Good morning, Mr. Chair and members of the committee.
My name is Fernando Melo. I'm a policy adviser with Clean Energy Canada, a climate and energy think tank at Simon Fraser University. I'd like to start by thanking you for inviting me to present the research in our report “Less is More” as part of your study on the economic opportunities for energy efficiency in Canada.
Our report details why energy efficiency is a win-win for Canada's environment and economy, exploring the potential that efficiency has to grow Canada's economy, create real jobs, save households money and ultimately meet Canada's commitments under the Paris Agreement.
I would like to acknowledge and thank my colleagues at Efficiency Canada and Dunsky Energy Consulting, who worked with Clean Energy Canada in the preparation of our report “Less is More”.
At Clean Energy Canada, we often describe ourselves as small but mighty. We do a lot, from conducting original research to talking to everyday Canadians about clean energy and, above all else, finding solutions. We know that the global clean energy transition is an opportunity for Canada to build an innovative and growing economy with good jobs, healthy communities and pristine environments.
A less talked about but significant part of this transition is energy efficiency: being smarter about how we heat our homes, light up our nights and feed our families.
As we show in our report, energy efficiency is an opportunity to boost Canada's GDP by 1% over the next 14 years. This is a net growth of $356 billion simply by using what we have in a smarter way.
Our research shows that this growth comes from spending on upgrades, but mostly it comes from the money that businesses and households will save on their energy bills over time. This improves business productivity and competitiveness, and it reduces the cost of living for Canadians. These savings are spent in the local economy, resulting in an even greater economic impact. If you think of it as an investment, the returns are impressive. Under the pan-Canadian framework, every $1 spent on energy efficiency programs generates $7 of GDP.
The measures outlined in our report and the real-world impacts they will have on the economy are not just born out of economic models. The measures are proven ones, with demonstrated cost-effectiveness in leading jurisdictions such as Massachusetts and Minnesota.
As I mentioned earlier, these economic gains will require an initial investment. That investment will mean more jobs for Canadians. In fact, it means the creation of 118,000 annual jobs between now and 2030. These are jobs for ordinary Canadians and jobs that can support a middle-class lifestyle. Best of all, these are new jobs in existing fields. The overwhelming majority of these jobs would be created in the private sector and would be for the long term. The pan-Canadian framework's energy efficiency components will mean more jobs for HVAC technicians, plumbers, electricians, insulators, window installers, carpenters and IT professionals, to name a few.
As part of our research, we spoke to tradespeople across Canada, and they see the opportunities that energy efficiency means for them. They are people like Ashley Duncan, an insulator with the B.C. Insulators union, Local 118, for the past eight years. She knows that her job is making a real difference in the lives of Canadians by delivering more affordable housing and building more sustainable buildings.
Investments in energy efficiency won't just keep people like Ashley employed for years to come while opening doors for other workers. They will make the lives of Canadians even easier. Our research shows that between 2017 and 2045 the average Canadian household can expect to save $114 a year from efficiency measures in the pan-Canadian framework. That's money that families can spend elsewhere.
Efficiency will also help Canadian businesses to be more competitive globally. Canada has a well-documented productivity problem, and efficiency is a solution. Across Canada, businesses can expect a total of $3.2 billion in energy savings. These savings for Canadian businesses can be reinvested in growing our economy, creating new jobs and increasing their productivity.
In addition to growing Canada's economy, energy efficiency measures would reduce carbon pollution significantly. In fact, one-quarter of Canada's pollution-cutting targets under the Paris Agreement would be met by implementing these measures. Put another way, the pan-Canadian framework's efficiency measures are expected to cut an impressive 52 million tonnes of carbon pollution.
It's clear that energy efficiency can keep Canada on track to meet its emissions goals while enhancing our economy, creating jobs and leaving money in Canadians' wallets. While more will need to be done to hit our targets and minimize the costs of climate change, energy efficiency is an optimal solution. It's so optimal, in fact, that we should consider expanding our efforts while reaping the rewards that come with them.
Thank you for your time. I look forward to your questions.