Canada’s climate action means “sink or swim” decade for economy

A new analysis calls for the right investments at the right time to seize the potential of our greener future

Canada’s climate action means “sink or swim” decade for economy
Steve Randall

In just 10 days from now, world leaders and climate change experts will convene in Scotland for COP26.

But as delegates meet to discuss the urgent action that the world needs to mitigate the worst impact of climate change, many will be considering how their economies can not only offset risk but seize opportunity.

Canada’s economic prospects in response to the global low-carbon transition has been assessed in a new report from the Canadian Institute for Climate Choices.

The independent think tank has stress-tested Canada’s publicly-listed companies under different scenarios to ascertain how they would be impacted by climate policy.

"Our analysis shows that global policy and market changes will have a profound impact on Canada's economy and workforce,” said Rachel Samson, Clean Growth Research Director, Climate Choices. “To stay competitive, Canada needs to rapidly scale up new, transition-consistent sources of growth—and successfully transform existing ones. Moving too slowly is now a greater competitive risk than moving too quickly."

The Sink or Swim report says that every Canadian province and territory has workers in transition-vulnerable sectors, led by Alberta, Northwest Territories, and Saskatchewan.

While many sectors will face significant challenges, others will be presented with increasing opportunity for growth.

These include low-carbon electricity, batteries and storage, low-carbon transport, building technology, carbon capture, clean hydrogen and technology, mining technology, alternative proteins, and agriculture technology.

Profit warning

The report warns that some firms, especially multinationals and exporters, may see significant profit loss in the coming decades without major investment.

It highlights that the stakes are high for Canada, with almost 70% of goods exports and over 800,000 jobs in transition-vulnerable sectors, including oil and gas, mining, heavy industry, and auto manufacturing.

As the world’s largest economies commit to net zero emissions by the middle of this century, the report says that Canada must use climate policy, company disclosure, and targeted public investment to mobilize private finance and improve the resilience of Canada's workforce and impacted communities.

"Major Canadian investors understand the pressures our economy will be facing as a result of accelerating global market shifts, and we're issuing a strong call for increased climate accountability and transparency in the corporate sector," said Dustyn Lanz, CEO of the Responsible Investment Association.


 

 

 

LATEST NEWS