Intro
Merci et bienvenue à tous. C'est un plaisir d'être ici aujourd'hui.
We talk a lot about climate change these days – for obvious reasons.
Climate change is altering our world’s natural environment in a myriad of harmful ways
It is also rapidly transforming the global economy and global finance… in ways that are creating enormous economic opportunity for those who approach the transition to a low carbon future in a thoughtful, determined and focused manner.
The global energy transformation that is already well underway is both an environmental imperative to protect the planet for future generations and an economic opportunity on a scale similar to the industrial revolution.
In releasing the World Energy Outlook 2023 last week, Dr. Birol, the Executive Director of the International Energy Agency stated “The transition to clean energy is happening worldwide and it’s unstoppable. It is not just a question of “if”, it’s just a matter of “how soon””.
Dr. Birol went on to say, “Governments, companies and investors need to get behind clean energy transitions rather than hinder them. There are immense benefits on offer, including new industrial opportunities and jobs, greater energy security, cleaner air, universal energy access and a safer climate for everyone”.
La plupart des Canadiens sont en effet préoccupés par le changement climatique, mais ils s'inquiètent également de leur situation économique... et veulent s'assurer qu'eux-mêmes et leurs enfants auront de bons emplois et des opportunités économiques à l'avenir.
Je suis ici pour vous dire que pour que le Canada saisisse les opportunités extraordinaires créées par la transition vers une économie nette zéro, nous devons accepter les réalités du changement climatique et veiller à ce que cette prise de conscience informe et façonne les fondements de la stratégie économique de notre pays.
Today I want to talk about how we can build a better Canada - through the thoughtful and strategic development and implementation of a Green Economic Plan.
A plan based, not on wishful thinking, … a plan that takes the world as it is, accepts the future that is most likely, and looks to make it work to help our people and companies seize the opportunities before us.
Such opportunities are already increasingly being reflected in consumer and industrial behaviour. Consider this:
In 2020 1 in 25 vehicles sold globally were ZEVs. That number jumped all the way to 1 in 5 this past year – amazing!
The share of fossil fuels in electricity generation fell from 70% 10 years ago to 60% today and is projected to be 40% by 2030
More than 500 GW of renewables generation capacity are set to be added in 2023 – and more than $1B USD/day is being spent on solar deployment
Going forward the International Energy Agency projects that by 2030:
Almost half of the world’s electricity supply will come from renewables and 80% of all new electricity capacity from now to 2030 will be renewable
50% of new US car registrations will be electric
Heat pumps and other electric heating systems will outsell fossil fuel boilers
Investment in new offshore wind projects will be three times the investment in coal and natural gas fired power plants.
Global demand for oil, gas and coal will peak during this decade – even in the scenario where policies relating to climate get no stronger
Partout dans le monde, les entreprises, les syndicats et les gouvernements se lancent dans une course à la réduction des émissions de carbone et à la saisie des extraordinaires opportunités économiques qui découleront de la transition vers un avenir à faibles émissions de carbone.
The transition is being fueled by financial markets that are increasingly playing a role in the shift to a low carbon future through their investment decisions.
Successful businesses interpret and adapt to changes in the environment in which they operate – it’s what their shareholders expect.
Governments are no different. To effectively serve their citizens, they must also respond to changing circumstances and take decisive actions.
Increasingly governments around the world – friends and competitors – are taking action.
Our American friends are making massive investments in growing a clean economy through the Inflation Reduction Act (IRA).
Similarly, the European Union, Japan, and Australia are putting into place strategies for accelerating clean industrial growth.
And beyond democratic friends, countries such as China are also moving strategically.
In 2022, China accounted for around half of wind and solar additions, and well over half of global EV sales.
And China presently dominates global critical mineral supply chains.
China has made a major bet on the energy transition – and aims to be a leader in the technologies that will be central to it. This is something that must be a wake-up call for those politicians in western countries that continue to believe that future prosperity lies in simply pursuing pathways the energy transition is fundamentally disrupting as we speak.
La bonne nouvelle, c'est que le Canada est extrêmement bien placé pour saisir les opportunités qui seront cruciales dans la transition vers un monde à faibles émissions de carbone.
