It’s possible that I shall make an ass of myself. But in that case one can always get out of it with a little dialectic. I have, of course, so worded my proposition as to be right either way (K.Marx, Letter to F.Engels on the Indian Mutiny)
Friday, December 02, 2022
Canada reports on state of wild species ahead of UN biodiversity conference in Montreal
Thu, December 1, 2022
At least 2,253 species are at risk of being wiped out, according to a comprehensive new report on the status of wild plants, animals, insects and fungi in Canada.
Among those in greatest danger are North Atlantic and North Pacific right whales, the blue whale, the Sei whale, the common grey fox and the Vancouver Island marmot, which were listed as critically imperiled.
“The first step in preventing species loss is to identify which species exist, where they are found and their status. That's why a national assessment every five years is so, so essential,” said Terry Duguid, parliamentary secretary to Environment Minister Steven Guilbeault, at a Nov. 29 press conference on Parliament Hill.
The Wild Species 2020 report, released Nov. 29, catalogued over 20,000 more species than any previous edition. Duguid described the report, published every five years and produced by researchers working for the federal, provincial and territorial governments, as “one of the most comprehensive national species inventories in the world.”
If you exclude viruses and bacteria, Canada is home to about 80,000 species. Of these, 50,534 — including plants, animals, moths, butterflies, beetles and fungi — are accounted for in the latest report. The first report, published in 2000, catalogued only 1,670 species.
In the newest report, researchers had enough information to rank 24,483 of the species studied based on the level of risk and what percentage of their habitat is in Canada. Nearly 22,000 species were unrankable due to insufficient data or weren’t assigned a ranking because they were introduced by human activities and considered “exotic.”
The report found 873 species are critically imperiled, 1,245 are imperiled, 2,765 are vulnerable, 9,562 are apparently secure and 10,038 are secure. A total of 105 species identified as at risk are only found in Canada — in other words, their fate rests with us.
The northern fur seal, barn owl and Atlantic cod are examples of species the report identified as imperiled. Vascular plants, moths and butterflies, and beetles are the taxonomic groups that have the most endemic species ranked as having likely disappeared from Canada, being critically imperiled and being imperiled at the national level in Canada, the report says.
Canada has pledged to protect 30 per cent of its land and waters by 2030 to protect biodiversity. “You can't do that without a solid baseline of science because, as we know, knowledge is power,” said Duguid.
This also isn’t possible without the provinces and territories rising to the occasion, said Duguid. The federal government is getting co-operation from cities “in spades,” and “we wish we were getting this kind of co-operation from provinces,” he added. “But provinces absolutely need to step up. We are, with money and with effort, and we're challenging them to work with us to preserve this natural heritage for our kids and our grandkids.”
In Budget 2021, the Government of Canada invested $2.3 billion over five years to support work with other governments, Indigenous groups and non-profit organizations that furthers the 30 by 30 goal and improves the country’s natural environment.
Next week, Canada is hosting the landmark global United Nations biodiversity conference in Montreal, commonly known as COP15, where nations will come together to negotiate a global framework to address the biodiversity crisis.
“At the recent G20 Leaders Summit, leaders called for the same ambition for this nature COP as we saw on climate with the Paris Agreement … the stakes are high to work with our partners around the world to develop a common global framework to restore and protect biodiversity,” said Duguid.
Reports like the Wild Species report are an important part of the evidence environmental organizations will bring to COP15 to bolster calls for a strong global biodiversity framework, said Emily Giles, senior specialist in species conservation for the World Wildlife Fund Canada.
While B.C. has the greatest biological diversity of any province or territory, it is also home to the greatest number of species at risk.
“The new Wild Species Report shows Canada is facing a biodiversity crisis and our species and wildlife are going extinct. This will have devastating impacts on people’s well-being, food supplies and livelihoods,” NDP environment critic Laurel Collins said in an emailed statement to Canada’s National Observer. She said at COP15, New Democrats are calling for “a real climate plan that prioritizes ending biodiversity loss and stops all fossil fuel subsidies — while protecting workers and Indigenous communities.”
