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The Honourable Julie Dabrusin, Minister of Environment, Climate Change, and Nature for the Government of Canada, discusses building a climate-competitive future for Canada
A climate competitive Canada
Across the country, I hear the same message: Canadians want security in their jobs, their homes, and their communities. They want to know that the country we’re building will be affordable, reliable, and resilient in a world that’s changing faster than ever. Above all, they want clear, decisive action to focus on what we can control and drive Canada forward.
In the past five years alone, Canada has experienced more than $11 billion in insured damages from extreme weather. Just last summer, we saw wildfires devastate communities across the country. From Lytton to Upper Tantallon, and in countless communities in between, the cost of climate change isn’t just numbers on a spreadsheet – it’s real, lasting, irreparable damage to lives and livelihoods.
But there’s also more to this story. Right now, many countries are racing to build the industries that will power the clean economy of the future – in energy, manufacturing, critical minerals, and technology.
Last year, global investment in clean energy surpassed USD $2 trillion, nearly double what went into fossil fuels. Renewable power has overtaken coal. One in four cars sold globally are electric. This shift is reshaping trade, investment, and jobs at a pace not seen since the Industrial Revolution.
While some countries have chosen to slow their progress in this transition, Canada is well-positioned to seize the opportunities of the emerging low-carbon economy – to lead, and to leapfrog economies choosing to focus on the status quo or slide backward.
Canada ‘Climate Competitiveness Strategy’
The Canada ‘Climate Competitiveness Strategy’ is about building an economy that is strong, resilient, and ready for the future – one that creates opportunities for every region, and ensures that Canada remains a reliable and responsible energy producer and global leader in clean innovation.
The ‘Climate Competitiveness Strategy’ is designed to drive smart investments – by governments and businesses – with the goal of producing, developing, and selling the technologies, products, skills, and services needed to reduce emissions. It is a strategy focused on investment and results, designed to meet Canada’s current circumstances while setting up the country for long-term prosperity.
Through a strengthened industrial carbon pricing plan, investment in Clean Economy Investment Tax Credits (ITCs) for businesses designed to spur innovation in a net-zero transition, and the finalizing of smart regulations such as Enhanced Methane Regulations to drive emissions down while driving investment up, we are taking targeted action to build a competitive Canadian future.
The global market for clean energy technologies is expected to exceed $650 billion annually by 2030, and it’s predicted that by 2035, the global clean technology market will triple to USD $2 trillion, spanning solar, wind, batteries, green hydrogen, electric vehicles, and heat pumps. The value of low-carbon materials like steel, aluminum, and cement could reach $1.2 trillion by the same year. And that’s before accounting for new investment in carbon management, sustainable agriculture, circular manufacturing, and climate adaptation, all areas where Canada is leading.
To capitalize on this opportunity, the ‘Climate Competitiveness Strategy’ is delivering Clean Economy ITCs that offer eligible businesses 15% to 60% of capital costs for clean technologies, hydrogen, and carbon capture, that will build the transition to a clean economy. Technologies such as wind turbines, transmission lines, energy storage, and more will all benefit from ITCs thanks to the Climate Competitive Strategy.
To drive down emissions, the ‘Climate Competitiveness Strategy’ will strengthen Canada’s industrial carbon pricing regime, our most effective tool to reduce our GHGs while providing certainty and predictability to industry. This couples well with the finalization of enhanced methane regulations for the oil and gas sector and landfills.
The ‘Climate Competitiveness Strategy’ is a central pillar of our plan to become the strongest economy in the G7. From battery and EV manufacturing in Ontario, to hydrogen and biofuels in the Prairies; from cleantech innovation in BC to low-carbon aluminum in Quebec; from wind energy in Nova Scotia to critical minerals in the North, we are building the economy and jobs of tomorrow by laying the foundation for long-term economic strength today.
Canada is home to a world-leading cleantech sector with over 2,400 firms developing and exporting solutions worldwide. To seize growing opportunities in global markets, Canada needs a coordinated, comprehensive approach that positions our innovators and low-carbon goods in the supply chains of the future.
Through the ‘Climate Competitiveness Strategy’, we are laying out how we will de-risk clean-growth investments, provide investment certainty through clear and predictable rules, and build the infrastructure needed to power a clean economy.
As Minister, I believe we have both a moral responsibility and an economic imperative to act, and the only path to lasting prosperity runs through sustainability. This is how we build a stronger Canada – for today, and for generations to come.