Canadian Chamber of Commerce Appears Before Standing Committee on Natural Resources

On October 23, 2023, the Canadian Chamber’s Senior Vice President of Policy and Government Relations, Matthew Holmes, and Senior Director of Natural Resources, Environment and Sustainability, Bryan Detchou, appeared before the House of Commons Standing Committee on Natural Resources, to discuss Canada’s clean energy transition. They focused on what Canadian businesses need from the federal government in order to help Canada achieve its economic and environmental ambitions and position our nation as a leader in the global transition economy.

The full letter and video recording can both be found below.

Mr. Chair, Honourable Members: it’s a pleasure to join you today for this discussion.

My colleague and I are here on behalf of the Canadian Chamber of Commerce to speak to the steps necessary for Canada to meet the challenges and opportunities presented by the broader North American energy transformation. Getting the clean energy transition right is important to our members because not only do we represent the sectors and businesses most involved in this transformation, but also the communities across this country which they support.

The Canadian Chamber of Commerce represents 200,000 Canadian businesses through more than 400 local, provincial, and territorial chambers and boards of trade, and over 120 trade associations. We represent members in every sector of the economy, all sizes of business, across all regions of the country.

First, let me emphasize that the Canadian Chamber and our members recognize the paramount importance of addressing climate change and meeting our net zero goals. Canadian business of all sizes from coast to coast to coast are committed to playing their part in the collective effort to combat climate change.

With that said, our remarks will focus on what Canadian businesses need from the federal government to help Canada achieve its economic and environmental ambitions and position our nation as a leader in the global transition economy. Candidly, what businesses need can be summarized in four words: ambition, clarity, predictability, and efficacy.

I will now share the time with my colleague, Bryan Detchou:

Le Canada ne manque pas d’ambition. Nous reconnaissons et saluons l’engagement résolu du gouvernement à mener des initiatives mondiales visant à lutter contre le changement climatique. Cependant, le Canada peut avoir toute l’ambition du monde, seule l’action fait avancer les choses. Malheureusement, le Canada a acquis la réputation d’être un pays où les grands projets ne peuvent être réalisés. Nous devons apprendre que la collaboration avec le secteur privé est le seul moyen d’atteindre nos objectifs communs en matière d’émissions nettes zéro.

La transition mondiale vers la consommation nette zéro est en bonne voie. La capacité du Canada à être compétitif et à réussir exige de l’adaptabilité, de la rapidité et une coordination efficace de la part des gouvernements et de l’industrie. Les entreprises canadiennes auront du mal à suivre cette transition si elles ne disposent pas à temps de l’infrastructure, des cadres réglementaires et des programmes de financement nécessaires.

Right now, Canada’s lack of clarity, predictability, and efficacy in its approach to environmental policies represents the foremost challenge in achieving the nation’s net-zero commitments. These issues impede the ability of businesses to make informed decisions, plan for the long term, and allocate resources effectively. They also discourage the foreign direct investment and innovation our economy needs.

The urgency of 2030 and 2050 net-zero targets requires that federal government prioritize:

• Removing barriers that compromise competitiveness, delay project approvals, and place redundant or overly onerous reporting requirements on businesses;
• Reducing permitting timelines to speed up the pace of investment and development of major projects;
• Accelerating the implementation of incentives for clean technology deployment and adoption in Canada through investment tax credits, strategic finance, and targeted programming
• Incentivize partnerships with Indigenous communities that advance decarbonization projects and support economic reconciliation.
• Establishing a modernized, efficient regulatory framework that responds to the needs of industry and respects the jurisdictions of both the federal government and the provinces.
• Acknowledging regional differences, as geographic, economic, and demographic diversity necessitates different policies, practices, and investments.

Lastly, I understand the Committee continues to examine the competitive challenges the United States Inflation Reduction Act poses for Canada in attracting investment for the domestic net-zero economy. While Canada cannot directly rival the U.S. in terms of financial resources, nonetheless, direct financial support, investments, and incentives remain an indispensable part of the policy mix. What Canada must also strive for is to turn its regulatory framework and operational efficiency into a competitive strength that will allow us to spearhead the North American energy transformation.

En procédant à ces ajustements, le gouvernement canadien peut rétablir la confiance dont les entreprises canadiennes ont besoin pour prendre des décisions d’investissement à long terme, introduire des technologies net-zéro innovantes et attirer des investissements indispensables dans notre pays, accélérant ainsi les progrès du pays dans la réalisation de nos ambitions net-zéro.

Je vous remercie de votre attention,

Matthew Holmes
Senior Vice President, Policy and Government Relations
Canadian Chamber of Commerce

Bryan Detchou
Senior Director, Natural Resources, Environment and Sustainability
Canadian Chamber of Commerce