generated by privately owned solar installations is a hit to its bottom line. Eskom’s coal-burning plants, which provide most of South Africa’s power, are old and in poor shape.

Power cuts have subsided recently, but it wasn’t long ago that Eskom had to turn off electricity to some areas for hours at a time – a practice called “load shedding” that hurt the economy and fed public anger. During the worst days of load shedding, the latest of which came in early 2024, even Ms. Graham-Maré, the deputy electricity minister, installed a solar system in her home. Her energy bill, she said, fell by two-thirds.

Multiply her hack by the thousands and you have what South Africans call Eskom’s “death spiral.” Well-off customers lower their bills with solar, which causes Eskom to lose money, which in turn forces Eskom to raise prices and encourages more people to install solar.

It doesn’t help that some people tap power lines to draw electricity illegally, without paying for it, or that Eskom has suffered years of mismanagement.

In the past five years alone, South Africans installed solar panels representing more than seven gigawatts, or about onetenth of the total installed capacity of 55 gigawatts. Most is privately owned.

Now, unable to beat solar, Eskom is joining solar.

The utility has removed onerous licensing requirements on private installations. It has allowed people to sell power to the grid. And it has tweaked its rates so that customers pay a fixed charge in addition to the cost of any power they consume. Essentially, people pay simply to be connected to the grid, a standard feature in other nations that’s new in South Africa.

Eskom is now planning to erect large solar arrays on the grounds of shuttered coal plants. And by 2040 it intends to shift its predominantly coal-based system to cleaner sources. “That’s where the world is moving,” said Nontokozo Hadebe, Eskom’s sustainability chief.

If the speed of the change is remarkable, it’s still leaving some of South Africa’s most difficult economic problems unresolved, or is making them worse.

The problem, experts said, is that South Africa lacks policies to require local manufacturing. But creating them would drive up costs. The prices of made-in-China panels are by far the lowest in the world.

South Africa’s rapid pivot to Chinese solar gear, as affordable as it is, also doesn’t resolve a basic problem. The country’s poorest citizens still can’t afford to put up their own panels.

They lack the money to buy the gear outright and the ability to get loans.

In Langa township, one of Cape Town’s largest low-income suburbs, one of the rare businesses with solar is Colin Mkosi’s bicycle delivery service, Cloudy Deliveries. His single panel, donated by a charity, powers a few lights and computers. It doesn’t provide nearly enough to charge the electric bikes his business relies on.

The e-bikes are, of course, from China. But his power still comes from South Africa’s unreliable grid. “It’s expensive,” he said, and “we can’t operate without electricity.”

Mr. Mkosi’s wants are part of a broader problem. South Africa buys growing volumes of highvalue technologies from China, while selling it raw materials of limited value. China overtook the U.S. as its biggest trading partner in 2008. With its trade gap rising to more than US$9-billion in 2023, compared with barely US$1-billion in 2000, there are increasing calls to make trade relations with China less unequal.

The difference between South Africa’s trade ties with China and with the U.S. is stark.

U.S. President Donald Trump has imposed a 30-per-cent tariff on South African goods and excluded the government from participating in an international summit of the world’s 20 biggest economies. He has also reversed a Biden administration plan to help the country accelerate its planned closures of its oldest, dirtiest coal plants.

“As relations with the United States have become increasingly strained, Beijing has positioned itself as a reliable and sympathetic partner,” Mr. Ngundu said.

Changes to anti-greenwashing law will increase risk for companies

This opinion was written by Conor Chell and was published in the Globe & Mail on January 1, 2025.

The proposed new amendments to the anti-greenwashing provisions in the federal Competition Act were intended to give businesses some breathing room. But if passed as currently drafted, they may do the opposite and constrain them by creating more legal risk, more uncertainty and a wider gap between what companies say and what they can actually prove.

For the past year, Canada has been home to some of the most stringent and widely discussed anti-greenwashing rules in the world. The original amendments under Bill C-59 required companies making environmental or climaterelated claims about their business to substantiate them using “an internationally recognized methodology.” That language, although imperfect, at least pointed organizations toward established frameworks – the International Organization for Standardization (ISO), the Greenhouse Gas (GHG) Protocol, science-based target methodologies, and third-party assurance practices.

The government has now proposed removing the “internationally recognized methodology” requirement altogether and that change is expected to pass into law in early 2026. In its place, organizations will fall back on the general due-diligence standard that already exists in competition law: claims must be adequately and properly substantiated. On paper, that may sound flexible. In practice, it will be a problem.

Most organizations are not currently set up to substantiate their sustainability and climate-related representations to the level that Canadian courts and regulators have historically required when assessing “adequate and proper” testing.

That threshold – shaped by decades of misleading advertising cases – is surprisingly high. It often requires objective, measurable evidence that is replicable, independently verifiable and directly linked to the claim being made. Many companies making forward-looking climate statements, high-level environmental, social and governance (ESG) claims, or qualitative sustainability assertions simply do not have that level of evidentiary rigour in place.