Natasha Bulowski, Local Journalism Initiative Reporter, Canada's National Observer
EPA seeks to mandate more use of ethanol and other biofuels
Thu, December 1, 2022
MINNEAPOLIS (AP) — The Environmental Protection Agency on Thursday proposed increasing the amount of ethanol and other biofuels that must be blended into the nation’s fuel supplies over the next three years, a move welcomed by renewable fuel and farm groups but condemned by environmentalists and oil industry groups.
“This proposal supports low-carbon renewable fuels and seeks public input on ways to strengthen the program," EPA Administrator Michael S. Regan said in a statement. “With this proposal, EPA seeks to provide consumers with more options while diversifying our nation’s energy mix.”
The proposal also includes new incentives to encourage the use of biogas from farms and landfills, and renewable biomass such as wood, to generate electricity to charge electric vehicles. It’s the first time the EPA has set biofuel targets on its own instead of using numbers from Congress. The agency opened a public comment period and will hold a hearing in January.
The goal of the existing Renewable Fuel Standard is to reduce carbon emissions that contribute to climate change, expand the country’s fuel supply, strengthen energy security and reduce fuel prices for consumers. Ethanol is a key part of the economy in many Midwest states, consuming about 40% of the nation’s corn supply.
But environmentalists argue that it’s a net ecological and climate detriment because growing all that corn fosters unsustainable farming practices, while the oil industry says ethanol mandates constrain free market forces and limit consumer choice, and that higher blends can damage older vehicles.
Geoff Cooper, president and CEO of the Renewable Fuels Association, told reporters on a conference call that the EPA's plan creates a “clear pathway for sustainable growth for our industry when it comes to the production and use of low-carbon fuels like ethanol." He said it also bolsters the industry’s push for year-round sales of gasoline with a 15% ethanol blend, as well as sales of the 85% ethanol blend E85.
“As the administration is working to address climate change, we’ve long known that biofuels will play an important role in reducing greenhouse gases while having the added benefit of providing expanded opportunities for farmers,” National Farmers Union President Rob Larew said in a statement.
But environmental groups said the plan offers false solutions to climate change.
“This is a toxic plan directly at odds with the Biden Administration’s commitment to Environmental Justice,” Sarah Lutz, climate campaigner at Friends of the Earth, said in a statement. “Charging electric vehicles with forests and factory farms should be a non-starter.”
Geoff Moody, senior vice president of the American Fuel & Petrochemical Manufacturers said the Renewable Fuel Standard was meant to be a liquid fuels program, not an electric vehicle program. He urged the EPA to go back as it develops the final rule and reject “yet another massive regulatory subsidy for electric vehicle manufacturers.”
The EPA proposes to set the total target for all kinds of renewable fuels at 20.82 billion gallons for 2023, including 15 billion gallons from corn ethanol. The target would grow to 22.68 billion gallons for 2025, including 15.25 billion gallons of corn ethanol. The plan also calls for growth in cellulosic biofuels — which are made from fibrous plant materials — biomass-based diesel and other advanced biofuels.
Republican U.S. Sen. Chuck Grassley, of Iowa, the country's top corn and ethanol producing state, said in a statement that the EPA should have gone further to require even more use of advanced biofuels to move freight, which he said would help lower prices for consumer goods.
Cooper said there's probably no way to meet the proposed higher targets without more use of E15 and E85 instead of the conventional 10% ethanol mix. That makes it important to eliminate regulations that block summertime sales of E15, he said.
So, he predicted, the EPA's proposal should bolster prospects for legislation introduced this week by Democratic U.S. Sen. Amy Klobuchar, of Minnesota, and GOP Sen. Deb Fischer, of Nebraska, to allow year-round sales of E15 nationwide. E15 sales are usually prohibited between June 1 and Sept. 15 because of concerns that it adds to smog in high temperatures.
