Bank of Canada warns that Trudeau’s climate offensive will cause an economic ‘shrink’

The Deputy Governor of the Bank of Canada said he is expecting "sharp declines." Having said this, the Bank of Canada did not say whether they are expecting job losses.

"Our actions to mitigate climate change will lead to massively restructuring global economies, everybody’s economy. You’ll see certain sectors shrink in terms of, particularly emission-sensitive sectors shrink significantly, in terms of economic presence as time goes on," said the bank.

The bank has announced that they will release data regarding and economic harm done to Canadian industry by climate policy on a geographic level.

"We’re going to release in relatively fine detail the data underlying the scenarios themselves, the sectoral impacts, the negative income impacts by sector as well, so that financial institutions can grab that and, reading the technical documents, should hopefully be better able to do their own risk assessment," said the bank.

At COP26 Trudeau pledged to ban coal exports by 2030. This coal is used predominantly in the creation of steel.

Speaking at COP26 in Glasgow, UK, Trudeau said that "Climate action can’t wait." Trudeau went on to say that Canada "will continue to do our part."

In his recent cabinet reshuffle, Trudeau placed two hard-core environmentalists in top positions. Steven Guilbeault, for example, was named the environment minister.

The environmental businessman Johnathan Wilkinson was named the minister for natural resources where he'll go head to head with Canada's robust oil and gas industry.

These two appointments have been seen as a symbol of Trudeau's aggressive climate strategy.