This wide disconnect exists despite the public believing that businesses are now under stricter scrutiny. The antigreenwashing debate has been frontpage news for months.

The very idea that companies must be prepared to defend their climate and environmental claims has woven itself into Canada’s collective conscience. But removing the methodological requirement will not lower public expectations – it will raise questions about what substantiation means, and whether companies can credibly meet it.

The problem is even more acute when you look at how organizations assess their own readiness. According to KPMG’s most recent Global CEO Outlook, more than 60 per cent of the 1,350 CEOs polled believe they are on track to meet their net-zero ambitions and the sustainability claims underpinning them, yet fewer than 30 per cent have allocated the capital and resources needed to achieve those goals. This creates what I call a “substantiation gap”: companies feel confident enough to make sweeping climate and sustainability claims, but have not invested enough to credibly meet them.

This gap is already visible in practice. In reviewing Canadian companies’ sustainability disclosures, we continue to find numerous misrepresentations. These issues ranged from minor overstatements to material omissions, but the volume alone demonstrates how far many companies still are from the level of evidence regulators and the courts expect.

Some argue that risk will decrease because the government also removed the new private right of access to the Competition Tribunal, which would have allowed private parties to bring greenwashing complaints. But this change is unlikely to meaningfully reduce exposure. In the months since Bill C-59 passed, no private complaints were filed – likely due to the cost, complexity and the inability for complainants to seek monetary damages. Meanwhile, greenwashing allegations have simply migrated elsewhere.

We have already seen:

■ a complaint to the Alberta Securities Commission alleging misleading climate representations,

■ an enforcement proceeding initiated by the Ontario Securities Commission involving similar issues and

■ a civil lawsuit alleging mismanagement of climate-related risks.

In other words, even without a private right of action under the Competition Act, plaintiffs, investors, activists and regulators have found – and will continue to find – other avenues to advance greenwashing claims.

Taken together, these factors point in one direction: legal risk will increase, not decrease, if the proposed amendments are enacted.

Companies will face higher expectations from the public, stricter scrutiny from regulators, more complex evidentiary standards and a growing substantiation gap between what they say and what they can prove.

The solution is not to avoid sustainability disclosures or retreat from climate commitments. It is to professionalize them. Canadian organizations would be well-served to undertake a formal, comprehensive legal risk assessment of their sustainability disclosures and to understand, in concrete terms, what is actually required to substantiate the claims they make.

Clear, credible sustainability communication is not a regulatory burden – it is a competitive advantage. But only if it can withstand scrutiny.

Oil prices appear set for biggest annual drop since 2020

This article was written by Enes Tunagur and Laila Kearney, and was published in the Globe & Mail on January 1, 2026.

Oil prices were slightly lower on Wednesday, and headed for a fall of more than 15 per cent in 2025, as expectations of oversupply increased in a year marked by wars, higher tariffs, increased OPEC+ output and sanctions on Russia, Iran and Venezuela.

Brent crude futures were down over 17 per cent – the most substantial annual percentage decline since 2020 – and were on track for a third straight year of losses, their longest-ever losing streak. U.S. West Texas Intermediate crude was headed for a near 19-per-cent annual decline.

BNP Paribas commodities analyst Jason Ying anticipates Brent will dip to US$55 a barrel in the first quarter before recovering to US$60 a barrel for the rest of 2026 as supply growth normalizes and demand stays flat.

“The reason why we’re more bearish than the market in the near term is that we think that U.S. shale producers were able to hedge at high levels,” he said.

After rising slightly earlier in the day, Brent futures were down 31 cents at US$61.02 a barrel by Wednesday evening, while U.S. WTI crude was at US$57.59, down 36 cents. The 2025 average prices for both benchmarks are the lowest since 2020, LSEG data showed.

U.S. crude stocks fell last week, but distillate and gasoline inventories grew more than expected, according to data from the U.S. Energy Information Administration.

“It was a modestly supportive report on crude drawdown but the inners of the report are not so great and it will probably be a rough January and February with the holidays in the rear-view mirror,” said John Kilduff, partner at Again Capital Markets.

Crude inventories fell by 1.9 million barrels to 422.9 million barrels in the week ended Dec. 26, the EIA said, compared with analysts’ expectations in a Reuters poll for an 867,000barrel draw.

U.S. gasoline stocks rose by 5.8 million barrels in the week to 234.3 million barrels, the EIA said, compared with analysts’ expectations for a 1.9 million-barrel build. Distillate stockpiles, including diesel and heating oil, rose by five million barrels to 123.7 million barrels, compared with projections of a 2.2-million-barrel rise.