Eight Midwest governors asked the EPA in April to allow year-round sales of E15 in their states. But Cooper said the new bill would provide a “nationwide fix” that even the American Petroleum Institute considers preferable to the current patchwork of temporary waivers and ad hoc solutions.
Steve Karnowski, The Associated Press
Thu, December 1, 2022
One of Quebec’s largest universities is looking to double its number of Indigenous students in the next half-decade, and a massive donation from the Mastercard Foundation will go a long way towards helping them do it, the school’s rector said.
Universite Laval in Quebec City is hoping to double its Indigenous student population in the next five years – from 400 now to 800 – and with the $15-million, five-year commitment, it is looking to add scholarships, programs of study and Indigenous safe spaces for students, the school’s rector said.
“This extraordinary partnership with the Mastercard Foundation gives us the means to achieve our goals,” said Sophie D’Amours. “With this support, we can take concrete action to strengthen our friendship with Indigenous peoples, create change, offer mentorships with elders from their communities, and make a significant difference in the lives of many Indigenous youth by giving them the opportunity to start or continue to pursue a university education.”
The donation, which will support the development of new programs that decolonize and Indigenize knowledge and learning and provide 10 graduate scholarships to be offered to Indigenous doctoral students interested in pursuing a career as a faculty member at Université Laval – comes on the heels of the heels of an announcement of a new residence for First Nations and Inuit students on campus and the creation of a First Peoples circle.
The head of Canadian programs for the Mastercard Foundation said the organization is listening to Indigenous young people.
“We are listening to the voices of Indigenous young people and they tell us that education and the land are two inter-related priorities,” said Jennifer Brennan. “This partnership will support Indigenous young people to advance their education and to connect to their lands and to the traditional knowledges that have sustained their territories for generations and are central to future opportunities. This is an exciting initiative to advance our shared goal of finding innovative approaches to support young Indigenous people through education and on to meaningful livelihoods.”
All of the new programs have been designed in collaboration with local Indigenous communities, a university statement said.
One of the most important measures to be bolstered by the partnership is a training program for land guardians currently being developed at the university. There are also plans for a microprogram in archaeology for Indigenous students, a land stewardship program, and various programs to meet community needs.
Retreats will also be held once a year in remote areas and rural parts of the province. The idea is to create an alternative educational space that allows students to connect with Indigenous Elders and experts and benefit from their knowledge and experience.
Other planned initiatives include a fund to help students buy books and academic materials, training for staff who work with Indigenous students, an orientation day exclusively for Indigenous students, and financial support for the Indigenous student association.
The CEO of the university’s fundraising foundation said Indigenous students will be regularly consulted on the program and its impacts.
“The agreement is meant to be dynamic,” said Universite Laval foundation CEO Alain Gilbert. “Regular meetings will be held with Indigenous students and partners to monitor the impact of the partnership. We would like to thank the Mastercard Foundation for its confidence in our institution. This exceptional joint partnership reflects Université Laval’s deep commitment to the cause of reconciliation and inclusion of First Nations communities.”
Marc Lalonde, Local Journalism Initiative Reporter, Iori:wase
Thu, December 1, 2022 at 7:09 a.m.·3 min read
Nutrition North Canada needs to support Nunavut hunters instead of subsidizing grocery companies, said Nunavut MP Lori Idlout in Ottawa Wednesday.
Idlout teamed up with fellow NDP MP Niki Ashton, from Churchill—Keewatinook Aski, to call on the federal Liberal government to reform the government-funded program, which Idlout says doesn’t serve Nunavummiut and is a subsidy for companies instead.
“I completely and wholeheartedly agree that the Nutrition North program needs to have an overhaul,” Idlout said during a joint press conference the two MPs held on Parliament Hill.
