International Trade Committee on May 14th, 2021

[Randy Hoback, Conservative, Prince Albert, SK]

That's what I'm getting at. You have some really strong numbers on clean tech. I'm looking at that and wondering how much of that is in new sectors—or are these existing sectors that now qualify under a new program, so they come under a new name called “clean tech,” whereas, say, five years ago they might have been doing the same thing they're doing today, but under a different type of branding?

[Rosaline Kwan]

Certainly, given the evolution and the progress of the industry, we've had to adapt as well. We couldn't, of course, stay behind and see it as purely clean tech in one area versus another. I'm thinking about aerospace, which is quite an established sector, but in aerospace we're looking at technologies and fuels that are considered under the clean-tech portfolio, among other things.

To your point, Mr. Hoback, yes, we are very much working to adjust and adapt to make sure that wide applications are considered.

[Randy Hoback, Conservative, Prince Albert, SK]

Thank you.

I'm going to be like Ms. Bendayan. We only have so much time. I don't mean to be rude.

[Rosaline Kwan]

Apologies.

[Randy Hoback, Conservative, Prince Albert, SK]

Mr. Forsyth, I think this would come under your angle.

How does article 6 of the Paris Agreement come into any type of new programming when it comes to a border adjustment for carbon? Where is that in the Global Affairs list of priorities, to get something like that put in place and functioning so that Canadian companies can take advantage of article 6?

[Doug Forsyth]

Maybe I can start, and then I'll turn to my colleague from ECCC to fill in with respect to the Paris accord.

As we are talking about the border carbon adjustments and whether they are WTO-consistent, I think we are certainly examining whether they are or whether they're not. We'll have to see how things roll out to determine whether they are consistent or not.

In terms of how we look at trade and our overall environmental objectives, I think they're very compatible. They work well together. We see them as very much compatible objectives, whether we're negotiating at the WTO or bilaterally with other countries.

[Randy Hoback, Conservative, Prince Albert, SK]

Okay.

I'll just open it up to the floor, then.

Article 6, where are we at? Are we going to see progress on that?

[Doug Forsyth]

I'll turn to ECCC for that. Thank you.

[Jeanne-Marie Huddleston]

Yes, I'm happy to jump in here.

As you may be aware, article 6 was agreed to under the Paris Agreement. However, parties to the agreement have since been negotiating further guidance on how this mechanism will work in practice with respect to nation-to-nation trading of greenhouse gas reductions or removals. Canada is very hopeful that this will be landed by the next UN climate conference, which is taking place in November of this year. Canada has been a very active participant in the negotiations, and in particular to ensure that the international rules are robust, ensuring environmental integrity, transparency and rigorous accounting.

[The Chair, Liberal, Judy Sgro]

Thank you very much for that answer.

We have Mr. Arya for five minutes, please.

[Chandra Arya, Liberal, Nepean, ON]

Thank you, Madam Chair.

My questions are directed to the representatives of the Department of Industry and the Department of Natural Resources.

The batteries are the future—not just the future, it is happening now. The transportation sector is making tremendous changes, moving from gasoline internal combustion engine cars toward the battery-operated vehicles.

[The Clerk]

Mr. Arya, sorry. It's Christine here. Could you move your mike a little bit further from your face, please?

[Chandra Arya, Liberal, Nepean, ON]

Okay.

Madam Chair, please give me that extra few seconds.

Batteries are also making a tremendous change in energy storage, which will make clean tech—solar and wind-powered generation—more viable in the future, and not just in the future, even currently.

I know in the recent budget we did invest to create a critical battery minerals centre of excellence at Natural Resources Canada. We also provided funds for federal research and development to advance critical battery mineral processing and refining expertise.

