Thank you, Chair.
Good evening. I'm Keith Brooks, the programs director with Environmental Defence Canada. I'm joined by my colleague Julia Levin, who works on our climate team.
Thank you very much for the opportunity to speak with you tonight. Our comments will focus on Canada's recovery from the COVID-19 pandemic. We'll touch on programs and spending that we think should not be part of that recovery and those those that we think should be central to Canada's economic recovery.
We see that the COVID-19 pandemic has put the livelihoods of millions of Canadians at risk, and the federal government is preparing historic levels of public finance in response. We thank you for that. This stimulus spending will shape our economy for decades to come, which means it's critical that the government uses this opportunity to build resilience to future crises and invest in a green and just recovery that maximizes job creation both today and tomorrow. Our response to this crisis must advance our efforts to tackle the other challenges we faced before this crisis began and that we will still face after it's over—namely, fighting climate change, ending plastic pollution, keeping our water clean and removing toxic chemicals from the products we use. It must also build a more just and equitable society.
With that in mind, Canada's economic recovery should not further entrench our economic reliance on fossil fuels. I am aware and Environmental Defence is aware that the fossil fuel sector has been hit hard by the pandemic. People's lives and livelihoods have been impacted. We recommend that the government focus on creating supports for those workers and communities to help them transition into new jobs and new careers rather than furthering an attempt to prop up the fossil fuel industry. Fossil fuels are a sunsetting industry. BP has recently said that peak oil has passed already. Putting more public dollars into fossil fuels is not going to change that. We think we need to have an honest conversation about the coming energy transition and ways to manage that transition and not try to hold back the tide.
Our first recommendation is that Canada must ensure that government spending, which includes relief, recovery and stimulus measures, does not further entrench or introduce new subsidies for the oil and gas or petrochemical industry. This includes ensuring that support for hydrogen is directed to green, not blue, hydrogen.
In addition to these subsidies, I urge the government to examine the role of Export Development Canada in supporting Canadian fossil fuels abroad. Canada provides more public finance to oil and gas than any other G20 country on a per capita basis. In fact, Export Development Canada provides an average of nearly $14 billion in support to oil and gas companies each year. Guaranteeing loans to these companies, though, is a risky proposition that may end up putting taxpayer dollars on the line.
Our second recommendation is that Export Development Canada's support for the fossil fuels industry should be ended. We should ensure that their new climate change policy aligns with Export Development Canada's entire portfolio and with Canada's climate change commitments.
Now for the spending and programs that we are in favour of and think must be central to Canada's economic recovery. I want to begin by acknowledging that in the Speech from the Throne, the Prime Minister stated that climate change would be at the core of Canada's jobs plan. That's great to hear. I hope all the members of this committee can appreciate that investments in climate action will create jobs and economic opportunities for Canadians. However, so far only a fraction of the spending recommended by the Green Budget Coalition has been committed to. The same goes for the task force for a resilient recovery. The Green Budget Coalition is recommending a first-year investment of roughly $20 billion plus an additional $21 billion over four to five years subsequently. The task force for a resilient recovery also recommended $55 billion over five years.
We note that in the fall economic statement, nearly $7 billion in new climate spending was announced. That's spread over 10 years. We also acknowledge the previous investments of $10 billion spread over three years through the Canada Infrastructure Bank, but these investments are not on the scale needed to really move the needle and push us toward the energy transition and job creation we need. The European Union has committed nearly 550 billion euros to green projects over the next seven years. Germany and France have allocated as much as 30% of their pandemic recovery stimulus toward emissions reductions initiatives. President-elect Joe Biden has promised a $2-trillion green recovery plan in the United States. A similar level of investment in Canada would be on the order of $270 billion. We are expecting to see more details outlined in Canada's forthcoming climate plan as well as in the spring budget.
Our third recommendation is that Canada should invest in climate solutions that will create jobs and stimulate Canada's economy. Canada's recovery from COVID is an opportunity for this country to invest in the climate solutions that we need and advance the transition to a clean economy.
My final recommendation concerns an area that has received less attention. It's what might be called a “blue” recovery, which is about investing in our fresh water.
Canada has 20% of the world's supply of fresh water. Investing in water protection should also be part of our stimulus package. Evidence from a decade of investments in the Great Lakes restoration initiative, a federal U.S. spending program launched out of 2009 financial crisis, demonstrated a 300% return on investment. With regard to the benefits of the projects in the States, they generated $3 of economic activity for every dollar invested. They have supported over 5,000 jobs in Great Lakes states. Canada should follow suit and invest more in our fresh water to create jobs and economic opportunities for more Canadians.
The fourth and final recommendation is for Canada to invest $1.2 billion over five years to implement the recommendations of the Great Lakes-St. Lawrence action plan for 2020-30.
I'll conclude there and invite any questions that you may have for me or my colleague, Julia.
Thank you.