Green Prairie Economy – Early accomplishments

The Prairie context

The Prairies are an economic, agriculture, and energy powerhouse. People and industries across the region make important contributions that are critical for building a strong and prosperous Canada. Covering nearly two million square kilometers and holding over 80% of Canada’s farmland, the region boasts rich natural resources, including world-leading reserves of oil, natural gas, potash, and uranium. The region’s assets are a draw for private sector investment, with the Prairies accounting for 35% of Canada’s private capital expenditures.

Beyond natural resources, the Prairies have strengths in clean technology, digital industries, life sciences, and manufacturing. The region hosts one of the fastest-growing tech hubs in North America and a world-class Al research center. The Prairies are a global leader in zero-emission bus and coach manufacturing and will soon be home to the world’s most sustainable potash mine—the first project of its kind in Canada in over 50 years.

The Prairies’ success is driven by its people and communities. The region has a young, diverse, and growing population. Alberta, Saskatchewan, and Manitoba are the only provinces with an average age under 40. In 2023, the Prairies had 18% of Canada’s population but attracted over 22% of our recent immigrants.

At over $55 billion a year, Canada’s Indigenous economy is growing. Nearly 40% of Canada’s Indigenous population lives and works on the Prairies. The region has the highest Indigenous labour force participation rate in Canada, and a higher proportion of Indigenous-owned businesses. Indigenous peoples and communities on the Prairies have their own histories and perspectives about their economic future.

The Prairies are not homogeneous. Each province has different strengths. Alberta excels in oil and gas, but also leads in wind and solar energy. Saskatchewan, Canada’s breadbasket, has rich deposits of critical minerals and rare earth elements. Manitoba, known for manufacturing and transportation, has a diversified economy including pharmaceutical and agricultural exports.

Green Prairie Economy

The Framework to Build a Green Prairie Economy was launched with a vision for a Prairie economy that is prosperous, sustainable, and benefits everyone.

Canada is working with provinces, municipalities, Indigenous governments, industry, and Prairie Canadians to bring this vision to life and make progress in five areas:

• Growing key regional sectors
• Effective movement of goods, people and information
• Expanding and capitalizing on clean electricity
• Community economic development
• Economic reconciliation and inclusive growth

The Framework is also a commitment by 10 federal departments to work differently, through stronger federal coordination and more responsive programs, as well as increased engagement and collaboration with Prairie Canadians.

Between 2016 and 2023, these 10 federal departments invested over $23 billion in Prairie projects, including significant support for regional infrastructure. Since the Framework was launched in December 2023, they have invested a further $4 billion towards more than 19,000 projects that are helping to realize new economic opportunities aligned with the Framework’s priority areas. This includes over $162 million in new PrairiesCan investments that are supporting nearly 6,000 jobs—exceeding our three-year target of $100 million.

The key achievements highlighted below are bringing the Framework’s vision to life and positioning the Prairies for continued prosperity.

Growing key regional sectors

Global demand is rising for the Prairies’ extensive critical minerals assets. This is a priority area for all three Prairie provinces, with increased mining, processing, and related manufacturing creating jobs and exports. Canada is working with provinces and industry to advance the country’s first carbon neutral copper and zinc mine at McIlvenna Bay by Foran Mining, along with North America’s first commercial processing facility for rare earth metals at the Saskatchewan Research Council in Saskatoon. Projects like these are helping to advance Saskatchewan’s Growth Plan (external site).

Canada and Manitoba invested in NFI Group’s all-Canadian-build project that will see hydrogen and electric fuel cell buses assembled from start-to-finish in Winnipeg. Investments have also been made in other advanced manufacturing sectors and agri-food that strengthen Canadian supply-chains and increase our global leadership.

Prairie oil and other energy products are Canada’s largest export. Canada is helping the sector reduce its emissions, with carbon capture and sequestration (CCS) and other clean technologies, which are key priorities for Alberta and Saskatchewan. In July 2024, the Canada Growth Fund forged a partnership with Strathcona Resources for up to $2 billion (external site, PDF link) to deploy CCS at its oil sands facilities in both provinces. This is one of the largest CCS projects to date and may capture up to two million tonnes of carbon emissions each year, subject to all projects proceeding. Canada has also supported Calgary-based Carbon Management Canada’s efforts to attract and develop the skilled workforce needed to complete major decarbonization projects such as this.

Four of Canada’s Clean Economy Investment Tax Credits are now available to taxpayers to support investments in clean hydrogen, CCS, critical minerals, clean technology manufacturing, and other clean technologies—all growing, important areas for the Prairie economy. These major incentives are estimated to represent $94 billion in federal incentives by 2034-2035.

Effective movement of goods, people and information

The Prairies are Canada’s most export-intensive region, accounting for nearly 32% of national exports. Stronger trade corridors and effective transportation systems are critical for growing the region’s economy.