Successful strategies leverage comparative advantages… and Canada has a lot going for it to help us win on a global scale.
We have:
A well-educated and highly trained workforce
Vast natural resources that are increasingly in demand
Innovative energy and clean technology companies, technologies and expertise
Trade agreements with major economies around the world, and
Banking, political, legal and regulatory systems that are stable and predictable,
What Canada needs at this moment in our history is a thoughtful and ambitious economic strategy that ties it all together… one that will create wealth and good jobs in every region in this country.
This is something your federal government has been focused on since being elected to office in 2015.
Canada’s Green Economic Plan has 5 key pillars:
Pillar # 1 - is to identify and aggressively pursue key sectors in which significant growth will be enabled by the shift towards a low carbon future.
Areas like critical minerals (up and down the value chain), hydrogen and hydrogen production technologies, carbon capture, renewable electricity, biofuels and biomass and nuclear technology and supply chains.
The path to net-zero by 2050 and the economic prosperity that it brings will look different in every country around the world. And likewise, it will look different in every region of Canada.
It is net zero petrochemical facilities in Alberta, hydrogen production facilities in BC, Nova Scotia and Newfoundland.
It is low emission potash mines and rare earths processing in Saskatchewan.
Il s'agit de la fabrication de véhicules électriques en Ontario et de la fabrication de batteries au Québec.
Canada is blessed with enormous potential opportunities that can be realized in a low carbon future. In fact, I would suggest that Canada is one of the countries in the world most advantaged in this regard.
Potential is though, only potential.
We need thoughtful collaboration between industry, labour, indigenous leaders and levels of government if we are to realize our full potential - if we are to create the hundreds of thousands of good jobs and the economic prosperity that is within our reach.
Canada’s Green Economic Plan for the Future – Pillar 2
The second pillar of Canada’s Green Economic Plan is a thoughtful policy approach to Canada’s oil and gas resources.
Forecasts suggest that global demand for oil will begin to decline within 10 years – and will continue to decline as lower carbon technologies are deployed in greater numbers.
So, this transition away from the combustion of fossil fuels is underway – and will take place over the next three decades.
It is important to be aware that how oil will be used, will change. Post 2050 we will not use significant amounts of oil in combustion applications – like cars and buses.
Where we will largely use it is in non-combustion applications such as petrochemicals, lubricants, solvents, and carbon graphite. And for such applications, reasonable volumes of oil will continue to be required - even in a net zero world.
Similarly for natural gas, uses will exist beyond 2050 in non-combustion applications such as ultra-low carbon hydrogen production…. and some limited uses in combustion applications – such as electricity generation on plants with Carbon Capture Usage and Storage technology.
At the end of the day, the most significant cause of climate change is carbon emissions from the production and the combustion of fossil fuels. We clearly need to move to largely eliminate the unabated combustion of fossil fuels over the period between now and 2050.
We also need to focus on the elimination of emissions relating to production - to ensure that those volumes of oil and gas that continue to be used post 2050 in non-combustion or abated combustion applications, are compatible with a net zero future.
During the coming 30-year period of transition and beyond 2050 when we have largely eliminated fossil fuel combustion – countries that focus on producing hydrocarbons with ultra-low production emissions will have opportunity to grow share in what will be a declining market.
Aggressive action to reduce emissions from the production of oil and gas is thus critical for the competitiveness of any producing country that wishes its resources to be relevant in the future.
Hence, this federal government’s focus on decarbonization of our oil and gas sector – it is ultimately about short and long-term competitiveness.
Canada’s Green Economic Plan – Pillar 3
The third pillar of Canada’s Green Economic Plan is to build more clean power – a lot more.
The future will demand a decarbonized grid but also a much larger grid – in fact it will need to be double or more.
Indigenous Economic Participation – Element 4
Le quatrième pilier du Plan économique vert du Canada est l'engagement significatif et la participation active des autochtones.
Le gouvernement du Canada s'est engagé à faire progresser la réconciliation dans l'ensemble du pays. Le secteur des ressources naturelles en fait partie.
We must work to ensure that economic participation and long-term benefits flow to Indigenous communities from natural resources and resources enabled projects in this country.
