{"id":265779,"date":"2017-12-11T11:31:54","date_gmt":"2017-12-11T16:31:54","guid":{"rendered":"https:\/\/policyoptions.irpp.org\/issues\/generation-energy-or-economic-policy-for-a-generation\/"},"modified":"2025-10-07T21:54:20","modified_gmt":"2025-10-08T01:54:20","slug":"generation-energy-or-economic-policy-for-a-generation","status":"publish","type":"issues","link":"https:\/\/policyoptions.irpp.org\/fr\/2017\/12\/generation-energy-or-economic-policy-for-a-generation\/","title":{"rendered":"Generation energy or economic policy for a generation?"},"content":{"rendered":"

Canada is not an economic giant when compared with other global energy producers, but we compete head to head with the world\u2019s energy leaders in the marketplace. Canada is one of the few countries in the world where the energy industry is led by the private sector and the government is not generally involved or a leading player through nationalized initiatives. Attempts to modify or create policy in the energy sector require total integration and consideration of most other federal and provincial government economic policy initiatives. Anything other than a whole-of-government approach to energy policy puts our country at a disadvantage in the global marketplace.<\/p>\n

In October 2017, Jim Carr, the Minister of Natural Resources, hosted a forum in Winnipeg as part of a long series of consultations on Canada\u2019s energy future. Generation Energy: Moving Canada Forward is a process initiated and guided by Natural Resources Canada that seeks the opinions of everyday Canadians, regional and demographic stakeholders and diverse economic interests in Canada\u2019s energy sector. The engagement of industry and stakeholders is a good thing. Given Canada\u2019s division of powers, the involvement of provincial governments is also essential. The Generation Energy process has highlighted the enormous task ahead for Canada.<\/p>\n

According to \u00a0Carr, the 2015 provincial and territorial Canadian Energy Strategy<\/a> is the road map for our country. The largely undeveloped strategy outlines three themes: \u201csustainability and conservation, technology and innovation, and delivering energy to people.\u201d The federal government will need to encourage and engage with the provinces and territories to develop a robust and inclusive strategy for the long term that addresses these themes.<\/p>\n

Complicating matters further in the context of Generation Energy is strong global economic growth powered by populous countries like China and India. Are state-owned energy enterprises skewing the international marketplace for energy and putting Canada at a further disadvantage by investing large sums in industry? According to the World Bank, China\u2019s GDP growth in 2015 was 6.4 percent<\/a> and India\u2019s was 6.3 percent<\/a>. According to reports<\/a> from the China Europe International Business School and HSBC India, state-owned fixed investment in both countries was up year over year and private sector investment was down.<\/p>\n

At the same time, there is increasing international pressure on industry and individual energy users to reduce carbon emissions. This drive has the potential to constrain investment and limit the expansion in the energy sector that Canada has become accustomed to. It is too soon to gauge the economic impact of Canada\u2019s efforts to price carbon.<\/p>\n

If Canada wants to make the most of its energy sector, it must engage in a brutally honest and wide-ranging national economic conversation.<\/p>\n

Meanwhile, in Ontario, consumers have forced the end of some government incentives promoting green energy due to the exponential growth in household electricity costs that these programs caused. The second phase of the Large Renewable Procurement Program, worth approximately $4 billion, was suspended, and feed-in tariffs have ended. It appears consumers are not ready to pay more to support alternative energy sources through their own electricity bills.<\/p>\n

So where does Canada take energy conversation next? If Canada wants to make the most of its energy sector, it must engage in a brutally honest and wide-ranging national economic conversation that breaks out of the confines of Natural Resources Canada and addresses a full range of policies for skills training and human resources, taxation, trade and industry. Generation Energy is a good start, but continued action is required.<\/p>\n