The Short Report: January 8, 2025

BREAKING NEWS

Business Council of Canada, Ontario and Alberta premiers respond to Justin Trudeau’s exit

The legacy of Prime Minister Justin Trudeau (photo at right by Dave Chan/AFP), who on January 6 announced he would resign as prime minister and Liberal Party leader once a successor is chosen, will include renegotiating the North American Free Trade Agreement, helping reduce poverty through the Canada Child Benefit, and working with business leaders during the pandemic to ensure the safety of Canadians while protecting the economy, the Business Council of Canada (BCoC) said.

“It is unfortunate, however, that the relationship between the federal government and the private sector was often at odds, especially around the need for fiscal responsibility and policies that enable long-term economic growth, including embracing our energy abundance. We view this as a lost opportunity to strengthen the country for future generations,” the BCoC said in a statement.

“Canada has much going for it, but we can’t take it for granted. Now more than ever, we must work together in a spirit of collaboration to help our country succeed," the BCoC said.

Ontario Premier Doug Ford, in a statement that didn’t mention Trudeau by name, instead focused on the threat by U.S. president-elect Donald Trump to impose 25-percent tariffs on all Canadian goods imported into the U.S.

Between now and when Trump is sworn in as president on January 20, “the federal government needs to do everything humanly possible to avoid these tariffs, including by doing more to secure our border and offering a credible plan to invest more in Canada's military to meet and exceed our NATO spending commitments,” Ford said.

Alberta Premier Danielle Smith, in a post on X, said at this critical time, Canadians need and deserve a prime minister and federal government with a clear mandate won from the Canadian people to negotiate with the incoming U.S. president and his administration on one of the most important international negotiations we have ever faced as a country.

“The Liberal Party has no such mandate from Canadians and they are putting their selfish political interests ahead of the Canadian people by paralyzing Parliament and suspending democracy for months while they fight a divisive internal leadership contest. It is one of the most irresponsible and selfish acts of a government in Canadian history,” Smith wrote.

She said the Alberta government is calling on all federal parties and MPs to force an election “at the first available opportunity and give Canadians the opportunity to pick a party and a leader to represent their interests at this critical time for our nation.”

The prorogation of Parliament likely means the end of the Liberal government's bills on protecting against cybersecurity attacks (Bill C-26), preventing online harms (Bill C-63) and regulating AI, mitigating its potential harms and protecting consumers' privacy (Bill C-27).

The prorogation also leaves uncertain the implementation of several initiatives proposed in the fall economic statement, including:

• Ottawa’s $2.4-billion plan to build and provide access to computing and technological infrastructure to support Canada’s AI sector.
• Reforms and enhancements to the Scientific Research and Experimental Development tax credit program.
• Providing up to $500 million over four years to help SMEs adopt digital technologies, with a focus on AI.
• Disbursing up to $500 million per year to support biofuels production.

However, the federal government said the Canada Revenue Agency (CRA) will continue to administer the increase in the capital gains tax inclusion rate, even though the measure hasn't passed in Parliament, according to a news story by the Canadian Press. The measure is opposed by many in Canada's tech and investment community, including the Canadian Venture Capital and Private Equity Association, the Council of Canadian Innovators and business groups.

Finance Canada said parliamentary convention dictates that taxation proposals such as the capital gains taxation measures the Liberals introduced last ear are effective as soon as the government tables a notice of ways and means motion.

The Liberals in September tabled a notice of a ways and means motion that introduced a bill meant to raise the portion of capital gains on which companies pay tax to two-thirds from one-half. The policy would also apply to individuals with capital gains earnings above $250,000.

Despite Parliament's prorogation, the Finance Canada said the CRA will issue taxpayer forms in accordance with the proposed capital gains rules by January 31. 

Parliament is prorogued until March 24. The Conservatives and NDP’s intention to bring down the government as soon as possible through a non-confidence motion will mean the end of the Liberals' proposed Clean Electricity Regulations and a cap on oil and gas industry emissions – which both the Alberta and Saskatchewan governments oppose.

Also, the federal government’s proposed new Canada Innovation Corporation, capstone research funding organization and a new national advisory council on science and innovation are unlikely to proceed if the Liberals are defeated in the expected spring election.  

Conservative leader Pierre Poilievre also has vowed to repeal the Liberal's environmental assessment act - which the Alberta government has challenged in court – and replace it with legislation that consults First Nations and protects Canada's environment. BCoC, Danielle Smith Twitter post

GOVERNMENT FUNDING

SDTC “plagued” by questionable governance and executive mismanagement: Privy Council report

Sustainable Development Technology Canada (SDTC) was plagued by questionable governance and executive mismanagement that cost Canadian taxpayers more than $150 million, according to a report by the Privy Council.

SDTC’s bonus structure incentivized rapid fund disbursement without proper oversight, leading to numerous non-compliant funding decisions, the Privy Council said in its report, according to a news story by Blacklock’s Reporter.

Research Money first reported on SDTC’s performance-based bonus structure and how it could lead to problems with managing public funding, in an August 30, 2023 analysis.

“Sustainable Development Technology Canada made increasingly questionable decisions,” the Privy Council said in its report.

SDTC was “an organization where lack of governance and a continuous cycle of executive mismanagement led to serious conflict of interest breaches as well as the gross mismanagement of over $150 million of public funds.”

SDTC, established in 2001 to fund cleantech innovation, imploded in June 2024 when its entire board resigned following the discovery in a federal audit of 186 conflicts of interest.

Internal whistleblowers exposed rampant cronyism, including appointing the CEO's husband's childhood friend to an executive position. 

The workplace culture deteriorated significantly, with 20 employees resigning within a year, four staff members taking stress leave, and three of four executives being personal associates of the CEO.

These findings by the Privy Council sharply contradict testimony from SDTC executives to the House of Commons Public Accounts Committee.

Sheryl Urie, SDTC’s vice-president of finance, defended SDTC’s record on June 20, 2024, insisting that "all Canadians are benefiting from this."

The scandal has sparked a political crisis, with the Liberal cabinet failing to comply with a House of Commons order to release all records related to SDTC’s inside dealings. 

This non-compliance has triggered an Opposition filibuster that has stalled House of Commons business since late September. Western Standard

RESEARCH, TECH NEWS & COLLABORATION

The life sciences sector in Greater Victoria is home to 60-plus companies spanning diverse fields such as medical devices, biotech and digital health, according to a report from the South Island Prosperity Partnership (SIPP).

“The Island as a whole accounts for only 15 percent of B.C.’s life sciences businesses and 13 percent of [the sector’s] employment, but here in Greater Victoria, we boast Canada’s largest MedTech company (StarFish Medical) and North America’s largest faculty of Health Informatics (University of Victoria’s Health Information Sciences),” said Dallas Gislason, SIPP’s deputy director of regional economic development.

“This report shows that by taking deliberate action, we can elevate our strengths and be better positioned within the broader provincial and Canadian landscape,” he said in a statement.

The report, compiled by Qatalyst Research Group, also found that:

• Infrastructure developments, including the Centre for Advanced Materials and Related Technology at the University of Victoria, as well as planned wet-lab facilities and innovation spaces, are enhancing the region's capacity to support startups and emerging companies.
• The proximity to high-quality post-secondary institutions provides access to cutting-edge research and skilled graduates, enabling the region’s life sciences companies to stay at the forefront of innovation.
• Relative to the province overall, Greater Victoria tends to be more active in the research, testing and medical laboratories sub-sectors (accounting for eight percent to nine percent of provincial employment in 2022) than in the drugs and pharmaceuticals sub-sector (accounting for one percent to three percent of employment in 2022) and, to a lesser extent, the medical devices and equipment sub-sector (accounting for three percent to four percent).

The District of Saanich, which collaborated on the report, “has identified life sciences as a key sector poised for continued growth and an important part of Saanich’s economic vision,” said Mitchell Edgar, the district’s manager of economic development.

Despite the many positives, the report also identifies key challenges, including: limited access to capital; competitive positioning against more established life sciences hubs; high operational costs for startups; dependency on external investment, particularly from the U.S.; geographical isolation and limited space for expansion; workforce limitations including difficulties retaining talent; and a limited local talent pool in marketing and management roles and other professionals.

