Thank you, and thanks for the invitation to be with you today.
Immediately prior to 2015, major projects simply could not get built in this country because Stephen Harper and his Conservative government gutted environmental protections and sidelined indigenous voices. They eroded the confidence that Canadians had in environmental processes in this country. That was true in the case of many major projects, including the Trans Mountain pipeline expansion.
When this government came to power, we did so with a commitment to ensure additional examination and consultation in the review and a medium-term commitment to restore the integrity of federal assessment processes. There were 156 binding conditions relating to safety and the environment placed on the project, and an indigenous advisory monitoring committee was established.
In 2018, a new government of B.C. made a commitment to use every tool in the tool box to halt TMX. Its actions created such uncertainty that the project proponent decided to walk away. The federal government intervened to ensure that this project, one that was and is of national significance, would be completed. The project has generated and will continue to generate significant economic benefits for Canada. During construction, 37,000 jobs were created and 25% of contracts awarded were for indigenous businesses and partnerships, totalling $6.5 billion.
In operation, TMX is having significant positive economic impacts. The Bank of Canada says the project will increase Canada's GDP by up to half a percentage point. Ernst & Young says the project will result in $38 billion in additional provincial royalties, $21 billion in corporate income taxes and $127 billion in GDP increase over the next 20 years. Moreover, the price differential, as the deputy prime minister said, has narrowed by several dollars and analysis shows this could further narrow by the end of the year. Every dollar that the differential narrows is equivalent to $1 billion added to our economy.
I think all members would agree that selling our energy at a discounted rate and not enabling Canada to extract full value for its resources is not a good idea, and this was a very key rationale underlying the construction of the pipeline.
As I noted, the pipeline was built with an emphasis on ensuring safety and environmental protection. Shipping oil by pipeline rather than by rail is far preferable, both in terms of safety and emissions. We also worked hard to ensure that TMX would be fully compatible with Canada's climate plan. All emissions associated with pipeline construction, operation and the production of oil that flows through the pipeline have been accounted for in the climate plan.
Our climate plan is one of the most comprehensive in the world. It addresses emissions from all sectors of the economy, including the oil and gas sector. Initiatives such as methane regulations and the upcoming emissions cap, which will require the sector to significantly reduce its emissions, have enabled Canada to become a climate leader.
The climate plan is working. We have fundamentally changed the trajectory of emissions in Canada, which were rising steadily under Stephen Harper. Emissions are now 8% below 2005 levels, and on a downward trajectory. Emissions would be 41% higher had the Conservatives remained in power. Unfortunately, given the NDP's recent decision to reject carbon pricing, their approach to tackling climate change would result in at least 212 million tonnes more emissions by 2030.
Our climate plan is not just a plan for reducing emissions. It is also a plan for ensuring a prosperous future for Canada. To remain economically competitive, we must recognize that the world is transitioning to a low-carbon future and we must take thoughtful actions to seize key areas of opportunity.
Governments around the world are increasingly taking action. Our major allies are all putting in place strategies for accelerating clean industrial growth. Beyond our allies, China is moving aggressively to dominate opportunities in wind, solar, EVs and critical minerals. China's major bet on the energy transition is something that should be a wake-up call for those politicians in Canada who continue to pretend that future prosperity lies in pursuing pathways that the energy transition is fundamentally disrupting as we speak.
TMX was and is a project of national significance. It is producing significant economic benefits for the country and ensuring that as we transition to a low-carbon future over the coming 25 years, Canada is extracting full value for its natural resources. We have ensured that it is consistent with Canada's climate plan and our drive towards a net-zero future.
With that, I welcome your questions.