Oil markets had a strong start to 2025 when former president Joe Biden ended his term by imposing tougher sanctions on Russia, disrupting supplies to major buyers China and India. The impact of the war in Ukraine on energy markets intensified when Ukrainian drones damaged Russian infrastructure and disrupted Kazakhstan’s oil exports.

The 12-day Iran-Israel conflict in June added to the threats to supply by disrupting shipping in the Strait of Hormuz, a major route for global seaborne oil, which fanned oil prices. In recent weeks, OPEC’s biggest producers, Saudi Arabia and the United Arab Emirates, have become locked in a crisis over Yemen, and U.S. President Donald Trump has ordered a blockade on Venezuelan oil exports and threatened another strike on Iran.

But prices eased after OPEC+ accelerated its output increases in 2025 and as concerns about the impact of U.S. tariffs weighed on global economic and fuel demand growth.

OPEC+, which groups the Organization of the Petroleum Exporting Countries and its allies, has paused oil output hikes for the first quarter of 2026 after releasing some 2.9 million barrels a day into the market since April. The next OPEC+ meeting is on Sunday. Most analysts expect supply to exceed demand in 2026, with estimates ranging from the International Energy Agency’s 3.84 million b/d to Goldman Sachs’ 2 million b/d.

“If the price really has a substantial fall, I would imagine you will see some cuts [from OPEC+],” said Martijn Rats, Morgan Stanley’s global oil strategist. “But it probably does need to fall quite a bit further from here on – maybe in the low $50s.”

“If today’s price simply prevails, after the pause in Q1, they’ll probably continue to unwind these cuts.”

For California farmers, agave plant offers hope in parched times

This article was written by Nathan Vanderklippe and was published in the Globe & Mail on January 1, 2026.

Stuart Woolf, president and CEO of Woolf Farming Company, is seen in a field where he grows agave for distilling, in Huron, Calif., in November.

As typical crop yields shrink in the face of drought, growing and distilling agave may be a sustainable solution because of its ability to transform dry earth into the fat, sugar-laden piña hearts

Humans have made the agave plant an object of prickly obsession for thousands of years.

For ancient Mesoamericans, it was a civilization-building source of fibre and food. For early European explorers, it was an object of curiosity, transported home and given new places to grow in monastery gardens.

For scientists, it continues to be a source of biological fascination, equipped with three different methods for reproduction and an unusual type of photosynthesis. And for drinkers, it is the plant base for tequila, which has overtaken whisky sales in the U.S. and is now challenging vodka for boozy dominance.

Now, for a small group of California dreamers, farmers and distillers, agave – and its remarkable ability to transform dry earth into the fat, sugar-laden piña hearts at the plant’s core – is a source of hope in parched times. As water shortages force the state’s irrigation-dependent agricultural sector to contemplate the fallowing of up to a 10th of its fields, a hunt is on to find a crop that can flourish without floods of artificial hydration.

In California’s Central Valley, almonds require roughly 125 centimetres of water a year, and pistachios need 100. Agave needs six centimetres – or maybe, even less. It is “crazy water-tolerant and drought-tolerant,” said Stuart Woolf, who farms southwest of Fresno.

Mr. Woolf is the overseer of a generational family operation that, today, extends across 30,000 acres and supplies roughly one in five tomatoes used by ketchup-maker Heinz in the U.S. Its success depends heavily on irrigation supplies that are expected to diminish greatly in the future. Without some major changes, Mr. Woolf will no longer be able to grow crops on thousands of his acres, provoking existential questions.

“We’re on a glide path where we’re only going to be able to farm about 60 per cent of our land. So I have to find what do I do with the other 40 per cent?” he says.

One solution lies in installing solar panels in fields, which can generate revenue without requiring local water. Another option could be growing guayule, a desert shrub that can be used to make rubber. But building a facility to process rubber is unlikely to be a small investment. Besides, “rubber is probably more of a commodity than a nice bottle of tequila,” Mr. Woolf says.

He can’t use the name “tequila” for anything he later chooses to distill from his agave, however – that name is protected in Mexico. So, too, is “mezcal.”

But he can grow the plant, and his state recently designated “California Agave Spirits” as an official label. Mr. Woolf has now planted hundreds of acres, making him California’s largest grower. “For me, looking at a world where I don’t have enough water – this is a natural thing to lean into,” he said.

California has already built itself into a major force in global booze, expanding its wine industry from a small regional producer to the world’s fourth-largest, behind Italy, France and Spain. Its climate and geography brought new character to an established product.

Mr. Woolf hopes agave can tread a similar path.

“I’ve done a lot of research sitting in airport bars talking to people. And honestly, every time there’s this level of enthusiasm – like, this is the greatest idea. You’re growing a drought-tolerant crop. And why wouldn’t we have a spirit that’s different from Mexico?”

