Projected legislation means investors in Canadian firms will soon have to recognise carbon liabilities as part of the balance sheet, according to a report by investment bank CIBC World Markets. CIBC predicted legislation to cut greenhouse gas (GHG) emissions will have a direct on impact on firms making up 40% of the Toronto Stock Exchange’s market value. Further, the report argues the majority of these firms will be adversely affected by the introduction of an emissions cap and trading system.
Jeff Rubin, CIBC chief strategist, pointed to efforts by US states such as California in introducing caps on GHG emissions, and noted that Canada has generally followed US environmental initiatives at both provincial and federal level.
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