To address these issues, the report recommends:

• raising the profile of the region's life sciences and health informatics sectors to attract investment and talent.
• strengthening partnerships between industry and post-secondary institutions related to life sciences and health informatics, and undertake joint promotional programs to attract talent.
• improving access to early-stage seed and venture capital by promoting the region to investors.
• developing an Innovation Asset Map to help innovators including researchers and entrepreneurs more quickly identify pathways to accessing talent, capital, infrastructure and other resources.
• enhancing business support services for startups and scaling companies, such as testing, demonstration and scaling up bio-manufacturing. SIPP

Edmonton-based GlycoNet invested approximately $4.5 million in 21 glycomics research projects tackling unsolved health challenges through the study of biological sugars. Industry collaborators, health foundations and business partners are co-investing approximately $7.5 million to bring the total investment to $12 million over the next two years. Glycomics is the study of complex sugars (called glycans) and their roles in organisms including humans, animals, plants, bacteria and viruses. Unlike sugars consumed in people’s diets, glycans are complex sugars that coat the surface of cells. They are essential for a wide range of biological processes in humans, animals, plants, viruses and bacteria. As a result, glycans play important roles in health and disease. This funding supports projects that expand knowledge of glycans and aim to develop cutting-edge tools and treatments in areas including cancer, infectious diseases and pandemic prevention, cardiovascular health, dementia, organ transplantation and other pressing health issues. GlycoNet is supported through the federal Strategic Science Fund. GlycoNet

The Owl River Métis Community, located on the north shores of Lac La Biche about 220 kilometres northeast of Edmonton, and Culture Pathway Development Corp. announced the signing of a solar power plans and land development agreement. This strategic renewable energy partnership is aimed at ensuring job creation, sustainability, economic empowerment and the preservation of Métis culture, the partners said. The partnership will allow Culture Pathway Development Corp. to provide expertise in planning future renewable power developments. At the forefront of these developments are three solar power plants, with capacities of five megawatts (MW), 20 MW and 40 MW, all of which will generate clean, renewable energy while promoting environmental stewardship and energy independence. These projects have been planned to align with all provincial regulations and are located outside the province’s newly designated “buffer zones” for renewable energy projects. Future renewable energy projects will feature self-sustaining solar operations, energy storage and green hydrogen production to establish long-term energy solutions for the community. This includes:

• Hydroponic agriculture: solar powered vegetable factories with geothermal heating.
• Data centres: renewable energy powered facilities to support AI and blockchain technology.
• Green hydrogen production: providing clean energy solutions for storage and transportation. GlobeNewswire

Some community members hoping to learn more about a large-scale biofuel plant proposed for the Tkʼemlúps reserve near Kamloops still have some questions after dozens of local residents packed an open house on the project. Calgary-based Azure Sustainable Fuels Corp. is partnering with Tkʼemlúps te Secwépemc and Sc.wén̓wen Economic Development Corporation on the proposed project, called 7 Mile Renewable Fuels. Some residents have concerns about the visual, noise and odor impacts of the proposed facility on the neighbourhood. An environmental assessment is underway, including for air quality and noise. The refinery would primarily turn vegetable oils, such as canola and soybean oil, into low-carbon jet fuel. Once fully constructed, the plant could produce 20,000 barrels a day, Azure said. The feedstock would be brought in on rail and put into storage before being manufactured and hydro-treated onsite by mixing the hydrogen with petrol. Regulatory applications will continue into 2026, with construction to begin later that year if the project is approved, and an anticipated startup date of 2028. Azure has a plan to build a cross-Canada network of sustainable aviation fuel plants – one on Tkʼemlúps land, another in Manitoba and a third in Ontario. Castanet

The Government of Alberta signed a letter of intent with oil and gas company Enbridge to increase capacity across more than 29,000 kilometres of Enbridge’s pipeline network, to move more Alberta oil and gas to Canadians and American partners. Alberta Premier Danielle Smith said her government’s objective is to double the province’s oil production. A working group including Enbridge within the Alberta Petroleum Marketing Commission will focus on preserving and optimizing pipeline egress, developing opportunities to expand along Enbridge’s current footprint, and developing new solutions to improve global market access and maximize the value of Alberta’s commodity, the government said. Additionally, the working group will work with government to cut red tape and streamline regulations and permitting approvals. It will also assess opportunities for shared investment and benefit to both Albertans and Enbridge. Smith said the Alberta government has reached out to other oil and gas companies to pursue similar deals. Alberta currently delivers more than 4.3 million barriers of oil to the U.S., fuelling 50 refineries based there. Govt. of Alberta

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Nutrien continues to expand automated mining technologies

Saskatoon-based Nutrien Ltd. says it has now mined 25 million tonnes of potash using automated technologies that allow mining machines to be remotely operated away from the mining face and, in some cases, from the surface.

The company began putting automated mining technologies in place a few years ago and has had steady growth since then.

At year-end, the company will have 20 mining machines outfitted with teleremote technology and hopes to increase that to 30 in 2025, said Trevor Berg, senior vice-president of potash operations at Nutrien.

By 2026, Nutrien wants to mine 40 to 50 percent of the potash it produces using remote mining technologies.

Nutrien executives said the company is expecting to spend between $15 million and $20 million annually to implement automated technologies at its potash mines.

Using machines outfitted with teleremote technologies means workers can be removed from the mining face, which can at times be hazardous.

Heading into the future, Berg said, operating mining machines remotely is going to be the way forward for the company, but some workers will still need to be underground to help support those machines.

Other players in the industry are also introducing automation technologies, including Australia-based BHP Group Ltd., which is currently building what is expected to be the world’s largest potash mine just outside Saskatoon.

Karina Gistelinck, asset president at BHP Potash, said the company’s new Jansen mine is designed to be fully integrated so the operation works in an efficient and safe manner.

The equipment also means less manual labour is needed to extract potash, specifically when transferring cut ore for transport out of the mine, which is beneficial from a safety standpoint and in terms of efficiency.

BHP is also working on loading potash into sensor-equipped rail cars via automated methods that require no human interaction with the equipment.

The Jansen mine also will be using artificial intelligence along with machine learning and data analytics to help make decisions on running mill facilities and mining operations.

These decisions will be made from a mine tower that will not be on site, but at BHP’s offices in Saskatoon. Saskatoon Star Phoenix

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Toronto-based Space Flight Laboratory (SFL) announced the successful launch and deployment in orbit of three SFL-built satellites in the HawkEye 360 Cluster 11. Cluster 11 launched into a sun-synchronous orbit on December 21, 2024, from Vandenberg Space Force Base in California, aboard the SpaceX Bandwagon-2 mission. The launch brings to 33 the total number of satellites developed for HawkEye 360 by SFL. HawkEye 360, headquartered in Herndon, Virginia, selected SFL to develop its radio frequency (RF) detection clusters due to the importance of attitude control and formation flying by multiple spacecraft for accurate RF signal geolocation. SFL’s Flex Production program gives customers the option of contracting SFL to develop the first satellite, or cluster, at its Toronto facility. SFL can then assist the customer in setting up subsequent mass production at their own site or a third-party, site. However, development can shift back to SFL when a new spacecraft design or technology update is requested. Established in 1998, SFL has developed 82 operationally successful smaller satellite missions totaling more than 350 cumulative years in orbit. Another 27 missions are now under development by SFL, which offers a complete suite of nano-, micro- and small satellites – including high-performance, low-cost CubeSats. SFL

Edmonton-based space data company Wyvern, which offers satellite-based hyperspectral imagery of Earth, announced a partnership with Dhruva Space, an India-based provider of space engineering solutions. Dhruva Space will integrate Wyvern’s hyperspectral capabilities into Dhruva’s comprehensive space technology solutions portfolio, enabling the delivery of high-resolution, on-demand hyperspectral data through Dhruva’s established distribution channels and ground station network. This offering, integrated with Dhruva Space’s Virtual Constellation, will provide select customers with access to more than 200 satellites for enhanced global coverage and real-time data acquisition, enabling clients to access multi-source, high-resolution and diverse geospatial data from a vast network of satellites. Wyvern’s hyperspectral satellite constellation, comprised of three “Dragonette” satellites, offers a solution with a ground sampling distance of 5.3 metres. This technology enhances operational capabilities in areas such as vegetation and crop health monitoring, material identification, biodiversity mapping and many more. Wyvern

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Canadian AI pioneer Geoffrey Hinton supports youth-led organization’s effort to block OpenAI from becoming a for-profit entity

In a move supported by Canadian AI pioneer and Nobel Prize winner Geoffrey Hinton, Encode, a youth-led organization advocating for responsible artificial intelligence development, filed a brief in the Musk v. Altman legal case urging the U.S. District Court in Oakland to block OpenAI’s proposed restructuring into a for-profit entity.

Encode argues that the restructuring would fundamentally undermine OpenAI’s commitment to prioritize public safety in developing advanced AI systems. The brief argues that the nonprofit-controlled structure that OpenAI currently operates under provides essential governance guardrails that would be forfeited if control were transferred to a for-profit entity.

Instead of a commitment to exclusively prioritize humanity’s interests, OpenAI would be legally required to balance public benefit with investors’ interests, Encode said.

Elon Musk and his new startup X.AI, along with Canadian executive Shivon Zilis, are trying to stop OpenAI’s restructuring with the legal challenge.

“OpenAI was founded as an explicitly safety-focused non-profit and made a variety of safety related promises in its charter. It received numerous tax and other benefits from its non-profit status. Allowing it to tear all of that up when it becomes inconvenient sends a very bad message to other actors in the ecosystem,” Nobel Prize-winning Hinton, a University of Toronto professor emeritus, said in a statement.