Nutrition North Canada operates a collection of programs that meant to improve northern residents’ food security — meaning having better and sustainable access to food.
Idlout said that one of the issues with Nutrition North is that it subsidizes fresh produce that’s flown in from the south, which, during the fall and winter months cannot be relied upon due to poor weather conditions.
Idlout held up various pictures of common grocery store items — apples, bottled water, chips — and noted the price differences between Nunavut and Ottawa.
For example, in Ottawa, four tomatoes cost $1.77, whereas in Nunavut that would cost $8.19, she said.
The main change Idlout would like to see is for the program to better support hunters in the territory because “one bullet could provide for 200 to 300 pounds of meat.”
Nutrition North currently has the Harvesters Support Grant which gives money to communities so they can buy harvesting equipment, gas, meals for elders, community feasts and more. The money is sent to Nunavut Tunngavik Inc. for each community.
Idlout said the hunters she has spoken to said they didn’t know that the program existed and that “there’s definitely a disparity between what the federal government is saying and what the communities are hearing.”
NTI did not respond Wednesday to Nunatsiaq News’ questions about where that money goes. The organization has application forms for the program for reach region on its website.
Asked how Idlout would like to see the program benefit Nunavummiut who rely on grocery stores for food, she said that if hunters are better supported, they can provide food for community members who aren’t hunters themselves, or have hunters in their family.
Kyle Allen, spokesperson for Crown-Indigenous Relations and Northern Affairs Canada, the department that administers Nutrition North, said the federal government has increased its funding for the various programs under its wing.
He said the harvesters support grant was developed in partnership with northern communities and supported more than 5,500 harvesters.
The federal government also has programs outside of Nutrition North to help northerners with the increasing cost of living, such as reducing child-care fees and increasing the Canadian Workers Benefit.
“Many Canadians face real challenges with the increased cost of living,” he said.
“That is why we have a fiscally responsible and compassionate plan that is targeted to low-income families and individuals and support for the most vulnerable.”
Allen did not answer if the Liberals would commit to reviewing the program.
David Venn, Local Journalism Initiative Reporter, Nunatsiaq News
Oceana Canada urges the need to rebuild Canadian Fisheries
Oceana released sixth annual fishing audit in November
By Chadd Cawson Local Journalism Initiative Reporter
Fishing for many is a way of life. Both the fishing industry and Indigenous cultures are dependent on oceans and waterways being healthy and abundant. Oceana Canada held its first symposium in over six years that united Fishery and ocean experts, policymakers, and Indigenous and fishing industry leaders to discuss solutions to restore Canada’s depleted wild fisheries. The symposium titled Rebuilding Abundance: Priorities for a Resilient Ocean washeld in Ottawa on Oct. 26.
With its intention to chart a course of action to restore abundance in Canada’s oceans, the symposium’s main priority was focused on building-up depleted fish populations for the long-term health and viability of the country’s coastal communities, its seafood economy, and our oceans. Continuously facing threats and culprits like climate change, overfishing, and pollution devastating our oceans, the issue to rebuild Fisheries immediately has become of urgent concern. For Columbia Valley residents who have seen a depletion of salmon for over eight decades in the upper Columbia River this is a concern that resonates in the hearts of many. The main points discussed at October’s symposium were the potential for rebuilding abundance in Canada’s oceans over the next decade, growth opportunities for food security, income, and livelihoods in coastal communities, and unlocking Canada’s potential for a thriving blue economy.
“Without immediate action by the Canadian government to rebuild ocean abundance, coastal communities that depend on healthy marine ecosystems are being put at risk,” said Josh Laughren, Executive Director, Oceana Canada in an October press release. “Already faced with climate change-induced threats leading to warming oceans and climate events, such as hurricane Fiona, failing to act on ending overfishing and fisheries mismanagement is creating an uncertain future. There has never been more urgency to come together to accelerate decision-making to build resilience.”
