Canada’s natural advantage drives prosperity in energy sector

The world is in the midst of something that has only happened a few times in history—a fundamental shift in the types of energy that drive our societies. The effects of climate change are making Canadians re-think how we power our factories, heat our homes and fuel our vehicles. That includes doing more with less, by using both traditional and renewable energy more efficiently. Fortunately, Canada brings enormous advantages to these challenges. Not only do we have an abundance of the resources the world wants, we also have the expertise and experience to develop them sustainably and competitively. That is Canada’s natural advantage. Moving forward to a clean future According to the International Energy Agency, global demand for energy will increase by 30 per cent by 2040. Even under the most optimistic scenarios for renewable energy, much of that increased demand will have to be met by fossil fuels. Which means that as the world heads toward a clean future we will continue to need oil and gas. To move us toward that future, our government launched Generation Energy—the largest national conversation about energy in our country’s history. Canadians told us what they think the world might look like years, even decades in the future and what we should be doing now to get there. What emerged was an inspiring vision of a thriving, low carbon economy, with Canada leading the way. The input we received from Generation Energy will inform our work with the provinces and territories to accelerate clean growth strategies that enhance the energy sector’s competitiveness. Canada also looks forward to welcoming the world to Vancouver in May 2019 when we host the 10th Clean Energy Ministerial and 4th Mission Innovation Ministerial, and working globally to accelerate progress towards a clean energy future. Investing in Canada’s future Our government has already begun to move toward a low carbon future with generational investments of some $22-billion, over 11 years, to support green infrastructure, drive clean growth and combat climate change. At the same time, we continue to develop traditional energy resources, such as oil and gas, and use the revenues they generate to invest in even more clean energy projects. We are also working with companies and research institutions on next-generation smart grids, storage and clean-electricity technology, alternative fuel charging stations and more energy efficient homes. Budget 2017 committed $2.3-billion to encourage clean technology innovation. Of that, $155-million is delivered by Natural Resources Canada under the Clean Growth Program, focused on the natural resource sectors. The recent fall economic statement builds on this, with new tax measures that support the development of clean technology. This includes allowing businesses to immediately write-off the full cost of machinery and equipment used in manufacturing and processing, as well as certain clean-energy equipment. The future of traditional resource development Gaining access to global markets for our traditional oil and gas industry is another key part of our clean energy future, enabling producers to create good, middle class jobs, grow the economy and continue to develop cleaner technologies. Addressing the current price differential on oil is a priority. We are looking at what we can do in the long, medium and short term. How can we help today to ensure this industry is supported years five, 10, 20 years from now? We’ve set up a working group of senior officials from the federal and provincial governments to look at the facts and hard data. We will consider all credible options as we determine what immediate actions are needed to address this complex situation. When we turn the corner, Canadian oil and gas producers will need to get their resources to global markets efficiently. That’s why we continue to move forward on the Trans Mountain Expansion (TMX) project, in the right way, through meaningful consultations with Indigenous peoples and protection of the environment. This year, our government successfully negotiated the new United States-Mexico-Canada Agreement (USMCA), with an amendment that supports oil and gas producers and will save them more than $60-million a year in fees and costs. A new kind of thinking We are preparing for a clean energy future as we deal with the present—by providing energy that Canadians can count on when they flick on a light, or fill up their cars. The global transition to clean energy is not the work of one government, one nation or one generation. It requires a new kind of economy, driven by all kinds of energy. Canada is uniquely placed to lead this work, by building on our natural advantage. Liberal MP Paul Lefebvre, who represents Sudbury, Ont., is the parliamentary secretary to Natural Resources Minister Amarjeet Sohi. The Hill Times