“The public has a profound interest in ensuring that transformative artificial intelligence is controlled by an organization that is legally bound to prioritize safety over profits,” said Nathan Calvin, Encode’s vice-president of state affairs and general counsel. “OpenAI was founded as a non-profit in order to protect that commitment, and the public interest requires they keep their word.” 

The brief details several safety mechanisms that would be significantly undermined by OpenAI’s proposed transfer of control to a for-profit entity.

These include OpenAI’s current commitment to “stop competing [with] and start assisting” competitors if that is the best way to ensure advanced AI systems are safe and beneficial as well as the nonprofit board’s ability to take emergency actions in the public interest.

“Today, a handful of companies are racing to develop and deploy transformative AI, internalizing the profits but externalizing the consequences to all of humanity,” said Sneha Revanur, president and founder of Encode. “The courts must intervene to ensure AI development serves the public interest.”

“The non-profit board is not just giving up an ownership interest in OpenAI; it is giving up the ability to prevent OpenAI from exposing humanity to existential risk,” said Stuart Russell, distinguished professor of computer science at University of California Berkeley and director of the Center for Human-Compatible AI.

“In other words, it is giving up its own reason for existing in the first place. The idea that human existence should be decided only by investors’ profit-and-loss calculations is abhorrent,” Russell said.

Encode argues that these protections are particularly necessary in light of OpenAI’s own stated mission, creating artificial general intelligence (AGI) – which the company itself has argued will fundamentally transform society, possibly within just a few years.

Given the scope of impact AGI could have on society, Encode contends that it is impossible to set a price that would adequately compensate the nonprofit for its loss of control over how this transformation unfolds.

OpenAI’s proposed restructuring comes at a critical moment for AI governance. As policymakers and the public at large grapple with how to ensure AI systems remain aligned with the public interest, Encode’s brief argues that safeguarding nonprofit stewardship over this technology is too important to sacrifice.

A hearing on the preliminary injunction is scheduled for January 14, 2025 before U.S. District Judge Yvonne Gonzalez Rogers. Encode

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Russian President Vladimir Putin has ordered Russia’s government and the country’s biggest bank, Sberbank, to build co-operation with China in artificial intelligence. Putin’s instructions were published on the Kremlin’s website on January 1, 2025, three weeks after he announced that Russia would team up with BRICS partners and other countries to develop AI. He told the government and Sberbank, which is spearheading Russia’s AI efforts, to “ensure further co-operation with the People’s Republic of China in technological research and development in the field of artificial intelligence.” Western sanctions intended to restrict Moscow’s access to the technologies it needs to sustain its war against Ukraine have resulted in the world’s major producers of microchips halting exports to Russia, severely limiting its AI ambitions. By partnering with non-Western countries, Russia is seeking to challenge the dominance of the U.S. in one of the most promising and crucial technologies of the 21st century. Russia currently ranks 31^st of 83 countries by AI implementation, innovation and investment on UK-based Tortoise Media’s Global AI Index, well behind not only the U.S. and China but also fellow BRICS members India and Brazil. Reuters

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Carbon emissions from U.S. data centres are skyrocketing, U.S. researchers say

Carbon emissions from data centres in the U.S. have tripled since 2018 and are projected to further significantly increase, according to a study by American researchers.

Research teams at the Harvard T.H. Chan School of Public Health and UCLA Fielding School of Public Health examined 2,132 data centres operating in the U.S. (78 percent of all facilities in the country).

Such facilities – essentially buildings filled with rows of computer servers – are where AI models get trained, and they also get “pinged” every time someone makes a request through models like ChatGPT. They require huge amounts of energy both to power the servers and to keep them cool. 

The researchers found that for the 12 months ending in August 2024, data centres were responsible for 105 million tonnes of carbon dioxide, accounting for 2.18 percent of national emissions. For comparison, domestic commercial airlines are responsible for about 131 million tonnes.

About 4.59 percent of all the energy used in the U.S. goes toward data centres, a figure that’s doubled since 2018.

Since so many data centres are located in coal-producing regions, like Virginia, the carbon intensity of the energy they use is 48 percent higher than the national average.

The researchers’ study, which was published on arXiv and has not yet been peer-reviewed, found that 95 percent of data centers in the U.S. are built in places with sources of electricity that are dirtier than the national average. 

One key shift in AI occurring now means that data centres’ emissions are soon likely to further skyrocket, the researchers noted.

AI models are rapidly moving from fairly simple text generators like ChatGPT toward highly complex image, video, and music generators. Until now, many of these “multimodal” models have been stuck in the research phase, but that’s changing. 

“As we scale up to images and video, the data sizes increase exponentially,” said Gianluca Guidi, a PhD student in artificial intelligence at University of Pisa and IMT School for Advanced Studies, Lucca (both in Italy) and visiting researcher at Harvard, who is the paper’s lead author. Combine that scaling up with wider adoption, he said, and emissions will soon jump. MIT Technology Review

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Advances in synthetic biology and chemistry open the doors to potentially dangerous “mirror” life: Stanford University report

Advances in synthetic biology and chemistry are eroding the barriers that previously made “mirror bacteria” impossible, according to a report by Stanford University researchers.

The potential consequences could include untreatable infections and irreversible ecosystem disruption, the group of interdisciplinary researchers warns in an associated perspective report published in the journal Science.

“The whole possibility of mirror life is far in the future. But by thinking about it now, we can prevent that future completely. Let’s not go there. It’s not worth the risk,” said Mark M. Davis, a co-author of the report and professor of microbiology and immunology in Stanford’s School of Medicine.

“Mirror life,” also known as “mirror cells” or “chiral life,” refers to the hypothetical organisms created in a lab that have mirror image molecular structures of various natural organisms.

Life on Earth uses mostly “left-handed” amino acids and “right-handed” sugars. In contrast, a “mirror cell” would be built from molecular components with the opposite orientation, creating a lifeform that is chemically a perfect mirror image of conventional life.

Human bodies and other natural organisms may not be able to detect, digest, infect or effectively interact with this new form of life.

However, there are many cases in which mirror life could be useful. Mirror cells could be used to produce drugs in contamination-free environments, for instance. They could also improve chemical synthesis, creating specialty compounds with greater precision and fewer unwanted byproducts.

But the risks are significant. Economist Robin Hanson warned in 2010: “If it [mirror life] gained energy via photosynthesis, or via special adaptations that enable it to eat ordinary life, the fact that it was immune to ordinary predators and disease would give it a huge advantage; it could take over much of the biosphere.” StanfordReport

VC, PRIVATE INVESTMENT & ACQUISITIONS

Toronto-based video-sharing platform and cloud services provider Rumble announced an agreement for a strategic investment of $775 million from cryptocurrency firm Tether, based in the British Virgin Islands with offices in Switzerland. Tether will receive 103.3 million shares of Rumble’s common stock at US$7.50 each. Rumble will use $250 million of the proceeds to support growth initiatives and the remaining proceeds to fund a self-tender offer for up to 70 million of the company’s class A common stock, at the same price ($7.50 per share) as Tether’s investment. Following the completion of the transaction, Chris Pavlovski, Rumble’s chairman and CEO, will retain his controlling stake in the company. GlobeNewswire

Berkely, California-based KoBold Metals raised US$537 million in a Series C funding round co-led by new investors Durable Capital Partners LP and a pair of funds from Baltimore-based T. Rowe Price. Other first-time investors are New York-based StepStone Group and WCM Investment Management. The financing included participation from existing KoBold investors Andreessen Horowitz Growth, Jeff Bezos’s venture capital firm BOND, Bill Gates’ Breakthrough Energy, Earthshot Ventures, Norwegian state energy company Equinor, Mitsubishi of Japan, and New York-based Standard Investments. KoBold uses artificial intelligence to find deposits of minerals such as copper, lithium, and nickel. Privately held KoBold aims to produce at least 300,000 tonnes of copper per year by 2030 at its US$2-billion Mingomba flagship project in Zambia. The company is to begin sinking the mining shaft in the first half of 2026 for what may become the country’s largest copper operation. About 40 percent of the new capital would be spent on developing existing projects into mines, with the Zambian copper project taking “the lion’s share of that,” said Kurt House, KoBold’s co-founder and CEO. The Northern Miner

Montreal-based Valsoft Corp. raised US$150 million in an all-equity deal co-led by Portage Capital Solutions, a Power Corporation Canada unit, and Viking Global Investors, with participation from PROPELR Growth. Valsoft is one of several companies, including Toronto-managed Banyan Software, that has sought to emulate Toronto-based Constellation Software Inc.’s strategy by buying up small, modestly growing software companies that focus on specific customer niches such as hotels, and face little to no competition or customer churn. Valsoft has amassed 107 companies to date, which collectively employ more than 3,500 people and generate more than US$550 million in revenue and US$125 million-plus in operating earnings. Valsoft Corp.

