Cleaning and greening Canada’s energy sector

Energy comes in many forms, including electrical, chemical, and thermal. We use energy to cook and preserve food, to light and heat buildings, to manufacture products, and to transport goods. Energy is vital to our existence and connected to us in a fundamental way. However, not all energy is the same, and it is for this reason that we must remember that the nature of the fuel we use matters. The future of the planet and humanity itself depends on investment in energy generated by clean and renewable sources that hold promise for the preservation of nature, biodiversity, health and wellbeing, and the Canadian economy. Canada is the sixth-largest energy producer in the world. Between 2017 and 2021, Canadian government revenues from the energy sector averaged $12.3-billion, and in 2022, the sector directly employed 290,300 people, while indirectly supporting more than 405,800 jobs, and accounting for approximately 11.8 per cent of nominal gross domestic product. Additionally, in 2022, energy exports were recorded as totalling $240.5-billion, and representing 33 per cent of total Canadian goods exports, with oil and gas domestic exports totalling $217-billion. Also of note is the fact that in 2021, fossil fuels—which include coal, oil, and natural gas—accounted for 76 per cent of Canada’s total energy supply (TES), while renewable energy sources accounted for only 16.6 per cent of Canada’s TES. Rosa Galvez has served as an Independent Senator for the province of Quebec since 2016. Photograph courtesy of Sen. Galvez’s office Fossil fuels are the largest contributor to global climate change and account for almost 90 per cent of all carbon dioxide emissions, and more than 75 per cent of global greenhouse gas emission. At COP28, a roadmap for “transitioning away from fossil fuels” was approved, and although the call to action fell short of a “phase out” of oil, coal, and gas, United Nations Secretary-General António Guterres noted “that a fossil fuel phase out is inevitable.” Considering this, and the importance of the energy sector to our lives and the Canadian economy, a timely and fair transition to renewable clean energy is crucial. According to the Canadian Climate Institute, safeguarding Canada’s economy amidst the historic structural changes in global markets brought about by the transition away from—and ultimate phase out of—fossil fuels, requires strong, ambitious climate-aligned policies. Moreover, for Canada to remain competitive and prosperous, “investors and companies need bankable policies to move ahead before making big bets on a low-carbon economy.” The Climate-Aligned Finance Act—currently being studied by the Standing Senate Committee on Banking, Commerce, and the Economy—endeavours, among other things, to ensure adequate investment in energy efficiency, clean energy, and clean technologies. It aims to do this while also incentivizing innovation and behavioural change by replacing investments in greenhouse-gas-emission-intensive activities with effective action against climate change. This is an important aspect of the bill because aligning the Canadian financial sector with climate commitments, and safeguarding the Canadian economy, demands investment in an accelerated energy transition that leaves no one behind. Bill S-243 provides guidance on how we can achieve these goals and remain competitive. Canada is well positioned to be a leader in the energy transition, and has enormous potential to develop clean energy. Notably, 68 per cent of Canada's electricity already comes from renewable sources, while 82 per cent comes from clean sources including solar, hydro, wind, and nuclear power. As the world's second-largest producer of hydroelectricity, 60 per cent of Canada's electricity comes from hydroelectric sources. What is more, Canada already exports approximately eight per cent of the electricity it generates to the United States. Renewable and clean-energy sources are abundant in Canada, and we need only build on a foundation that already exists through investment in the drivers of an accelerated energy transition. To those wondering if our energy transition is necessary, moving fast enough, or adequate in its current trajectory, I urge you to consider the wildfires and extreme weather events of 2023 and those predicted for 2024. Energy transition scenario analysis suggests that a rapid transition is two to 16 times better for nature and society than business as usual, and that with a rapid transition comes improved air and water quality, reduced risks to ecosystems and biodiversity, and improved food security, human health, and livelihoods. We must accelerate the energy transition to clean, renewably sourced energy that will ensure the preservation of nature, biodiversity, and health and well-being, while also ensuring a resilient Canadian economy. Rosa Galvez is an environmental engineer, a professor at Laval University, and has served as an Independent Senator in Canada for the province of Quebec since 2016. She is a member of the Senate’s National Finance Committee. The Hill Times