Good morning.
Thank you for the kind introduction and warm welcome.
First, allow me to welcome you all to Toronto.
Toronto is home not only to Canada's financial centre but also to a large academic community and advanced research cluster, making it a leader in Canadian innovation and a vast source of creativity and ingenuity.
Ladies and gentlemen, Canada has long had a stake in hydrogen energy technologies. And I know I don't have to convince you of the potential of hydrogen and fuel cell technologies, whether in transportation applications, in providing novel energy storage solutions or in heating our hospitals and homes.
Canada has established itself as a global centre of expertise and is recognized internationally for its capabilities in research, development and early-stage commercialization.
Our government has been supportive of the hydrogen and fuel cell industry through a variety of federal agencies and bodies, such as the Natural Sciences and Engineering Research Council of Canada and Western Economic Diversification Canada. And I am proud to say that this support has leveraged about a four-to-one ratio in private sector investments.
Add to that the world-class research infrastructure provided by the National Research Council of Canada, and we have a formidable support structure in place for the industry.
The proof is in the results.
British Columbia's Hydrogen Highway, Toronto's Hydrogen Village and the fuel cell bus fleet in Whistler, which provided transportation during the 2010 Olympic Winter Games, have received international accolades.
Ballard Power Systems has supplied fuel cell stacks to be used in electric lift trucks at Walmart, Coca-Cola and FedEx facilities, while wireless network operators have installed Ballard fuel cell backup power systems at hundreds of sites around the world.
And Hydrogenics Corporation has just entered into an agreement with natural gas distributor Enbridge to jointly develop utility scale energy storage solutions in North America, leveraging its hydrogen production technologies and decades of expertise.
In addition, a host of other innovative Canadian firms are working on hydrogen purification technologies, residential cogeneration systems and fuel cell testing equipment.
Certainly, as the global market for hydrogen and fuel cell products increases in the coming years, we know that Canada is positioned to help lead the way.
That said, the industry—in Canada and around the word—faces some daunting challenges.
From limited infrastructure and insufficient capital to a global economy that remains fragile and uncertain, expanding and growing hydrogen energy technologies faces hurdles.
Here in Canada, we are proud of the stability that our economic policies have afforded the industry.
For one, we have cut federal corporate taxes to 15 percent. And since 2009, we have made Canada a tariff-free zone for industrial manufacturers, the first in the G20 to do so.
In April, our economy created over 58,000 jobs. The month before that, 80,000. And since July 2009, employment has increased by more than 750,000 jobs and is now 320,000 jobs above its pre-recession peak. This is the strongest job growth among G7 countries over the recovery and the largest back-to-back gain in the number of jobs in 30 years.
To help build on this momentum, Economic Action Plan 2012 focused on innovation, introducing measures to solidify, strengthen and draw upon the entrepreneur's role as the driving force behind Canada's economy.
We already have an inherent advantage in this respect. We are ranked number one in the G7 for higher-education expenditures on R&D measured as a percentage of our GDP.
Our government supports higher education in the sciences through funding provided by the federal granting councils: the Natural Sciences and Engineering Research Council of Canada, which I mentioned earlier, as well as the Social Sciences and Humanities Research Council of Canada and the Canadian Institutes of Health Research.
This support enables established researchers, as well as graduate and post-graduate students, to push the boundaries of science and knowledge and make important discoveries here in Canada.
The good news is that our hydrogen industry continues to attract new and younger players. More Canadian graduate students are involved in hydrogen and fuel cells research each year.
But make no mistake: there is no room for complacency. Our goal is to ensure that the research conducted in labs across Canada leads to new technologies and their commercialization, which creates new markets, transforms companies from start-ups to household names, and creates jobs, growth and long-term prosperity.
To help with this vision, our government established a review panel to help determine where our research and development support should be placed. We asked the panel to review current incentives for R&D—some of the most generous in the world yet not yielding the necessary results—and to recommend new ways of encouraging investment in R&D.
Through Economic Action Plan 2012, we are responding. And we are doing so across a broad spectrum. We are investing in business-led R&D in ways that will help spur innovation. We are making investments in education and training, in basic pure fundamental science research and in applied research. We are providing new venture capital financing and establishing partnerships that bring public research capacity and the business sector together.
We are doing this through a number of measures, such as doubling the Industrial Research and Assistance Program's funding. This program is all about helping small and medium-sized businesses to be more innovative.
We are supporting innovation through government procurement by connecting companies with federal departments and agencies so as to build their capacity to compete in the global marketplace.
We are helping high-growth firms access more risk capital by committing significant funds to leverage increased private sector investments in early-stage risk capital. This includes a $400-million investment to support the creation of large-scale venture capital funds led by the private sector.
And what underpins all of this, what makes Canada a top destination for investment internationally, is low taxes. Canada leads the G7 in terms of the lowest overall tax rate on new business investment. Here again, we are proud of our position.
This is the kind of environment where businesses can innovate and grow and create jobs and wealth.
Our government is pleased that Canada's hydrogen sector has taken advantage of these conditions. And, ladies and gentlemen, multinational companies are taking notice.
One particular example stands out for me. Daimler has made a significant investment in automotive fuel cell development and manufacturing in Burnaby, British Columbia. This represents an important milestone for the sector.
Whether seeking Canada's expertise or creating their own technologies, many of the countries represented here today are actively pursuing hydrogen and fuel cell technologies and making significant progress.
Germany, I know, sees hydrogen playing a key role as an energy carrier to facilitate its energy transition. The U.S. continues to make strategic investments in a variety of areas to build up hydrogen as an alternative energy carrier and an important component in support of its energy security. And of course China is working on fuel cell vehicles technology.
The hydrogen and fuel cell industry is an emerging one. And while there are proprietary issues at stake, the industry is not marked by cutthroat competition. Instead, it requires partnerships—strategic alliances—to help it grow, both in Canada and worldwide.
That's why Canada is a member of the International Partnership for Hydrogen and Fuel Cells in the Economy. While hydrogen's profile has grown significantly, its potential as a more prominent component of cleaner global energy systems remains untapped. Through increased collaboration, I'm certain we can accelerate the commercialization of hydrogen technologies for the benefit of all.
Ladies and gentlemen, let me wrap up by inviting you to continue building a strong international hydrogen and fuel cell industry and manufacturing capability. In doing so, we can create quality jobs, improve the environment and contribute to more robust energy systems.
Here in Canada, you have a committed partner.
We look forward to working with you.
Thank you very much for having me, and all the best for a productive and successful conference.
