Final report from the Advisory Council on Climate Action: section 5

This report has offered a series of recommendations focused on how government action can spur accelerated action to reduce emissions in the built environment and transportation sectors. In both of these sectors, emissions are falling and there are positive global trends indicating demand for new technologies. Actions taken today by the Government of Canada can help to ensure that Canada has the right information and tools, a skilled and prepared labour force, and enabling infrastructure needed for a smooth transition to a high-growth, low-carbon economy.

The actions we have proposed will require investments, but would generate environmental and economic benefits in the near and longer term. As recently reported by ECO Canada, the energy efficiency sector already employs 463,000 Canadians, with projected growth of over 8% over the next year. A stronger building retrofit market would create jobs, save energy, and ensure that Canada’s building stock is aligned with the long-term objectives of the Paris Agreement. Increased electrification will be needed to achieve deeper emissions reductions over time. Canada’s clean electricity grid can be used to power the transportation sector, beginning with passenger vehicles in the near term and expanding to other modes of transportation over time. Clear regulatory signals to automotive manufacturers will ensure that Canadians have the opportunity to purchase ZEVs, and provide an impetus to direct investment to low-carbon technologies. With the costs of renewable energy falling even faster than expected and exponential improvements in energy storage, scaling up the use of clean electricity to support widespread electrification is eminently achievable.

There is global momentum to transition to a low-carbon economy, and strong leadership will accelerate this change. We have suggested areas where the Government of Canada can collect and communicate information and make strategic investments in order to prime markets. Creating state-of-the art buildings and transportation systems will take a whole-of-economy effort, and the private sector will need to lead both the demand for and supply of solutions. Canada has many innovative companies and supportive institutions, with significant untapped potential for growth in emerging sectors and markets. Targeted government policies can send clear signals to amplify these positive trends across the market. A stronger, cleaner economy can be realized by building on successes to date and focusing on benefits to Canadian businesses and workers.