Natural Resources Committee on May 18th, 2022

[John Hannaford]

Again, we will follow up with CNSC to see what is possible with respect to those sorts of communications, but I can repeat that this is a matter that we do take seriously and that there are protocols in place with respect to said flights.

[Larry Maguire, Conservative, Brandon—Souris, MB]

I don't know if my colleagues have a question they'd like to ask.

[The Chair, Liberal, John Aldag]

There's about half a minute left, if anybody would like it. If not, we'll just move on.

[Larry Maguire, Conservative, Brandon—Souris, MB]

Great. Thank you.

[The Chair, Liberal, John Aldag]

We will now go to Ms. Lapointe.

You will have five minutes.

[Viviane LaPointe, Liberal, Sudbury, ON]

Thank you, Chair.

We know Canada has the natural resources to be a leader in critical mineral development, but the challenge of quickly developing an A-to-Z critical minerals ecosystem needs partnership.

As budget 2022 states, we must find new ways of pooling our capabilities across the public sector, the private sector and industries. How will the new Canada growth fund enable these partnerships? How is Canada planning to attract the businesses and investments needed for us to develop a global critical mineral supply chain?

[John Hannaford]

Thank you very much for the question.

Certainly critical minerals are of enormous strategic importance. That's been recognized in the budget, where $3.8 billion has been assigned to address our critical minerals strategy. That is a further tranche over and above earlier funding that was reflected in the main estimates, which will allow for the creation of a centre of excellence for critical minerals. The centre of excellence will be the centrepiece in establishing and elaborating our strategy with respect to such minerals.

As the honourable member says, what will be critical here is focusing our efforts where we can in order to support Canadian supply chains and the supply chains of our allies and work very closely with those allies, with private sector and with indigenous communities to ensure that the development of these resources is done in a responsible way and in a way that allows for indigenous reconciliation and self-determination. That's why part of the funding includes our indigenous partnerships program and funding for the indigenous partnerships office.

We also need to be working very closely with allies and with industry groups as this policy evolves.

Thank you.

[Viviane LaPointe, Liberal, Sudbury, ON]

On the subject of critical minerals, the budget proposes up to $3.8 billion over eight years to implement Canada's critical minerals strategy. Can you expand on what is covered under that $3.8 billion?

[John Hannaford]

Thank you very much for the question.

As I mentioned, part of that funding does relate to indigenous reconciliation. A substantial amount will relate to infrastructure spending, as access to the areas where these minerals will be developed is of real importance. In terms of research and development, there's a scientific component to all of this. The funding is looking at the development of the resources itself, and also the development of the supply chain, processing and other applications as these resources are refined.

[Viviane LaPointe, Liberal, Sudbury, ON]

Through the main estimates funding for 2022-23, NRCan is receiving $9.6 million for the youth employment and skills strategy program.

How is NRCan planning to invest that funding into the YESS program? Specifically, I would like to know how NRCan will ensure opportunities for indigenous and northern youth.

[John Hannaford]

It's a very important part of our overall policy suite that we look at the development of not only the resources that exist in Canada but also the people. That is critically important with respect to our relationship with the indigenous communities.

Youth training is obviously one of the most important areas. We can focus, in part because of the future demands that there will be, on a whole range of different activities. Youth funding is actually an essential piece of our overall programming with respect to this area in development.

[Viviane LaPointe, Liberal, Sudbury, ON]

Do you have any statistics on the increased participation so far by indigenous and northern youth?

[John Hannaford]

I will turn to my colleagues on that.

Frank, can you respond?

[Frank Des Rosiers, Assistant Deputy Minister, Department of Natural Resources]

In total, we've been able to create about 320 jobs for those youth, thanks to the $9.6-million investment. Of this, about 60% or so were for under-represented groups. Indigenous youth constitute a very large portion of that.

We do foresee for the coming years that we'll be able to maintain such elevated targets. By the way, this has been noted by ESDC as one of the best in class in the public service.

[Viviane LaPointe, Liberal, Sudbury, ON]

Thank you.

[The Chair, Liberal, John Aldag]

Go ahead, Mr. Simard. You have five minutes.

[Mario Simard, Bloc, Jonquière, QC]

Thank you.

I have a brief question for Mr. Hannaford.

Earlier, the minister gave us the definition of an inefficient fossil fuel subsidy—a definition we had never gotten previously. In his response to me, he said that they covered all subsidies that boost oil and gas production and exports. I was very glad to finally have a definition.

Mr. Hannaford, does that mean the emissions reduction fund and, similarly, the $2.5 billion for carbon capture are subsidies that do not boost or accelerate exports or production?

For the purposes of the department, can they be described as subsidies that do not boost exports or production?

[John Hannaford]

Thank you very much for the question.

The emissions reduction fund focuses on addressing such emissions as methane, which are of extraordinary importance when it comes to our overall climate plan, so it is an opportunity to accelerate the reductions of methane. We have taken on, as an objective, a very aggressive methane strategy in reducing methane by 75%.

The emissions reduction fund—

[Mario Simard, Bloc, Jonquière, QC]

Forgive me, but I'm going to try to make myself clearer. That's a problem of mine; sometimes I don't make myself clear.

When the committee was studying the emissions reduction fund, we were told repeatedly that production should not be capped; rather, emissions should be. Accordingly, if the emissions reduction fund is not putting a cap on production, it is boosting it.

Would you agree with me that, in reducing the sector's emissions, the fund can boost production?

It is possible to produce more oil and gas with fewer emissions.

[John Hannaford]

Thank you very much for the question.

The fund is intended to focus on emissions, and very significant reductions of emissions, which are what we are most concerned about when it comes to contributing to greenhouse gas challenges overall. Our climate approach has been to focus on providing funding to address infrastructure and technologies to reduce methane emissions.

[Mario Simard, Bloc, Jonquière, QC]

Thank you.

I'll wrap up with a quick and easy question.

I see in the main estimates a contribution in support of zero emission vehicle infrastructure. In 2021‑22, the contribution was $34 million.

Do you know how many projects were approved?

[John Hannaford]

I'll turn to my colleague Monsieur Labelle.

[Sébastien Labelle, Director General, Clean Fuels Branch, Department of Natural Resources]

Thank you for your question.

A total of 34,500 projects have been approved. Either the project is under construction or the department has notified the proponent that the project will be funded.

[The Chair, Liberal, John Aldag]

We're out of time on that.

Mr. Simard, I apologize. I said five minutes, but this was only two and a half. I gave you a little buffer.

Mr. Angus, I'll give you a bit of grace there as well—about two and a half minutes.

[Charlie Angus, NDP, Timmins—James Bay, ON]

I'm going to turn it over to Mr. Morrice. He promised to buy me dinner.