One of those decision makers the Oceana board chair is familiar face and award-winning actor Sam Waterston best known for his roles on Law & Order. Established as an independent charity in 2015, Oceana held their first symposium the following year and have since seen significant attempts and progress made by the government to rebuild depleted fish stocks, which includes injecting new funding into the National Oceans Protection Plan. Oceana Canada has been advocates for and applauded the introduction of new legislation and regulations to rebuild abundance through the Fisheries Act.
Studies show that less than one-third of Canada’s Fisheries are considered healthy. Oceana Canada released its sixth annual Fishery Audit, an analysis on the management of Canada’s fisheries. Oceana’s first audit conducted in 2017, revealed data that found Canada is still overfishing depleted stocks, such as capelin, and is consistently failing to support rebuilding wild fish populations or take into consideration the threats such as climate change to the country’s most economically valuable stocks which also include snow crab and lobster.
With these threats on the rise there is an urgency more than ever for the Canadian government to now turn their commitments into action. Fisheries need to thrive and our ocean, and fish populations need to be in great health and wealth once again. Ensuring this resilience, will contribute to the seafood economy while providing essential social-cultural and nutritional value. For more information on Oceana Canada and their efforts visit www.oceana.ca.
Chadd Cawson, Local Journalism Initiative Reporter, The Columbia Valley Pioneer
VANCOUVER — British Columbia's Medical Services Commission has applied for a court injunction against a Telus Health program alleging it is extra-billing for health services.
In documents filed in the B.C. Supreme Court Thursday, the commission alleges the LifePlus program is breaking the law by charging for services covered under the medical services plan.
The fee leads people to believe they will get preferential treatment if they pay for a membership, the petition to the court says.
Telus denies the allegations. It says the fees, $4,650 in the first year and $3,650 in subsequent years, are not for primary care and only cover uninsured services like dietitians, kinesiologists and other health and wellness needs.
Health Minister Adrian Dix said the commission began looking into accusations of illegal billing in February.
“It is very important to uphold the Medicare Protection Act, which is in place to preserve our publicly managed, fiscally sustainable, health-care system for British Columbia,” he said on Thursday.
“Access to necessary medical care should be based on need and not an individual's ability to pay.”
The court documents cite a would-be patient and a private investigator who say they were told they would have to pay the annual fee to see a family doctor.
At a news conference Thursday, Juggy Sihota, a vice-president with Telus Health, said family doctors working with the LifePlus program can offer insured services at their offices to people who have not paid for a membership.
“If the physician wants to provide insured services, that's separate from the service offering that we have,” she said.
“They are free to use our premises to be able to provide a primary care insured service for that patient, but that's outside of the LifePlus program and it's outside of what Telus Health is providing.”
Sihota said the injunction is unnecessary and that the company has co-operated with the investigation but had not been given the opportunity to discuss the commission’s concerns.
“We're not aware of any basis for bringing in an injunction application. We believe that doing so is unnecessary given our fully co-operative approach and commitment, of course, to always ensuring regulatory compliance,” she said.
Dix said the injunction application only relates to the LifePlus program and not any of Telus's other services.
He said the court case will be argued at some point in the coming weeks.
This report by The Canadian Press was first published Dec. 1, 2022.
Cheryl Teh
Thu, December 1, 2022
There have been protests in every major city — including Beijing, the Chinese capital.
US officials think the protests in China are unlikely to gain momentum, Politico reported.
Politico saw government communications on how the protests have been leaderless and disorganized.
There might be violent crackdowns to deter further demonstrations, per the report.
US intelligence officials think the protests in China will eventually fizzle out and are unlikely to lead to larger, more organized mass protests.
That's according to government communications from Tuesday seen by Politico that described the movements as disorganized and mostly leaderless.
The Communist Party appears to have deployed an overwhelming police presence to try to intimidate protesters and deter further demonstrations, per the documents seen by Politico. There's also a risk of these suppression tactics becoming more aggressive and violent.
