Sedgwick Strategies’ Post

Check out this research piece from the Canadian Climate Institute / Institut climatique du Canada, showing how Canadian companies are ramping up their contribution to the global energy transition supply chain! According to the CCI, “From critical minerals to electric motors, Canada’s diverse basket of low-carbon exports is outpacing the growth of all other exports.” And it looks like companies of all sizes are benefitting. At BDC, we provide Canadian #SMEs with the financing, investment and advice they need to scale up and meet the growing demands of the energy transition. So this research is really interesting to us and our clients. If you want the Coles Notes, the CCI report found the top 3 low carbon product categories experiencing outstanding export growth in Canada are: 1. Clean transport exports. This group includes electric and hybrid heavy-duty and light-duty vehicles, as well as electric trains and electric forklifts. 2. Clean fuels , which includes alternative fuels and biofuels like ethanol and biodiesel, as well as biomass, which typically includes products like wood pellets. 3. Energy efficiency exports, which includes thermostats, LED bulbs, heat pumps for buildings, and high-efficiency electrical equipment. Read CCI’s report here: https://lnkd.in/gmXwnEZi #energytransition #cleanenergy #greenbuildings #cleanelectricity Shannon Glenn Karen Kastner Chrystal Healy Susan Rohac Zoltan Tompa

So we looked at export data from the last 10 years, and conclude that low-carbon exports are taking off… growing at an annual rate that is 2x all other exports. From critical minerals to electric motors, Canada’s diverse basket of low-carbon exports is outpacing the growth of all other exports. Since 2013, Canada’s low-carbon exports have more than doubled in value, growing from $15.8 billion to $38.7 billion last year. That’s nearly twice the growth rate of all other exports combined and shows the potential for future opportunities in a global economy increasingly moving to net zero.

🇬🇾 Did you know Guyana has the fastest-growing economy of the 21st century? Here’s the secret behind its explosive growth. ↓ Guyana has had the fastest economic growth in the 21st century. The small South American country, which officially speaks English and has less than a million inhabitants, has experienced explosive growth only in the last few years. What caused such an explosion? A discovery of gigantic oil reserves off its coast. To illustrate the drastic change, consider its exports: In 2019, Guyana exported zero petroleum products. Its most significant export product was gold, which accounted for 53% of its $1.7B export economy. By 2022, oil represented 86% of all exports and alone was worth $16B in export value. This year, the Texan company Exxon, which operates there, announced that it is producing 645K barrels per day. Now, California's Chevron wants a piece of the oily pie and is bidding to compete with Exxon. Guyana's president Irfaan Ali, who enjoys high approval ratings, has welcomed Chevron's interest, suggesting it could enhance competition and bring additional investment to the country's burgeoning oil sector. GDP per capita doesn't tell us whether a country's citizens are becoming wealthy. But it's still worth pointing out that in this measure, Guyana now does better than Panama and Chile and, in fact, has doubled Latin America and the Caribbean's number. Despite these gains, challenges remain. The country's high unemployment rate, while at its lowest in over 30 years, still exceeded 10% in 2023. Moreover, the economic windfall from oil must be carefully managed to ensure long-term prosperity and avoid the pitfalls of resource dependency. Guyana's future hinges not just on its oil wealth but also on its ability to diversify its economy, maintain transparent governance, and ensure that the benefits of growth reach all its citizens.

Here's my latest column with Jock Finlayson in the Globe and Mail: "To sustain our standard of living, Canada sells exports in international markets. Exports generate jobs and earnings that circulate through the non-export economy. They provide the means to pay for the vast array of imports that consumers want and need, from cars to clothing to high-end electronics. Companies also import essential parts and inputs for their operations. The mix of goods and services that any market economy sells abroad ultimately reflects the activities where it has a “comparative advantage.” This principle boils down to a country being better off by “playing to its strengths” rather than trying to be a “jack of all trades.” Countries benefit the most from international trade when they specialize in exporting goods and services they can produce at a lower cost and/or higher quality relative to other countries. An analogy would be that a wonderful doctor is better off focusing on treating patients and buying (importing) their food from a skilled farmer rather than dividing her time between being a doctor and growing her own food. Natural resource-based goods play an outsized role in our export portfolio. Added together, energy, non-metallic minerals and related products, metal ores, forest products and agri-food make up roughly half of all exports. Along with aerospace, these are the only broad categories where Canada posts trade surpluses. In its latest “scorecard” report, the Coalition for a Better Future observes that “over the past decade, Canada recorded a cumulative trade deficit of $130-billion. Had it not been for energy, our trade deficit would have been about $1-trillion.”"

