Canada’s wealth, our financial identity, and our monetary booms (and busts) have actually long been connected to the worth of natural deposits within our borders. We have actually benefited immeasurably from the natural wealth of these lands: our large forests, deep lakes, and naturally the tanks of oil and gas buried underneath our feet.
As we discover ourselves quickly getting in the tidy energy shift, and as the superpower economies of the United States and the European Union pivot tough towards a net-zero 2050, a chance to shift our own natural deposit sectors has actually emerged.
Environment action is significantly being provided through enthusiastic commercial policy, such as America’s Inflation Decrease Act, which is likewise concentrated on bringing supply chains back home, and reinforcing trade ties with allies and similar countries.
Together, these patterns provide a chance to produce a much more flourishing and sustainable economy for Canada, however it needs us to bank on ourselves. Canada has actually long been a considerable exporter of natural deposits, and the tidy energy shift does not alter that.
Quebec, for instance, has a few of the highest-grade iron ore worldwide, making it amongst the couple of choices feasible for the next generation of steel production ( utilizing a procedure referred to as the direct decrease of iron). Need for premium iron ore is consequently anticipated to grow substantially
Saskatchewan, on the other hand, has actually long been a significant international provider of potash, a crucial fertilizer for farming, however with Russia’s intrusion of Ukraine cutting off supply from the world’s second biggest source, Canada’s exports more than doubled in between 2021 and 2022.
These are fantastic examples of growing export chances, however maybe more crucial is what Canada can attain by utilizing our natural deposits to drive value-added development and financial advancement in the house. To put it simply, integrating our natural deposit wealth with wise commercial policy.
Hydrogen is a fantastic example. Canada has the resources to grow green hydrogen production capability with access to plentiful freshwater and an electrical power grid that’s currently 84 percent non-emitting. However we do not need to await an international market to establish for the resource, as we can utilize it to grow our export market for low-carbon and next-zero items that rely on hydrogen.
Hydrogen is among the crucial components in net-zero steel production It will likewise be important in the production of tidy ammonia-based fertilizers, methanol, and a host of commercial chemicals with growing low-carbon export markets.
Likewise, Canada has a lot of the crucial important minerals required for electrical automobile (EV) batteries, consisting of lithium and nickel Not just is need for these minerals blowing up, we can likewise utilize them here in Canada as we establish a whole homegrown supply chain for EV batteries, catching the tasks, copyright, and success that opts for it.
However to open this capacity, federal governments require to believe tactically about how to finest take advantage of our natural deposits. Clean Energy Canada has actually made this case when it pertains to batteries, and we have actually required net-zero commercial roadmaps for all crucial heavy markets that utilize natural deposits.
Canada likewise can’t rest on its laurels when it pertains to tidy electrical energy, which underpins our capability to extract and utilize these resources easily. Our lands and coastlines can offer practically unlimited tidy energy, however just if we ambitiously develop out tidy generation and transmission. This is why the federal government’s upcoming Tidy Electrical power Guideline (that would see Canada’s power grid attain net-zero emissions by 2035) is so crucial. Not just does it stake out our aspiration and drive a clear market signal for the energy we require, however it is important in guaranteeing we stay competitive with our allies and trading partners, who are likewise focusing on net-zero electrical energy grids. Without it, we run the risk of seeing our grid get dirtier as we attempt to satisfy need– and with it, lose our one-upmanship.
Natural deposits have an intense future in Canada. We can develop brand-new trade ties and assist our buddies and allies fill crucial spaces in their supply chains. However moreover, our natural deposits can be a part of our own story in the brand-new economy, one where we catch all the wealth and chance they use, forming a bedrock for tasks, neighborhoods, and success for the years to come.
This post was co-authored by Rachel Doran and initially appeared on The Hill Times.