Traditionally, tequila is made from Blue Weber agave, while mezcal comes from Espadín agave. Both are plants with established lineages and distinct features: Blue Weber, true to its name, is identifiable by the cobalt hue of its leaves. Espadín distinguishes itself with blood-red tips. The distilled spirit it yields has a flavour, too, that is distinct from tequila.

Then, there is Yolo, the plant with an uncertain pedigree that has become the foundation for California’s nascent industry. Not even Craig Reynolds, the man who is arguably the state’s agave pioneer, can tell you where it came from.

“I got it from a guy in Riverside who said he got it in Mexico and it was Blue Weber. But it turned out not to be,” said Mr. Reynolds.

He dubbed it Yolo for the county where he began growing a test plot in 2014.

The rows of agave there form an unlikely experiment, presided over by an unlikely figure. Mr. Reynolds is an affable former political staffer to California state Democrats. These days, he navigates farm fields in his Toyota Tacoma, several bottles of spirits perched on the backseat for impromptu tasting sessions. He developed an interest in agave by accident, as part of a charity project nearly two decades ago that involved making tequila.

The experience planted a thought that maybe agave was an appropriate crop for the California environment. When a friend offered a plot of land, he decided to try.

He built his own pit to cook piñas – the first step to release their sugars before distillation – the traditional way. He imported basic tools and vocabulary from Mexico, such as the round-headed coa hoe used to chop down plants.

Any road trip through California makes it obvious that agave can grow in the state, where the Mexican community has planted it as a decorative element for years. What Mr. Reynolds didn’t know – and what he and others continue to learn – is how to nurture fields of it.

Full answers have not yet been established to basic questions: What time of year is best to plant? How much water is required? What will happen to plants in low-lying areas susceptible to frost? How long will they take to mature? How much will they yield?

Those uncertainties inform what is likely to be the most important question of all: Is there money to be made in California agave?

Early signs, however, look good. In Mexico, it typically takes seven years to grow a 30-kilogram agave piña. In California, Mr. Woolf harvested an 84-kilogram piña in four years that had 60 per cent more sugar content than what is common in Mexico. That suggests it might be possible to distill four times the bottles per acre in California.

“The technical challenge is how to accelerate growth to become a more profitable enterprise,” said Josué Medellín-Azuara, a University of California, Merced, professor who studies water management and sustainable agro-ecosystems.

Labour costs in California are far higher than those in Mexico and mechanical agave harvesters are not yet commercially available, although work has begun to develop that technology.

“But to me, it looks very promising. I personally would invest in it if I could,” said Prof. Medellín-Azuara.

Interest has already begun to spread outside U.S. borders. Mr. Reynolds said the director of agriculture operations from Jose Cuervo has paid a visit from Guadalajara, Mexico, to see his plants.

Mr. Woolf, meanwhile, has been chatting with Revival Stillworks in Sidney, B.C., which designs distilleries across North America. Revival co-founder Brandon Fry has spent the past year researching tequila, the size and type of equipment required, and how much it might all cost to set up.

Revival is now working on two larger California distilleries, “and then a number of people have contacted us about smaller distilleries,” Mr. Fry said.

“We do believe that it’s going to be fairly popular.”

Those who are optimistic suggest California farmers could plant tens of thousands, or perhaps 100,000, acres of agave. This would be a hugely ambitious expansion, although modest compared with the state’s 710,000 acres of grapes and 1.5 million acres of almonds. (More than 300,000 acres of agave are grown in Mexico for tequila.)

Less clear is what use Californians could find for agave. Current levels of interest suggest a surge in output that could exceed distillation capacity, while relatively limited production capacity would mean “the spirits themselves are going to be very expensive for the foreseeable future,” said Clayton Szczech, a sociologist and author of A Field Guide to Tequila.

That’s not to mention the difficulty of making something people want to drink. “Fermenting agave is very different than fermenting other sugar sources,” Mr. Szczech said, adding that those in California are in a different environment, “where people haven’t been doing this for hundreds of years.”

Other products may also emerge. Agave, like corn, could be used to make biofuels. Its inulin may have value as an additive with the potential to sweeten food and improve mouth-feel.

“If it can be grown, California agribusiness will find a way to make it profitable,” Mr. Szczech said.

Whether the transformation of agave into fuel or booze actually cuts water use remains to be seen.

But there is a historical resonance to a drought-stricken state turning to agave, a plant that has helped humans “live in these rugged environments for 10,000 years,” Mr. Szczech said.

In many ways, though, agave is bringing California into unknown territory. Yolo agave yields a spirit that tastes different from both tequila and mezcal. The plant may, in fact, be a hybrid between Blue Weber and Espadín.

Which creates another question that doesn’t yet have a good answer: “What is a California agave spirit? How is it different? And what does it have to offer to the wider world of spirits?” asks Henry Tarmy, a founder of Ventura Spirits, a California craft distillery.

