Thank you, members of the committee. Good morning.
Clean Energy Canada is a national think tank based out of Simon Fraser University that is focused on accelerating the country's clean energy transition.
When Canada launched its 2020 climate plan, it joined a global wave of action marked by strong international co-operation, low interest rates, top-down policy and a singular focus on cutting greenhouse gas emissions.
That work has yielded progress. Policies already in place across all levels of government are projected to cut emissions to 24% below 2005 levels by 2030. However, like much of the rest of the world, Canada now stands at an inflection point. On one hand, we cannot turn away from climate action. It is no longer just a moral imperative but also an economic one. Two-thirds of global energy investment this year will go to clean technologies. All of Canada's 10 largest non-U.S. trade partners have net-zero commitments and carbon pricing, and roughly half are introducing carbon border adjustment mechanisms and domestic EV requirements. On the other hand, this new era does demand a renewed approach, one that emphasizes how emissions reductions can also reduce household costs and ensure Canada's competitiveness, but this needs to be a regrouping, not a retreat, refocusing on action now over ambition later.
A new approach should follow these principles.
First, in Canada, our motto needs to be “electrify, baby, electrify”. The transition is already under way. One in four cars sold globally this year will be electric. Renewables like solar, wind and hydro power now provide over one-third of global electricity, overtaking coal, and they are expected to meet 95% of demand growth between now and 2027. Investment in clean tech is 50% higher than total spending on oil, gas and coal globally. This is all happening because electricity is about three times more efficient than fossil fuels and continues to get cheaper with scale, making electrification increasingly driven by economics.
Canada has what it takes to lead in this new environment: a stable investment climate, clean power, abundant natural resources, innovation capacity and a skilled workforce. A 2021 projection of Canada's clean energy sector suggested that it would reach $107 billion in GDP by 2030, with $58 billion in investment and 600,000 jobs.
Clean energy investments also deliver more bang for the buck. Every dollar invested in clean buildings has been found to create 2.8 times more jobs than fossil fuels, with solar creating 1.5 times more.
Over the next five years, we need to focus on the technologies that are already ready for prime time, and we need to scale them while helping strategic industries pivot to remain competitive in this global shift. This will require the right policy support: new supports for consumers, including grants and loans to help them adopt electrotech like EVs and heat pumps, and updated building codes to make sure that we're building for that electrified future now. The federal government can also help support modernizing and expanding electricity grids by finalizing the clean electricity investment tax credit, leveraging the Canada Infrastructure Bank and treating a united Canada grid as a modern nation-building project.
Second, we need to prioritize a short list of high-impact, cost-effective existing policies that can do the heavy lifting. Canada has spent the past decade building a robust regulatory framework. We have to build on it, not dismantle it, but we can focus on the policies that do the most for emissions reductions as well as for competitiveness and cost savings for Canadians. This will mean strengthening industrial carbon pricing, which is the most cost-effective tool that we have and supports clean investment in projects like Agnico Eagle Mines in northern Ontario. Finalizing methane regulations can offer a quick, low-cost way to cut one of the most harmful near-term greenhouse gases. Maintaining the electric vehicle availability standard, even with slightly lowered long-term targets, can reduce emissions in one of the highest-polluting sectors while saving Canadians thousands at the pump. The clean electricity regulations are essential to send a market signal to ensure that the power we're going to be plugging into is clean as we electrify households and industries.
Third, we need to create momentum by updating how we measure success. The next five years need to be defined by solutions and tangible results. We need to embark on the energy transition with a feeling of optimism and accomplishment, and years of public-opinion research show that Canadians care about what they are gaining, not about what they supposedly can't have. Over the next five years, we need to focus on complementing those emissions targets with clear, tangible metrics that will be relatable to Canadians, like the number of heat pumps in homes, kilometres of transmission lines built and critical mineral mines operating by 2030, and the amount of foreign direct investment in the clean economy.
That said, we still need achievable, science-based 2035 targets. Net zero alone can be a dangerous proxy for doing something someday, leading to higher costs through delay. We won't rise to this moment or meet our climate obligations by doing less. Now is the time to build, to innovate and to ensure that Canada secures its place as a clean energy superpower in a rapidly changing world, because the future isn't coming; it's already here.