Anti-government protests erupted across every major Chinese city over Thanksgiving weekend, marking a moment of mass dissent that has never before been seen in President Xi Jinping's China. There's been a strong police presence in China as a result, and while the protests were largely peaceful, videos on Twitter have shown some people clashing with police. Some protesters in Shanghai described being pulled from the crowd indiscriminately, and being beaten and hung upside down by police officers.
Protests in Shanghai and Beijing have largely died down, though there were still clashes between protesters and police in Guangzhou on Tuesday night.
In the aftermath of the protests, some people have been contacted and questioned by police, the BBC reported. In Beijing, at least three people were arrested in their homes after attending a protest near Liangma River in the Chinese capital on Sunday.
Some COVID restrictions have been lifted in Guangzhou and Chongqing, and Xi is set to loosen more curbs this week, marking a partial rollback of his zero-COVID policy.
Britney Toh
Fri, December 2, 2022
Netflix / David M. Benett / Getty Images
Kate Bush's "Running Up That Hill" is the most streamed throwback song on Spotify this year.
Spotify defines "throwback songs" as those released over 20 years ago.
The song saw a 8,700% increase in Spotify streams this year, thanks to Netflix's hit show Stranger Things.
Kate Bush's classic "Running Up That Hill (A Deal With God)" has taken the pole position as the most streamed throwback song on Spotify in 2022.
A Spotify Wrapped report on November 30 showed that streams of the song rose by more than 8,700% globally, during the Spring.
"Throwback songs" are defined by Spotify as songs that were released over 20 years ago.
The 64-year-old English singer-songwriter's pop song — which was first released in 1985 — saw a chart resurgence back in June thanks to the latest season of Netflix's "Stranger Things." The 1985 hit played a crucial role in the series, as it was used to symbolize the isolation and alienation that Max Mayfield –portrayed by actor Sadie Sink– felt.
Since the series premiered on May 27, the song went on to top both Billboard global charts in June, dethroning Harry Styles' "As It Was." Back in 1985, the then newly-released song only managed to climb to 30th position on the US Billboard Hot 100 chart, per Billboard.
The song has also broken three Guinness World Records: The record for the longest time taken for a single to top the UK single charts, the record for the longest gap between No. 1 singles on the UK single charts, and the record for the oldest female artist to score a top hit on the UK single's chart.
The song was given a "whole new lease of life" by young fans of the Netflix series, Bush said in a statement.
Spotify and Bush did not immediately respond to Insider's requests for comment
Fri, December 2, 2022
A new report by the Centre for Future Work found that growth in corporate profits this year compared to pre-pandemic has been concentrated in a small number of sectors where consumer prices have also risen the fastest.
Report author and economist Jim Stanford analyzed the profits of the 52 business sectors tracked by Statistics Canada, and found that just under a third of these sectors were responsible for driving overall corporate profits up. Combined after-tax profits in the 15 most profitable sectors grew by 89 per cent during the most recent 12-month period compared to the four quarters before the pandemic hit.
Meanwhile, profits in the other 37 sectors tracked by Statistics Canada fell during the same period. Among all sectors combined, profits were up almost 30 per cent.
After-tax corporate profits in 2022 so far make up 17.4 per cent of Canada’s GDP, the highest share in history, Stanford said.
The oil and gas sector tops the profitable list by far with a $38-billion increase in profits, or more than 1,000 per cent, since 2019. Other highly profitable sectors included mining, which saw profits rise by almost 700 per cent, banking, real estate, building products, motor vehicle dealers, grocery stores and food manufacturing.
In fact, the report said that large price increases on eight specific products sold or produced by those sectors accounts for more than half of overall inflation in the past year, based on Statistics Canada data.
Stanford said he found this number “startling.”
“Both the concentration of profits in those sectors, and the concentration of price pressure in products produced by both sectors, really shows that this is not a generalized overheating problem," he said.