Ventura has begun to explore some of what that could mean. A penca spirit that is made from agave leaves yields a clear distillation with an intense floral character. A liqueur fashioned from agave aguamiel, the sweetened liquid extracted from cooked piñas, is a coffee-coloured concoction, sweet with notes of caramel and cacao. It’s the farthest thing from a margarita or the tequila-lime-salt combination that most people associate with agave.

“It steers headfirst into adventure,” says Hans Galindo, who works in the Ventura tasting room.

“Because we’re not making tequila, we don’t necessarily have to stay within the standards of tequila.”

Maybe, he says, it’s a taste of what California can do.

What it takes to make that cup of fresh cof­fee

Cli­mate change, tar­iffs and more are stir­ring up java costs

This article was written by Ritika Dubey and was published in the Toronto Star on December 31, 2025.

As a stream of roas­ted cof­fee beans drops into a bar­rel, it fills an Oak­ville roast­ery with a smell prac­tic­ally strong enough to caf­fein­ate you.

The roas­ted beans, now a rich, deep brown, were once small and green, bagged in large bur­lap sacks and shipped to Cana­dian ports from the cof­fee­pro­du­cing coun­tries of Ethiopia, Colom­bia and Brazil.

It’s at Reunion Cof­fee Roast­ers where they find their defin­ing char­ac­ter. The strength of your brew and whether it will taste fruity or earthy is meth­od­ic­ally decided at the roast­ery’s lab, where they sample vari­ous beans and per­fect the taste.

Walk­ing through his roughly 50,000 square­foot roast­ery, Reunion pres­id­ent Adam Pesce points out industry­scale machines where the green beans are washed, weighed and roas­ted to get the pre­ferred col­our, fla­vour and aroma.

“Cof­fee roast­ing is a lot like bak­ing,” said Pesce, a second­gen­er­a­tion cof­fee roaster. It’s all about per­fect­ing the tem­per­at­ure, roast time and air­flow.

Each batch of beans, weigh­ing about 460 pounds, is roas­ted at 450 degrees in a rotat­ing drum for a period of time, usu­ally a little more than 10 minutes, before being dumped into a cool­ing cham­ber to pre­serve their fla­vour. The roast­ery pro­cesses 37,500 pounds of cof­fee a week.

While the roast­ing pro­cess hasn’t changed drastic­ally over the years, the cof­fee industry has.

Import prices for unroas­ted cof­fee beans have more than doubled over the past three years, accord­ing

to an ana­lysis from KPMG, as a com­bin­a­tion of factors led to sup­ply short­ages. The rising cost is for­cing import­ers, roast­ers, retail­ers and con­sumers to adapt.

Stat­ist­ics Canada data shows shop­pers paid 27.8 per cent more for cof­fee at the gro­cery store in Novem­ber com­pared with a year earlier — greatly out­pa­cing over­all food infla­tion, which was 4.7 per cent year over year.

“This is by far the most dif­fi­cult time that the industry has ever seen,” said Pesce, who said that 20 years ago when he got into the busi­ness, a seven or eight per cent price fluc­tu­ation would have been con­sidered mean­ing­ful.

Put another way, he said, a pack of mediocre cof­fee today sells for more than the best qual­ity cof­fee did two years ago.

“Think about how dis­rupt­ive that can be.”

Cof­fee is grown in rain­forests and hand­picked primar­ily by small­s­cale farm­ers. Often, farm­ers who don’t have an export license sell to col­lect­ors by the road­side in small batches, which are then bundled for inter­na­tional buy­ers.

Beans are sold by smal­ler oper­at­ors to pro­cessors, import­ers, roast­ers and other inter­me­di­ar­ies before reach­ing the con­sumer, said Ted Salter, exec­ut­ive dir­ector of sup­ply chain at KPMG in Canada.

But cli­mate change, drought and crop dis­ease have dis­rup­ted the global sup­ply at the source, hurt­ing many small farm­ers, Salter said.

With lim­ited crops, global demand for cof­fee has out­paced sup­ply. The trend is expec­ted to con­tinue unless the highly frag­men­ted global farm­ers’ com­munity is able to imple­ment costly irrig­a­tion solu­tions.

While cli­mate change is a big factor in cof­fee price increases, importer Jeff Flem­ing said farm­ers are deal­ing with an afford­ab­il­ity crisis along­side the high costs of oper­at­ing small cof­fee farms. Often, chan­ging gov­ern­ment policies on exports in the ori­gin coun­tries also push the prices higher for cof­fee — something an importer can’t con­trol.

Flem­ing, founder of Cal­gary­based Apex Cof­fee Imports, works dir­ectly with farm­ers and export­ers across 11 coun­tries to buy their cof­fee, which is then shipped to Canada.

The tug­of­war between lower crop yields and higher prices is strain­ing many rela­tion­ships in the sup­ply chain.

Flem­ing, who deals in spe­cialty cof­fee from micro­farms, saw demand for spe­cial­ized beans fade as prices went up.