This ranking of the countries with the strongest #GDP growth since the beginning of the 21st century probably isn’t expected from most people. #economy #growth

In 2023, crude oil remained Kazakhstan’s main export commodity, accounting for $42.3 billion, or 53.8%, of the republic’s total gross domestic product (GDP). According to a proprietary forecast, Uzbekistan may overtake its neighbor in terms of GDP by 2037. This is due to the continuing technological lag in the raw materials-based economy of Kazakhstan, according to economist Marat Kairlenov, who recently discussed ways to diversify Kazakhstan’s economy and create jobs. “We remain predominantly a raw material country; however, in the GDP structure, agriculture accounts for only 4%, industry — 36%, and services — 56%,” Kairlenov told kapital.kz. He emphasized that changing the economic orientation requires time, and active use of raw materials sector opportunities, as other countries have done during reforms. The key issue is the equal distribution of national wealth. It’s important to revise agreements with large subsoil producers to increase the wages of citizens. “In 2023, Kazakhstan’s GDP reached 119 trillion tenge ($266.2 billion) with only 31% going to wages. This shows the need for policy correction,” Kairlenov added. It’s also important to create a favorable environment for business development. “Liberalizing the economy is the key to progress. Less regulation is required from the state and more freedom for entrepreneurs.” he added. Kairlenov also calls for attracting foreign investment in promising industries. “Why don’t we launch the production of [railroad] carriages or other goods in which we have advantages?” Asked about Uzbekistan’s future as a regional economic leader, Kairlenov believes it’s likely. “Competing neighbors may eventually become an incentive for our development,” he says. The environmental agenda is also an important aspect. Marat emphasises the need to adapt to new requirements and technologies. “‘Carbon neutrality is a challenge, but also an opportunity. We must prepare for the changes now so that we do not fall by the wayside of economic progress,” he concludes. https://lnkd.in/dpX7WkdM

This morning StatsCan published the June trade data and it showed nice growth in exports (5.5%) compared to May. Overall 9 of 11 product categories experienced growth, but the biggest headline contributor was in the Energy sector. As expected and forecasted in our Summer Sectors in Focus, the completion of the Trans Mountain pipeline expansion contributed notably to growth in real (volume terms). The June data brought quarterly export growth up to 1.1% (versus a 0.9% contraction in Q1). But the strong finish to the first half of 2024 only pushed exports marginally above (0.05%) the level recorded in the first half of 2023. https://lnkd.in/gJKeebkx

Australia's resources and energy export earnings are set to normalise as commodity prices stabilise post-Ukraine. The June 2024 Resources and Energy Quarterly forecasts export earnings of $417 billion for the year ending 30 June 2024. 🌏📉 #Resources #Economy https://lnkd.in/gMwxyAeq

SECTOR UPDATE: The Australian-China trade route is experiencing a robust recovery, significantly impacting the dry bulk market. Banchero Costa reports a notable 5.8% increase in global seaborne coal loadings, reaching 1,339.5 million tonnes in 2023. Specifically, Australian coal exports to China, which had nearly ceased, surged back to 56 million tonnes. This resurgence underscores the critical role of geopolitical factors in global trade dynamics. China's seaborne coal imports grew by 10.1% year-on-year in early 2024, reflecting the strengthening economic ties between these two major players. This recovery is not just a testament to the resilience of the coal market but also highlights the strategic importance of maintaining and adapting trade routes. The increasing coal trade between Australia and China is a vital indicator of broader economic recovery and stability in the maritime industry. . . Reference: https://lnkd.in/d_Q4UQBG . . #DryBulkMarket #CoalTrade #MaritimeIndustry #ShippingNews #AustraliaChinaTrade #GlobalTrade #CoalExports #ShippingRoutes #SeaborneTrade #TradeRecovery #MaritimeLogistics #GlobalEconomy #CommodityTrade #ShippingTrends #CoalMarket #BancheroCosta #TradeStatistics #EconomicRecovery #ShippingUpdates #GlobalShipping #aceshipbrokers

SECTOR UPDATE: The Australian-China trade route is experiencing a robust recovery, significantly impacting the dry bulk market. Banchero Costa reports a notable 5.8% increase in global seaborne coal loadings, reaching 1,339.5 million tonnes in 2023. Specifically, Australian coal exports to China, which had nearly ceased, surged back to 56 million tonnes. This resurgence underscores the critical role of geopolitical factors in global trade dynamics. China's seaborne coal imports grew by 10.1% year-on-year in early 2024, reflecting the strengthening economic ties between these two major players. This recovery is not just a testament to the resilience of the coal market but also highlights the strategic importance of maintaining and adapting trade routes. The increasing coal trade between Australia and China is a vital indicator of broader economic recovery and stability in the maritime industry. . . Reference: https://lnkd.in/dBHAaxsr . . #DryBulkMarket #CoalTrade #MaritimeIndustry #ShippingNews #AustraliaChinaTrade #GlobalTrade #CoalExports #ShippingRoutes #SeaborneTrade #TradeRecovery #MaritimeLogistics #GlobalEconomy #CommodityTrade #ShippingTrends #CoalMarket #BancheroCosta #TradeStatistics #EconomicRecovery #ShippingUpdates #GlobalShipping #aceshipbrokers