u/DexGattaca

The new memorandum of understanding between Ottawa and Alberta has a point to facilitate the construction of a $20-billion carbon capture and storage project. Is there anything willing to defend spending $20b of our money on something many environmental groups say is a waste of time?

Why carbon capture and storage is not a real climate solution

Carbon Capture and Storage: The Billion Dollar Scam

Carbon capture and storage technology is about as effective as stopping a flood with a bucket.

Carbon capture – the get-out-of-jail-free card that does not actually work

Sentence comes with an early release coupon and a post release op-ed by the CBC to mooch pity donations.

https://www.cbc.ca/news/politics/sovereign-wealth-fund-carney-major-projects-9.7178238

It's not a "sovereign wealth fund" because Canada has no wealth. We run a major deficit.

This fund is a hybrid infrastructure investment vehicle (HIIV).

This HIIV is intended to act as venture capital for Canada's infrastructure and industries. Private equity, rather than investing in individual projects like a dam or a rail system, will be able to hold shares in the fund and get returns based on the dividends, ownership profits and royalties the fund receives from it's investments in Canada.

"If you have a bit of extra money we'll make it easy for you to invest"

Sadly, most Canadians don't have money to invest. The vast majority of investment will come from ultra rich, corporate interests and other nations. This means that the majority of profits will also go to the ultra rich. Canadian are giving $25 billion (or $625 per citizen) to get this thing started. Profits will go to the shareholders.

Sweetheart sectors. The government's obsession with clean energy and other "politically" favorable industries means that we may get things that look good in headlines rather than add to Canada's supply chains and standard of living. It also means that if the project can't charge a fee or a toll to make a profit, it wont get funded.

This is a way to borrow more. At the end of the day this fund exists because Canada can't afford to build on it's own. Nor can we afford to print more money. So we appeal to private markets. The issue is that investors in this fund will demand higher returns than from bonds. Canadians may get things from this, but those things cost more, increasing the cost of living and operating in Canada.

This is how I understand Carney's plan. Please correct me or add anything I missed.
Cheers.