In the face of economic uncertainty and global shifts, a compelling vision for Canada's future is emerging—one that moves beyond legacy industries and seizes the opportunities of a new economic era. Authored by David Boyd and Milind Kandlikar and published on January 12, 2024, this opinion piece argues for a transformative "Build Canada" strategy focused on the 21st century.
Pivoting from the Past to an Electric Future
The article critiques a historical focus on infrastructure like oil pipelines and LNG plants, suggesting it represents a doubling down on the past. Instead, the authors propose that Canada's path to strengthened economic security and improved quality of life lies in embracing the electric future. This future is built on five foundational sectors: renewable energy, batteries, magnets for electric motors, power electronics, and computing power.
Currently, China dominates these areas, while U.S. policy under former President Donald Trump is characterized as attempting to prolong the fossil fuel era. The authors contend that electric technologies—from EVs to heat pumps—offer superior performance, lower costs, and crucial environmental and public health benefits by addressing climate change and reducing fossil fuel pollution.
Harnessing Canada's Natural Advantages
Canada possesses immense, untapped potential to lead this transition. The nation is blessed with abundant resources for solar, onshore wind, offshore wind, hydro, and geothermal power. The cost of these technologies has plummeted; for instance, photovoltaic solar panel costs have dropped from over $100 per watt in the 1970s to approximately 45 cents per watt today, making them far cheaper than fossil fuels or nuclear.
Furthermore, Canada holds some of the world's largest reserves of neodymium and other rare earth elements, critical for manufacturing batteries and high-tech products. The authors emphasize that federal support is essential to ensure these minerals are processed and manufactured into finished goods within Canada, rather than being exported as raw materials, thereby capturing full economic value.
A Blueprint for Action and Prosperity
To realize this potential, the "Build Canada" plan calls for strategic federal investment and cooperation with provinces. Key actions include:
- Substantial investment in improved electricity transmission systems and energy storage solutions like pumped hydro and large battery farms.
- Strengthening east-west electricity trade across the country.
- Redirecting federal support from sunset industries to the high-growth sectors of tomorrow.
By making this pivot, Canada can establish itself as a clean energy powerhouse. The authors project this strategy would create hundreds of thousands of new, well-paid jobs in manufacturing and related industries, securing sustainable prosperity for generations to come. The moment for this generational investment is now, positioning Canada not as a relic of the 20th century, but as a leader in the 21st.
