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Prime Minister Justin Trudeau is praising the approval of major new climate-focused legislation south of the border, calling it “good news” for Canadians.

U.S. President Joe Biden signed the landmark Inflation Reduction Act on Tuesday, which is a watered-down version of the Democrats’ original “Build Back Better” plan.

From a Canadian perspective, the most significant change to the bill is the fact that the final version removed an earlier provision that would have excluded vehicles made outside of the U.S. from qualifying for generous new consumer tax incentives. The final version allows those incentives to apply to North American-made vehicles, which was a big win for Canadian officials and industry leaders who had lobbied Congressional decision makers for the change.

“It’s official: @POTUS signed legislation that will include Canada in a new tax incentive for electric vehicles purchased in the US,” Mr. Trudeau tweeted Tuesday evening. “This is good news for Canadians, for our green economy, and for our growing EV manufacturing sector.”

The U.S. plan is widely viewed by climate advocates as a serious effort to reduce emissions, but its incentive-focused approach is very different from Canada’s plan, which is based on imposing a growing price on carbon emissions via a patchwork of provincial programs and federal backstops.

The Globe and Mail’s Adam Radwanski recently wrote a detailed analysis of what the new U.S. bill means for Canada’s climate plans.

“What the breakthrough south of the border does demand is swift movement on policies that Prime Minister Justin Trudeau has promised but not yet acted on, especially to use public dollars to attract private capital for clean technology,” he wrote. “It also requires a sharpening of existing programs with that aim. And it underscores the need to plug major gaps in Canada’s current climate strategy – especially when it comes to the cleanliness and reliability of the electricity grid, which is by far the biggest focus of the U.S. package.”

The Globe also recently reported that the substantial tax changes in the U.S. bill that will be imposed to cover some of the cost of the new incentives present tax policy challenges for Canada.

While the U.S. changes are substantial, they are not currently in line with OECD-led efforts to forge a common front on corporate taxation, especially with respect to large multinationals in the technology sector.

Finance Minister Chrystia Freeland has said Canada strongly supports the OECD plans, but is prepared to go it alone in 2024 with a digital sales tax on foreign multinationals if the global talks are not finalized by then.

This is the daily Politics Briefing newsletter, written by Bill Curry, who is filling in for Ian Bailey. It is available exclusively to our digital subscribers. If you’re reading this on the web, subscribers can sign up for the Politics newsletter and more than 20 others on our newsletter signup page. Have any feedback? Let us know what you think.

TODAY'S HEADLINES

MOUNTIES STAND BY POLITICAL-INTERFERENCE ALLEGATIONS: Nova Scotia Mounties have told Parliament that RCMP Commissioner Brenda Lucki put politics ahead of policing after Canada’s deadliest mass shooting when she pressed her investigators to make disclosures about firearms in a bid to reinforce the Liberal government’s gun-control agenda. Story here.

PROPORTION OF FRENCH SPEAKERS IN DECLINE: CENSUS - The proportion of Canadians who predominantly speak French at home declined in all provinces and territories except Yukon between 2016 and 2021, according to the latest census release. That includes Quebec, where a provincial election is scheduled for Oct. 3. Story here.

WASHINGTON POST FEATURE DESCRIBES STEVEN GUILBEAULT AS “CANADA’S ONETIME ‘GREEN JESUS’ WHO OKAYS OIL MEGAPROJECT”: “Guilbeault, now 52, is under fire for his decision in April to greenlight the Bay du Nord deep-sea oil drilling project off the coast of Newfoundland and Labrador, finding that it is ‘not likely to cause significant adverse environmental effects.’ He says that — to his knowledge — it will be the lowest-emitting project of its kind in the world.” Feature story on the federal environment minister is here.

INTELLIGENCE REPORT FLAGGED POSSIBLE ‘VIOLENT REVENGE’ AFTER OTTAWA CONVOY PROTEST SHUTDOWN: Newly disclosed documents show federal intelligence officials warned decision-makers that the police dispersal of “Freedom Convoy” protesters in Ottawa last winter could prompt an “opportunistic attack” against a politician or symbol of government. Story here.

