2.2 – Key Opportunities

• Previous Page
• Table of Contents
• Next Page

Grow West: The Western Canada Growth Strategy

The Need for Western Solutions

• Western Canada’s economic growth has slowed significantly. Many of our businesses, workers, and communities are being negatively affected by low resource prices, trade disputes, and infrastructure gaps.
• Many western Canadians feel their unique challenges are being ignored and that they have little influence on national decisions. This has led to higher levels of western distrust of federal actions on issues like the economy and environment.¹
• In response to these challenges, WD engaged western Canadians in fall 2018 to hear their ideas for building a stronger western economy. Their responses showed that bold federal actions and renewed partnerships are needed to regain the trust of western Canadians and re-ignite the West’s economic growth.
• WD used this engagement to work with our partners to develop Grow West: The Western Canada Growth Strategy, which was officially launched on June 14, 2019.

What is Grow West?

• Spearheaded by WD, the strategy is a call-to-action for diverse partners to work together to tackle the West’s biggest economic challenges and seize new opportunities.
  • Its scope is ambitious, with four interrelated pillars for growth: Diversification, Trade, Skills, and Communities.
  • It includes 30 priorities, which were identified through WD’s engagement with western thought leaders, industry, and federal partners.
  • It is not a generic blueprint. The strategy will leverage existing programs and services, and feature new co-developed initiatives. The common vision is to build a stronger, more innovative western Canadian economy.
  • The strategy can be a powerful catalyst, but WD cannot do it alone. By design, actions will evolve through new partnerships with other federal departments, provinces, communities, Indigenous organizations, industry, academia, and other stakeholders.
• To date, nine federal departments, including WD, are co-leading the pillars. It is vital for the Minister to strengthen this support and expand it to include other federal partners.
• Significant progress through the strategy will be an important step in improving federal relations in western Canada.
• The full strategy and public updates are being shared at www.grow-west.ca

Pillars for Growth

Diversification: “Build a broader economy”

Our farmers, forestry and mining professionals, and energy producers are already world leaders in innovation. To remain competitive, our resources sectors should continue to develop and deploy new technologies and increase their environmental stewardship. A shift towards more value-added production of food, energy, and materials is also needed. This will result in more jobs being created in our communities and more investment flowing into the West. At the same time, emerging sectors, such as digital and clean technology, will grow and shape the jobs of the future.

Trade: “Seize global opportunities”

Better transportation infrastructure will increase the flow of goods and expand markets. Stronger export strategies will help even small firms connect to global supply chains and attract new investments. More western Canadian firms will export goods and services. They will increasingly look beyond the US and take full advantage of Canada’s world-class set of trade agreements.

Skills: “Talent for the new economy”

The abilities of groups with lower economic participation rates, such as Indigenous peoples, women, and youth will be recognized and developed. Continuous learning will close skill gaps and help western Canadians embrace change. Employers will have access to the talent they need.

Communities: “Connected to innovation and growth”

Cities, towns, and rural communities across the West will be better connected by infrastructure and services. For example, broadband access and digital resources will increase across the West. Communities large and small will be positioned to adapt and thrive. They will become more liveable for families and welcoming for newcomers.

WD’s Role

• To implement the strategy, WD is launching a Grow West office. This dedicated team will convene our federal leads, engage other potential partners, drive collaboration on new actions, and measure progress.
• WD is also co-leading the Diversification Pillar, which links closely to our current priorities of cluster growth and inclusiveness.
• WD has already heard from prospective partners across western Canada. Many are excited about the strategy’s potential and are interested in working with us. However, there is also some skepticism that the government will act.

Ministerial Leadership

• The strategy provides opportunities for the Minister and new government to demonstrate their commitment to the West and showcase actions that tackle western Canadians’ most pressing challenges.
• Now, more than ever, is the time to prove skeptics wrong, and commit federal support to the strategy, by building stronger relationships and advocating for made-in-the-West solutions.
• Supported by WD, the Minister can champion the strategy by:
  • aligning priorities with the new government’s agenda;
  • building new partnerships with western stakeholders;
  • co-creating signature initiatives with government and industry partners; and,
  • announcing progress and results to western Canadians.
• WD will continue to provide the Minister with updates and decision points for the strategy.

