When it comes to Canada’s transition to an electrified economy, trillions of dollars could be at stake, a new report reveals.
The report, which hails from New Economy Canada and the Canadian Chamber of Commerce, suggests that doubling Canada’s electricity supply could add a cumulative $3 trillion to Canada’s economy by 2050, supporting more than 1.5 million jobs.
Already among the world’s top investors in clean energy technologies, “We’re heading in the right direction and have made a strong start,” says Merran Smith, executive board chair of New Economy Canada.
Resting on laurels, however, would be a grave mistake: “The world is advancing quickly on electrification,” Smith posits, “and Canada needs to pick up the pace.”
The economic study “shows us what’s at stake,” according to Smith, urging federal, provincial, and municipal governments to collaborate on meeting clean energy goals.
Findings in the report, titled ” Powering Canada’s Growth: the economic case for an electrified economy,” are powered by macroeconomic modelling from the Open Insights initiative, which compares an electrified-economy scenario with a “business-as-usual” future.
“This study shows what’s possible when Canada builds more electricity and puts it to work across the economy,” believes Ian Bruce, president of New Economy Canada. “It’s now up to all levels of government to come together and build on Canada’s electricity advantage to attract new investment and jobs.”
Open Sights is a consortium led by researchers out of the Net Zero-focused University of Victoria.
“Energy-economy modelling can’t tell decisionmakers what to do, but it can reveal the conditions that are necessary for an opportunity to be realise,” explains Dr. Madeleine McPherson, an associate professor at UVic and Principal Investigator for Open Insights.
“This collaboration lays out the conditions needed for doubling the grid, and our team looks forward to deepening this analysis as Canada charts the path for its grid and economy,” McPherson said.
The report identifies four priorities. First, sustain political commitment and public investment. Second, modernize and scale capital via tax credits and other policies. Third, upskill the workforce alongside infrastructure expansion. Finally, secure the supply chain that powers the clean energy transition.
“Accelerating electricity infrastructure is both a nation-building and economic imperative,” argues Bryan Detchou, Canadian Chamber of Commerce says.
Achieving targets “will require, above all, political will, policy consistency, and collaboration across jurisdictions, alongside sustained investment, skilled workers, and resilient supply chains,” according to Detchou.
“Businesses of all sizes across the country need this infrastructure to work and to grow,” he remarked. “Countries that move decisively will undoubtedly be better positioned to attract investment and build the industries of the future; Canada has every reason to be near the front of the pack.”
In August, Prime Minister Mark Carney unveiled “the largest clean energy investment in North American history.”