Canada doesn’t want a “carbon subsidy war” with the U.S., the natural-resources minister told the Financial Times, noting control over the U.S. dollar gives Washington “the fiscal latitude to do things that I think almost no other country in the world can do.” (Financial Times)

Talking point: Ottawa may want to avoid conflict with the U.S. on incentives, but it’s still competing to subsidize green industries. Last week’s federal budget laid out $80 billion in tax credits over a decade to respond to the IRA’s US$369-billion package. Wilkinson’s words echo those from European leaders, and they’re stronger than what the Liberal government has publicly used in the past; in December, International Trade Minister Mary Ng passed up a chance to agree with visiting EU trade commissioner Valdis Dombrovskis that the IRA created “a real risk of a global subsidies race.” Still, Wilkinson and cabinet colleagues have emphasized opportunities for cross-border cooperation with the U.S. in areas like clean energy and critical minerals. The G7 has tasked the OECD with standing up a “climate club” to encourage broader international coordination.