TORONTO — Canada’s most populous province has all the elements needed to thrive economically, if its leaders choose to lean into the era of low-carbon economic growth, according to a new report from the Pembina Institute.
Assembling the Future: Powering a healthier, more affordable Ontario examines the province’s successes to date in growing its predominantly clean electricity grid, through which it has already secured billions of dollars of investment from companies looking for low-cost, reliable, clean energy to run their businesses.
The report also lays out recommendations to future leaders, such as the leadership role Ontario can play in increasing inter-provincial electricity infrastructure that will bolster Canadian energy security, while also generating revenue for Ontario from electricity exports to other parts of Canada.
On clean transportation, the report urges Ontario’s leaders to make the case that retaining tariff-free flows of the electric vehicle supply chain across the Canada-U.S. border is crucial not just to Ontario’s economy, but to vehicle affordability in the U.S. The report outlines the steps Ontario can take to grow a stronger domestic market for its EVs, by expanding charging infrastructure, introducing an income-tested purchase incentive, and prioritising EVs in its own vehicle procurements, such as school buses.
The report also highlights other emerging clean industries that Ontario could support, such as through policies that seed local demand for low-carbon cement. With 54,000 direct and indirect jobs generated from the Ontario cement and concrete industry — the highest of all Canada's provinces — use of lower-carbon concrete in Ontario’s buildings would support employment in the building sector.
Quotes
“Governments across Canada are grappling with key questions right now: how can we guarantee energy security, create economic resilience, and address affordability challenges? Ontario has big advantages in all these areas – and they’re all tied to its aspiration and potential to be a clean energy powerhouse.
“Ontario’s ability to generate abundant low-cost, clean electricity, coupled with its well-established manufacturing sector, position it to thrive in the era of low-carbon economic growth. Regardless of the direction the U.S. chooses these next four years, the global transition to clean energy is continuing at pace. Ontario can capitalize on that – by continuing to attract billions of dollars of investment to grow and modernize its clean electricity grid, and by orienting its manufacturing sector to play a lead role in the clean tech supply chain.
“More than that, if Ontario can marry this sort of clean industrial strategy with policies that encourage the uptake of solutions in the everyday lives of Ontarians – like clean energy enhancements in homes and the use of electric vehicles – it will not only create a stronger economy, it will make life in the province more affordable and healthier for generations to come.”
— Chris Severson-Baker, Executive Director, Pembina Institute
Quick facts
- Pembina Institute modelling indicates that investing in the clean economy would result in 686,000 jobs across Ontario by 2050: in electric vehicles (245,000), low-carbon buildings (137,000), low-carbon steel (7,000), low-carbon machinery (10,000), biofuels and waste (42,000), carbon capture and storage (48,000), and hydrogen (67,000).
- Readily available clean electricity was a contributing factor in the Volkswagen Group’s $7-billion decision to build its first North American-based battery manufacturing plant in Ontario and Honda’s $15-billion milestone investment in Canada’s first comprehensive EV supply chain, creating thousands of jobs.
- Ontario spends over $16.5 billion on fuel every year, almost all of which comes from outside the province. Transitioning to locally generated electricity for transportation would help keep those dollars in Ontario.
- Thanks to Ontario’s clean electricity grid, switching to hybrid heating could save customers up to $280 every year on their energy bills.
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Contact
Alex Burton
Communications Manager, Pembina Institute
825-994-2558
