There’s no energy security without net zero
Canada has the raw materials and commodities that the world is increasingly desperate for today, and the innovation capital to turn them into the future-fit energy that will be in demand for generations to come.
Nobody ever said the energy transition would be easy, but few likely imagined it would be this chaotic. In retrospect, it was probably tempting to think that the transition to a low-emission economy could be a gentle and gradual affair. Well, so much for that.
With energy security once again at the forefront of our minds, it’s time to consider what that really means. The current energy landscape has come a long way from the energy crises of the 1970s and 1980s. There are certainly parallels — geopolitical uncertainty, embargoes, reactive domestic policies — yet those events catalyzed a shift in the way energy was produced and used, propelling us to where we are today. We should learn from the past but keep looking ahead.
While the race is still on, in recent years, rapid progress has been made towards a net-zero future. And if anything, it’s about to pick up speed — with Alberta and Canada well positioned to compete. Now’s not the time to take our hands off the wheel.
Canada has the raw materials and commodities that the world is increasingly desperate for today, and the innovation capital to turn them into the future-fit energy that will be in demand for generations to come. Meanwhile, our country’s framework for reducing emissions and incentivizing companies who do it well gives us a global advantage. Now, we just need the resolve to combine those two things, while resisting the temptation to double down on business as usual. Past paths to finding energy security will likely differ from those needed now.
The concept of energy security is going to mean something very different in the future, both here in Canada and around the world. It’s time to update our conception of energy security based on 21st century principles. It will be about developing net-zero energy sources that are closer to home, are both reliable and affordable, and more predictable in cost. It will take a thriving innovation ecosystem, resourced for long-term goals not just short-term needs. It will mean building value chains and supporting emerging industries and technology to capitalize on homegrown opportunities. It will take both clear policy signals and catalytic investments. And it can’t ignore the complexities between our social systems and our energy system.
We have a role to play in supporting the energy security of our allies and peers, but if we hit the brakes on our own energy transition, it would only put us further behind in the race to net-zero. In the process, we would forgo emerging market opportunities that the energy transition presents; future-fit hydrocarbon markets that include commodities such as hydrogen, uses for bitumen beyond combustion, and the expanding demand for critical minerals and battery metals.
Natural Resources Minister Jonathan Wilkinson boldly stated “there is no energy transition without critical minerals, and this is why critical mineral supply chain resilience is an increasing priority for advanced economies.” With the federal government committing $3.8-billion towards the critical minerals strategy and the demand for electric vehicles surging, investment — if properly directed — can position Canada as a global competitor.
In a recent report, the International Energy Agency highlights that minerals’ “rising importance in a decarbonizing energy system requires energy policy makers to expand their horizons and consider potential new vulnerabilities. Concerns about price volatility and security of supply do not disappear in an electrified, renewables-rich energy system.” With mounting concerns about global supply, Canadians could — and should — be manufacturing end products, such as batteries, for the electrified economy and building a secure, responsible, less carbon-intensive value chain. To truly grow this industry, however, Canada needs to move beyond its comfort zone.
A future-fit hydrocarbon sector, including battery metals, will grow exponentially as opposed to the diminishing returns a business as usual approach will produce. But delaying investments in future-fit hydrocarbons will only make them more expensive to build and deploy in the coming years and dwindle capacity to capture global market share.
Now, more than ever, we need political and business leadership that’s willing to bet on the future instead of the past. What does that look like? It means finding solutions to the challenges of energy security, affordability, and climate change at the same time rather than pitting them against each other. Recognizing that standalone solutions won’t provide energy security, it means supporting a thriving technological and social innovation ecosystem to get us there.
Above all, it means making brave and bold bets on the transformative technologies and ideas that will define the economy of the future. On this one, slow and steady will not win the race.
First published in Hill Times Aug 11, 2022
Alison Cretney is the managing director of the Energy Futures Lab, an Alberta-based coalition of diverse innovators and leading organizations working to accelerate the transition to a more sustainable, prosperous, and inclusive energy future.
