QUESTION PERIOD — Innovation, Science and Economic Development
Net-Zero Industrial Policy
February 28, 2024
Senator Gold, the Centre for Net-Zero Industrial Policy recently released a cautionary study that states that the old geopolitical order was based on oil. Canada prospered under this order, but there’s a risk that Canada will lose its position in the new energy world. The report indicates that for Canada to be a global power in the energy transition, we need a strategic push. A recent International Monetary Fund, or IMF, study predicts that Canada’s trade balance could decline by between 2% and 3% of GDP as the world shifts to lower-carbon energy.
Senator Gold, is Canada planning to develop an ambitious net‑zero industrial strategy, as suggested by the centre, to harness our national resources for maximum benefit and to identify where our comparative advantage lies by following the smart money with government support?
Thank you for your question. Canada must absolutely keep innovating to meet our long-range goal of strengthening and building on the existing measures to fight climate change and support our emerging sectors of cleaner and more sustainable economic development. To that end, the Government of Canada has launched the $8-billion Net Zero Accelerator fund to help large emitters reduce their emissions.
For example, Algoma Steel is receiving up to $420 million from this fund to retrofit its operations and phase out coal from steel-making processes at its facility in Sault Ste. Marie in Ontario. This will create 500 jobs and reduce emissions by 3 million tonnes per year by 2090.
Another initiative is Canada’s hydrogen strategy, which looks to power Canada’s low-carbon energy future.
I wanted to hear a little more about the export side of things. Senator Gold, in order for Canada to maintain a strong position in the new geopolitical order — as recommended by the Centre for Net-Zero Industrial Policy — what will Canada do to cultivate advance production and innovation capabilities — the brains in the processing of materials for net-zero supply chains — and align procurement, diplomacy, trade and public policy across ministries and programs?
There’s so much that needs to be said in 15 or 30 seconds — whatever my time is. I can do very little but simply point us, for example, to the Framework to Build a Green Prairie Economy, which has a number of different pillars. Each of these pillars relies not only on technological changes but on the support of those to innovate and to continue to do so. Through various measures — supporting universities, research and foreign students — the government will do its part to make this happen.