Toronto-based IT services firm Softchoice Corporation agreed to be acquired by St. Louis, Missouri-based World Wide Technology (WWT) Holding Co., a global technology solutions and services provider. The all-cash transaction for Softchoice’s shares, at $24.50 per share in cash, values the company at approximately $1.8 billion. The deal means Softchoice will delist from the Toronto Stock Exchange and go private. In the past 12 months ending on September 30, Softchoice reported net income of $52.9 million on sales of $1.04 billion, according to S&P Global Market Intelligence. WWT said the acquisition will add new capabilities to its  software, cloud, cybersecurity and AI offerings to provide a comprehensive solutions portfolio across the full spectrum of the digital transformation journey. The deal is expected to close in the second quarter of 2025, pending regulatory approvals. BusinessWire

Toronto-based Payfare Inc. announced an agreement to be acquired for $201.5 million by Milwaukee, Wisconsin-based Fiserv, a global payments and financial technology company that trades on the New York Stock Exchange. Fiserv will pay $4 in cash per share of Payfare, which trades on the Toronto Stock Exchange. The companies expect the deal to close in the first half of 2025, if it receives shareholder and regulatory approvals. Payfare provides workers for gig-economy companies with instant access to earnings and digital banking solutions for workforces. Payfare Inc.

Toronto-based Thomson Reuters Corporation announced it acquired Michigan-headquartered SafeSend for $600 million in cash. SafeSend is a cloud provider of technology for tax and accounting professionals. Founded in 2008, SafeSend automates the “last-mile” of the tax return, including assembly, review, taxpayer e-signature and delivery. SafeSend's solutions are used by accounting firms of all sizes across the U.S., including 70 percent of the country's top 500 firms. Thomson Reuters said the acquisition supports its vision for tax and accounting professionals, advancing efficiency in workflows for tax preparers and taxpayers across the U.S. Thomson Reuters intends to continue to offer SafeSend as a market solution, supporting the ability to interoperate with multiple vendors across a connected tax software ecosystem. Thomson Reuters

San Francisco-based Employer.com announced the acquisition of Vancouver-based Bench Accounting for an undisclosed price. Employer.com provides workforce management and business support solutions, while Bench provides bookkeeping services and financial solutions for small businesses. Bench had suspended operations on December 28, 2024, but Employer.com reopened Bench’s customer portal two days later when the acquisition was announced. Bench Accounting

Ireland-based Trane Technologies announced it completed the acquisition of Montreal-based BrainBox AI for an undisclosed amount. BrainBox AI will maintain its operations in Montreal and all 190 employees will stay on. BrainBox AI uses advanced deep learning algorithms to predict building energy needs and automate heating, ventilation and air conditioning systems, thus reducing energy consumption by up to 25 percent and reducing greenhouse gas emissions by up to 40 percent. Trane said the acquisition builds on the companies’ existing collaboration and combines BrainBox AI’s AI technology with Trane Technologies’ advanced building management and digital capabilities to meet fast-growing demand for sustainable, autonomous building solutions. Trane Technologies

REPORTS & POLICIES

 Carbon emissions pricing has only a minimal impact on inflation and affordability for Canadian households: IRPP study

Carbon emissions pricing – such as the federal carbon tax on fuel or the B.C. carbon tax – has only a minimal impact on inflation and affordability for Canadian households, according to a study from the Institute for Research and Public Policy (IRPP).

The study shows that carbon pricing policies (and all other indirect taxes embedded within items consumers purchase) contributed only about a 0.5-percent overall increase in consumer prices since 2019. This is a small fraction of the more than 19-percent increase in such prices over that period.

“Our study shows that, contrary to popular belief, emissions pricing isn’t driving Canada’s affordability challenges,” said the study’s co-authors Trevor Tombe and Jennifer Winter, economists at the University of Calgary’s School of Public Policy.

“Most price increases for everyday essentials and consumer goods have been because of global factors like surging energy prices and supply-chain disruptions. The slow pace of income growth has also affected affordability,” they said in a statement.

While emissions pricing does influence costs, its role in driving inflation is relatively small compared with other economic pressures, according to their study, Does Emissions Pricing Hurt Affordability? Quantifying the Effects on Canadian Households. The study was commissioned by the Affordability Action Council.

Their study also looked at the effectiveness of government rebates in offsetting the costs of carbon pricing for most Canadian households.

With the federal Canada Carbon Rebate, households receive quarterly payments that often exceed the additional expense caused by the emissions price, Tombe and Winter said. “This means that many families, particularly those with lower incomes, are shielded from the negative financial impact of emissions pricing and some may end up with a net financial gain.”

In provinces covered by the federal pricing system, the rebates generally compensate for the fuel charge, “ensuring that most Canadians do not face significant out-of-pocket costs due to climate policy,” they said.

The impact of emissions pricing varies significantly across regions and household types, according to the study.

Provinces such as Saskatchewan, which rely heavily on fossil fuels, experience higher costs compared with provinces like Quebec, where low-emission renewable energy plays a predominant role in electricity generation.

Another factor that influences how emissions pricing affects households is regional energy use. Provinces vary significantly in their energy consumption patterns and the types of energy they rely on, which in turn affects the financial burden placed on households.

For example, provinces like Alberta, which heavily depend on natural gas for heating, experience higher costs due to emissions pricing than provinces that rely more on renewable energy sources. Also, lower-income households and families with children tend to spend a greater share of their income on essentials, making them more vulnerable to price increases.

However, these groups also tend to benefit the most from the federal government’s carbon rebate system, “which helps reduce the financial strain they might otherwise face due to climate policy-induced rising energy costs,” Tombe and Winter noted.

While emissions pricing directly affects energy costs, it also has indirect effects on other goods and services, according to their study.

Since many sectors rely on energy, the increased costs can ripple through supply chains, affecting the prices of items such as food and household goods.

However, Tombe and Winter found that these indirect effects are relatively modest, particularly in comparison to other inflationary pressures. For example, the rising global price of oil has had a far greater impact on overall costs than domestic emissions pricing policies, they said.

The co-authors noted that their report carefully walks the reader through the steps involved in estimating the effect of emissions pricing on the price of goods and services.

“By breaking down these steps in a methodical and transparent way, we help clear up common misconceptions that have surfaced in the public debate on emissions pricing,” they said.

Many people believe that emissions pricing drives up the cost of living significantly, but this detailed explanation shows that the reality is more nuanced, Tombe and Winter said.

“By guiding readers through how regional differences, policy designs, and consumption patterns interact, we provide clarity on a complex topic, helping policymakers and the public to better understand the true impact of emissions pricing.”

Moreover, they added, their results likely overestimate the short-term costs of emissions pricing, as the resulting behavioural changes that households may adopt (such as shifting to more energy-efficient appliances, better home insulation, adopting heat pumps, increased use of public transit and more) lower the overall impact of emissions pricing on household budgets.

The co-authors also found that policy design, such as emissions pricing systems for large industrial emitters, helps prevent these increased costs from being fully passed on to consumers, further mitigating the overall impact on households.

“The results in this report underscore the importance of designing climate policies that protect vulnerable households,” they said.

Through rebates and credits, lower-income households can be shielded from the potentially regressive effects of emissions pricing, ensuring that these policies do not disproportionately harm those who are least able to afford higher costs, Tombe and Winter said.

“In this way, climate policies can be crafted to both reduce emissions and maintain affordability for Canadian families.”

Federal, provincial and territorial governments could further improve public understanding of the impact of emissions pricing with transparent analysis of its effects on households across incomes, regions, family size and more, the co-authors said.

Where there are gaps in support, governments can adjust or introduce new policies. British Columbians for example, receive the province’s income-tested Climate Action Tax Credit instead of the Canada Carbon Rebate and often end up paying more in the carbon tax than they receive in rebates.

B.C. could adopt a rebate approach similar to the federal government in order to ensure that more households receive more than they pay in carbon tax, the co-authors suggest.

While climate action has upfront costs, there are long-term benefits, Tombe and Winter said. “Reducing emissions now helps avoid the more severe economic and environmental consequences of unchecked climate change. Although there are short-term costs associated with these policies, they are necessary investments to prevent greater financial strain on households and the broader economy in the future.” IRPP

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Canada isn’t prepared for devastating economic and social impacts if oilsands and oil exports become uneconomic faster than expected: report

Canada’s oilsands and oil exports could become uneconomical sooner than expected and the country isn’t prepared for it, according to a study by the Canadian Centre for Policy Alternatives (CCPA) and Ecojustice.

Canadian governments and the oil industry are banking on oil production rising or at least remaining flat through 2050 before tapering off in the latter half of the century.

To square this scenario with their climate claims, governments and industry are gambling on carbon capture and storage technologies to achieve net-zero upstream emissions from the sector – without actually reducing total oil production, the study noted.

But this strategy rests on a crucial, unspoken assumption – that despite 149 countries committing to achieve net-zero emissions in the coming decades, the world will continue to buy Canadian oil indefinitely, said study co-authors Hadrian Mertins-Kirkwood, a senior researcher with the CCPA, and Ecojustice lawyer Matt Hulse.