     [Redacted]     

The following placemat summarizes the federal departments that have agreed to lead each pillar, outlines initial priorities for collaboration, and sets broad measures for success.

Western Canada Growth Strategy
Our Path Forward

---

Diversification
Build a broader economy

Government of Canada Leads:

Western Economic Diversification Canada

Innovation, Science and Economic Development Canada

Natural Resources Canada

Agriculture and Agri-Food Canada

Priorities

a) Grow emerging sectors

1. Strengthen innovation ecosystems
2. Support high-growth western firms
3. Build inclusive technology sectors
4. Accelerate innovation adoption
5. Modernize regulations

b) Transform resource sectors

6. Invest in cleaner resource development
7. Embrace technologies that increase productivity
8. Capture more value for our products
9. Grow regional economic partnerships

Measures of success

GDP growth

GDP share of emerging industries

Business R&D expenditures

Commercialization of technologies

Company collaborations with post-secondary partners

High-growth firms

Clean technology adoption

---

Trade
Seize global opportunities

Government of Canada Leads:

Global Affairs Canada

Transport Canada

Priorities

c) Improve export access

10. Get western energy to new markets
11. Reduce bottlenecks
12. Modernize trade infrastructure and plan for the future

d) Grow markets

13. Leverage trade agreements
14. Enhance export services
15. Improve our knowledge of global markets
16. Strengthen regional export markets

Measures of success

Export of goods and services

Diverse export markets

Energy and non-energy exports

SMEs exporting

---

Skills
Talent for the new economy

Government of Canada Leads:

Employment and Social Development Canada

Immigration, Refugees and Citizenship Canada

Priorities

e) Strengthen Education and Upskilling

17. Develop essential skills that keep pace with change
18. Connect academic skills with practical experience
19. Strengthen career pathways
20. Attract global talent
21. Include and empower western Canadians

Measures of success

Employment growth

Share of professional jobs

Labour market participation by underrepresented groups

Attracting high-skilled immigrants

Education completion rates

---

Communities
Connected to innovation & growth

Government of Canada Leads:

Infrastructure Canada

Centre for Rural Economic Development

Priorities

f) Build resilience and liveability

22. Keep pace in growing urban centres
23. Support communities in transition
24. Partner with Indigenous communities and organizations
25. Strengthen rural communities
26. Build resilience to natural disasters
27. Protect arable land

g) Enhance digital access

28. Improve broadband
29. Build smart communities
30. Deliver effective virtual services

Measures of success

GDP growth

Broadband coverage and performance

Community infrastructure investments

Immigration to rural communities

Well-being for Indigenous, rural, and remote communities

Now we need more partners to commit to the strategy and take action today

Prairie prosperity in a water scarce world

The Opportunity

The Canadian Prairies have a once in a lifetime opportunity to become a global leader in plant protein and food production. This higher value, agri-food economy, once developed, has the potential to contribute to the Canadian economy at a level similar to the oil and gas sector. A key to unlock this potential is providing producers and value-added processors with reliable access to water.

The time to capitalize on this unique opportunity is now because of the following factors:

