Canada | How the climate plan makes progress – but still falls short
Raising Canada’s federal carbon levy to C$170/tonne by 2030 will make solid progress but fall short on the country’s ambitious new pledge to cut emissions 40%-45% by decade’s end. Even so, our analysis shows higher carbon prices will hurt the economy, particularly carbon-intensive sectors and regions.
What you will learn:
- Using our new Canada Provincial Territorial Model along with climate levers in our Global Economic Model, we find that higher carbon prices will cut national energy emissions 25%, or 136 mega-tonnes, below our baseline by 2030.
- Carbon-intensive regions will likely suffer worse. By 2030, GDP could drop 8% below baseline in Alberta and by around 3% in both Saskatchewan and Newfoundland mainly due to sharply curtailed oil output as global demand falls.
- Our modelling focusses on the emissions implications from reduced fossil fuel use, but it strongly suggests that a much higher carbon price and enriched complementary measures are needed now to achieve Canada’s ambitious 2030 emission reduction target.
Housing supply front and centre for policy makers
The passing of the previously delayed Housing Australia Future Fund (HAFF) means that all the Albanese government's announced housing policies are now in place. These policies represent a minimum funding pool of $5.5 billion stretching to the end of the decade, potentially lifting as high as $10 billion if all targets are met and excess fund returns achieved.Find Out More
BoJ will continue effective zero interest rate policy anyway in Japan
The Bank of Japan (BoJ) maintained the policy rates at its September meeting, following a tweak in its yield curve control policy in July. Although this decision was widely expected, the markets are starting to speculate policy changes within the coming quarters, especially after the BoJ governor's recent interview.Find Out More