In their study, Heads in the Sands, they argue that there’s a real and growing possibility that demand for Canadian oil exports will fall sooner and faster than anticipated. “Not only because of falling demand for oil in general, but specifically because the oilsands are among the costliest and most emissions-intensive sources of oil in the world.”

“No political party or government in Canada can save the oilsands from collapse if the rest of the world stops buying Canadian oil,” the co-authors said.

Canada produced a record-high six million barrels of oil per day in 2023, primarily from bitumen extraction in the oilsands, placing the country among the top five oil producers in the world.

But in a global net-zero scenario, oilsands production could fall by 83 percent by 2050, according to an Energy Futures report by the Canada Energy Regulator, their study noted.

Falling demand for exports of oilsands-derived oil would be devastating for the Albertan workers, communities and governments that have no plans in place for this possible future, Mertins-Kirkwood and Hulse said.

Their report lays out a scenario where production from the oilsands stays relatively steady for the next few years before collapsing in the 2030s and falling by more than 80 percent by 2050.

Total revenues generated by the oilsands would decline from more than $100 billion in 2023 to just $5 billion in 2050.

Total employment in the sector falls by 90 per cent in this period from roughly 100,000 workers now to around 5,000 by 2050, with the subsequent loss in employment income and taxes collected from workers.

Royalties, taxes and fees paid to governments and Indigenous communities fall dramatically, from around $17 billion to less than $3 billion by 2030. By 2050, royalties and taxes paid to Alberta could fall to only a few hundred million dollars.

“A production decline driven by changes in global demand would have far greater consequences than any domestic policy to reduce emissions from the oilsands,” the co-authors noted.

In this scenario, oilsands projects fall like dominoes, starting with the highest-cost and highest-emitting producers in the 2030s. By 2050, only a handful of projects are still producing and at well below their maximum productive capacity.

Shuttered projects leave behind $70 billion in stranded assets and more than $50 billion in unfunded environmental cleanup costs, the co-authors calculated.

If stable oil demand through 2050 is the best case scenario for the Canadian oilsands, then rapid decarbonization is the worst case scenario, they pointed out.

“If reality falls anywhere in the middle, Alberta needs to be prepared for at least some oilsands projects to shut down prematurely. And if reality falls closer to the worst case scenario – which, to be clear, is absolutely essential from a climate perspective – then Alberta needs to be prepared for a deep and sustained economic disruption as early as the 2030s.”

Under the incoming Donald Trump administration in the U.S., increased competition from resurgent U.S. oil producers in a context where oil demand continues to fall globally would be even worse for the Canadian oilsands, the co-authors said.

The possible imposition of 10 percent to 25 per cent tariffs on Canadian energy exports to the U.S. would make the situation worse.

Mertins-Kirkwood and Hulse said the main takeaway from their research is that oilsands workers, communities and governments in Alberta need to make a plan for the end of the oilsands.

“In no scenario does the oilsands industry shut down overnight but, in a world moving rapidly to decarbonize, the dominoes start to fall in the 2030s,” they said. “The longer Canada and Alberta wait to prepare, the more costly and complicated the transition will be.” Canada Centre for Policy Alternatives

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Alberta’s energy regulator has for decades failed to responsibly monitor and manage impact of oilsands bitumen tailings spills: peer-reviewed study

The Alberta Energy Regulator (AER) has for decades failed to responsibly monitor and manage the impact of bitumen tailings spills from oilsands facilities’ tailings storage ponds in northeastern Alberta, according to a new peer-reviewed study.

“The AER’s claims of no environmental impacts at any tailings spills lack corroborative environmental data,” the study says. “The AER’s tailings spill data lack the ecological, biological and chemical data required to assess and manage the environmental impacts of tailings spills.”

The study, Regulatory Failure to Monitor and Manage the Impacts of Tailings Spills, Alberta, Canada, by independent ecologist and author Dr. Kevin Timoney, PhD, analyzed documents obtained in public databases and under freedom of information requests. The study assessed the AER’s monitoring and management of bitumen tailings spills.

Timoney is an ecologist based in Sherwood Park, Alberta, and author of: The Peace-Athabasca Delta: Portrait of a Dynamic Ecosystem (University of Alberta Press); Impaired Wetlands in a Damaged Landscape: the Legacy of Bitumen Exploitation in Canada (Springer); and Hidden Scourge: Exposing the Truth about Fossil Fuel Industry Spills (McGill-Queens University Press).

Timoney’s study analyzed data from 514 bitumen tailings spills reported in the AER’s database that occurred between 2014 and 2023. Via a freedom of information request, the study also analyzed the AER’s sum total of evidence it possesses for these spills.

Those AER data were supplemented with tailings spill information recorded in Alberta Environment’s environmental management system for bitumen tailings spills that occurred between 1996 and 2012.

Timoney’s study found that many of the AER’s claims, such as no environmental impacts at any tailings spills, and perfect spill recovery in 75 percent of spills, lack credible evidence.

The analyses showed that AER’s spill footprints are unrealistically small relative to the spill volumes; that the reported number of spills and total spill volumes are underestimates of the true rates; and that reported spill locations are inaccurate. For many spills, incident dates were not accurately reported.

The AER’s claim of routine inspections of spills is not supported by data; only approximately 3.2 percent of tailings spills are inspected, according to Timoney’s study.

Approximately 41 percent to 54 percent of the spill sites with photographic documentation showed evidence of environmental harm. If similar rates of harm apply to spills lacking photographic evidence, environmental harm occurs in 23 percent to 36 percent of those spills, the study says.

In contrast, the AER claims, without evidence, that none of the 514 spills caused environmental harm.

“The AER’s failure to gather credible and relevant environmental data, conduct routine on-site

inspections, and to protect ecosystems from harm are inconsistent with its regulatory responsibilities,” the study says.

“As a result of chronic mismanagement since 1967, ecological risks will persist for decades. The true magnitude of the ecological impacts of tailings spills may never be known.”

A 2020 report by the Commission for Environmental Cooperation, an international organization created under the North American free-trade agreement, found scientifically valid evidence that oilsands tailings ponds are seeping into groundwater.

“We’ve known for some time that the AER has badly mishandled the oil and gas sector’s future environmental harms, in the form of tens of billions in unfunded remediation and reclamation costs. With this paper, Kevin Timoney has cast doubt on the sector's environmental performance in the here and now – and provides further evidence that the AER has all but abdicated its role in protecting the broader public interest,” Martin Olszynski, associate professor of law and Chair in Energy, Resources and Sustainability at the University of Calgary, said in a statement.

As a captured regulator, the AER is incapable of correcting its mistakes because it is controlled by the industry that it regulates, Timoney said. “Instead of reporting environmental impacts that fit reality, the industry and the AER work together to produce disinformation that supports the bureaucratic mythology that the industry can do no harm.”

Research Money asked Timoney if the AER could be fixed or if Alberta needs an entirely new energy regulator.

“I believe that given the current political environment, current legislation and the power of the fossil fuel meta-organization, the AER can't be reformed. We need an entirely new regulator,” Timoney said in an email. Research Money

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Alberta oilsands companies allegedly broke rules requiring them to pay for independent environmental monitoring

At least 16 companies operating in Alberta’s oilsands allegedly broke rules requiring them to pay for environmental monitoring by independent scientists, according to newly released data from the Government of Alberta.

Alberta’s Environment and Protected Areas Ministry released the data to The Narwhal in November, about a month after the provincial government lost a three-year battle to keep the names of 16 oilsands companies secret.

The companies paid financial penalties for allegedly flouting rules surrounding a joint Canada-Alberta scientific monitoring program, according to the data, The Narwhal’s Mike De Souza reported in a news story.

Federal and provincial officials introduced the monitoring program in 2012 to measure the cumulative effects of oilsands development on air, water, land and biodiversity.

The names of companies with late or unpaid fees include firms that wound up under bankruptcy protection or had their operations shut down for serious environmental infractions, such as Everest Canadian Resources and Sunshine Oilsands.

They also include some larger multinational companies, including Koch, Imperial Oil, ConocoPhillips and MEG Energy, which faced fines for paying fees late.

For some critics, the late and unpaid fees cast doubt on how seriously Premier Danielle Smith’s government is taking its responsibility to manage the monitoring program.

Shannon Phillips was the environment minister in the former NDP government during a period when some of the fees went unpaid. She said she asked public servants to use all the tools of the government to collect the money after they informed her about the problem.

But she noted there was an internal government culture to cut the industry some slack.

“The default setting was to lay down and die in the face of corporate whining and tantrums,” she said. “But the public service knew that might not be the response if they brought me a problem to solve.”

Environment and Climate Change Canada, which is a partner in the program, told The Narwhal in a statement that it was not engaged in the collection of fees since Alberta is responsible for enforcing its regulations.

