Good afternoon, Mr. Chair, and members of the committee. Thank you for the invitation to speak to you today.
I would like to begin by acknowledging Fortis's respect for indigenous peoples in this place we call Canada, and on whose traditional territories we all live, work and play. Fortis has long supported engagement with indigenous communities and building strong relationships based on respectful dialogue that creates mutually beneficial opportunities.
At Fortis, our core responsibility is to deliver safe, reliable and affordable energy in an environmentally responsible manner that respects the communities we serve. These values are reflected among the five companies that we operate across Canada—in British Columbia, Alberta, Ontario, Prince Edward Island, and Newfoundland and Labrador—as well as those we operate outside Canada. Across North America and the Caribbean we deliver energy through 10 utility operations to more than 3.3 million customers.
As an organization operating both electric and gas utilities across the continent, we have unique expertise and perspective to inform energy and climate policy.
We believe that achieving the national targets identified by the Government of Canada is a shared responsibility. We recognize the important role that we play in supporting efforts to combat climate change, investing in the transformation of Canada's energy infrastructure, and supporting the advancement of indigenous peoples.
Our Waytaynikaneyap Power partnership with first nations in Ontario, and our corporate-wide target to reduce carbon emissions are two examples of our commitment in action. We are targeting to reduce scope 1 emissions by 75% by 2035, from a 2019 base year. That target is now driving our investment plans, with more than 70% of our $4.3-billion 2020 capital plan dedicated to asset resiliency, modernization and cleaner energy initiatives.
A further example is in B.C., which remains a leading jurisdiction in North American climate policy. Our local utility, FortisBC, provides both electricity and natural gas to over 1.2 million homes and businesses across the province. Two years ago, FortisBC launched their plan to reduce emissions, called the clean growth pathway to 2050. This plan outlines numerous actions that will contribute substantial reductions in greenhouse gas emissions by harnessing the decarbonization potential of their gas and electric delivery systems.
Included in these actions is a stated goal to aggressively increase the supply of renewable natural gas in their system and advance hydrogen development. By 2050, FortisBC envisions a future where the majority of gas within their system will come from low-carbon and renewable sources. Many of these actions are reflected in the provincial climate strategy, CleanBC, including a target of 15% renewable content in the gas stream by 2030.
With this as background, the following recommendations merit consideration of the committee as it deliberates on these matters.
The first is to recognize the massive potential of the gas system to deliver emissions reductions. We recommend continued support for the growth of Canada's renewable gas sector with a policy that preserves a role for natural gas in the building space. We should develop a made-in-Canada pathway that leverages our existing gas and electricity infrastructure to achieve net zero and make Canada a global leader in renewable gases.
As I mentioned, B.C. has established a 15% renewable gas mandate for 2030 as part of their CleanBC climate strategy. FortisBC has been delivering renewable gas to their customers for more than a decade now. This single action within CleanBC will deliver more than three-quarters of the emissions reductions in the building space outlined in B.C.'s climate plan.
FortisBC is well on track to meet and exceed this target through near-term investments in biomethane and developing medium- and long-term pathways to develop B.C.'s hydrogen resources. This is why policy must preserve a role for gaseous energy delivery so that the benefits of these low-carbon fuels, using the strong infrastructure that exists, can be realized through their delivery to customers.
FortisBC commissioned Guidehouse, a respected global consultancy, to enable our utility to engage with and support an actionable decarbonization strategy for B.C. FortisBC undertook this project because they knew we needed specific made-in-B.C. pathways that reflect the unique constraints and opportunities of a winter peaking system and to decarbonize as quickly and cost-effectively as possible.
The results show that a diversified pathway can achieve our long-term emissions reductions targets with lower costs and lower risks to society. A diversified pathway that uses both our existing gas and our electric infrastructure is shown to be less economically disruptive, while also maintaining energy affordability and resiliency for our customers. In the same way that the electric grid allows for increasingly low-carbon electrons to be transported, the natural gas grid should be viewed as a way to enable increasingly low-carbon molecules to be transported.
Second is to provide clear policy signals on the role of the gas system in the net-zero environment. We recommend policy development that provides clear support for investment in long-lived energy infrastructure in Canada and for the role of innovation.
Climate policy, energy policy and on-the-ground operations are under constant transformation, while energy infrastructure has long planning lead times, long service lives and significant cost. In order to meet our needs and climate imperatives in 10, 20 and 30 years from now, we need clear policy signals on a complex landscape, including renewables, transmission and natural gas. That's required today. Ambiguity forestalls innovation, investment and actionable, achievable business changes. The energy transition is occurring—