Canada’s wealth, our financial identification, and our monetary booms (and busts) have lengthy been tied to the worth of pure assets inside our borders. We’ve got benefited immeasurably from the pure wealth of those lands: our huge forests, deep lakes, and naturally the reservoirs of oil and gasoline buried beneath our ft.

As we discover ourselves quickly getting into the clear power transition, and because the superpower economies of the US and the European Union pivot onerous towards a net-zero 2050, a possibility to transition our personal pure useful resource sectors has emerged.

Local weather motion is more and more being delivered by means of bold industrial coverage, reminiscent of America’s Inflation Discount Act, which can be targeted on bringing provide chains again residence, and strengthening commerce ties with allies and like-minded nations.

Collectively, these developments current a possibility to result in an much more affluent and sustainable financial system for Canada, however it requires us to guess on ourselves. Canada has lengthy been a major exporter of pure assets, and the clear power transition doesn’t change that.

Quebec, for instance, has a few of the highest-grade iron ore on the earth, making it among the many few choices viable for the subsequent technology of metal manufacturing (utilizing a course of often called the direct discount of iron). Demand for high-quality iron ore is subsequently anticipated to develop considerably.

Saskatchewan, in the meantime, has lengthy been a significant world provider of potash, a important fertilizer for agriculture, however with Russia’s invasion of Ukraine slicing off provide from the world’s second largest supply, Canada’s exports greater than doubled between 2021 and 2022.

These are nice examples of rising export alternatives, however maybe extra essential is what Canada can obtain by harnessing our pure assets to drive value-added progress and financial improvement at residence. In different phrases, combining our pure useful resource wealth with sensible industrial coverage.

Hydrogen is a superb instance. Canada has the assets to develop inexperienced hydrogen manufacturing capability with entry to considerable freshwater and an electrical energy grid that’s already 84 per cent non-emitting. However we don’t must look forward to a world market to develop for the useful resource, as we are able to use it to develop our export marketplace for low-carbon and next-zero merchandise that rely on hydrogen.

Hydrogen is likely one of the key substances in net-zero metal manufacturing. It would even be important within the manufacturing of fresh ammonia-based fertilizers, methanol, and a number of commercial chemical substances with rising low-carbon export markets.

Equally, Canada has lots of the key important minerals wanted for electrical automobile (EV) batteries, together with lithium and nickel. Not solely is demand for these minerals exploding, we are able to additionally use them right here in Canada as we develop a complete homegrown provide chain for EV batteries, capturing the roles, mental property, and prosperity that goes with it.

However to unlock this potential, governments must suppose strategically about learn how to finest leverage our pure assets. Clear Power Canada has made this case relating to batteries, and we’ve referred to as for net-zero industrial roadmaps for all key heavy industries that use pure assets.

Canada can also’t relaxation on its laurels relating to clear electrical energy, which underpins our capability to extract and use these assets cleanly. Our lands and shorelines can present nearly limitless clear power, however provided that we ambitiously construct out clear technology and transmission. Because of this the federal authorities’s forthcoming Clear Electrical energy Regulation (that will see Canada’s energy grid obtain net-zero emissions by 2035) is so essential. Not solely does it stake out our ambition and drive a transparent market sign for the power we’d like, however it’s important in guaranteeing we stay aggressive with our allies and buying and selling companions, who’re equally prioritizing net-zero electrical energy grids. With out it, we danger seeing our grid get dirtier as we attempt to meet demand—and with it, lose our aggressive edge.

Pure assets have a vibrant future in Canada. We are able to construct new commerce ties and assist our pals and allies fill key gaps of their provide chains. However greater than that, our pure assets could be part of our personal story within the new financial system, one the place we seize all of the wealth and alternative they provide, forming a bedrock for jobs, communities, and prosperity for the many years to return.

This submit was co-authored by Rachel Doran and initially appeared on The Hill Occasions.