The federal department also noted that while Alberta had failed to release annual reports for the program for five years, the province had just published the missing reports on Dec. 6, 2024, with support from its federal counterparts. The Narwhal

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“Succession tsunami” threatens to overwhelm Canadian SMEs: CFIB report

There’s a “succession tsunami” headed for Canada that business owners aren’t prepared for, according to a recent report by the Canadian Federation of Independent Business (CFIB). 
More than $2 trillion in business assets could change hands within the next decade as over three-quarters (76 percent) of about 1.2 million small and medium-sized business owners are planning to exit their business, the report said.

Retirement is the top reason business owners cited for leaving their business (75 percent), while 22 percent are burned out and 21 percent want to step back from their responsibilities as owners.

However, only nine percent of business owners have a formal business succession plan in place. 

“It’s essential for business owners to have a well-planned exit strategy. With over $2 trillion set to be in play in the next 10 years and only a fraction of business owners having a formal succession plan, the risks of improper planning can be big,” Corinne Pohlmann, report co-author and senior vice-president of national affairs at CFIB, said in a statement. “Planning for business succession is a key factor in ensuring that Canada continues to have a healthy small business community.”

Poorly managed ownership transitions may result in business owners making a premature sale (thus not receiving the full value of their business), bankruptcies, closures, a lack of services in the communities where the business is situated, job losses, reduced productivity and a destabilized economy, according to the report.

The report’s other co-authors are Laure Anna Bomal, research analyst, and Marvin Cruz, director of research – both with CFIB.

The most common obstacle to succession planning for half (54 percent) of small business owners is finding a suitable buyer or a successor, according to the report.

Nearly half (43 percent) of owners are struggling to measure the value of their business, while 39 percent say the business is too reliant on them for day-to-day operations.

Just under half of owners (49 percent) will exit their business by selling to an unrelated buyer(s), while 24 percent will sell to a family member and 23 percent to their employees, the report said.

The COVID-19 pandemic and the challenges it brought have also affected owners and their exit timelines.

Nearly four in 10 owners have changed their business exit dates: 17 percent have accelerated their timeline, often as a result of the stress they were under, while 22 percent have delayed it by at least one year, often because they had incurred too much debt or the value of their business had gone down too much during the pandemic.
The most important factor for a strong majority (90 percent) of owners looking to sell their business is ensuring their current employees are protected.

It’s also important for them to get the highest possible price (84 percent) and select the right buyer who will carry forward their way of doing business (84 percent). 

“Not having a formalized succession plan could result in lost jobs, bankruptcies or loss of stability for the business,” report co-author Bomal said.

“A majority of business owners rely on the sale of their business to fund their retirement. If they can’t sell their business, they’d have to delay their retirement. That adds another stressor to the owner, their family and employees,” she said.

To develop a succession plan, 43 percent of business owners reach out to accountants for their services. Almost a quarter (24 percent) work with lawyers, while about two in five business owners (39 percent) rely solely on themselves to develop a succession plan.

The federal government has acted on a recommendation in CFIB’s report that intergenerational transfers of small businesses to family members are treated in a similar manner as those to a third-party sale. 

In June last year, the government enacted an amendment to Bill C-208 that provides a uniform tax treatment whether a business is sold to a family member or an unrelated third party. Ottawa also removed the requirement that parents looking to sell their business to their children must control the company immediately before the sale.

The government also last year introduced rules to facilitate employee ownership trusts (EOTs) to encourage and make employee ownership of a business easier – a policy that’s used in the U.S. and U.K.

Typically, EOTs are designed in such a way that employees do not pay out of pocket upfront; instead, a trust is formed to secure a loan to purchase the company’s shares on behalf of the employees. This structure allows the owners to sell their business for full market value and be repaid out of company profits over time.

In its 2023 fall economic statement, the federal government also proposed a temporary exemption for the first $10 million in capital gains realized on the sale of a business to an EOT. EOTs became available in Canada under the new rules as of January 1, 2024.

In addition, the 2024 federal budget proposed to expand a qualifying business transfer (as defined for the purpose of employee ownership trust rules) to include the sale of shares to a worker cooperative corporation meeting certain definitions in the Canada Cooperatives Act.

In acting on another recommendation in CFIB’s report, the federal government increased to $1.25 million, as of June 25, 2024, the lifetime capital gains tax limit for sales of small business shares and farming and fishing property.

However, the government has yet to act on another recommendation in CFIB’s report: consider creating a business succession immigration stream that allows potential immigrants to purchase and operate an existing business in Canada.

Immigrants are allowed to purchase Canadian businesses but only under several rules, including investing a minimum of $250,000 in a Canadian business that has been operating for at least 12 months, generating employment for at least two Canadians, applying for a renewable temporary work permit, and purchasing a business in a key economic sector or generating significant benefits for Canada.

CFIB has partnered with SuccessionMatching to help connect small business owners looking to sell their business with entrepreneurs looking to buy.

"It doesn't matter whether you are planning to transition in the next year, two years or 20 years, a succession plan is the foundation for that transition. Most deals break down during the negotiation because business owners are not actually ready on paper to transition their business,” said Alison Anderson, founder and CEO of SuccessionMatching. CFIB

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More media coverage of small companies could help them attract equity financing and investment: Bank of Canada report

Small companies don’t get a lot of media coverage but when they do they benefit more than big firms in attracting equity financing and investment, according to a study by Bank of Canada researchers.

The study found that, firstly, media coverage is highly concentrated, focusing particularly on the largest firms in the economy.

Second, firms’ equity financing and investment increase after media coverage, since such coverage is a major source of information for investors.

Third, these equity and investment responses are largest among small, rarely covered firms.

Asymmetric information between firms and investors leads to “information frictions” that constrain firms’ financing and investment, according to the study.

Once a firm appears in news reports, investors gain full information about the firm, which alleviates the asymmetric information in the equity market, the study says. “However, this effect is limited to the firms that news outlets choose to cover.”

“By concentrating coverage on firms least influenced by coverage, the media plays a limited role in alleviating the negative effects of asymmetric information on aggregate investment.”

The study, The (Mis)Allocation of Corporate News, was co-authored by Bank of Canada researchers Xing Guo, Alistair Macaulay and Wenting Song.

The authors constructed a new dataset of firm-level media coverage in the U.S. to capture the timing and frequency of this coverage in major U.S. newspapers for a universe of publicly traded firms over a 30-year period.

News outlets provide valuable information to their readers, but constraints on space and journalistic resources mean they have to make judgments on which firms are most newsworthy, the authors said.

“We find that these judgments overwhelmingly favor reporting on the largest firms in the economy – firms that benefit the least from media coverage,” they said.

The largest 10 percent of firms account for more than 85 percent of all news coverage, their study found.

Their findings suggest that large firms that dominate the market share, or “superstar” firms, “do so not only with better information technology but also with superior media coverage.”

This selectivity has important effects on firm dynamics and aggregate investment, according to their study. “Reallocating a small fraction of limited media reports away from large firms substantially increases the role the media can play in alleviating information frictions.”

The authors built an economic model to simulate the effects of a hypothetical marketplace in which companies would be able to buy media coverage, finding that such a system would boost aggregate investment and output at small firms.

“Firms that stand to gain the most from coverage have the highest willingness to pay,” the study notes.

Targeting the media reporting to those firms significantly boosts their financing and investment, leading to a substantial reduction in aggregate output loss, according to the study.

“We find that the allocation of media-reporting resources plays a substantial role in shaping the firm's distribution and dynamics,” the authors said.

A reallocation of just five percent of media resources towards firms with higher demand for coverage doubles the media’s effect in reducing output loss, while a 10-percent reallocation mitigates half of the overall output loss from information asymmetry, the authors’ economic model found.

“Reallocating news coverage, or allowing firms to buy coverage from outlets in a competitive market, leads to substantial increases in aggregate investment and output,” the authors said. “The aggregate effects of media coverage therefore depend crucially on how that coverage is allocated.” Bank of Canada

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Post-secondary institutions can take several actions to better support neurodivergent students: report

Post-secondary institutions can better support neurodivergent students with neurodiversity training for campus employees, having multiple channels of support for such students and other actions, according to a report by the Conference Board of Canada (CBoC) done in partnership with the Future Skills Centre.

The report, Making the Invisible Visible, looked at the experiences of neurodivergent students studying in Canadian post-secondary education. The researchers conducted a survey of 400 students and recent graduates who had been clinically diagnosed or self-identified as neurodivergent.

The report outlines barriers identified by the students, such as difficulties with executive functioning skills and concerns or challenges around disclosing their neurodivergence to their institution.

The report identified several “levers for success” for neurodivergent students, such as having adequate supports and supportive relationships in and outside of the post-secondary institution.

