Thank you very much.
I am pleased to join you to discuss the main estimates. I am joining you from the traditional, ancestral and unceded territories of the Squamish, the Musqueam and the Tsleil-Waututh first nations.
As folks here will know very well, the effects of the brutal Russian invasion of Ukraine extend well beyond Europe. The invasion has had a destabilizing impact on global energy markets. Europe has asked us for help. In response, Canada has been working to stabilize energy markets and to develop long-term solutions with our allies. In fact, I will be in Berlin for the G7 environment, climate and energy ministers' meeting next week as part of that ongoing engagement.
Likewise, when I addressed the U.S. Senate Committee on Energy and Natural Resources yesterday, I spoke about the need to enhance continental energy security while building future-facing value chains, including those for critical minerals and hydrogen. Like our European allies, many of our partners south of the border are looking to us to supply stable and clean electricity and clean fuel solutions as we look to address energy security and climate change issues concurrently.
Acting to secure our energy supply while addressing the climate crisis is an example of how we are walking and chewing gum at the same time.
Going forward, energy security is increasingly tied to clean energy. Autocrats will not be able to destabilize our energy markets when we are supplied by clean fuels, renewables and effective storage. As the President of the European Commission Ursula von der Leyen stated earlier this month, it is our switch to renewables and hydrogen that will make us truly independent. We have to accelerate the green transition.
I would also like to underline the role of hydrocarbons as we move forward. Certainly we must remember that this is a transition that will take place over time. Second, we must ensure that we appropriately consider how we can play a constructive role regarding the displacement of Russian oil and gas in the short to medium term. Finally, we need to recognize that in a net-zero 2050 world, the world will still be using about one-quarter of current oil production and about one-half of current gas production in non-combustion applications—like lubricants, waxes, etc. This means that countries and projects that can produce oil and gas with virtually zero production emissions will be the last producers standing, underlining once again the importance of emissions reduction.
It is in this context that we are asking Parliament to review and approve total budgetary authorities of just over $3.6 billion. This is an increase of $1.37 billion, or 61%, from last year’s main estimates.
The key items contained in this request will help unlock Canada’s tremendous capacity to innovate, and build towards sustainable and long-term prosperity as we move towards a net-zero future.
Whether it is critical minerals, forestry, nuclear investment, renewable energy, energy efficiency, home retrofits, grid modernization, zero-emission vehicle infrastructure or carbon removal technology, you will see in the investments contained in these main estimates a common thread.
By supporting Canadians' tremendous capacity to innovate and seize opportunities, we are acting to ensure a prosperous energy transition that will deliver sustainable jobs, the advancement of indigenous reconciliation and increased economic opportunities across sectors and regions.
The opportunities from a sectoral perspective will come from new products that enable a low-carbon future—such as electric cars, battery technology, critical minerals, hydrogen and other clean technologies—and new uses for old products, as we are seeing with the bitumen beyond combustion program in Alberta.
This includes our existing reliable hydroelectricity from provinces like Quebec. It also includes our growing critical minerals industry—which is vital to the global shift towards electrification and clean energy.
At the same time, innovations in Canadian hydrogen technology are being spurred by our investments: for example, the potential in Newfoundland and Labrador to enhance energy security by exporting clean hydrogen to Europe and down the U.S. eastern seaboard.
Together, we are delivering for Canadians by fighting climate change, revitalizing ecosystems and building a prosperous future with abundant clean and secure energy.
As I mentioned at the outset, these priorities are intertwined. Taking well-considered and decisive action now can drive Canadian energy security, clean growth and prosperity for decades to come. That understanding guides our government's investments in Canadians' future.
I would be happy to elaborate on these pieces, and I look forward to your questions.
Thank you very much for the opportunity to be with you today.