The Port of Churchill is Canada’s only deep-water port in the Arctic that is serviced by rail. Canada and Manitoba have made co-investments in the Arctic Gateway Group to reinforce the Port and secure reliable and affordable rail transportation for northern communities. Last summer, the Port successfully piloted shipments of zinc concentrate to Europe, demonstrating opportunities for this northern trade corridor.

Canada is supporting the Prairies’ aerospace sector, including investing in the region’s largest hub. The Calgary International Airport is partnering with Lufthansa to build Canada’s first testing and maintenance facility for the next generation of low-emission engines. The Canada Infrastructure Bank has provided financing to advance this project, which will create an estimated 160 new permanent, high-skilled jobs.

Through federal, provincial, and private sector investments, 91% of Prairie households had access to high-speed internet in 2023, up from 73% in 2017. With new projects coming online, over 95% of Prairie households are projected to have access by 2026, and Canada is on track to achieve 100% coverage by 2030.

Expanding and capitalizing on clean electricity

Canada is supporting Prairie efforts to build sustainable, affordable, and reliable electricity generation and transmission systems, with over $1 billion already invested across the region.

Alberta, Saskatchewan, and Canada share a goal for net-zero electricity by 2050. Both provinces are working to modernize their grids. Canada supported Saskatchewan’s clean electricity efforts, including SaskPower’s work to lay the foundation for the first Small Modular Reactors planned for the Prairies. Nine clean electricity projects in Alberta received $152 million in federal support, including solar, wind, and Indigenous-led developments that could power up to 170,000 homes.

Manitoba’s grid is one of the cleanest in the world. Canada supported the replacement of hydroelectric turbines at the Pointe du Bois facility, a priority for Manitoba’s Affordable Energy Plan (external site).

Community economic development

Strong and resilient communities are essential for Prairie prosperity. During consultations for the Framework, we heard that one-size doesn’t fit all. Rural and northern communities have unique needs and challenges.

Canada is working with 32 communities in Alberta and Saskatchewan that depend on coal mining and generation, helping to diversify their local economies, investing in skills development, and upgrading infrastructure. Canada is also supporting First Nations and other communities in Saskatchewan’s Humboldt area prepare for rapid growth linked to BHP’s $14 billion Jansen potash mine. These projects align with Canada’s overall work to support communities and workers through the Sustainable Jobs Plan.

The 2024 wildfires in Jasper devastated both the community and the regional economy. Canada continues to work with Alberta and local partners to support recovery, including federal grants for the tourism sector and other businesses, as well as investments in temporary housing for residents and workers.

Last year, federally funded Community Futures (external site) organizations in Alberta, Saskatchewan, and Manitoba provided loans of nearly $34 million to over 600 rural entrepreneurs across the region.

Winnipeg’s downtown core faces significant challenges. Canada is collaborating with the Southern Chiefs’ Organization, Manitoba, and the City of Winnipeg to advance revitalization and reconciliation efforts. Investments in the landmark Indigenous-led Wehwehneh Bahgahkinahgohn project will transform the former Hudson’s Bay building and Portage Place Mall will be redeveloped to create new retail and community spaces.

Economic reconciliation and inclusive growth

Increasing economic opportunities for First Nations, Métis, Inuit, and other underrepresented groups is a priority for the Framework.

The newly launched Indigenous Loan Guarantee Program (external site) will provide up to $5 billion for Indigenous groups to unlock private capital and acquire equity stakes in natural resource and energy projects. Up to $230 million will also help recapitalize Métis Capital Corporations and Indigenous Financial Institutions.

First Nations and Inuit communities across the Prairies have received $129 million in funding over the last year to support local economic development and entrepreneurship. Investments in Indigenous-led projects are helping Indigenous workers and communities participate in Manitoba’s growing critical minerals sectors and clean energy developments in Alberta.

Canada is also supporting diverse entrepreneurs with specialized services and dedicated financing through the Black Entrepreneurship Program, Futurpreneur (external site), Women Entrepreneurship Strategy, and Prairie Business Service Network.

Conclusion

Since December 2023, federal departments have worked with provinces and other Prairie stakeholders on major accomplishments for each of the Framework’s priorities. The $4 billion invested across the Prairies supports key critical mineral projects in Saskatchewan, helps oil sands producers cut emissions in Alberta and Saskatchewan, re-shores manufacturing capacity in Manitoba, and strengthens port, rail, and air transportation in Manitoba and Alberta. Across the region, Canada has supported stronger broadband infrastructure, increased clean electricity production, helped communities in need, and supported economic opportunities for Indigenous peoples and entrepreneurs.

Prairie Canadians have a history of innovation and resilience in times of economic uncertainty. It is no surprise that they are leading the way on exciting new economic opportunities that are critical for both the region and Canada’s future. The Framework is a long-term commitment to collaboration and bringing everyone to the table. Canada is here to work alongside provinces, Indigenous peoples, communities, industry, and workers to build a prosperous future.