• By 2050, global food demand is expected to rise by 70% to meet the needs of three billion more middle-class consumers – mostly in Asia – whose diets are shifting to include more protein. It is estimated that the world will need to produce as much food in the next 45 years as in the previous 10,000 years. This cannot be done by dryland farming alone.
• 40% of global food production relies on irrigation through groundwater, which is not easily or quickly renewed.
  • California’s Central Valley, the American food belt, is dependent on groundwater. The Central Valley makes up approximately 75% of the irrigated land in California and 17% of the United States’ irrigated land. The region is emptying the aquifer more quickly than it can be restored naturally and could run out of water in the next 20 - 30 years.
• Irrigation on the Canadian Prairies is primarily supported by surface water, which is renewable through precipitation and snowmelt. However, this resource and existing water infrastructure in the Canadian Prairies, especially Saskatchewan, are currently underutilized.
  • The Lake Diefenbaker reservoir in Saskatchewan, completed in 1967, offers significant potential to offset some of the negative impacts of climate volatility and mitigate water scarcity, while at the same time helping Saskatchewan play a major role in plant protein value-added agriculture production. At almost 200 km long and with a total capacity of around 4 billion m³, Lake Diefenbaker is the largest body of water in southern Saskatchewan. Evaporation often represents 10% of water losses and, in many years, leads to greater losses than human uses.
• According to Saskatchewan’s Growth Plan, 2020-2030, which was announced on November 14, 2019, the province is targeting significant growth in the agri-food sector, to eventually increase exports to $20 billion by 2030. As part of this plan, the province has committed to supporting further irrigation development.

The Prairie Water and Land Management Strategy

Environmental changes are affecting water and land resources in the Prairies. Budget 2019 set aside up to $1 million for WD to develop a water and land management strategy for the Prairies. Responsible and more strategic use of our natural assets such as land, water and fertilizer can provide regional, national and global food security while preparing for climate volatility and creating long-term economic impacts and jobs for future generations in western Canada.

As part of the strategy, a pilot project is under consideration to build a 90 km canal to bring water from Lake Diefenbaker to Buffalo Pound Lake. It would provide reliable water access to more than 100,000 dryland farming acres to produce higher value crops and offer water access for business and community growth and resilience. This initiative could contribute to WD’s value-added agri-food cluster work in Saskatchewan and the goals of Grow West. WD has contracted Clifton Associates Ltd. to undertake a new study to determine potential economic, environmental and social impacts of the proposed canal.

If advanced, the pilot project will pave the way for future water infrastructure projects across the Prairies. This opportunity can be advanced in two phases. The first phase will require engineering and design studies, determination of the route, environmental approvals, discussions with potential partners, and finalization of financing models. The second phase would be to build the canal and associated infrastructure, which could cost $1.5 billion.

By March 2020, WD will provide a report to the Minister and/or Cabinet outlining its findings and recommendations toward the development of the Prairie Water and Land Management Strategy, and concerning advancement of the proposed pilot infrastructure project. The recommendations will also be relevant to the establishment of the Canada Water Agency, which was a Liberal Party platform commitment. The new agency will be instrumental in sustaining the momentum created by WD during the development of the Prairie Water and Land Management Strategy.

WD’s Role

• To develop a report and recommendations for consideration toward development of a Prairie Water and Land Management Strategy, including next steps on the proposed pilot project.
• To provide advice and support establishment of a Canada Water Agency, as proposed in the government’s platform (pg. 36).
• To continue to lead development of a Prairie Water and Land Management Strategy and the next phase of work on the potential pilot infrastructure project, until the Canada Water Agency is established and able to assume responsibility.

     [Redacted]     

Increased federal presence in Western Canada

Context

With 30 years of experience in western Canada, WD has the regional expertise and on-the-ground relationships that are key to implementing government priorities. Enhancing the department’s footprint and capacity in ten strategic locations throughout the region will enable the department to be more visible in communities, and build deeper relationships and partnerships. This will help the federal government take action on issues that matter to western Canadians.

Current Regional Presence

• When compared to the two largest RDAs (Atlantic Canada Opportunities Agency [ACOA] and Canada Economic Development for Quebec Regions [CED]) combined, WD is responsible for:
  • A larger population (WD: 11.1 million – ACOA/CED: 10.5 million).
  • More businesses (WD: 469,198 – ACOA/CED: 354,399).
  • A larger geographical area (WD: 2.7 million km2 – ACOA/CED: 1.9 million km2).
  • A larger economy (western Canada: $765 billion – eastern Canada $536 billion).
• However, WD only has 5* points of service whereas ACOA and CED together have 39 locations. As a result, only 60% of the western population lives near (within 100km of) a WD location. This is 33 percentage points lower than ACOA and 17 percentage points lower than CED.
• The below chart compares the different regions represented by the four largest RDAs.