“Any time there’s a price shock through the mar­ket that we saw, it’s (been) bad for every­body,” he said.

For example, if a pound of cof­fee went up from five dol­lars to eight dol­lars, a roast­ery may be hes­it­ant to pass such a sig­ni­fic­ant cost on to its cus­tom­ers imme­di­ately. Instead, it might reduce its over­all pur­chase or pivot away from pri­cier options, which trickles back to the farmer.

Mean­while, Flem­ing said demand for less expens­ive cof­fee blends has gone up. He said he is con­stantly com­mu­nic­at­ing with farm­ers about the demand and whether there are mar­gins that can be adjus­ted on his end to con­tinue import­ing the best­qual­ity beans.

“It’s caused us to have to pivot and re­eval­u­ate and get a bit more cre­at­ive than we used to,” he said.

When someone ques­tions Pesce about cof­fee prices, he pulls up com­mod­it­ies exchange data on his phone and shows where prices are at — and how little con­trol he has over the fluc­tu­ations.

It takes about 13­18 weeks for cof­fee beans to get from a farm to gro­cery store shelves. The price of that pack­aged cof­fee was set weeks ago on the pub­licly traded com­mod­ity mar­ket for cof­fee futures, which is a way of meas­ur­ing prices based on con­tracts for future deliv­ery. Other resources are also traded this way, includ­ing oil, gold and wheat.

Futures trad­ing means a surge in cof­fee prices today won’t be felt by con­sumers for at least another three months.

The mar­ket has been volat­ile amid ongo­ing geo­pol­it­ical ten­sions, chan­ging gov­ern­ment policies in cof­fee­pro­du­cing coun­tries and tar­iffs that make the com­mod­ity mar­ket more uncer­tain, Salter said.

“The mar­ket, espe­cially when you’re trad­ing on a com­mod­ity, doesn’t like that unpre­dict­ab­il­ity,” Salter said. So, the high prices com­pensate for that uncer­tainty, he added.

As prices went up drastic­ally over the last two years, it became harder to man­age.

“Export­ers, import­ers, roast­ers, retail­ers — every­body’s shrink­ing their mar­gin because there’s just so much price pres­sure on everything,” Pesce said. “The industry as a whole has got­ten less prof­it­able.”

Add to that ship­ping costs, roast­ing and pack­aging costs, all of which factor into the cost of cof­fee served to con­sumers.

The cost of get­ting green beans into Canada alone makes up more than 70 per cent of the pro­duc­tion costs, accord­ing to KPMG.

Pesce said he has been absorb­ing some costs while passing the rest on to his private label cli­ents. So far, he has raised prices by more than 30 per cent in the past year.

But that often opens a floodgate of ques­tions about why it’s hap­pen­ing.

Reunion star­ted send­ing out reports or news­let­ters to its cli­ents explain­ing price surges, hop­ing to estab­lish trans­par­ency about what can and can­not be con­trolled.

Many rela­tion­ships in the cof­fee sup­ply chain are gen­er­a­tions old, Salter said.

“You’ve set up your roast­ing equip­ment, you’ve set up your pro­duc­tion pro­cesses in a cer­tain way that it’s very dif­fi­cult to switch over from one to another,” he said. “So what you tend to do is to try to improve the situ­ation you’re in, rather than change the situ­ation you’re in.”

A pound of cof­fee can brew about 40 cups. If the cost of cof­fee goes up by a dol­lar, it barely adds a few cents to a cup.

But the surge in prices has been con­sist­ent enough that it’s now dripped into the cups at local cafés and even big chains, such as Tim Hor­tons, which raised prices by an aver­age of three cents per cup earlier this year.

Still, most con­sumers notice sticker shock when they buy bulk cof­fee at a gro­cery store or their local roast­ery, and experts say this is likely to con­tinue.

“There’s very little actual price gou­ging going on that I can see at gro­cery, at cafés,” Pesce said.

“It’s just expens­ive.”

Reunion Cof­fee Roast­ers pres­id­ent Adam Pesce says a pack of mediocre cof­fee today sells for more than the best qual­ity cof­fee did two years ago. “Think about how dis­rupt­ive that can be,” he added.

2025 was one of three hot­test years on record

Study also finds heat waves have become the dead­li­est extreme weather events

Exhaust gases billowing from the chimneys of a large coalfired power station in Taean, South Korea. November's UN climate talks in Brazil ended without any explicit plan to transition away from fossil fuels.

This article was written by Alexa St. John and was published in the Toronto Star on December 31, 2025.

Cli­mate change worsened by human beha­viour made 2025 one of the three hot­test years on record, sci­ent­ists said.

It was also the first time the three year tem­per­at­ure aver­age broke through the threshold set in the 2015 Paris Agree­ment of lim­it­ing warm­ing to no more than 1.5 C since pre­indus­trial times. Experts say keep­ing the Earth below that limit could save lives and pre­vent cata­strophic envir­on­mental destruc­tion around the globe.

