Evidence of meeting #55 for International Trade in the 41st Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was quebec.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Brandon Hall  Operations Manager, Electric Vehicle Division, Prairie Machine and Parts
Michelle Laflamme  President and Chief Executive Officer, Emovi Inc.
Nicolas Letenneur  Vice-President, Fumoir la Fée Des Grèves
Denis Leclerc  President and Chief Executive Officer, Écotech Québec
Guy Drouin  Co-President, Taxation Committee, Écotech Québec

5:10 p.m.

Vice-President, Fumoir la Fée Des Grèves

Nicolas Letenneur

I spoke about a similar program.

Over the next few years, we are going to focus our international development through these technological transfers. If the Industrial Cooperation Program could be renewed or if another similar program could be set up, that would be ideal for us. There should also be support for sending samples, as we were saying earlier, and for the transport costs of sending the first orders from Canada.

5:10 p.m.

NDP

The Vice-Chair NDP Don Davies

Thank you.

Mr. Morin, you have five minutes.

5:10 p.m.

NDP

Marc-André Morin NDP Laurentides—Labelle, QC

Mr. Drouin, you spoke about carbon earlier. We are in a city where this word seems to have trouble getting to the ears of some people. However, many countries are talking steps to stimulate the development of green energy and all kinds of alternative forms of energy.

We are in a country that has done very little of this compared to others. In light of that factor, is your business suffering from a type of handicap that translates in particular into a lack of information on programs implemented by other countries to encourage the emergence of these technologies? Does this represent missed business opportunities for you?

5:10 p.m.

Co-President, Taxation Committee, Écotech Québec

Guy Drouin

You are talking about missed business opportunities.

In Quebec, where we are established, certain Hydro-Quebec calls for tender encouraged projects in wind energy and biogas. We own a power plant fuelled with biogas in the Miron quarry in Montreal. It is one of the biggest in Canada, thanks to a Hydro-Quebec call for tenders in 1993. The purpose was to choose renewable energy projects that could complement hydroelectricity. This power plant allowed us to export technology.

However, there were a lot of missed business opportunities when the Kyoto Protocol failed. We had a technological showcase in Salvador that worked very well. We were selling our carbon credits to Luxembourg. There was also the power plant. We had developed a large number of projects in other countries, in South America and China particularly. The Kyoto Protocol-related drop in the carbon market clearly made us miss business opportunities, and that is why we are placing so much hope in the possible Paris treaty.

That said, thanks to the Hydro-Quebec call for tenders program and the carbon market, Quebec has become a leader. It is the first Canadian province to have adopted a policy aimed at pricing carbon. Ontario has followed suit. That is really interesting and not only for us. A lot of companies in Quebec will also take advantage of that possibility.

I can also tell you that Quebec is going to adopt the Coal Mine Methane Project Protocol Development, sometime before summer, and this will allow us to develop projects similar to the ones we have, be it in Alabama, British Columbia, Alberta or Nova Scotia, where there are coal mines. In addition, the credits generated in the other provinces of Canada will be eligible on the Quebec carbon market, which is on the order of $14 or $15 a tonne. That is extremely positive.

5:10 p.m.

NDP

Marc-André Morin NDP Laurentides—Labelle, QC

Does our status as environmental outsiders give rise to a somewhat negative perception in the world, when we present projects?

5:10 p.m.

Co-President, Taxation Committee, Écotech Québec

Guy Drouin

Yes, utterly.

As a businessman, I have to travel on a regular basis to various countries in the world. It is clear that we are not being cited as examples regarding our carbon market policies, and that is an area I know very well.

Canada terminated the agreement and it had the right to do so. It could indeed withdraw from the carbon market despite the fact that the treaty had been ratified by all of the stakeholders in February 2005, when Russia ratified it. By withdrawing, as did Russia and Japan later, Canada did not, of course, earn kudos from the international community, especially not from Europe, which did not withdraw from the Kyoto Protocol, and...

5:15 p.m.

NDP

The Vice-Chair NDP Don Davies

I'm sorry. We're out of time, gentlemen.

The last round will go to Ms. Freeland, for five minutes.

5:15 p.m.

