“Canada is at a crossroads in the global low-carbon transition, and without a national strategy based on strengths and alignment across diplomacy, trade, and policy, the country’s hopes of becoming a leader in clean energy could be dashed. A recent report from the Centre for Net-Zero Industrial Policy emphasizes the need for Canada to step up its efforts in renewable energy, hydrogen, critical minerals, and other clean technologies to secure its relevance on the world stage.
National Priority in Clean Energy
As the United States, China, and the European Union make strides in clean energy development, Canada risks falling behind if it does not prioritize the shift towards sustainable energy sources. Bentley Allan, a co-author of the report, highlights the importance of bringing alternative energy sources online to ensure Canada’s geopolitical standing in a changing global landscape.
Challenges and Opportunities in Supply Chains
One key area where Canada can make a difference is in providing crucial components for batteries, wind, and solar energy to counter China’s dominance in these markets. The report underscores the significance of developing midstream processing capabilities to transform raw materials into essential clean energy ingredients. While the federal and provincial governments have made efforts to attract battery manufacturing plants, there is a need to focus on building a robust supply chain to support these initiatives.
Geopolitical Risks and Strategic Partnerships
China’s current dominance in key technological areas presents strategic risks for Western governments, prompting a reevaluation of supply chain dependencies. The report points to the Canada-Germany Hydrogen Alliance as a model for international cooperation in reducing reliance on countries like Russia. By leveraging Canadian resources for renewable energy and hydrogen production, Canada can play a vital role in diversifying energy sources and strengthening global partnerships.
Urgency of Action
Delaying investments in clean energy and sustainable technologies could result in stranded fossil fuel assets and economic repercussions for Canada. With the world moving towards lower-carbon energy solutions, Canada’s trade balance and competitiveness are at stake. Bentley Allan warns that the effects of inaction will be felt sooner than expected, impacting the economy, currency value, and global competitiveness.
Conclusion
Canada stands at a crucial juncture in the transition to a low-carbon future, with significant opportunities to emerge as a leader in clean energy development. By prioritizing investments in renewable energy, hydrogen, and critical minerals, and strengthening international partnerships, Canada can secure its relevance in the new geopolitical order. The time to act is now, before the consequences of inaction jeopardize Canada’s position in the global economy.”
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