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Highlights from the PPF Growth Summit
Can Canada make progress without contracts for difference?
Roman Dubczak, Deputy Chair, Capital Markets, CIBC Capital Markets
The Hon. Lisa Raitt, Vice-Chair, Global Investment Banking, CIBC Capital Markets
Roman: You could do without a but there would be a great degree of risk and then the projects wouldn&#8217;t get off the ground, right? Without that certainty, they&#8217;re not really financeable projects.
We need to get going on contracts for differences, for an example, and that&#8217;s just being established now through the Canada Growth Fund and what PSP is going to be doing to manage that.
We need to know how those contracts are going to work. We have projects ready to go. We have clients ready to go with carbon capture facilities and projects and in western Canada. But, you know, work will come out east as well in terms of industry, but we need some certainty in that regard.
If you have a contract for differences regime, a lot, obviously in conjunction with a carbon price regime, that&#8217;s permanent because it is a contract, whereas in the United States you&#8217;ve got investment tax credits, the investment tax credits that are 12 years in term. 12 years. So this better work over a 12 year span. And, you know, there is some risk to that.
Lisa: Clients are ready either in oil and gas, in power or in industry to get going on abating their carbon. And it means it has to have negotiations at the table to see what it all looks like.

Highlights from the PPF Growth Summit Contracts for difference