Canada must secure its green energy sector: Senator Galvez
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Failing to recognize the domestic worth of our precious energy resources, Canada has been sending them to the United States while tethering itself to this superpower, effectively surrendering its energy independence.
In 2023, about 97% of Canada’s crude oil exports went to the U.S. Canada is also a net exporter of electricity; that same year, it provided Americans with 27.6 TWh. Indeed, with 1,522 km of international transmission lines connecting Canada to the U.S., the North American energy system is highly integrated.
In 2021, the two countries committed to energy co-operation in a non-legally binding memorandum of understanding and released the North American Renewable Integration Study Country Reports. Canada’s report concluded that co-operation was not only vital to decarbonization of our energy system pathways, but also that increased transmission and trade offered a valuable opportunity for meeting Canadian and American clean energy goals.
The integrated nature of the Canada-U.S. energy system and our reliance on non-legally binding co-operation agreements have left Canada vulnerable to the whims of a political leader with the power — granted, without our vote — to make decisions that could profoundly impact our economy and future.
With U.S. President Donald Trump’s impending tariffs poised to disrupt trade, a growing renewable energy sector finds itself in a precarious position. The potential for significant supply chain interruptions stemming from a tariff war are likely to be felt intensely in this sector.
Historically, Canada’s strong ties with the U.S. were viewed as a mutually beneficial relationship — but global undercurrents are shifting, change is afoot, and international relations can be fickle and prone to influence by the political climate.
With tensions mounting, the question we should be asking is not how we can retaliate against Trump’s tariffs; retribution simply won’t yield long-term or even short-term benefits for Canadians or for Americans. Rather, we should be asking how we can strengthen Canada’s economy, become more resilient and assert our independence.
We can build a stronger Canada by focusing on the development of renewable energy technologies and infrastructure here at home. As global demand for oil and gas wanes, and as Canada-U.S. trade relations devolve, we must embrace the promise of renewables. A transition to a low carbon economy could address the multiple crises we face: climate change, pollution, economic competitiveness, innovation, inflation and affordability. Indeed, renewable energy is disinflationary, cheaper, cleaner, safer and free from geopolitical influence.
We have the resources we need to be energy independent and to give all Canadians energy security. This country is rich in critical minerals like lithium, cobalt, nickel and other rare earth elements essential for the production and development of electric vehicles, batteries and clean energy technologies. Steel and aluminum — major targets of Trump’s tariffs — are key materials for renewable energy development.
Instead of shipping these valuable commodities to other countries, we must recognize their domestic value and how crucial they are to our energy future. And rather than resuscitating ghost projects such as the Energy East pipeline — which would be expensive and socially unacceptable — or propping up the already heavily subsidized oil sector that keeps us dependent on an old and polluting form of energy, Canada must firmly embrace the energy transition.
We must also acknowledge our reality: that without meaningful investment in Canada’s energy future, our future could be dim. To this end, capital flows need to be directed towards renewable and clean energy projects, as was outlined in the Climate-Aligned Finance Act. By providing critical funding, building a strong domestic supply chain for our renewables sector, and harnessing our abundant energy generating resources, we can become an energy independent nation and a global leader in renewable energy.
Domestic supply chains are critical during geopolitical and global supply chain interruptions, a seemingly forgotten lesson learned during the pandemic. Energy independence — the kind offered by a vibrant and robust domestic renewable energy sector — would ensure Canadians have uninterrupted access to affordable energy.
In times like these, we are reminded of the value of self-sufficiency and resilience. Instead of retaliatory tariffs that will only hurt us, we must look for ways to build a stronger, sovereign and prosperous Canada. It’s time to untangle our energy system from the U.S. and secure our energy future.
Senator Rosa Galvez is a civil-environmental engineer. She represents the Bedford division of Quebec in the Senate.
This article was published in The Hill Times on February 26, 2025.
Failing to recognize the domestic worth of our precious energy resources, Canada has been sending them to the United States while tethering itself to this superpower, effectively surrendering its energy independence.
In 2023, about 97% of Canada’s crude oil exports went to the U.S. Canada is also a net exporter of electricity; that same year, it provided Americans with 27.6 TWh. Indeed, with 1,522 km of international transmission lines connecting Canada to the U.S., the North American energy system is highly integrated.
In 2021, the two countries committed to energy co-operation in a non-legally binding memorandum of understanding and released the North American Renewable Integration Study Country Reports. Canada’s report concluded that co-operation was not only vital to decarbonization of our energy system pathways, but also that increased transmission and trade offered a valuable opportunity for meeting Canadian and American clean energy goals.
The integrated nature of the Canada-U.S. energy system and our reliance on non-legally binding co-operation agreements have left Canada vulnerable to the whims of a political leader with the power — granted, without our vote — to make decisions that could profoundly impact our economy and future.
With U.S. President Donald Trump’s impending tariffs poised to disrupt trade, a growing renewable energy sector finds itself in a precarious position. The potential for significant supply chain interruptions stemming from a tariff war are likely to be felt intensely in this sector.
Historically, Canada’s strong ties with the U.S. were viewed as a mutually beneficial relationship — but global undercurrents are shifting, change is afoot, and international relations can be fickle and prone to influence by the political climate.
With tensions mounting, the question we should be asking is not how we can retaliate against Trump’s tariffs; retribution simply won’t yield long-term or even short-term benefits for Canadians or for Americans. Rather, we should be asking how we can strengthen Canada’s economy, become more resilient and assert our independence.
We can build a stronger Canada by focusing on the development of renewable energy technologies and infrastructure here at home. As global demand for oil and gas wanes, and as Canada-U.S. trade relations devolve, we must embrace the promise of renewables. A transition to a low carbon economy could address the multiple crises we face: climate change, pollution, economic competitiveness, innovation, inflation and affordability. Indeed, renewable energy is disinflationary, cheaper, cleaner, safer and free from geopolitical influence.
We have the resources we need to be energy independent and to give all Canadians energy security. This country is rich in critical minerals like lithium, cobalt, nickel and other rare earth elements essential for the production and development of electric vehicles, batteries and clean energy technologies. Steel and aluminum — major targets of Trump’s tariffs — are key materials for renewable energy development.
Instead of shipping these valuable commodities to other countries, we must recognize their domestic value and how crucial they are to our energy future. And rather than resuscitating ghost projects such as the Energy East pipeline — which would be expensive and socially unacceptable — or propping up the already heavily subsidized oil sector that keeps us dependent on an old and polluting form of energy, Canada must firmly embrace the energy transition.
We must also acknowledge our reality: that without meaningful investment in Canada’s energy future, our future could be dim. To this end, capital flows need to be directed towards renewable and clean energy projects, as was outlined in the Climate-Aligned Finance Act. By providing critical funding, building a strong domestic supply chain for our renewables sector, and harnessing our abundant energy generating resources, we can become an energy independent nation and a global leader in renewable energy.
Domestic supply chains are critical during geopolitical and global supply chain interruptions, a seemingly forgotten lesson learned during the pandemic. Energy independence — the kind offered by a vibrant and robust domestic renewable energy sector — would ensure Canadians have uninterrupted access to affordable energy.
In times like these, we are reminded of the value of self-sufficiency and resilience. Instead of retaliatory tariffs that will only hurt us, we must look for ways to build a stronger, sovereign and prosperous Canada. It’s time to untangle our energy system from the U.S. and secure our energy future.
Senator Rosa Galvez is a civil-environmental engineer. She represents the Bedford division of Quebec in the Senate.
This article was published in The Hill Times on February 26, 2025.