Canada Must Implement New Policies to Support Clean Tech Growth

Canada is racing toward a greener future, and it’s a race we must win.  

Our goal is lofty: A net-zero electric grid by 2050.  

It’s a bold vision, but one that promises cleaner air, new jobs, and a more sustainable world for us and our children. However, we are currently at a crossroads: We rely heavily on the expansion of clean technologies for a comfortable future, while current economic data and environmental trends make it clear that we urgently need new policies to support the growth of this technology in Canada.

Clean technology, or clean tech, includes any product or service designed primarily to provide an alternative to existing tech with reduced environmental impacts. It offers solutions that can greatly reduce our environmental footprint and creates new jobs that don’t come at the planet’s expense. Clean tech can range from anything that prevents pollution to something that improves resource efficiency.

Canada’s reliance on rapidly expanding electrical energy is crucial in its strategy to achieve net-zero greenhouse gas emissions by 2050. The country’s approach emphasizes decarbonizing its energy system, with a significant shift towards clean electricity as a cornerstone of its climate strategy.

Why should Canadians care?  

The expansion of clean tech industries will create high-paying jobs, reduce our carbon footprint, and help us meet international climate commitments. But to get there, our government estimates that we’ll need a staggering $400 billion to update our electrical grid alone.

Unfortunately, as highlighted by recent research and reports, our progress has been too slow. The sector’s annual growth rate from 2012 to 2020 was a mere 0.78%, which suggests that without a deliberate change in policy, we will continue to fall short of our potential. As many may already know, our current power grids are under tremendous pressure. They were built for a different era, and now they struggle to support the incredible load of today’s digital, electrified economy.

If we don’t act now, we face real risks of much larger problems, like extended blackouts and economic shake-ups, in addition to failing to meet our climate-preserving target.

Why should you, personally, care about this today?

The consequences of inaction are immediate and personal. Having an electrical grid that can’t support our energy demands means more than just the occasional blackout. These are real risks with outcomes that will affect your daily comfort, your safety, your wallet, and your children’s chance of getting to experience a life with reliable electricity. The cost of ignoring this problem will be much higher than addressing it head on with smart investments and advances in technology.

Companies like JFE Shoji have expanded operations and are ready to pivot their operations to meet the demands of this new, electricity-heavy Canada. They can supply the necessary materials for electrical equipment like transformers, generators and motors, and renewable technologies that will power everything from our homes to our hospitals to our stadiums. But no one company or group can do it alone!

Here’s the real challenge.  

Canadian Provinces are responsible for our electrical energy supply.  Each province sets its own rules and investment programs for managing and expanding its piece of the national power grid. This makes our approach less interconnected and risks complication and misalignment to our national energy policy and executing needed changes towards our goals.

There are three basic steps to deliver electricity to your home and workplace.  Electrical generation, transmission of electricity from the generating station to communities and regions; and distribution of electricity to individual homes, businesses and uses.  Canada today is a leader in clean energy generation, with over 80% of electricity considered clean technology.  However, with plans to meet 2050 goals of almost doubling usage of electricity for transportation, expanding AI/internet and other needs we need to focus on how to generate more clean energy, and how to transport it to points of use.  

The Canadian Climate Institute recognizes these arising complications and has suggested that our federal leaders consider adopting “electric federalism”: i.e. using federal influence and funds to encourage cooperation among the provinces. In line with this strategy, the federal government has initiated “regional tables” to discuss energy priorities. By the end of 2022, they were able to attract seven provinces, and recently gained Nova Scotia’s Collaboration Framework in July 2024. Alberta and Saskatchewan have yet to join as of August 2024.

The complexities deepen even further with the federal introduction of new energy regulations. On August 10, 2023, the Government of Canada introduced its draft Clean Electricity Regulations, which supports the goal of making our grid net-zero by 2035. Although this is a monumental step toward meeting our emission targets by 2050, provincial barriers and limited grid connections continue to complicate our broader efforts. 

For instance, the Atlantic Loop project, intended to expand reliable and clean power across several provinces in the Maritimes, remains stalled in negotiations. The tension reached a peak last November when Alberta, invoking its Sovereignty Act for the first time, rejected the 2035 target as unachievable and unconstitutional. 

But despite these hurdles, there have been successes worth celebrating. The newly formed Canadian Electricity Advisory Council promises to be an important platform to help bridge these provincial divides, offering a space for our provincial leaders to generate new solutions and build trust among important stakeholders.  

In the fine print of the Clean Electricity Regulations, the federal government has pledged $40 billion to support provinces and territories with the electrification process, which would cover over half the costs of implementing these new regulations! 

Consider Germany’s success.  

Germany has been improving its energy systems significantly since 2014, aiming to boost the share of renewables in its energy mix. As of 2023, it was ranked 11th globally on the Energy Transition Index (ETI). Today, over 40% of Germany’s electricity is produced by renewable sources, with plans to reach 80% by 2030. 

The German government has been proactive, establishing laws and financial incentives that encourage the use of renewable energy and the development of smarter energy infrastructures like intelligent grids and electric vehicle charging stations. This commitment is part of Germany’s Energiewende, or “energy transition” plan, which has been guiding the country’s shift to a more sustainable and efficient energy system for nearly a decade. 

However, Germany’s progress hasn’t been without its challenges. The country has had to navigate issues, most notably their dependency on imported gas from Russia, which were highlighted during recent energy crises. In response, Germany has adapted quickly by expanding renewable energy capabilities and enhancing its grid infrastructure, ensuring a more resilient and secure energy system. 

This proactive and adaptable approach keeps Germany on track toward its energy goals while serving as an inspiring example for our own country. Canada can emulate these successes by implementing similar provincial policies and regulations that encourage clean tech development and adoption. 

What can you, as an individual, do about it?  

Educate yourself on these key issues, especially on electrical energy. Simply start talking. Share your thoughts with friends and family over dinner, during class, or while grabbing a coffee. Initiating conversations about issues like Canada’s energy transition can seem intimidating, and you might worry that others won’t find the topic as pressing as you do.  The next time you plug in your computer or smart phone, take a moment to think about where the electricity comes from. Don’t take it for granted.

It’s conversations like these that spark change, whether they’re on social media, around the dinner table, in classrooms and workplaces, or over a casual coffee. When we speak up and question our leaders, both locally and nationally, about their plans for essential updates, we keep the topic at the forefront of community awareness.

We can start by asking for more information from our local leaders, beginning with how they’re planning to support this massive grid upgrade. The most important thing is not to let it slip into the background, because this is one of those rare moments where what we do now will dramatically shape our future.

Think of the kind of Canada you want to be part of.  

As individuals, we need to start seeing this as more than just a technological or political challenge; it’s a community challenge that involves us all. This is our chance to demonstrate to the world what we can achieve when we work together!

Instead of being the generation that had all the tools but chose inaction, let’s choose to be the generation that faced up to the challenge and built something we can be proud of.