Both Canada and the U.S. have signed an agreement to strengthen the Canada-U.S. joint action plan on critical minerals collaboration. I want to know what is happening on that front from Canada's side. The United States Department of Commerce held a closed-door meeting about eight weeks back with the miners and battery manufacturers to discuss ways to boost the Canadian production of critical minerals. I think 17 of the 35 minerals identified as critical by the U.S. Department of Defense are mostly also related to critical minerals for battery development that can be supplied from Canada. The United States is looking for us to be a small part of the whole world supply chain.

I feel we should have a comprehensive strategy to develop everything—from minerals and metals to technologies and manufacturing facilities—here in Canada. I want to ask the Department of Industry and the Department of Natural Resources whether they have a comprehensive strategy to develop this sector, from minerals and metals to technologies and manufacturing companies, here in Canada.

[Andrew Noseworthy]

Perhaps I can start, and then my colleague in Natural Resources can comment. I'm not an expert in this space, but I assure you that NRCan, ISED and Transport Canada are working very closely in this space.

In our view, we're looking for an integrated value chain, from the early production and development of minerals right through to full mobility and the production of vehicles. Canada, as you may know, is perhaps the only country in the world with the full suite of strategic minerals that are necessary for the types of battery production that we anticipate will happen in the future, and we're looking to deploy critical resources around both battery development and electric vehicle development. In fact, as you probably know, that's already a focus in our strategic innovation fund, the net-zero accelerator. We're hoping both of those things—

[Chandra Arya, Liberal, Nepean, ON]

When you talk about the integrated plan, is it available? Can you submit it to the committee, please?

[Andrew Noseworthy]

There is no integrated plan. It is something we're working on collaboratively with the intent of developing an integrated approach from first development of minerals through to vehicle production.

[Chandra Arya, Liberal, Nepean, ON]

Okay. Have you organized a meeting between NRCan, the Department of Industry and the industries themselves, the industry representative groups, in developing this particular plan?

[Andrew Noseworthy]

I can't speak specifically to that, because I do not work in automobiles, but I am certain that there is regular communication by NRCan, ISED and Transport Canada with industry on all these issues.

Perhaps I could ask my colleagues in NRCan to speak a little more about the mineral side of this.

[The Chair, Liberal, Judy Sgro]

If you have anything to add, please do so very briefly.

[Daniel Dufour]

Thank you, Madam Chair.

To complement what my colleague from ISED said, there is a whole-of-government approach or exercise that's being done, from mines to mobility. It is looking at mining and processing, manufacturing and recycling.

We're also doing a lot of work with provincial and territorial governments, so there is a working group as well that is looking at mapping out the innovation ecosystem and looking at where some of the gaps are for opportunities, some strategic areas for potential additional investments.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

We'll go on to Monsieur Savard-Tremblay, for two and a half minutes, please.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot, QC]

Thank you, Madam Chair.

A paragraph in budget 2021 entitled “Better Supports for Exporters” states the following. Let me read it to you:

Export Development Canada (EDC) helps Canadian companies of all sizes compete and succeed in the global marketplace. EDC recognizes its responsibility to uphold Canadian values and human rights when doing business.

Budget 2021 announces the government’s intention to work with Export Development Canada to enhance supports to small and medium-sized exporters and to strengthen human rights considerations in export supports. The government may propose amendments to the Export Development Act.

Specifically, what amendments to the act would you consider? Will there be any consultations on this? How do you plan to enhance supports to small and medium-sized exporters?

[Rosaline Kwan]

Thank you for the question. I would invite colleagues from Export Development Canada to respond.

Sophie, perhaps that could go over to you.

[Guillermo Freire, Vice-President, Structured and Project Finance, Export Development Canada]

I can take part of that question, and Sophie, you can comment after if you want.

Thank you very much for the question. The group here is not currently involved in changes to the Export Development Act.

I can talk about human rights, which is a top priority for EDC and has been embedded in our human rights policy that was recently issued. That was based on the United Nations guiding principles on business and human rights, and other policies and internationally recognized best practices. However, I cannot speak at this point in time as to what changes might be coming through the Export Development Act.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

We'll go on to Mr. Blaikie, for two and a half minutes, please.