*Vancouver, Edmonton, Calgary, Saskatoon, Winnipeg.

**All of Ontario

• WD is comparable to Federal Economic Development Agency for Southern Ontario (FedDev) in terms of population, number of businesses, economic size represented, and number of points of service – but WD is spread over an area 25 times the size of FedDev’s jurisdiction.
• The lack of locations in western Canada means that a WD office is expected to do considerably more when compared to counterparts in other regions of Canada. The average WD location represents:
  • 26 times more Canadians per location than ACOA and 3 times more than CED;
  • 30 times more businesses per location that ACOA and almost 4 times more than CED;
  • A geographical area larger than ACOA, CED, and FedDev combined; and
  • 36 times the nominal GDP per location of ACOA, and 4 times that of CED.
• The below chart demonstrates how much of a regions’ population, economy, and geographical area each point of service is responsible for servicing.

*All of Ontario

• Enhancing WD’s footprint will:
  • Provide enhanced level of service: The better we know western businesses, the better support we can provide and the better WD can connect western Canadians with other federal departments to support local initiatives. This will also increase awareness among western Canadians about WD programs and services and other available federal offerings.
  • Increase visibility: It is important for western Canadians to see the federal government supporting their communities and for WD to form relationships with local clients and representatives. Enhancing the department’s regional footprint will position WD and the Government of Canada to be more visible in communities to listen to local needs and build these deep relationships.
  • Enhanced Advocacy: A greater regional presence comparable to other RDAs will allow for increased engagement from a diversified group of western Canadians. This will allow WD to better advocate for western interests in national policy making.

     [Redacted]     

Energy and Environment

The federal government has committed to urgent and ambitious action on climate change. The goal is to achieve net-zero greenhouse gas emissions by 2050. As a natural resource dependent region, Western Canada will bear significant costs transitioning to a low-carbon future. Working closely with the energy sector, and supporting its efforts to play a contributing role in Canada’s climate change plan will:

• continue promoting a growing economy, job certainty, and a high quality of life for Canadians during a period of transition and disruption;
• provide an opportunity to co-develop solutions, ease inter-governmental tensions, and reduce feelings of western alienation; and,
• position Canada as a global leader and supplier of reliable and clean energy goods, services and technologies that can help major emitting countries cut emissions.

The Dilemma for Western Canada

• Climate change is a critically important issue and bold action is required to avoid the worst impacts. Canada’s “Changing Climate Report” (2019) indicates that Canada is warming at two times the global average. Canada’s north is warming three times faster.
• Without further action, Canada will not be able to meet its current target to reduce emissions by 30% below 2005 levels by 2030. This is due to Canada’s role as a major producer, consumer and exporter of fossil fuel energy. Overall growth in western Canadian energy production (despite reductions in emissions) also challenges Canada’s ability to meet Paris agreement commitments.
• Transition to a low-emission, resilient and competitive economy will require substantial investment. Canada’s transition cost (under the Paris agreement) is currently estimated to be $65-200 billion per year until 2050.
• At the same time, global demand for natural resources continues to grow while the world economy is being shaped by the need to mitigate and adapt to climate change. Even under aggressive climate scenarios, natural gas and oil will continue to meet a major share of global energy demand over the next 20 to 25 years.⁶
• As a reliable and ethical producer of natural resource and agricultural products, services, and technologies, western Canada is positioned to contribute to an improved quality of life around the globe, while displacing higher emission products.