Key findings of the report include:

• Neurodivergent students have diverse learning profiles: 38 percent report multiple diagnoses; 62 percent report additional intersectional identities (e.g. lesbian, gay, bisexual, transgender, queer, intersex, and asexual, or LGBTIAQ).
• One-third of neurodivergent students do not have a formal diagnosis, which limits access to educational supports and accommodations.
• Less than half of neurodivergent students disclosed their neurodivergent identity or diagnosis to their educational institution, and 73 percent of those who did not disclose identified barriers to the process. Yet those who disclosed are significantly more likely to be satisfied with their post-secondary institution.
• Students reported a lack of knowledge of the disclosure process, stigma and challenges to accessing clinical assessments and documentation as reasons for not disclosing.
• Students reported difficulties with executive functioning – skills related to working memory, attention, planning, organization, flexible thinking and self-management – two to three times more often than any other challenge including mental health, finances, learning or stigma.
• Wrap-around service models that improve access to clinical diagnoses, mental health supports, one-to-one coaching and executive function skill building can foster student academic success and inclusion.

Canadian post-secondary institutions lack comprehensive data on the number of neurodivergent students attending these schools and the experiences and effectiveness of current supports for these students, the researchers said.

Of the students surveyed for their study, 59 percent identified attention deficit hyperactivity disorder (ADHD) as either a primary (26 percent) or co-occurring condition (59 percent). ADHD is strongly associated with executive function challenges.

Other common diagnoses included mental health diagnoses (46 percent), autism (24 percent), and learning disabilities (15 percent).

The researchers said post-secondary institutions can take the following steps to better support neurodivergent students:

• Provide targeted neurodiversity training for all campus employees and leadership including faculty, administrative staff and service areas, including security, residence staff and peer mentors, to reduce instances of stigma and discrimination on campus.
• Increase student and faculty/staff awareness of the role of executive function skills for learning and ways of leveraging assistive technology and artificial intelligence to support academic success. Use multiple and diverse channels to introduce all new students to their institution’s accessibility services and the role that disclosure and accommodations play in supporting neurodivergent students.
• Create diverse opportunities for neurodivergent students to connect and build community such as social groups, support groups and peer mentorship programs.
• Offer a mixture of in-person and hybrid course options in each faculty so neurodivergent students can find pathways to their desired employment sector regardless of attendance needs. Conference Board of Canada

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Competition Bureau releases guidelines for determining whether a business is engaged in “greenwashing”

Canada’s Competition Bureau released draft guidelines for how it will determine “greenwashing,” or environmental claims by businesses that are false, misleading or not adequately and properly tested or substantiated as required under the Competition Act.

The Bureau has developed six principles to help businesses assess whether their environmental claims are in line with recently implemented anti-greenwashing provisions in the Competition Act.

The Bureau said it must assess not only the literal meaning of an environmental claim, but also the general impression conveyed to the public by the claim. “This in turn requires considering all of the elements of an environmental claim, including the context, words, images and layout.”

The Bureau’s six principles for assessing whether environmental claims constitute greenwashing are:

1. Environmental claims should be truthful, and not false or misleading.

This means any environmental claim must be true, both in terms of its literal meaning and the general impression it conveys. “An environmental claim might be literally true, but still create a false or misleading general impression about an environmental benefit,” the Bureau said.

2. Environmental benefit of a product and performance claims should be adequately and properly tested.

Businesses must be able to show that the claims are based on adequate and proper testing, which must be conducted before making the claims. 

3. Comparative environmental claims should be specific about what is being compared.

Many environmental claims state or imply some sort of comparison. This might involve a comparison to the way things used to be done, or to similar products or businesses, or even to different kinds of products or businesses.

Every time a business makes any type of comparison in its promotional materials, the business should be specific about what is being compared, and the extent of the difference between what is being compared. Failure to do so may lead to environmental claims that are misleading.

4. Environmental claims should avoid exaggeration.

Even well-intentioned businesses may realize that some of their environmental claims are inadvertently exaggerated or overstated when they carefully consider all of the facts and evidence. While even small benefits to the environment can be positive, they should not be marketed as big ones.

5. Environmental claims should be clear and specific – not vague.

Vague environmental claims may convey a general impression to consumers that the environmental benefit is broader or of greater magnitude than it actually is.

For example, a claim that a particular product is eco-friendly may convey the impression that the product is beneficial for the environment throughout its entire life cycle. The life cycle of the product can involve every aspect of the product, from the materials sourced, to how it is manufactured, packaged and transported, and even how it is used and disposed of.

This type of vague representation can be misleading to consumers if the business has not ensured that the representation holds true for the product from cradle to grave. “The Bureau’s advice is clear: when it doubt, spell it out.”

6. Environmental claims about the future – such as being carbon-neutral by a certain date – should be supported by substantiation and a clear plan.

Claims about the future can be considered greenwashing if they represent little more than wishful thinking.

Businesses should ensure that such claims are well-founded and are adequately and properly substantiated in accordance with “internationally recognized methodology.” Before making these kinds of claims, businesses should have:

• A clear understanding of what needs to be done to achieve what is being claimed.
• A concrete, realistic and verifiable plan in place to accomplish the objective, with interim targets.
• Meaningful steps underway to accomplish the plan.

According to the Bureau, “There is a wealth of information available to businesses regarding internationally recognized methodologies related to common claims such as those related to net-zero.” Such methodologies often require third-party verification.

However, the Bureau in its guidelines didn’t reference any of this information or recommend any specific international methodologies.

For example, the International Standards Organization offers net zero guidelines for harmonizing, understanding and planning for net zero actors at the state, regional, city and organizational level.

The Bureau said a methodology that has been recognized by two or more countries “will generally be considered by the Bureau to be internationally recognized, providing it results in adequate and proper substantiation.”

The Bureau said in order to comply with the new provisions, a business would need to demonstrate that a particular internationally recognized methodology used to substantiate its claims is adequate and proper in the circumstances, including with regard to the Canadian context as appropriate, such as geography and climate.

The Bureau noted that businesses never have to prove that their environmental claims are not false or misleading. “However, for certain kinds of environmental claims, they have to be able to back up their claims.”

The Competition Act’s anti-greenwashing provisions also increased the fines for deceptive marketing practices. This includes up to $750,000 ($1 million for each subsequent violation) for individuals or three times the value of the benefit derived from the deceptive conduct.

For corporations, the penalty is up to $10 million ($15 million for each subsequent violation) or three times the benefit obtained from the deceptive conduct or, if that amount can’t be determined, up to three percent of annual worldwide gross revenues.

When the provisions became law last June, oil and gas industry representatives said the legislation silences discussion around climate and environmental policy, and potentially opens up companies to lawsuits by environmental groups and activist organizations.

The Canadian Association of Petroleum Producers (CAPP), the Pathways Alliance group of oilsands companies, and several individual oil and gas companies removed all environmental content from their websites in response.

However, the Bureau said the anti-greenwashing provisions in the Competition Act don’t prevent a business from telling consumers about what it is doing to improve its environmental performance, providing all environmental claims are true.

Also, any person or group that seeks to file an application (complaint) under the anti-greenwashing provisions must first get permission from the Competition Tribunal which may only grant an application in which doing so would be in the public interest.

CAPP also said the provisions should apply equally to all sectors, including climate advocacy groups and not-for-profit groups involved in raising capital for charitable and non-profit purposes.

However, the Bureau’s new guidelines don’t specifically mention such groups, referring only to “businesses” subject to the new greenwashing provisions.

In December, two Alberta private sector groups – the Independent Contractors and Businesses Association and the Alberta Enterprise Group – launched a lawsuit against the Competition Act’s anti-greenwashing amendments in Calgary Court of King’s Bench.

The Competition Bureau invites the public to comment on its draft guidelines between December 23, 2024 and February 28, 2025 by emailing environmentalclaims-declarationsenvironnementales@cb-bc.gc.ca Competition Bureau Canada

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Competition Bureau sues Rogers Communications over its “Infinite” wireless phone plan advertising

Canada’s Competition Bureau is taking legal action against Toronto-headquartered Rogers Communications Inc., alleging the company is falsely advertising their Infinite wireless phone plans as offering unlimited data.

The Bureau claims that Rogers’ advertisements create the false or misleading impression that the plans provide consumers with limitless data, allowing them to use as much data as they want.

In reality, the plans have data caps and once reached, the data speed is reduced, or throttled, by over 99 percent, according to the Bureau.

As a result, the Bureau has filed an application with the Competition Tribunal seeking, among other things, for Rogers to stop the misleading advertising, pay a penalty, and issue restitution to Infinite wireless phone plan customers.

The Bureau had obtained an order, granted by the Federal Court of Canada, that required Rogers and its subsidiary to produce records and information relevant to the Bureau’s investigation.

Rogers said in a statement that the advertising of its Infinite plans is clear and truthful, and the company will fight the litigation.

Rogers said such plans are commonplace in the industry and the Bureau’s decision to single out Rogers five years after it introduced its Infinite plans is concerning.

Other telecom companies also advertise plans with “unlimited” data at reduced speeds once a threshold is reached. Bell Canada notes directly in the advertised rates on its website that speeds are reduced to “up to” 512 kilobits per second (kbps) after the threshold, according to a news story by The Canadian Press.

