Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

An unofficial guide to Olaf Scholz’s ‘unusual’ trip to Canada

An unofficial guide to Olaf Scholz’s ‘unusual’ trip to Canada

The German chancellor’s three-day, three-province visit is expected to spotlight clean hydrogen and critical minerals.

When German Chancellor Olaf Scholz touches down in Montreal on Sunday, he’ll be accompanied by Vice Chancellor Robert Habeck and a motley crew of CEOs.

“That is unusual,” said Sen. Peter Boehm, a former ambassador to Germany and veteran of logistics planning for past chancellor visits to Canada. “That’s a pretty big deal, them taking the time to come over with the chancellor.”

Habeck is Germany’s economics minister and charged with the country’s energy file. The portfolio has become increasingly volatile since the prolonged war in Ukraine has made reliance on Russian gas untenable. It helps explain why European Union leaders have been flocking to Canada.

Prime Minister Justin Trudeau will host Scholz for a three-day tour jumping across three provinces. The visit was announced in June after the two leaders met on the sidelines of the G-7 summit in Elmau, Germany.

A senior Canadian government official confirmed to POLITICO clean hydrogen and critical minerals will be the biggest areas of energy focus for the official visit.

Beginning in Montreal, the pair and their delegations will drop by artificial intelligence and quantum computing firms before heading to Toronto for a dinner to mingle with business leaders and pension fund magnates.

Members of the German delegation will include executives representing some of the biggest automakers in the world: Volkswagen and Mercedes-Benz.

Because of the EU’s desire to get ahead of Russia’s threat of winter gas cutoffs, energy security will be a recurring topic throughout the trip. It will end with the signing of an accord in Stephenville, a farming village on the windy west coast of Newfoundland that was home to an American air force base during the Second World War.

The accord will be a symbolic gesture to foster more business and government cooperation between the two countries in the development of hydrogen fuel production.

“It’s an amazing place,” German Ambassador to Canada Sabine Sparwasser said of Atlantic Canada. There’s good infrastructure including airport access and deep sea ports, she said. “It also has absolutely perfect non-stop wind.”

The town is where Canadian billionaire John Risley has proposed to build a new low-carbon intensity wind-to-hydrogen facility that could one day export fuel to Germany. If it goes ahead, it’s poised to be a new model of prosperity for an oil-producing province in financial crisis.

Canada is the world’s fifth largest producer of natural gas. But it isn’t on the top of Germany’s list for short and medium-term suppliers of liquified natural gas because Canada doesn’t have export facilities to send immediate shipments of fuel to Europe without going through the United States.

While Berlin shops the world for ready-to-ship fuels, its focus on Canada is to sate tomorrow’s demand for low-carbon-intensity hydrogen — and lock down new supply chains for critical minerals from a G-7 country, reducing reliance on Russia or China.

The hydrogen industry is ripe for development in Canada given the east coast’s proximity to Europe. Plus, with Germany’s goal to get to net zero by 2045, officials suggest investments into Canadian low-carbon intensity hydrogen projects are more attractive ventures than building out fossil fuel infrastructure to get western Canadian gas to Europe.

“We want imports that are as climate neutral as possible,” Sparwasser tells POLITICO.

Boehm, who served as Canada’s German ambassador between 2008 and 2012, said the arrival of Scholz and Habeck demonstrates Germany’s desire to double down on “safe” future economic and political investments, fast.

Trade between the two countries is increasing thanks to the Comprehensive Economic and Trade Agreement. Germany is Canada’s sixth-largest trading partner, according to government data.

The deal took three years of negotiations starting in 2013. It was in the final year of negotiations that Chrystia Freeland, in her former capacity as international trade minister, got to work closely with Scholz, mayor of Hamburg at the time.

Freeland, now deputy prime minister, referenced her friendship with Scholz during a Toronto Global Forum event last year, crediting him as a key figure behind CETA. During that November armchair discussion, she called Scholz someone she admires in the world.

“He has described to me the enormity of the green transition in a way that I think is really true, which is that this is the biggest transformation of industrial economies since the industrial revolution,” she said at the time. “I think it is accurate — so that’s a lot we have to do.”

Germany, however, has yet to ratify the free-trade agreement.

“That’s coming, I’ve been told,” Boehm said. “You just have to be patient.”

But patience is a virtue in short supply for two progressive leaders feeling the heat of juggling ambitious and expensive green agendas in a high inflation era.

Both leaders are also governing without the added safety of having a majority of seats in their respective Parliaments.