The Energy Industry’s Role in the Low-carbon Future

• Canada has among the most long-standing and stringent regulated targets for Industrial emissions of GHGs and air pollutants in the world. Canada’s targets for emissions management were first introduced in 1998 in Alberta. Similar targets were not introduced in the US until 2009.
  • British Columbia and Alberta were among the first jurisdictions in the world to have regulations for flaring and venting from upstream facilities. In Alberta, these regulations have cut the volume of natural gas flared by 80% from 1996 to 2010, reducing emissions by more than eight million tonnes.⁷
• Western Canada’s oil and gas industry strives to be the cleanest and most efficient producer in the world. The sector has a demonstrated history of innovation that has improved industry efficiency and environmental outcomes, while also growing production.
  • According to Natural Resources Canada, oil sands emissions per barrel have decreased by 28% from 2000 to 2017, due to technology and efficiency improvements.⁸
  • Individual companies are actively setting emissions reduction targets. For example, Suncor is seeking to reduce its emissions by 30% compared to 2014 by 2030. Canadian Natural Resources Ltd. recently announced a long-term goal to achieve net-zero carbon emissions from its oil sands operations ⁹
  • The oil sands sector was a world leader in creating Canada’s Oil Sands Innovation Alliance (COSIA). This initiative brings together major oil sands producers to co-develop environmental technologies. COSIA has invested $1.4 billion to produce 981 distinct shared technologies and innovations.¹⁰ Many of COSIA’s technological advancements have the potential to be applied in other industries around the world.¹¹
• By meeting global demand for liquefied natural gas (LNG), western Canada reduces international emissions by displacing coal-fired electricity in China, India, and Southeast Asia. For every liquefied natural gas facility built in Canada, global emissions are reduced by an estimated 100 MtCO₂e per year.¹²
• Despite significant advances, western Canada’s resource sectors do not receive recognition for their efforts to produce cleaner, innovative, and more efficient products.
• Cultivating recognition of western Canada’s ability to grow its resource sectors, while also being a world class, clean provider, is needed to take advantage of global opportunities. It will also support a higher level of trust and improved relationships with the federal government.
  • A strong Canadian brand that attracts investment – equated with innovation, quality, and environmental leadership – can only be built on a foundation that works closely in partnership and acknowledges western Canada’s energy sector contributions.
  • Efforts are needed to strengthen public support for the energy sector through fact-based and accurate information collection and sharing. Scientific, third-party validation of the industry’s emission reductions is required.

WD’s Role

• WD can help facilitate the wide-ranging federal relationships that must be nurtured in the West. The department provides place-based expertise and context to the stakeholders, industry, and communities impacted by energy and environmental topics. These on-the-ground capabilities can help support federal relationship development with western Canada and to address feelings of alienation.
  • Under Grow West: The Western Canada Growth Strategy federal departments have an opportunity to connect with and support western energy and environment stakeholders.
  • WD can play a role in advancing the national energy and environment narrative to dispel myths and provide facts on advances made by the energy sector to produce hydrocarbons in a cleaner way.
  • Since 2015, WD has provided over $30 million in funding support towards 30 clean technology projects related to the oil and gas sector.

Footnotes

1 Confederation of Tomorrow

2 Statistics Canada, 2016 Census of Population.

3 Statistics Canada.  Table 33-10-0214-01 Canadian Business Counts, with employees, June 2019.

4 Statistics Canada.  Table 36-10-0222-01 Gross domestic product, expenditure-based, provincial and territorial, annual (x 1,000,000).

5 WD calculations using census metropolitan area data and census agglomeration data from Census 2016.

6 International Agency’s Sustainable Development Scenario anticipates oil and gas to make up 48 percent of total energy supply in 2040.

7 CAPP 2018 Economic Report Series (320149)

8 Energy and Greenhouse Gas Emissions (GHGs)

9 Suncor, Canadian Natural decrease GHG intensity in 2018

10 Environmental Innovation in the Oil Sands : Economic Concepts and Case Studies

11 Canada's Oil Sands Producers Double Down on Innovation Leadership: Cosia Releases Innovation Opportunities

12 CAPP Publications (333653)

• Previous Page
• Table of Contents
• Next Page