Madam Speaker, I will be sharing my time with the member for Vancouver Quadra.
We are committed to building a strong, diverse, and competitive Canadian economy. Current global dynamics favour transitioning to a low-carbon economy. The market for effective, clean technologies is growing rapidly, and the cost of renewable energy continues to drop exponentially.
It was good news when the Paris agreement was adopted in December 2015. This was a historic event that sent the international community the clear message that we need to take action against climate change. Canada can be proud of the role it played on the international stage to advance the adoption of the Paris agreement. We committed to reducing our greenhouse gas emissions by 30% below 2005 levels by 2030.
We now have a realistic plan to meet that goal while building our resilience against the effects of a changing climate and while continuing to grow our economy. The pan-Canadian framework on clean growth and climate change is an ambitious and comprehensive plan that was developed in close co-operation with the provinces, the territories, and indigenous peoples. It takes into account the input of many experts and stakeholders, as well as Canadians' priorities.
The pan-Canadian framework is built on four pillars: pricing carbon pollution; complementary actions to reduce emissions; adaptation and climate resilience; and supporting clean technologies, innovation, and jobs. Action taken based on these pillars will help drive economic growth and create jobs while ensuring innovation, creating investment opportunities, and reducing potential climate risks.
Pricing carbon pollution is one pillar of the pan-Canadian framework, because economists agree that it is the most cost-effective way to reduce climate change and carbon pollution. Based on the flexible approach we plan to take, jurisdictions across Canada can invest their carbon pricing revenues as they see fit, whether by reducing other taxes, helping their businesses and households, or investing in new innovative technologies.
The pan-Canadian framework also includes complementary actions to reduce emissions. These actions will reduce emissions while growing the economy by cutting costs for Canadians, creating new markets for low-carbon goods and services, and helping businesses use cleaner and more efficient technologies that give them a leg up on international competitors.
For example, we are working with the provinces and territories to find ways to build more energy-efficient buildings. Canada's construction industry is worth $161 billion and employs well over a million people. My brother is a contractor, actually.
The new building codes will foster innovation and help Canadian companies develop more efficient construction techniques and technologies. Investing in modernization to improve energy efficiency is a fantastic way to create jobs. Such investments benefit communities, create local jobs, and shrink energy costs. When our buildings use less energy, people save more money.
Helping businesses consume energy more efficiently is another priority. Federal, provincial, and territorial governments agreed to work together under the pan-Canadian framework to help industries save energy and money. One way to do that is to help them adopt energy management systems.
The federal government has already invested in infrastructure, clean technology, and mitigation measures through the low carbon economy fund to support business growth and job creation.
According to the Minister of Finance, initial infrastructure investments in budget 2016 will bump GDP up by 0.2% in 2016-17 and 0.4% in 2017-18. The pan-Canadian framework will help create jobs and stimulate short-term economic growth by investing in energy efficiency and infrastructure projects.
Canada's climate change action plan will make the most of short-term economic growth opportunities and look ahead to the future.
By taking action now, we are paving the road to success. We have to maintain our long-term competitiveness in a global low-carbon economy and thereby build a better future for our children and grandchildren. We are the first generation to feel the effects of climate change and we are the last generation that can slow down climate change.
There is growing evidence that the effects of climate change caused by global emissions have real and mounting economic implications. Insurance claims following extreme weather events in Canada ran at $373 million annually from 1983 to 2004, but have risen to $1.2 billion annually in the past decade.
The National Round Table on the Environment and the Economy estimates that the economic impacts of climate change in Canada might reach $5 billion annually by 2020 and between $21 billion and $43 billion annually by 2050. That is why we must take action now.
We have the opportunity to make sound investments that will not only reduce the risks associated with climate change but also help Canadians save money. For example, the Red River Floodway was built in 1968 for $63 million. A total of $627 million was invested to expand that floodway, which has saved the City of Winnipeg over $40 billion in flood disaster relief since 1968.
Our approach to climate change is based on risk management and knowing which opportunities to pursue.
There is already a global market of over $5,800 billion for low-carbon goods and services, and the value of that market should continue to increase by 3% a year. Canada is already home to more than 750 clean technology businesses. Many of them are SMEs, and some of them will grow into large corporations and major employers.
The industry already employs more Canadians than the forestry industry, the pharmaceutical industry, and the medical device manufacturing industry. The measures taken as part of the pan-Canadian framework will create the right conditions to ensure the prosperity of innovative Canadian businesses and drive job creation now and in the future.
We have the opportunity to take action on climate change, while developing a strong, innovative, and resilient Canadian economy. Thanks to the pan-Canadian framework, we will seize this opportunity. As we implement this plan, we will monitor our progress and report on it in a transparent manner to continue proving that what is good for the environment is also good for the economy.