Top Three Actions from the Climate Action and Economic Competitiveness Business Roundtable

Participants included special guest Professor Tim Flannery, as well as representatives from leading Canadian manufacturers, banks, clean energy producers, clean tech financiers, and public policy units. Together, these experts and stakeholders identified critical actions for the federal government to support Canada’s economic competitiveness during the transition to a low-carbon economy.

Top 3 Action Areas for the Federal Government to Support Canada's Economic Competitiveness during the Transition to a Low Carbon Economy ¹

MAKE STRATEGIC GOVERNMENT INVESTMENTS IN THE LOW-CARBON ECONOMY

Potential actions include:

Invest $10 billion in a clean energy finance corporation: A $10 billion government investment in an arms-length clean energy finance corporation could reduce risk for clean technology entrepreneurs and leverage billions in private sector capital. A similar system in Australia has returned a net profit for every tonne of CO2 avoided.

PROVIDE ECONOMIC CERTAINTY TO DRIVE MARKET INNOVATION

Potential actions include:

Implement clear, long-term rules to govern carbon pollution: Articulating clear and consistent policies for carbon trading, carbon pricing, and/or regulations will allow the market to incorporate environmental considerations into long-term investment decisions.

Access the global marketplace: Liberalizing trade for environmental goods and creating policies to access international carbon markets will reduce costs and promote positive environmental business activity.

Work with financial sector to better track environmental risks and liabilities: Private sector risk assessments and corporate valuation benchmarks do not yet fully incorporate environmental risks and liabilities. Improvements in this area will promote better financial stability and environmental performance. 

ENGAGE WIDELY TO MOBILIZE SUB-NATIONAL ACTORS

Potential actions include:

Support provincial leadership and fill gaps: Existing provincial climate actions should be supported through flexible national policies. Federal action should create a level playing field and address national and international issues outside of provincial control (i.e. taxation, trade, carbon leakage).

Consult widely with stakeholders and consumers: A careful combination of investment, regulation and incentives are required to maintain competitiveness while taking climate action. Careful engagement and consultation will help to ensure full information and optimal decisions.

Recognize the importance of cities: Buildings and transportation represent a significant portion of carbon emissions. National policies should reflect the importance of engaging with urban areas to address these issues.