The ana­lysis from World Weather Attri­bu­tion (WWA) research­ers, released Tues­day in Europe, came after a year when people around the world were slammed by the dan­ger­ous extremes brought on by a warm­ing planet.

Tem­per­at­ures remained high des­pite the pres­ence of a La Niña, the occa­sional nat­ural cool­ing of Pacific Ocean waters that influ­ences weather world­wide. Research­ers cited the con­tin­ued burn­ing of fossil fuels — oil, gas and coal — that send planet­warm­ing green­house gases into the atmo­sphere.

“If we don’t stop burn­ing fossil fuels very, very, quickly, very soon, it will be very hard to keep that goal” of warm­ing, Friederike Otto, cofounder of World Weather Attri­bu­tion and an Imper­ial Col­lege Lon­don cli­mate sci­ent­ist, told The Asso­ci­ated Press. “The sci­ence is increas­ingly clear.”

Extreme weather events kill thou­sands of people and cost bil­lions of dol­lars in dam­age annu­ally.

WWA sci­ent­ists iden­ti­fied 157 extreme weather events as most severe in 2025, mean­ing they met cri­teria such as caus­ing more than 100 deaths, affect­ing more than half an area’s pop­u­la­tion or hav­ing a state of emer­gency declared. Of those, they closely ana­lyzed 22.

That included dan­ger­ous heat waves, which the WWA said were the world’s dead­li­est extreme weather events in 2025. The research­ers said some of the heat waves they stud­ied in 2025 were 10 times more likely than they would have been a dec­ade ago due to cli­mate change.

“The heat waves we have observed this year are quite com­mon events in our cli­mate today, but they would have been almost impossible to occur without human ­induced cli­mate change,” Otto said. “It makes a huge dif­fer­ence.”

Mean­while, pro­longed drought con­trib­uted to wild­fires that scorched Greece and Tur­key. Tor­ren­tial rains and flood­ing in Mex­ico killed dozens of people and left many more miss­ing. Super Typhoon Fung­wong slammed the Phil­ip­pines, for­cing more than a mil­lion people to evac­u­ate. Mon­soon rains battered India with floods and land­slides.

The WWA said the increas­ingly fre­quent and severe extremes threatened the abil­ity of mil­lions of people across the globe to respond and adapt to those events with enough warn­ing, time and resources, what the sci­ent­ists call “lim­its of adapt­a­tion.” The report poin­ted to Hur­ricane Melissa as an example: The storm intens­i­fied so quickly that it made fore­cast­ing and plan­ning more dif­fi­cult, and pum­melled Jamaica, Cuba and Haiti so severely that it left the small island nations unable to respond to and handle its extreme losses and dam­age.

This year’s United Nations cli­mate talks in Brazil in Novem­ber ended without any expli­cit plan to trans­ition away from fossil fuels, and though more money was pledged to help coun­tries adapt to cli­mate change, they will take more time to do it.

Offi­cials, sci­ent­ists and ana­lysts have con­ceded that Earth’s warm­ing will over­shoot 1.5 C, though some say revers­ing that trend remains pos­sible.

Yet dif­fer­ent nations are see­ing vary­ing levels of pro­gress.

China is rap­idly deploy­ing renew­able ener­gies includ­ing solar and wind power — but it is also con­tinu­ing to invest in coal. Though increas­ingly fre­quent extreme weather has spurred calls for cli­mate action across Europe, some nations say that lim­its eco­nomic growth.

Mean­while, in the U.S., the Trump admin­is­tra­tion has steered the nation away from clean ­energy policy in favour of meas­ures that sup­port coal, oil and gas.

Focus­ing on energy might help in fight for cli­mate

This opinion was written by David Olive and was published in the Toronto Star on December 31, 2025.

In Mark Car­ney’s telling, he is still in the van­guard of fight­ing cli­mate change.

That asser­tion is, on the sur­face, dif­fi­cult to sus­tain given the prime min­is­ter’s appar­ent retreat on the cli­mate front.

Car­ney scrapped the national con­sumer car­bon tax soon after he became prime min­is­ter in March.

His “nation­build­ing” projects under con­sid­er­a­tion for fast­track­ing unveiled this year include fossil fuel devel­op­ments.

And the high­pro­file entente Car­ney nego­ti­ated between Ott­awa and Alberta in Novem­ber unwinds major cli­mate change policies of the Trudeau gov­ern­ment.

The con­tro­ver­sial “memor­andum of under­stand­ing” between the two gov­ern­ments effect­ively green­lights a second crude oil pipeline from the Alberta oilp­atch to the B.C. coast — a sis­ter to the Trans Moun­tain oil pipeline (TMX) that began oper­a­tions in 2024.

