Thank you, Mr. Chair.
My name is Kaili Levesque, and I am the senior director of Demand Policy and Analysis in the Office of Energy Efficiency at Natural Resources Canada.
I am pleased to be here this morning at the committee's second meeting on the economic opportunities for energy efficiency and its contributions to the Canadian Paris Climate Change commitments.
I will share the time set aside for us for opening remarks with my colleague Cynthia Handler, who will speak to innovation through research, development and deployment.
I will speak to programming on energy efficiency and low-carbon transportation.
I understand from reviewing the transcripts that last week the Canadian Home Builders' Association and Efficiency Canada both appeared. These are stakeholders that we work and meet with regularly. While it's unfortunate that we couldn't appear on the same day, it's nice to know that they were here and our stakeholders have laid the ground a bit for this.
Speaking of engaging with our stakeholders, on November 1 we will be joining Efficiency Canada and other efficiency leaders from across the country to discuss the enormous potential of energy efficiency as a source for energy savings for Canadians, as well as the economic opportunities that energy efficiency provides in creating jobs, increasing GDP and improving competitiveness.
To set the stage a little bit I would like to briefly tell you about the office of energy efficiency and place our efforts in the context of the government milestones and our efforts to reduce emissions.
The office of energy efficiency, or the OEE as we call it, administers the Energy Efficiency Act and the associated energy efficiency regulations. It provides other programs and information that promote energy efficiency in the major energy-using sectors of the economy. These sectors include residential, commercial, institutional buildings, industry, appliances and equipment, transportation and alternative fuels.
Energy efficiency is an area of shared jurisdiction and shared responsibility, which is why we work closely with all levels of government and the stakeholders. It is not something that any one level of government can do alone. Our activities help address market barriers that prevent investments in cost-saving energy efficiency technologies. We help Canadian consumers and businesses save money, embrace innovation and reduce greenhouse gas emissions.
I won't retread the history put forward by my colleague, Matt, but one thing that NRCan is very proud of in the context of the pan-Canadian framework is that we do play a significant role in the implementation of the PCF, leading or supporting 30 of the 50 initiatives developed under the umbrella. These initiatives span areas including clean electricity, the deployment of electric vehicle infrastructure, forests, adaptation, clean technology and innovation and, of course, energy efficiency. Energy efficiency itself is a critical component of the PCF. More than a third of estimated GHG emissions reductions are expected to come from efficiency measures.
Since the launch of the PCF in 2016, we've moved from commitment to implementation mode. Funding has been mobilized. Regulations to cut emissions have been drafted and consulted on. New policies and programs to build resilience, support clean tech and reduce emissions have been developed and are being implemented. We are making progress on all fronts. This is documented in the publicly released synthesis reports on the implementation of the PCF and also, as Matt alluded to, through the Energy and Mines Ministers' Conference, which is held annually each summer.
Canadians expect action and progress on this front. They care about the environment and they want us to do our part to help fight climate change. Highlights of the work we've done through consultations include the launch of Energy Star for industry challenge, working in close collaboration with industry, and the updated regulations on equipment standards.
The global demand for cleaner economic growth is opening up trillions of dollars of opportunity around the world, giving Canadian developers of clean solutions access to new markets and creating jobs for Canadians. We want to create the conditions that enable them to capitalize on these opportunities.
We work closely with the International Energy Agency. I'm fortunate enough to chair a committee there and work with colleagues from around the world on these issues. Last year, we actually worked with the IEA to develop a potential report for Canada on where the untapped potential on energy efficiency is. This was reiterated in the energy efficiency market report released last week from the IEA that poses the question, “What would happen if policy makers realised all the economically viable potential for energy efficiency that is available with existing technologies?”
The answer is that a range of direct and indirect economic benefits can flow from improving energy efficiency, including employment, productivity and incomes of individuals and businesses. However, enabling investment in energy efficiency at scale is critical.
Energy efficiency generates savings for Canadians. For example, a better insulated home costs less to heat and cool. More efficient equipment, such as a fridge or an air conditioner, lowers electricity costs. Fuel-efficient vehicles save consumers money at the pump. From 1990 to 2014, energy use in Canada increased by 31%, but would have increased by 55% without energy efficiency measures. This means an avoidance of 90.5 megatonnes of GHG emissions and energy savings of $38.5 billion over the same time period.
Energy efficiency also supports competitiveness and innovation. Companies with lower energy needs have a leg up on the competition as a result of reduced operating costs. Our programs and tools, such as the promotion of the ISO 50001 international standard, the superior energy performance program, and the Energy Star for industry, help businesses track, analyze and improve their energy efficiency.
Energy efficiency standards can also drive the development of innovation that can be marketed in the international energy efficiency marketplace. As committee members may know, the Standing Committee on Environment and Sustainable Development issued a report in June of 2018 entitled “Better Buildings for a Low-Carbon Future”. That report recommended the use of financing tools to accelerate the transition to more efficient existing buildings.
Given that 75% of Canada's current stock of homes and buildings will be standing in 2030, deep building retrofits will be crucial to achieving our GHG emissions reductions targets and facilitating Canada's transition to a low-carbon economy. However, federal investment and interventions are not enough on their own to meet our energy efficiency goals. We need to leverage the untapped private sector capital potential and further cultivate Canada's retrofit economy to reduce emissions from existing buildings.
Retrofits can offer broad gains and a strong return on investment to stakeholders. However, barriers and challenges are currently preventing more meaningful take-up from financial lenders, leading to a lack of confidence and risk aversion on the part of lenders. In its fall interim report, the expert panel on sustainable finance identified retrofits as a key theme, an opportunity for growing a sustainable finance sector in Canada. The panel observed that a national investment road map, supported by a national institution that would source high-potential projects, engage capital providers and facilitate cross-sectoral collaboration, will be an important enabler.
Quite simply, we have to shift from seeing energy efficiency only in terms of reducing our demand for energy, and wake up to its potential to deliver concrete economic and social benefits. That's why we're developing new building codes and standardizing rating systems for the energy efficiency of buildings. We're investing in research that will produce the high-efficient building technologies of tomorrow.
We are lucky here in Canada. We have world-class energy assets and a vision for our energy future. With that comes an enormous responsibility to emphasize the importance of being efficient with these resources as well.
We also work in the area of transportation at all levels of government and industry. We have worked collaboratively to improve energy efficiency and improve GHG reductions in the transportation sector, where efficiency has improved by 36% since 1990, saving $17.9 billion in total by 2019.
With that, I will turn it over to my colleague Cynthia Handler—I am mindful of the time I have been allotted—to speak more broadly about efforts in innovation and clean technology.