Thank you very much, Mr. Chair.
First, it's my pleasure to be back before the committee. I always enjoy coming to committee, and we know of some of the great work that happens here. I actually had an opportunity to review some of the work you've done, and I've been quite impressed with it.
I do have some prepared notes. I don't know how short they are, but we'll see how far we get along. I'll try to keep them brief so we can get right into questions.
First, as I said, I do appreciate the work the committee has been doing. We have been looking at that.
Natural resources, as you are fully aware, have shaped our country. They've helped us become a world-ranking commodity producer and an emerging energy superpower. We've developed strengths in manufacturing, engineering, financial services, environmental consultancy, and specialized technology services, just to name a few. What really matters is how we build and use these great gifts.
Our government believes Canada can use its natural resources to an even greater advantage. My goal at Natural Resources Canada, with the energy, forest, and mining sectors, with the earth sciences expertise we have, and with our cutting-edge science and technology and policy-making, is to develop practical strategies for building a strong and distinctive Canadian advantage in today's global economy. The goal is consistent with our government's objectives outlined in Advantage Canada, budget 2007, and our ecoACTION plan. Our priorities are real. They are practical actions that combine economic opportunity with environmental and social sustainability.
In the energy sector, in our emerging role as an energy superpower, two realities are driving our actions for the year ahead. First, our traditional sources of energy must be balanced with cleaner sources. The second reality is that our current energy production and consumption account for some 85% of smog and 80% of greenhouse gases. If we don't succeed in dealing with these realities, our air and the environment and our health will suffer; but that's not all--so will our economy and our way of life.
In short, our challenge is to become a clean energy superpower. Mandatory targets on industry are the backbone of our government's action plan to reduce greenhouse gases and their pollution. This is the first time ever that the federal government has introduced regulations to force industry to reduce greenhouse gases and air pollution.
Initiatives to promote clean energy are focused in three critical areas:
Renewable energy--and you're all aware of this, and I believe we've talked about this before: $1.5 billion to increase renewable energy.
Budget 2007 also takes us further by providing access to accelerated capital cost allowance for industries generating cleaner energy, and it also is providing $2 billion in the budget over the next seven years to provide incentives to producers in the biofuel sector.
We're looking at ways to generate electricity from wood fibre sources, such as timber destroyed by the mountain pine beetle, sawmill residue, and logging debris. With NRCan's support, Tolko/Nexterra is demonstrating the production of bioenergy from wood waste to replace traditional fuels used in lumber kilns. I should add that we're getting increased interest right across the country from people in the forestry sector in the biomass energy. We are quite pleased with that.
Energy efficiency: as you know, we've launched this initiative. It's up and running, supporting greater energy efficiency among Canadian homeowners. We're providing grants of up to $5,000 to save energy and reduce pollution by improving efficiency in their homes. As a result, some 140,000 Canadian homeowners will be able to enjoy an average energy savings of 30% each and every year. On a typical $2,000 annual bill, that's about $600 that can be spent on other family priorities.
We also recognize the importance of regulations and standards. Our regulatory agenda includes introducing new energy-efficient standards and strengthening others. Just last week I announced that the Government Canada is introducing a ban on inefficient light bulbs. This is the second country in the world to do so. Implementing a national ban on inefficient light bulbs will help Canadians reduce their energy bills by more than $600 million a year, saving the equivalent of six to seven coal-fired electricity generation units.
I may add, Mr. Chair, I emphasize banning inefficient light bulbs. This is not banning incandescents. What's really exciting about this, when you speak to people in the industry, is it's actually driving them to produce more energy-efficient lighting options more quickly. In fact, they're advising me that they'll get to the point where they'll actually have incandescent bulbs that will meet these standards. So that's very positive when we're looking at these standards. I know we've seen a lot of it reported in the media that we're in fact banning incandescents and forcing compact fluorescents, but that's absolutely inaccurate. So it's just another example of where we're moving.
Science and technology: As you're aware, we're investing $230 million in our budget on a very focused approach on things like carbon capture and storage and unclean coal. In other measures, we've added $85 million through federal granting councils for research on key priorities on energy and the environment.
