Moe is wrong about net-zero grid by 2035

Meeting important goal both possible and affordable, writes Jonathan Wilkinson.

There has been discussion recently in Saskatchewan about work underway to decarbonize and grow the electricity system in Canada. In fact, just Tuesday, Premier Scott Moe indicated he believes achievement of a decarbonized, non-emitting electricity grid by 2035 to be “impossible and unaffordable.”

I think it is important to ensure that folks in Saskatchewan and elsewhere have reasonable context and relevant facts on such an important subject.

As Canada's minister of natural resources, I spend significant time on electricity matters. As someone who grew up in Saskatchewan and who represented the provincial government in federal-provincial discussions, I am keen to ensure this conversation is about how Saskatchewan can position itself for economic and environmental success.

There is no disagreement that Canada's electricity systems — in every province and territory — must continue to be reliable and to be affordable for ratepayers.

However, these systems increasingly must also focus on producing electricity with net-zero carbon emissions.

Decarbonization of the electricity grid is an environmental imperative, no doubt. If we do not find reasonable pathways to decarbonize our economy, we will leave a world for our children that is challenged indeed.

However, this is also increasingly an economic matter. Being able to provide clean power to industry is increasingly “the price of entry” in the marketing of products internationally. Having a grid with abundant clean power is — and will be — a significant comparative advantage in the global economy.

Firms looking to export products such as critical minerals, hydrogen, biofuels, potash, steel and aluminum are increasingly being held to account regarding the carbon content of their products.

Take the example of BHP Group Ltd. As Saskatchewanians know, BHP is building the $7.5-billion Jansen potash mine. BHP'S recent announcement regarding this project underlined the importance of emissions reductions to its business.

The first sentence of the press release touts the “world-leading low-emissions potash mine.” The second sentence claims that the mine will generate “the lowest direct emissions of any potash mine in the world.”

BHP is eager for the world to know that lowering emissions is a priority — because that's what their customers want. And they aren't alone. Foran Mining is looking to develop a net-zero critical minerals mine.

And the Saskatchewan Research Council is aiming to develop a critical mineral processing facility — a facility that would need to account for the carbon embedded in its products, including the carbon content of the electricity it takes from the grid.

G7 ON BOARD

To build a reliable, affordable and net-zero grid, we need both regulation and investment. Last week, the federal government provided $174 million to the Saskatchewan government for home smart meters, upgraded rural infrastructure and the refurbishing of a hydro dam.

In addition, we have been and are investing in a range of renewable energy projects. And the recent federal budget contained $40 billion in funding for Saskpower and other utilities to build out a robust and reliable net-zero grid.

It's not just Canada that is working to achieve a net-zero grid by 2035 — it is in fact every G7 country. Just last week, the U.S. released its regulatory approach to achieving a net zero grid by 2035. Our American friends are doing this for both environmental and for economic reasons.

The commitments on the part of our G7 allies should underline the fact that achieving a non-emitting grid by 2035 is neither impossible nor unaffordable.

Overall this conversation should be about accelerating growth, not slowing it down. It's about being sensitive to regional realities while also being aware of changes happening around the world.

At the end of the day, the vast majority of Canadians in all provinces and territories accept the scientific reality of climate change. It is an issue we need to address.

I am interested in a forward-looking conversation about how we can do so in a manner which ensures affordability while creating good jobs and economic opportunity in every province and territory.