Thank you, Mr. Chair and honourable members.
Thank you, on behalf of the Canadian Chamber of Commerce, for this opportunity to take part in today's discussion about the impacts of the environment and climate on Canada's financial system.
It's a pleasure to appear before you on behalf of 400 chambers of commerce and boards of trade and more than 200,000 businesses of all sizes from all sectors of the economy and from every part of our country.
I'd like to begin by pointing out that the Canadian Chamber of Commerce and its members across Canada recognize the crucial importance of achieving Canada's net-zero objectives and are committed to contributing to the collective effort to combat climate change.
It's important for our members to make a successful transition to clean energy because we represent not only those sectors and companies that are most closely involved in this transformation, but also the communities they support across the country.
It is broadly acknowledged that climate change poses a significant challenge to business, from the high cost of disruptive events to increased uncertainty for companies in what and how they should invest. Our financial system is, of course, also exposed to these risks. According to the SFAC secretariat, Canada faces an annual investment gap of $115 billion to achieve its net-zero transition goals. Even with federal investment in decarbonization, a significant gap persists. With the federal government nearing its fiscal capacity, provinces and municipalities will also face increased climate-related expenses.
Business capital investments in climate and clean tech reached $14 billion Canadian last year, as reported by RBC. However, business capital investments need to increase, as do contributions from public markets, private equity and venture capital. To fund, scale and support innovative green technologies, a collaborative effort between government, industry and investors is essential. This co-operation will equip the Canadian economy with the necessary tools and support to realize its net-zero ambitions.