Environment Committee on June 7th, 2022

[Judy Meltzer, Director General, Carbon Market Bureau, Environmental Protection Branch, Department of the Environment]

On that question, I would suggest that we're in the early stages. As you know, there is a commitment to develop a clean electricity standard. Details of the approach are in development and consultation. That said, it is expected that this type of regulatory initiative, combined with others that are already in place, including, for example, economy-wide instruments—

[Laurel Collins, NDP, Victoria, BC]

I have a very limited amount of time, and I'm curious to know whether you're planning on achieving it mainly through solar panels and wind turbines—

[The Chair, Liberal, Francis Scarpaleggia]

Excuse me, Ms. Collins. You're too close to the mike.

[Judy Meltzer]

At this point, it's too early for the department to provide details on the approach, but we certainly will continue to provide details as the approach is developed.

[Laurel Collins, NDP, Victoria, BC]

Do you have a sense yet of how the clean electricity standard will recognize provincial jurisdiction over electricity mix decisions?

[Judy Meltzer]

I can't answer that question at this point in time.

[Laurel Collins, NDP, Victoria, BC]

Anything on the—

[Judy Meltzer]

I will say that there may be some additional follow-up from our department. That's not a lead file for me, so we can reconfirm. If we can provide additional information on that, we will certainly do so.

[The Chair, Liberal, Francis Scarpaleggia]

Yes. If you can, please do, and in writing.

[Laurel Collins, NDP, Victoria, BC]

Please send anything you can to the committee.

Yesterday President Biden announced that he will be using the Defense Production Act to accelerate the manufacturing of solar panels in the United States and allow rapid expansion of power grid infrastructure like transformers, heat pumps and building insulation. If Canada doesn't rapidly scale up the adoption of available clean technologies, do we risk being left behind and missing the opportunity to be a leader in the green economy? Do you think Canada could use its Defence Production Act in a similar way?

Maybe the Department of Industry could start.

[Andrew Noseworthy]

We're seeing a rapid increase in the development and deployment of clean technologies across the spectrum. That is happening globally. In fact, it is happening so fast we're finding it difficult to track with reliable statistics what is actually happening out there, especially over the course of the last two years. We think there's been a profound change.

In that context, our ability to deploy any and all policy and program tools to take advantage of the market opportunity that's out there globally and also to allow for the transformation in the Canadian economy, is a good thing.

[Laurel Collins, NDP, Victoria, BC]

Out of curiosity, have any of the departments, or has anyone on this call, had a conversation around using the Defence Production Act to accelerate the production of these kinds of things—solar panels, heat pumps and so on? Has that conversation come up?

That question is for the industry, natural resources and environment departments.

[Drew Leyburne]

This announcement was made by the U.S. yesterday. I don't think there's been any detailed analysis of the similarities in terms of how the Canadian instruments could be used.

I will say that part of the President's announcement yesterday involved the important role that the federal government can play in the procurement of clean technologies. The buy clean initiative that was announced and supported through the emissions reduction plan in budget 2022 is very much in the same vein.

[Vincent Ngan]

To add to that, Canada will build on the greening government strategy to reduce GHG emissions and support the market of emerging climate innovations by developing procurement requirements for green federal buildings and construction materials, fleet fuels, electricity, and other high-carbon goods that the government buys.

It's definitely part of the emissions reduction plan and the greening government strategy.

[Laurel Collins, NDP, Victoria, BC]

Thank you.

Will the government be looking at the Defence Production Act, moving forward, as a possibility? Is that conversation coming up now?

[Vincent Ngan]

We do not have that information at this point, but we're happy to take it back.

[Laurel Collins, NDP, Victoria, BC]

Please follow up with any additional information.

The David Suzuki Foundation report on zero-emissions electricity, which I mentioned earlier, estimated the number of jobs that would be created by pursuing a renewable electricity pathway:

There would be...1.5 million person-years of direct employment resulting from the construction, operation and maintenance of new wind, solar and transmission lines alone between 2025 and 2050, growing to support over 75,000 full-time jobs each year. This...does not include the additional jobs that could be created if wind turbines and solar panels were manufactured in Canada....

If the renewable industry had high levels of confidence that wind, solar and storage were going to be built out at the scale envisioned in these pathways, is it likely that more companies would find it worthwhile locating some of their manufacturing here in Canada?

[The Chair, Liberal, Francis Scarpaleggia]

I have a feeling that's not a yes-or-no question, so we'll maybe have to get the answer in response either later on or to anyone else who's interested in this answer.

We'll go now to the five-minute round, starting with Mr. Carrie.

[Colin Carrie, Conservative, Oshawa, ON]

Thank you very much, Mr. Chair.

I am wondering if I could have a check on my audio with the translators.

[The Chair, Liberal, Francis Scarpaleggia]

It seems to be okay.

[Colin Carrie, Conservative, Oshawa, ON]

Excellent.

Thank you very much to the witnesses.

As the member of Parliament for Oshawa, the automotive industry is a big deal for me. Recently, the auto industry gave the government a report card based on the seven priorities of the government. Unfortunately, we got an “F” on three of those priority areas. One that we got an “F” on was harmonization or alignment of regulations in North America. The other “F”s were on the status of our hydrogen fuelling stations and the luxury tax on zero-emissions vehicles. The government is moving Canadians towards buying these vehicles, and some of them can be very expensive.

The question would be for the Department of Industry first.

How are we doing in moving to align our regulations across North America? Having unique regulations here in Canada really affects our competitiveness. I am wondering if you could give me a status update on that.

[Kendal Hembroff]

The question that's been asked by the member in terms of harmonization of regulations across North America really falls outside the scope of my specific responsibilities. If it's helpful, we can either provide that information in writing or we can provide a suggestion in terms of another witness from our department.

[Colin Carrie, Conservative, Oshawa, ON]

Yes. If you could provide that, that would be absolutely excellent.

I hear over and over again the concern about jobs as we transition into the green economy. I believe there are over 300 communities that rely on the traditional energy supply—fossil fuels. I am wondering if you could update the committee on the plan for a just transition for these Canadians who rely on the traditional energy sector for their jobs. How is that coming along?

[Kendal Hembroff]

Again, Mr. Chair, my specific responsibilities are in terms of clean technologies and clean growth. I am most definitely not an automotive expert.

If it's helpful, I can certainly provide some examples of some of the work we've been doing in terms of mines to mobility and strengthening the battery supply chain, but I don't believe that's the specific question that's been asked by the member here.

[Colin Carrie, Conservative, Oshawa, ON]

All right.

I would be interested if you could comment on the mine situation. I hear the concern about having supply chains intact and ready to go, as the government is moving very aggressively to having Canadians adopt technologies such as zero-emissions vehicles.

Canada has resources here. I am wondering if you could update us on things like how we are we doing as far as getting a new mine opened up. What are the timelines for that? When automotive companies are making investments, they look 10 years out, 2030 to 2035, and they're looking for certainty.

Kendal, I am wondering if you could update the committee on the mining situation and getting those mines up and running.