The TMX reduces Canada’s reli­ance on the U.S. mar­ket for oil exports. Almost half of its volume in its first year of oper­a­tion went to non­U.S. mar­kets, not­ably China.

The start­ing point for Car­ney’s energy policy might be an off­hand remark he made in one of sev­eral reveal­ing year­end tele­vi­sion inter­views he gave just before Christ­mas.

“I am a politi­cian, but I’m still a prag­mat­ist,” Car­ney told the CBC.

Canada con­tin­ues to fight cli­mate change, Car­ney asserts, but with a more prac­tical approach.

“Cli­mate change is con­tinu­ing remorse­lessly,” Car­ney said.

In address­ing it more effect­ively, “there is a moral imper­at­ive, a moral oblig­a­tion to future gen­er­a­tions,” Car­ney said. Act­ing on that imper­at­ive, in Car­ney’s view, requires more com­pre­hens­ive policies.

They con­sist, in a nut­shell, of ramp­ing up pro­duc­tion of both “clean energy,” with major invest­ments in hydro­elec­tri­city and nuc­lear power, and fossil fuels, because “the world is going to use hydro­car­bons for com­ing dec­ades” under every scen­ario experts put for­ward, Car­ney said.

For Car­ney the ques­tion is: “What kind of hydro­car­bons are going to be used?” The answer, he said, is “low cost, low risk, low car­bon. If Canada is going to con­tinue to sup­ply hydro­car­bons, it needs to be low car­bon.”

Mean­while, Car­ney said, “we’re going to grow clean energy in this coun­try at a scale never seen before.”

Is it pos­sible for Canada to become an energy super­power, a trans­form­a­tion that Car­ney has prom­ised Cana­dians, and still meet our net­zero emis­sions tar­gets for green­house gases?

In Car­ney’s vis­ion, squar­ing that circle is pos­sible with a new approach. That approach is to develop every kind of energy source, and to pair reg­u­la­tions with sig­ni­fic­ant invest­ment.

“We have too much reg­u­la­tion and not enough action,” Car­ney said of the energy policies he inher­ited.

And it’s true that with all the reg­u­la­tions, lim­it­a­tions and bans imposed on the energy sec­tor by the Trudeau gov­ern­ment, Canada is still far short of meet­ing its emis­sions reduc­tion tar­gets.

Car­ney vowed that his gov­ern­ment is “one hun­dred per cent focused on doing things that are going to reduce emis­sions.”

Those things are going to cost scores of bil­lions of dol­lars. They also prom­ise to gen­er­ate con­sid­er­able eco­nomic activ­ity.

They include low­car­bon liquified nat­ural gas plants (LNG), a new clean elec­tri­city grid in B.C., clean­power inter­ties between provinces, the mini­nuc­lear react­ors Ontario has under devel­op­ment, the world’s first zero­car­bon cop­per mine in Saskat­chewan, and a huge wind farm off the Nova Sco­tia coast.

Car­ney expects that most of the money for those trans­form­at­ive projects will come from the private sec­tor and not the pub­lic purse, a con­trast with the $34­bil­lion Ott­awa spent build­ing the TMX.

The memor­andum of under­stand­ing between Ott­awa and Alberta is something of a tem­plate. Alberta gets favour­able Ott­awa con­sid­er­a­tion of a second crude oil pipeline to the B.C. coast; removal of planned Trudeau­era caps on oilp­atch emis­sions; and a lift­ing of the fed­eral oil tanker ban off the B.C. coast.

In return, the Alberta oilp­atch builds a mult­i­bil­lion­dol­lar car­bon cap­ture and stor­age facil­ity that removes 16 mega­tons of car­bon from its oil and gas pro­duc­tion — roughly equal to tak­ing 90 per cent of Alberta’s cars and trucks off the road.

It also removes about 75 per cent of meth­ane emis­sions, a more potent con­trib­utor to cli­mate change than CO2. And the oilp­atch must pay more than six times the cur­rent indus­trial car­bon tax — an incent­ive to decar­bon­ize.

For Canada to pion­eer “decar­bon­ized” hydro­car­bons is, Car­ney said, “an enorm­ous oppor­tun­ity for this coun­try to leapfrog the United States.

“The United States has taken its eye off the ball on this — they’ve really down­graded it.”

So, the goal is to become a cleanen­ergy super­power, an advant­age over rival hydro­car­bon pro­du­cers the U.S., the Middle East and Rus­sia.

Much of the money to trans­form the Cana­dian energy sec­tor will come from abroad, Car­ney believes.

“Vir­tu­ally every­one wants to do more with Canada,” said Car­ney, who spent much of 2025 trav­el­ling in Europe, Asia Pacific, and the Middle East.

In addi­tion to Canada’s polit­ical sta­bil­ity, “we’re an increas­ingly con­fid­ent nation that has ambi­tions,” Car­ney said. “So, people want to deal with us.”