The Honourable Jonathan Wilkinson, Minister for Environment and Climate Change spoke to the Oakville Chamber of Commerce on Tuesday, April 27, about Canada’s plans to address environmental challenges and the impact of those plans on Canadian businesses and the economy as a whole.
Jonathan Wilkinson is a Rhodes scholar and former cleantech entrepreneur and has worked extensively in the private and government sectors. Raised in Saskatchewan, he now makes his home in North Vancouver and represents that riding in Parliament.
Mr. Wilkinson spoke engagingly and optimistically about Canada’s role in joining the international effort to face the challenges of a changing climate. He also fielded questions from past Oakville Chamber of Commerce chair Tim Caddigan.
Citing Canada’s commitments to the Paris Agreement on Climate Change, Mr. Wilkinson was at pains to point out that, like many other countries, Canada recognizes these commitments as the minimum any one country must adhere to. If all countries only achieve their commitments under the accord, global average annual temperatures would be expected to rise by 3.5 degrees, which, he said, would be “catastrophic”.
Canada recently announced a commitment to reducing our net greenhouse gas emissions by 40-45% by 2030 with a view to achieving net-zero (where all such emissions are either eliminated, captured or offset by equivalent increases in natural sequestering) by 2050.
This level of reduction is less than is being committed by our major trading partner, the United States, and less than many other major countries such as the UK and Germany. The difference recognizes Canada’s economy’s link to the extraction of energy resources such as oil and natural gas, which are reflected in Canada’s scorecard even though they may be exported in response to demand from other countries.
Mr. Wilkinson emphasized that in doing this, Canada is moving with the global direction. Over 190 countries have signed the Paris accord, and many other advanced economies have set targets to significantly exceed it. Global capital is rapidly shifting to finance the green transition. The needs of the clean economy will drive economic demand, and Canada must participate to prosper in this rapidly changing environment.
Canada is well-positioned to do so as we are home to many of the raw materials the green economy needs and a highly educated and innovative population. "We all have a common interest in this," and Canada must adapt to thrive while doing its part.
The objective of Canada’s climate plan is to achieve net-zero while providing certainty for business and clarity for investors, to ensure the country has the information it needs to respond effectively so that Canada thrives economically and takes full advantage of the opportunities this presents.
This is such a critical phase in preparing Canada for the future that Mr. Wilkinson and his department have worked to produce what they believe is possibly "the most detailed, clear and concrete plan to move to the green economy anywhere in the world." The plan, he said, is designed to meet and exceed the targets that have been established while sparking economic growth.
Despite his private-sector background, Mr. Wilkinson made it clear that the government has a significant role in helping industry and consumers see future opportunities and position themselves to drive Canada’s economy to prosperity through the transition. In his words, the plan is a “blueprint for an economy of the future while doing our part on a global environmental crisis.”
$17.6 billion has been committed for green jobs through incentives for home retrofits, transportation, and methane reduction. Canadian citizens contribute to greenhouse gases largely through their transportation and housing needs. There will be subsidies for zero-emission vehicles and subsidies for public transit. There is also a clear path to dealing with the impact of large industrial emitters.
Immediate past Chamber Chair Tim Caddigan pulled no punches in his questions. Why, he asked, should we have any confidence in these plans when every government for several years now has set much lower targets than these and missed them?
Mr. Wilkinson acknowledged that the proof would be in the pudding. He pointed to the government’s substantial achievements so far, including the $5 billion investment in the Net Zero Accelerator fund for projects such as the one that assisted Ford Motor Company of Canada to retool its Oakville assembly plant for electric vehicles last year. He also cited the real economic incentive to change created by the carbon tax and rebate programme, recently validated at the Supreme Court of Canada.
Mr. Caddigan then challenged Mr. Wilkinson as to the impact Canada’s and other advanced countries’ efforts could have in the face of growing emissions from the newly industrializing world. Mr. Wilkinson referred to the recent partnership announced by the US and India to phase out coal in that country. He also pointed out that China is committing to net-zero by 2060, in line with its Paris commitment, which considers its still-developing economy. China’s support of coal in Africa through its Belt and Road initiative did not come up.
Mr. Wilkinson’s confidence in the plan was also questioned by Mr. Caddigan, who pointed out the high costs of replacement technologies for current fossil fuel-powered ones. Mr. Wilkinson pointed out the dramatically lowering costs of solar power as an example of how the cost curve for new technologies starts high but drops quickly once development costs have been paid for.
He cited the government’s efforts through subsidy to ensure these technologies could compete effectively during their high cost, low volume initial rollouts. (Another government initiative will be to offset high-cost industrial premiums for green technologies so that large industry does not make further investments in high carbon options.) He praised BC as a leader in Canada in adding to the Federal rebate on electric vehicles with its own Provincial rebate, which has led to more than 10% of new cars in BC already being EVs, and voiced his hope other provinces would follow suit.
The Federal government is responsible for Canada’s international commitments and needs to encourage the provinces to align with those targets. Nova Scotia and Quebec are also leading other Canadian provinces.
On the EV front, Mr. Caddigan asked about the range anxiety associated with electric cars. According to the Minister, Petro Canada is installing charging stations at its gas stations, and the government is investing $250 million in charging to get rid of that concern. Mr. Wilkinson pointed out that as an EV owner, he has appreciated the convenience of charging at home and starting every morning with a full “tank”.
Outside of the climate initiatives, Mr. Caddigan challenged Mr. Wilkinson on the issue of plastic waste, which he said is of increasing concern as consumers learn that much of what they put in the blue box winds up in landfills. Mr. Wilkinson was in enthusiastic agreement, citing the impact of plastic on marine biodiversity and the risks to the health of all species, including humans, of micro-plastics in our water.
The government’s objective is to keep plastic in the economy but out of the environment, he said. Some single-use plastics for which there are readily available alternatives have been banned, but the key to reducing environmental impact is producer responsibility.
The government is working on structures and incentives to change product design, including requirements to use more recycled plastic and that products must be designed with a view to recycling. All of this, he said, will need to be done in a way that does not disadvantage domestic Canadian suppliers.
The overall impression from the speech and question period is that the government takes the issue very seriously and has rational plans to navigate what will amount to a sea change in our economy. While, of course, policies, regulations and incentives emerge from the civil service, Mr. Wilkinson left the impression that he is very well-versed in the issues his Ministry is dealing with and brings judgement and economic realism to setting the direction for this critical portfolio.
If leadership is setting direction and management is achieving it, Mr. Wilkinson inspired confidence that despite many failures on this file in the past, clear, concrete, detailed plans are now being implemented, and practical tools that can have a real impact are being brought to bear. He also conveyed that the government understands the scale of economic disruption this represents. It is investing in the retraining and transitional bridges for individuals and businesses for what he characterized as the most significant economic opportunity that has been presented for Canada in decades.