This is important as a matter of social justice but is also required if we are to align interests with respect to project development moving forward.
A more efficient regulatory environment – Element 5
And finally, we must make more efficient and effective our regulatory and permitting processes – without cutting corners regarding the environment and indigenous consultation.
We must also ensure that we respond expeditiously to the recent opinion issued by the Supreme Court of Canada which found the Impact Assessment Act to be constitutional in part but that in some instances the language in the Act needed to be more closely tethered to areas of federal justification.
To ensure clarity and certainty for project proponents and investors, we intend to introduce legislative amendments to the law as soon as possible.
Les cinq piliers que j'ai décrits sont à la base d'une stratégie économique verte fondée sur les ressources naturelles et l'exploitation des ressources, qui favorisera l'emploi, la compétitivité et la prospérité économique des Canadiens dans un avenir à faibles émissions de carbone.
Alors que, durant la période 2015-2022, ce gouvernement a consacré 120 milliards de dollars à ce travail, le budget 2023 représente un engagement générationnel en faveur d'un programme de croissance propre.
Budget 2023 committed an additional $86 billion to accelerating clean growth and ensuring Canadian competitiveness.
And we are beginning to see significant economic progress from these investments right across the country.
For example:
In Newfoundland, Braya Fuels is converting its refinery to renewable diesel .
In Nova Scotia, EverWind Fuels recently received approval to build North America’s first facility to produce hydrogen from renewables.
In Quebec we see significant progress on new critical minerals mines and, the announcement of a $4B hydrogen project being build by TES Canada H2
In Ontario, we are seeing massive investments in the entirety of the electric vehicle value chain.
In Saskatchewan, BHP is constructing the largest and one of the lowest emissions potash mines in the world (2nd phase)
Alberta is leading the country in developing wind and solar. And companies in Alberta are developing net zero and low carbon industrial facilities including Air Product’s clean hydrogen facility.
And in BC, Tidewater’s renewable diesel refinery completed construction earlier this summer – Canada’s first renewable diesel refinery – and we recently announced a $1B investment in a battery manufacturing facility that will employ 450 well paid workers.
Increasingly, thoughtful observers are underlining the enormous potential that exists for Canada moving forward. For example, a few weeks ago, the Public Policy Forum released a report that indicated that just one of the proposed sites for offshore wind off the coast of Nova Scotia has the potential to create 30,000 direct jobs annually during construction, and about 1,200 permanent, well-paying jobs.
Investments like the ones I have highlighted and the jobs and prosperity they are creating, are not happening by chance.
They are enabled by a comprehensive approach that incudes - a suite of regulations (like the clean fuel regulation), by incentives (like the clean tech investment tax credits), by investments and by other policy signals such as the price on carbon pollution.
Elles sont rendues possibles par un plan réfléchi, stratégique et audacieux, axé sur la construction d'une économie qui prospérera dans un monde à faibles émissions de carbone.
I would suggest that Canadians be wary of folks who tell us that a comprehensive plan for the future is not required to position Canada’s economy for success.
Simple policy prescriptions and slogans like “technology, not taxes” are taglines. They are not a strategy. They are not a plan.
As a former clean tech CEO, I can say definitively that technology itself will not drive billions in new investments and bring new opportunities to countless communities. One must have the conditions in place to enable technology development, to enable demonstration and to enable commercial deployment. And that’s exactly what Canada’s Green Economic Plan does.
By way of closing…. It’s up to us as a country to make smart choices.
Et nous avons le choix.
We can choose to lead – by recognizing where the world is heading and aggressively pursuing major areas of economic opportunity.
Or we can bury our head in the sand… pretend that the world is not moving rapidly towards a cleaner, greener future – eroding our competitiveness and our long-term prosperity.
I call the first choice a Green Economic Plan for the Future – one that is thoughtful, relevant and strategic.
And I call the second, simply “Hoping for the Best” – taking a tragic gamble with the future of the planet and with Canada’s current and future prosperity.
Ladies and gentlemen, any thoughtful person must conclude that we simply must choose to lead.
Je vous remercie de m'avoir accueillie ici.