These eight products were home fuel oil, home natural gas, gasoline, mortgage interest, groceries, home maintenance, motor vehicles and insurance, and together Stanford calculated they accounted for 3.51 percentage points of the overall October inflation rate, which was 6.9 per cent. That’s despite the fact that those eight products make up less than 30 per cent of the weight of the CPI basket as measured by Statistics Canada.
Stanford argues that this data proves rising corporate profits are the dominant cause of inflation, since those eight products alone account for more than half the percentage-point increase in the latest inflation numbers.
Some of those eight products, like gas, also had knock-on effects on things like food prices, the report notes, which also factor into inflation.
Some economists and the Bank of Canada have expressed concern that as wages rise in the face of inflation, this could entrench inflation and cause what’s known as a wage-price spiral. In July, Tiff Macklem warned employers not to build inflation into longer-term contracts.
But so far, wages have not surpassed overall inflation. In fact, corporate profits have increased around three times as fast as wages since the beginning of the pandemic, Stanford said.
He said the Bank of Canada has been putting too much attention in recent months on the role of the labour market in persistent inflation.
“The Bank of Canada's argument that inflation is up because Canadians have too much work and too much money to spend is absolutely contradicted by this evidence.”
The Bank of Canada has said that inflation increasingly reflects domestic pressures, and has cited Canada's low unemployment rate as "unsustainable."
The report recommends measures for policymakers to consider other than interest rate hikes, measures he argues in the report would be better than “a ‘cold bath’ of employment-reducing monetary tightening.”
These include targeted price regulations to limit how much companies can profit from sector-specific disruptions, like in energy or housing; excess profit taxes; and offsetting fiscal support for consumers financed by said taxes. Stanford notes several European countries have already implemented some of these types of things, such as a price cap on energy, or excess profit taxes for the energy sector that go to household transfers. There are also examples of these measures within Canada, such as a recent tax on big bank profits, making such measures not unprecedented, he said.
“We have taken it for granted that companies are allowed to charge whatever the market will bear, even in a national emergency. And our response to the inflation that results from that assumption has been to punish the people who are trying to pay for the stuff that’s vastly overpriced,” he said.
“With targeted measures like that, you could take a lot of the steam out of this inflationary problem, rather than necessarily cooling off the whole national economy.”
—With files from Nojoud Al Mallees
This report by The Canadian Press was first published Dec. 2, 2022.
Rosa Saba, The Canadian Press
Siegfrid Alegado and Anup Roy
Fri, December 2, 2022
(Bloomberg) -- Climate change and the energy transition are becoming top of mind for central bank policymakers as they grapple with volatile energy prices and the effects of more frequent extreme weather events.
The shift to green energy may be “inflationary and even slightly stagflationary,” Bank of France Governor Francois Villeroy de Galhau said Friday, speaking virtually on a panel at a central bank conference in Bangkok. “I stress might, we don’t know yet.”
“Looking through” green transition-induced inflation “would be a seductive monetary policy but it’s probably the risky one,” he said Friday. “So we will have to react, but not to overreact.”
Climate-related shocks -- either on the demand or supply-side -- may also stoke inflation, the World Bank’s M. Ayhan Kose said on the same panel. Central banks might have to “reassess” monetary policy frameworks, inflation targets or both.
Policymakers are exploring avenues to manage risks associated with climate change and the price impacts of a transition to greener energy. Earlier this year, European Central Bank Executive Board member Isabel Schnabel said inflation forecasts may need to be revised upward as EU countries try to reduce CO2 emissions.
The risks to emerging-market economies are greater, Kose said on Friday, highlighting the need to provide resources to lower-income nations. “There is tension between emerging markets and developed markets on climate finance,” he said. “We need to be honest about the essence of the challenge we face, and that is financing.”
--With assistance from Zoe Schneeweiss.