Concerns over the stability of the global economy are running high. Prime Minister Carney’s priority list for the upcoming G7 summit in Kananaskis, Alberta included energy security and stronger economic partnerships, both of which can be delivered with a focus on building the clean economy. Here’s how:

Cost Stability and Affordability

Clean energy economies run on localized renewable energy sources that are much less vulnerable to the fluctuating costs of imported energy commodities. 

While most countries still rely on imported fossil fuels (coal, oil and natural gas) for their energy mix, demand for clean energy is growing rapidly as the business case for electrification and clean energy gets better and better. Clean energy doesn’t just offer more stable energy costs, it’s cheaper, too. Renewables are already less expensive sources of power than fossil fuels and costs will continue to fall. In 2023, 81 percent of newly-commissioned renewable projects produced cheaper electricity than fossil fuel alternatives. And the cost of battery storage (which helps balance out intermittent energy sources like wind and solar in the electricity grid) is projected to drop by 50 percent by 2035. These factors have contributed to the rollout of renewables being even faster than anticipated. Global renewable capacity is on track to exceed countries’ current ambitions by nearly 25 percent by 2030. 

Energy Security

With geopolitical tensions and trade under threat, localized clean energy is a good bet, according to the global investment firm the Carlyle Group. That’s because over half of fossil fuels are transported through three vulnerable trade chokepoints. Many countries are questioning the security of imported fuel supplies, and are instead prioritizing the clean economy, where they can reduce their risk by investing in manufacturing or importing tech once that allows them to generate their own power for decades. 

Even though Canada has abundant energy of all kinds, we’re not immune to these concerns. Energy commodities are globally traded, meaning Canada can’t control the price — which impacts both producers and Canadian consumers. While we have security of supply, we don’t have cost security. Our electricity demand is projected to double by 2050, highlighting the need for resilient and reliable energy sources. Across the Canadian economy, sectors are increasingly electrifying due to the rapid adoption of new technologies (i.e., electric vehicles, arc furnaces for steel production, heat pumps for homes) and the expansion of new industries (data centres, carbon removal). Low-cost and low-risk clean energy sources can help Canada build the energy security — and cost stability — we need to provide Canadians with affordable energy and help our industries compete. 

Job Growth and Trade Diversification

Clean energy investments are both a job growth and economic diversification strategy. Investments in clean energy create more jobs per dollar than investments in conventional energy sources. Investing in building efficiency and solar power, for example, respectively create 2.8 and 1.5 times as many jobs per dollar invested than investments in fossil fuels. And jobs in the clean energy sector in Canada are projected to grow four times faster than the national average.

By investing in clean energy, Canada will be able to attract more investment to diversify our economy and trade partners. Ontario and Quebec, provinces with abundant clean energy resources, have attracted major investments in electric vehicle and battery plants as well as the tech and life sciences sectors. Traditional industries like steel production and mining are using clean energy to decarbonize and optimize their products, making them more competitive to our trading partners who are looking for low-carbon materials. And our clean electricity grid is unlocking new carbon removal technology opportunities for Canada: the leading carbon removal firm Deep Sky recently announced a 10 year power purchase agreement with leading clean energy supplier Low Carbon to power its Alpha facility in Alberta.

Beyond the Buzz

While the global economy still depends on the trade of fossil fuels and will for some time to come, the shift to clean energy is inevitable. Recent reports show that clean energy technologies are attracting twice as much investment as fossil fuels. As more and more countries get caught up in the global momentum to invest in clean energy for its reliability, security and ability to generate jobs and prosperity, Canada has a good opportunity to lead the way.