Rogers, on its website, states that its Infinite plans “have a set amount of high-speed data. If you use all of your plan’s data allotment, you can use unlimited data at reduced speed (up to 512kbps).” Competition Bureau Canada

THE GRAPEVINE – News about people, institutions and communities

Michael Denham was appointed executive vice-president and vice-chair of the National Bank of Canada, effective March 1, 2025. Denham is currently executive vice-president, commercial and private banking 1859. In his new role, Denham will be responsible for leading the integration of recently acquired Canadian Western Bank and providing counsel to the CEO and senior leadership team on strategic decisions and business opportunities to enhance the National Bank’s performance and competitive position. Denham joined the National Bank in 2021. Judith Ménard, currently head of national accounts, Canada, and senior vice-president, commercial and private banking 1859, British Columbia, Prairies, Ontario and Atlantic Canada, will succeed Denham as executive vice-president, commercial and private banking 1859, effective March 1, 2025. Ménard, who joined the National Bank in 1998, will join the senior leadership team, reporting to Laurent Ferreira, president and CEO. National Bank of Canada

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University of Alberta moving away from equity, diversity and inclusivity framework to a new framework with new language

The University of Alberta is moving from an equity, diversity and inclusivity (EDI) framework to a new framework and new language: “access, community and belonging.”

Bill Flanagan, U of A’s president and vice-chancellor, said in an op-ed in the Edmonton Journal that for some, the language of EDI has become polarizing, “focusing more on what divides us rather than our shared humanity. Some perceive an ideological bias at odds with merit.”

Words matter, and this evolution aims to craft a shared narrative with aligned actions that resonate more universally, emphasizing common ground and fostering authentic connections, Flanagan said. Access, community and belonging better highlight U of A’s aspirations, he said.

Access signals U of A’s ongoing work to remove financial and social barriers, ensuring equal opportunities for all.

Community underscores U of A’s belief in collective well-being and shared purpose. Belonging reflects the university’s goal to cultivate spaces where individuals feel valued for their unique contributions.

U of A, as the first major Canadian university to embrace access, community and belonging, is leading the way in reimagining how universities can foster excellence, open inquiry and rigorous debate, Flanagan said.

“Universities must be places of diversity where ideas are exchanged freely, where challenging conversations across differences are embraced, and where intellectual growth flourishes. It is not the university’s role to take ideological positions but rather to create an environment that encourages dialogue, mutual respect and the pursuit of knowledge.”

Through extensive consultations with over 1,000 community members, three words – access, community and belonging – emerged repeatedly as the most prominent and meaningful descriptors of what U of A collectively is striving to achieve, Flanagan noted. “These terms authentically capture the spirit of our aspirations and reflect the priorities of those who live, learn, and work within our university.” Edmonton Journal

[Editor’s note The Chronicle is tracking the dismantling of diversity, equity, and inclusion (DEI) efforts in the U.S. higher education system. This tracker collects changes that public colleges have made to offices, jobs, training, diversity statements and other DEI-related activities as the result of bills, executive orders, system mandates and other state-level actions since January 2023, when The Chronicle began reporting on anti-DEI legislation].

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Researchers in the University of Toronto’s Faculty of Applied Science & Engineering have designed a microfluidic platform that can be used to predict cancer cell behaviour and aggressiveness, opening up new avenues for personalized and targeted cancer treatment. The Recoverable-Spheroid-on-a-Chip with Unrestricted External Shape (ReSCUE) platform, developed by a team led by Edmond Young, an associate professor in the department of mechanical and industrial engineering, gives researchers the ability to recover and release tumoroids – tumour cells derived from patients – to perform downstream analysis and characterization. This allows for unprecedented control and manipulation of tumour shapes, a largely unexplored area in cancer research. “While there are several platforms for in vitro modelling of spheroids – three-dimensional aggregates of cells that can mimic tissues and mini tumours – a challenge in the cancer research field has been the inability to control the shape, recovery and location of these cancer organoids,” said Sina Kheiri, a PhD alumnus and co-lead author of the study, which was published in the journal Advanced Materials. The platform also enables researchers to grow cancer organoids in different shapes. This is important, Kheiri said, because much of the current research on cancer cell in vitro modelling is focused on spherical tumours, but tumours in a body can take many different shapes. Kheiri’s PhD research was co-supervised by Young and Eugenia Kumacheva, a professor in the department of chemistry who is cross-appointed to the Institute of Biomedical Engineering. Kumacheva’s lab developed a biomimetic hydrogel used as a scaffold in the multi-layer ReSCUE platform, allowing the patient-derived cancer cells to grow and organize the way they would inside human tissue. The platform was developed in collaboration with David Cescon, a clinician scientist and breast medical oncologist at Princess Margaret Cancer Centre and associate professor in the Institute of Medical Science at the Temerty Faculty of Medicine. Cescon’s team provided access to the cancer cells that were used to form breast cancer organoids. Kheiri, now a postdoctoral researcher at the Massachusetts Institute of Technology, continues to provide support to the Young lab on development of the ReSCUE platform. The researchers recently submitted a U.S. patent and are looking to build on their results. University of Toronto

Researchers at Dalhousie University used the Canadian Light Source (CLS) at the University of Saskatchewan to analyze a new type of lithium-ion battery material – called a single-crystal electrode – that's been charging and discharging non-stop in a Halifax lab for more than six years. The researchers found the battery material lasted more than 20,000 cycles before it hit the 80-percent capacity cut-off. That translates to driving a whopping eight million kilometres. Their research, published in the Journal of The Electrochemical Society, compared the new type of battery, which has only recently come to market, with a regular lithium-ion battery that lasted 2,400 cycles (roughly 960,000 km) before reaching the 80-percent cut-off. Toby Bond, a PhD candidate at Dalhousie and senior scientist at the CLS, says they wanted to understand how damage and fatigue inside a battery progresses over time and how it can be prevented. When they peered inside the two batteries, they found there was extensive microscopic cracking in the regular battery's electrode material caused by repeated charging and discharging, leading it to eventually be pulverized. The single crystal electrode battery, however, showed almost no signs of mechanical stress and looked very much like a brand-new cell. If these batteries can outlast the rest of the EV by such a large amount and still be in good shape internally, that makes them ideal candidates for reuse or repurposing in other applications – like storing energy for intermittent wind and solar farms. Dalhousie University

A University of Calgary researcher is leading a national study investigating whether a new drug could protect brain cells and reduce neurological disability following ischemic stroke, the most common form of stroke. It happens when a blockage or clot is stopping blood flow in the brain and cells are dying. “When you have an ischemic stroke, every second is critical because every second blood isn’t flowing, more brain cells are dying,” says Dr. Bijoy Menon,  neurologist, professor at the Cumming School of Medicine and principal investigator. “We are investigating whether a neurological protectant, NoNO42, should be given to patients in addition to the current standard of care.” Recruitment for the trial is already underway in Calgary. Across Canada, the trial will include up to 600 patients in as many as 15 hospitals. Half of the patients will receive the standard of care and the neuroprotectant. The other half will receive the standard of care and a placebo. The study will be double-blind, so no one on the care team will know who has been selected for the neuroprotectant. Patients will receive two follow-up calls, at 30 and 90 days, to see how they are doing. The research study is supported by the Canadian Institutes of Health Research Clinical Trials Fund. The study builds on research in the AcT Trial. Research in that trial revealed that Tenecteplase, a safe, well-tolerated drug commonly used as a clot buster for heart attacks, is an effective treatment for acute ischemic stroke. The findings published in The Lancet changed practice guidelines in Canada. Heart & Stroke estimates that in Canada someone has a stroke every five minutes, and while more Canadians are surviving stroke, it remains the leading cause of disability. “The goal for this study is to discover whether neuroprotection works. Having this as an option would be a fundamental change in how we treat stroke and could improve outcomes substantially for these patients,” Menon said. University of Calgary

Scientists at the University of Alberta (U of A) led development of a fast, portable tool for testing soil samples in the field. Using a process called laser-induced breakdown spectroscopy (LIBS), a device the size of a large suitcase produces a detailed profile of the soil’s essential elements and texture in seconds. Directed at a small sample, the laser produces a “hot, dense state of matter called plasma,” said Amina Hussein, professor in the U of A’s Department of Electrical and Computing Engineering and Canada Research Chair in Laser-Plasma Interactions. When this “soup of electrons and ions and neutrals” cools down, it emits light, and those wavelengths reveal the soil’s composition, including indicators of soil health such as nitrogen and carbon as well as the proportion of sand, silt or clay. That data can help farmers increase crop productivity, by, for example, applying the right amount of fertilizer. The device may also eventually determine how much organic carbon could be sequestered in soil at a given site, helping to reduce carbon dioxide emissions, Hussein said. The first portable LIBS instrument dedicated to real-time, in situ soil analysis was developed with partners at the University of Regina, Croptimistic Technologies, Enersoft and Boreal Laser. “This [tool] can contribute to sustainable agriculture, climate change mitigation and land reclamation – allowing farmers, agronomists and our governments to have new tools to rapidly assess soils on site,” Hussein said. University of Alberta

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