NRCan is helping develop gas hydrates as a new clean energy source. Gas hydrates, like ice substances that exist in large areas of the world's Arctic and in deep sea locations, are still, admittedly, some distance off in the future. The problem is when they bring them to the surface they literally vaporize, and the technology has to be developed on how they can capture that. But I'm also told the reserves are enormous, and again, it's another potentially clean form of energy. They represent an enormous potential, and again, an opportunity for us to reduce greenhouse gases.
I would also add, Mr. Chairman, that through Canada's trust fund for clean air and climate change, we're also providing support to the provinces and territories for major projects resulting in real reductions in greenhouse gas emissions.
I also note, quite apart from the initiatives I've mentioned, that our investments in energy, science, and technology include nuclear energy, which is an important energy option for Canada. It's a secure and emission-free source of electricity. Canada is currently participating in an international effort to develop the next generation of nuclear reactors, commonly referred to as generation 4.
In all of these areas, we are advancing our commitment to cleaner air, water, land, and energy while strengthening our economy at the same time.
Mr. Chairman, it will be my priority to assist two industries facing serious challenges that are important to Canada's economy, forestry and mining.
Canada's forest sector is undergoing a major transition. It faces many challenges: increased global competition; higher energy prices; a higher Canadian dollar; a slowdown in U.S. housing starts; and the continuing problem of forest pests, in particular, the mountain pine beetle in British Columbia. In fact, no forest industry in the world faces the same mix of challenges as the British Columbia forest industry.
In March, we joined forces with British Columbia to take action on the mountain pine beetle. We announced $24.8 million to help control its spread and to protect communities. We're working on a number of initiatives with the Province of British Columbia. We're in this for the long haul, as you know. In budget 2006 we committed a billion dollars. This is part of that funding. We committed $200 million, part of our initial one billion dollar commitment over 10 years.
Mr. Chairman, the government has also provided $125 million to the forest sector to strengthen long-term competitiveness. Through this funding we are providing critical support to promote innovation and investment in the industry, expand market opportunities, and help lead in the development of a forest pest strategy.
A few weeks ago I was at meetings with community leaders and scientific experts in Kamloops, and it was clear that we need to take action right away to deal with this problem. But we also need to take action to ensure the long-term viability of affected communities.
Just briefly, Mr. Chair, let me touch on the other sector that is facing serious challenges, the mining sector. It too is being challenged by intense global competition as well as declining reserves, shortages of skilled labour, and regulatory obstacles. With our partners in the industry, universities, provinces, and territories, and others across Canada and around the world, we are developing new environmental technologies and processes, improving geoscience, and strengthening Canada's value-added industries.
I would add that with support by our government, this industry is aggressively pursuing environmental sustainability and corporate social responsibility, both in Canada and abroad. It is providing leadership and increasing aboriginal participation in industry, and it's a leader in investing in new technologies to improve productivity and environmental performance.
My department's CANMET laboratories are looking at growing clean energy crops on mine site wastes to produce biofuels that are helping develop new lightweight parts for cars that reduce energy use and therefore reduce greenhouse gases.
Mr. Chair, in this regard, I'm pleased to note that we are working to strengthening our S and T and innovation partnerships with the relocation of our materials technology laboratory to a new world-class facility at McMaster University. This is a commitment by the government of $46 million, and it will help create the synergies between industry, government, and academia.
Mr. Chair, I see the clock is ticking away, and I don't want to continue on. I would also add that we have put in $150 million in budget 2006 to create a major projects management office for regulatory reform to help ensure the high standard of our regulatory approval processes as well as efficiencies. It will help the people bringing projects forward ensure that they're done in a very efficient manner. I think this is something that will be well received by the industry, and again we can ensure the integrity of our environmental approval process.
With that, Mr. Chair, let me conclude by saying Canada is indeed a fortunate country. We have a strong energy mix that includes conventional sources of energy such as oil, coal, natural gas, a growing supply of non-conventional and renewable energy. We have a natural resource sector that is facing its challenges head on and excelling on the global stage while it is embracing its responsibility to the environment and social development.
Mr. Chairman and members of the committee, this abundant diversity of resources is a unique source of strength. Our government is committed to building on this unique advantage to ensure economic prosperity and social development and environmental sustainability.
With that, Mr. Chair, I look forward to the members' questions.