Liberal

Chrystia Freeland Liberal Toronto Centre, ON

Thank you very much.

I wanted to start with Mr. Hall and make a request of our analyst. I thought his point about having paired advisers was really interesting and may be a specific point that might be something we can agree on. I wanted to ask you to make a special note of that and to thank Mr. Hall for making that point.

Another really specific comment we've heard from other witnesses has been that businesspeople who are actively involved in trade find the fact that you can't get a second Canadian passport—which is something that businesspeople in other countries can do—to sometimes be a problem; and that when you're applying for a visa from a country where it takes a long time, it would be convenient to have a second passport. Is that an issue that any of you have encountered?

Mr. Hall?

5:15 p.m.

Operations Manager, Electric Vehicle Division, Prairie Machine and Parts

Brandon Hall

No, I have not.

5:15 p.m.

Liberal

Chrystia Freeland Liberal Toronto Centre, ON

Okay. I guess you guys don't travel to the countries where it's really hard to get a visa.

I wanted to ask also about this issue of clean tech.

What you said about the carbon market and the importance of having an array of clean technologies was very interesting.

Will Ontario's participation in the carbon market be an opportunity to create an array of clean technologies with other provinces?

April 27th, 2015 / 5:15 p.m.

President and Chief Executive Officer, Écotech Québec

Denis Leclerc

Yes, when Ontario announced its participation, the department, the Minister of the Environment and the Premier of Ontario shared their interest in creating something like that.

In fact, this is not another organization. It is an umbrella under which we group together the innovation and technology market forces. The point is not to create an additional structure, but rather to do two things, ensure cohesion among the actors, and create synergy so as to grow domestic and international trade in the area of new technologies.

5:15 p.m.

Liberal

Chrystia Freeland Liberal Toronto Centre, ON

You referred to Scandinavia, Germany and China, where there is a lot of innovation in the area of clean technologies.

Is it too late for Canada? Will it be possible to do that here?

5:15 p.m.

Co-President, Taxation Committee, Écotech Québec

Guy Drouin

On the contrary, it is never too late.

Canada has a very good reputation when it comes to clean technology, starting with water. Internationally, Canada has a very good reputation regarding the quality of its clean water technologies, waste processing, and confining waste. Certain businesses in Quebec, such as the Solmax company, are experts in making geomembranes and liners. I know the president very well, and he has just opened a plant in Singapore in order to have access to the Southeast Asia market and China. He is opening another one in Chile. We have a very good reputation.

Canada is very well-regarded technologically speaking. However, it is important to put in place the tools we set out for you, to allow our clean technology business and the industry to accelerate its development.

You should read the report by Ms. Céline Bak, the CEO of Analytica Advisors Inc.; every year they publish a report that shows the evolution of the industry and of Canadian clean technologies. This is the highest growth sector. It is a very vibrant SME sector. Of course, this sector is going to continue to grow with environmental regulations and carbon pricing. We have everything we need in Canada, and as Mr. Leclerc was saying, we have to make it to the podium and win the gold medal in this area, I am convinced of that.

5:20 p.m.

Liberal

Chrystia Freeland Liberal Toronto Centre, ON

British Columbia and Alberta chose another system. Will it be possible to have an array of clean technologies with that approach?

5:20 p.m.

Co-President, Taxation Committee, Écotech Québec

Guy Drouin

Yes, British Columbia has a carbon tax, and I think the price is around $30.

The Alberta market focuses on intensity, and there it is $15 a tonne. Carbon pricing is beginning there. That is good. It is better than nothing and it is one approach.

Two weeks ago in Quebec, there was a convention where the topic was whether it is preferable to have a carbon market or a tax.

As an entrepreneur, I think that both can coexist. I don't have the time I would need to explain how that could be done, but both methods can in fact coexist.

5:20 p.m.

NDP

The Vice-Chair NDP Don Davies

Thank you very much.

On behalf of the committee I would like to thank all of the witnesses for your very in-depth and helpful testimony that will, I'm sure, help all of the committee members and very greatly inform the report we will write on this important matter. Thank you once again for sharing your time here today.

Colleagues, there being no further business before the committee, I will adjourn the meeting now.