ANTI-TERROR LAW CAUSING PROBLEMS: Humanitarian groups say the federal government should exempt their on-the-ground work in Afghanistan from its anti-terror law, warning that Ottawa’s current policies are preventing them from delivering crucial aid to people in desperate need. The law also hinders the work of groups helping evacuate Afghans to Canada. Story here.

CARDINAL OUELLET ACCUSED OF SEXUAL ASSAULT: A prominent Vatican cardinal from Quebec, long considered a top candidate for the papacy, is one of dozens of clergy members facing allegations of sexual assault as part of a class-action lawsuit against his former diocese. Story here.

LAFLAMME’S CTV NEWSCAST ONE OF CANADA’S MOST POPULAR, RATINGS SHOW: Before her ouster as anchor of CTV National News this week, Lisa LaFlamme presided over one of the most-watched newscasts in Canada, whose ratings significantly outpaced competitors – raising questions about the rationale presented by CTV’s parent company, Bell Media, which referred to the abrupt change as a business decision. Story here.

CANADIAN PARLIAMENTARIANS HEADING TO TAIWAN: Liberal MP Judy Sgro, who chairs the standing committee on international trade, told CBC News that a group of MPs and Senators may visit Taiwan this fall. Story here.

NORTHERN NURSES GET A BOOST: Indigenous Services Canada will nearly triple incentives for nurses who work on remote Manitoba reserves, the Winnipeg Free Press reports here.

NEW PASSPORT OFFICE LOCATIONS ANNOUNCED: The federal government is adding new passport service locations across Canada as a backlog in processing applications continues. Story here.

THIS AND THAT

The House of Commons is not sitting again until Sept. 19. The Senate is to resume sitting on Sept. 20.

RBC CEO SAYS EMPLOYEES SHOULD BE IN THE OFFICE MORE OFTEN: Dave McKay says in an internal memo to staff that more frequent office attendance is needed. He said technology can’t replicate the “energy, spontaneity, big ideas or true sense of belonging” that come from working together in person. He added that mentorship and skills development, critical parts of the bank’s culture, are challenging when done through video screens. Globe story here.

THE DECIBEL

The Globe’s Asia correspondent James Griffiths is on the show to talk about how Taiwan came to dominate the semiconductor and microchip industry and why it’s crucial to the delicate geopolitical situation today. A link to Wednesday’s podcast, as well as earlier episodes, can be found here.

PRIME MINISTER'S DAY

The Prime Minister’s public itinerary says he is in private meetings Wednesday in the National Capital Region.

OPINION

Andrew Coyne (The Globe and Mail) says the proposed Alberta Sovereignty Act places the province on the verge of the constitutional abyss: We are potentially seven weeks away from a constitutional crisis, the likes of which this country has not seen. Because the front-runner for the UCP leadership is Danielle Smith, and because the centrepiece of her campaign is a wholly unworkable, flagrantly unconstitutional and massively destabilizing proposal called the Alberta Sovereignty Act.

Matt Gurney (TVO) wades into Toronto’s Car vs. Bike debate raging in High Park and concludes it’s time for widespread photo radar: Put a robot on every corner. In every park. Or at least have enough of them that they can be rotated through all of the city, ensuring coverage in all areas on a regular basis. I really wish this weren’t necessary. Really. But no one can spend any time at all on Toronto’s roads and walk away unconvinced that they are necessary. Toronto drivers are terrible. The police have more important stuff to do than hand out tickets. Neighbourhoods need help controlling reckless drivers. And we have a ready-made, proven technological solution that will eventually pay for itself. Not every problem in life has such a clear solution. This one does. What the hell are we waiting for? Bring on the robots.

The Globe and Mail’s editorial board says Canada’s Conservative Party should not be drawing inspiration from U.S. Republicans: What happens in Vegas may stay in Vegas, but what happens in American politics does not remain in the United States. It drifts across the world’s longest undefended intellectual border, and it falls like acid rain. Prolonged exposure – too much MSNBC or Fox News – can lead to hallucinations, delusions and loss of contact with (Canadian) reality. Voters and politicians are both susceptible to infection … But the party most at risk from cross-border emissions these days is the Conservative Party. There’s a lot of crazy in American politics right now, and the majority of it is coming from the people that Conservatives think of as their American cousins. The Republican Party is increasingly going off the deep end.

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