Scholz leads an ampelkoalition, a traffic light coalition government between the Social Democratic Party, the Free Democratic Party and the Greens.

Whereas the stability of Trudeau’s Liberal minority government teeters on a confidence deal with opposition New Democrats that could fall apart if Ottawa doesn’t move ahead on a national dental care plan by the end of the year.

For Scholz, the timing of the trip will give him temporary respite from a brewing tax fraud controversy over a decision made when he was mayor of Hamburg to waive a €47-million bill from Walburg, the country’s largest private bank.

Scholz faces an official inquiry after he returns from Atlantic Canada’s gusty shores.

When Parliament reconvenes in late September, Trudeau, now in his third term as prime minister, will face a zesty new Conservative leader — one who is almost guaranteed to scrap the Liberals’ carbon tax should he win the next election, a decision that comes with the risk of projecting flip-flopping policy signals to international investors.

Tenuous political circumstances in the United States, and the possibility of Donald Trump’s return to the world stage, also has world leaders preemptively making bi- and multilateral contingency plans — and more trips to Canada.

Scholz and Habeck’s visit is the latest sign of a desire to see closer bilateral relations with Canada, recently bolstered over the contentious return of Gazprom Nord Stream gas pipeline turbines to Germany.

German Foreign Minister Annalena Baerbock met with Foreign Affairs Minister Mélanie Joly in Montreal earlier this month, a diplomatic prelude to the chancellor’s visit next week. After Scholz, other dignitaries are on their way.

Following Scholz’s visit, European Commission President Ursula von der Leyen is expected to visit Canada in September.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
A monster hit and a billion-dollar toy empire
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
Canada: Nurse Suspended and Fined 93 Thousand Dollars After Stating the World’s Most Well-Known Fact Since the Creation of Adam and Eve, That There Are Only Two Genders
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
U.S. Treasury Secretary Whitney Bessent Backs Stablecoins to Boost Treasury Demand
Spain to Declare Disaster Zones After Massive Wildfires
Three-Minute Battery Swap Touted as Future of EVs
Beijing Military Parade to Showcase Weapons Advances
U.S. Tech Stocks Slide on AI Boom Concerns
White House Confirms Talks Over Intel Stake
Trump Suggests U.S. Could Support Ukraine ‘By Air’
Trump Called Viktor Orbán: "Why Are You Using the Veto"
Horror in the Skies: Plane Engine Exploded, Passengers Sent Farewell Messages
AI in Policing: Draft One Helps Speed Up Reports but Raises Legal and Ethical Concerns
Shame in Norway: Crown Princess’s Son Accused of Four Rapes
Apple Begins Simultaneous iPhone 17 Production in India and China
A Robot to Give Birth: The Chinese Announcement That Shakes the World
Finnish MP Dies by Suicide in Parliament Building
Outrage in the Tennis World After Jannik Sinner’s Withdrawal Storm
Class Action Lawsuit Against Volkswagen: Steering Wheel Switches Cause Accidents
UK Government Tries to Sue 4chan for Breaching Online Safety Act
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Cambridge Dictionary Adds 'Skibidi,' 'Delulu,' and 'Tradwife' Amid Surge of Online Slang
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
The CEO Who Replaced 80% of Employees for the AI Revolution: "I Would Do It Again"
"Every Centimeter of Your Body Is a Masterpiece": The Shocking Meta Document Revealed
Character.ai Bets on Future of AI Companionship
China Ramps Up Tax Crackdown on Overseas Investments
Japanese Office Furniture Maker Expands into Bomb Shelter Market
Intel Shares Surge on Possible U.S. Government Investment
Hurricane Erin Threatens U.S. East Coast with Dangerous Surf
EU Blocks Trade Statement Over Digital Rule Dispute
EU Sends Record Aid as Spain Battles Wildfires
Beijing is moving into gold and other assets, diversifying away from the dollar
China Requires Data Centres to Source Majority of AI Chips Locally, For Technological Sovereignty
Escalating Clashes in Serbia as Anti-Government Protests Spread Nationwide
Category 5 Hurricane in the Caribbean: 'Catastrophic Storm' with Winds of 255 km/h
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Digital Humans Move Beyond Sci-Fi: From Virtual DJs to AI Customer Agents
YouTube will start using AI to guess your age. If it’s wrong, you’ll have to prove it
Jellyfish Swarm Triggers Shutdown at Gravelines Nuclear Power Station in Northern France
OpenAI’s ‘PhD-Level’ ChatGPT 5 Stumbles, Struggles to Even Label a Map
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
×