Good afternoon, Madam Chair and members of the committee.
My name is Mark Zacharias and I am a special adviser to Clean Energy Canada. We are a climate and clean energy think tank at Simon Fraser University. I am based in Victoria, B.C.
I'll be speaking today on how to help Canadian industries position themselves to export to markets that are increasingly concerned about climate change. Canadian industries are already well positioned for success and with some additional actions they can be the foundation of Canada's economy for decades to come.
With a combined GDP of $46 trillion U.S., 127 nations have adopted or are considering net-zero goals, meaning carbon neutrality by 2050. This list includes not only Canada, but also our largest trading partners: the U.S., the EU and China. It's not just countries that are committing to net zero. With $9 trillion U.S. in assets, 30 of the world's largest investors have pledged to move to carbon-neutral portfolios by 2050 or sooner.
The move by our closest trading partners towards a lower carbon future is a huge economic opportunity for Canada. For example, the World Bank predicts that the production of certain metals and minerals used in clean technologies could increase by nearly 500% over the next three decades. The global shift towards a net-zero future is expected to trigger what has been called a green economy supercycle, during which many of the goods Canada produces could see massive increases in demand.
Canada is well positioned to prosper in a net-zero world. Our commodity exports are as vast and varied as the country itself: aluminum, steel, wood, fertilizer, cement and minerals, some of which are already the world's cleanest thanks to Canada's electricity grid that is 83% emissions free, plus an economy-wide carbon price.
However, Canada cannot be complacent if it wishes to be competitive in a global low-carbon economy. Our competitors are already planning ahead. For example, the United Kingdom recently announced its 10-point plan for a green industrial revolution, which sets out the approach the government will take to build back better, support green jobs and accelerate their path to net zero.
President Biden's proposed American jobs plan is similar to the U.K. plan and will invest in transitioning the U.S. to a clean electricity grid that will power clean industries, buildings and transportation.
There are a number of key takeaways from the U.S., the U.K. and how other nations are transforming their economies. First, recognize that your climate plan is your economic plan. Second, don't build back to what you have; build back to what you will need. Third, act now to attract and grow the industries that will prosper in a net-zero world.
Canada's recent climate plan and budget 2021 are an excellent start. However, Canada could take the following additional steps to grow our industries and the jobs they create.
The first would be a buy clean approach in which the federal government builds infrastructure with low-carbon materials and incentivizes other levels of government to do the same, thus increasing demand for competitively clean Canadian goods. The recent greening government announcement between the U.S. and Canada is a good first step.
Second, Canada must determine which products a net-zero world will need and which of these products Canada can be competitive in supplying. It must then pursue new industries that capitalize on Canada's low-carbon advantages. A good example is establishing a self-sufficient battery and critical minerals supply chain to establish and grow domestic battery and clean-technology manufacturing.
Third, Canada must invest in research, development and deployment of clean technologies to support industries with growth prospects in a net-zero world. Canada must ensure it gets a foothold in new industries where it can lead, such as clean hydrogen, battery manufacturing and carbon removal. It must also align tax structures and incentives while encouraging private investment in clean industry.
Last, Canada needs a “clean Canada” export brand that advertises Canadian products as environmentally superior.
To summarize, Canada has tremendous opportunities to export into a net-zero world. However, Canada must recognize that the climate signal and the market signal are rapidly becoming one and the same and plan accordingly.
Thank you for the invitation to speak today. I look forward to your questions.