Business people fully support the transition to a green economy. Canadian companies have already invested colossal sums in research and innovation in recent years in order to reduce their environmental footprint.
But this necessary transition must be made in a “responsible” manner and without unduly increasing the financial burden on citizens, it is argued. Because without the help of consumers, the fight against climate change will hardly be crowned with success.
As COP26 continues in Glasgow, the Business Council of Canada (CCA) on Friday added its perspective on the roadmap for the federal government and the provinces to achieve Canada’s reduction targets. greenhouse gas emissions.
“We have supported the idea of a carbon price since 2008. Companies and the business community have long believed that we have an important leadership role in this file. Governments around the world are making all kinds of announcements, making all kinds of commitments and setting all kinds of targets. But the bulk of the work to get there rests on the shoulders of those who innovate and raise capital, ”said CCA President and CEO Goldy Hyder on Friday.
Mr. Hyder virtually brought together representatives from major sectors of the economy – oil and gas, agriculture, aluminum, automotive, among others – to highlight the progress that has been made so far and the essential ingredients for meet emissions reduction and carbon neutrality targets by 2050.
“It’s one thing to see governments and businesses pick up the pace. But as we can see in Europe where there is an energy crisis and in other countries, all of this is going to have a significant impact on the population ”, underlined Mr. Hyder.
The transition will take time and will require substantial investment. You have to be honest with the people. We also have to make sure that people can afford it.
Goldy Hyder, President and CEO of the Business Council of Canada
The massive entry into the market of electric vehicles is a case in point, according to David Paterson, vice president of corporate and environmental affairs at GM Canada.
The auto giant plans to invest $ 35 billion to transform its production line to build only emission-free vehicles by 2035.
This is the biggest period of transformation for the automotive industry since we abandoned horses as a form of transportation. It is an exciting time. We expect to have carbon neutral production in 2040.
David Paterson, Vice President of Corporate and Environmental Affairs, GM Canada
The company plans to bring 20 to 30 new models of electric vehicles to market within three years. Assembly plants are adapted to facilitate production.
“We are banking on electrification. We are making colossal investments in battery technology. This is the key to success for our sector. We must succeed in producing batteries which cost less and which allow a great autonomy for consumers. And consumers are going to determine if it’s going to be a success or a failure, ”he said.
Raise the incentives
For consumers to be there, prices must be competitive. But before that happens, governments will need to increase financial incentives. The price of an electric vehicle is generally $ 10,000 more than that of a gasoline-powered vehicle.
In the United States, Congress is preparing to adopt a $ 2 trillion stimulus package that will include financial incentives for the purchase of electric vehicles. US consumers will be offered US $ 12,500 if they opt for an electric vehicle.
In Canada, there are insufficient incentives to accelerate the transition, according to Paterson. The federal government offers a credit of $ 5,000. Quebec is one of the few provinces to also offer an incentive of $ 8,000. In Ontario, the Ford government ended the program to encourage the purchase of an emission-free vehicle. According to Mr. Paterson, financial incentives should approach $ 15,000 in Canada.
“We need to help consumers make the transition,” he said, adding that it is also necessary to facilitate access to charging stations.
According to John Stackhouse, senior vice-president, office of the CEO at RBC, the investments required by the private sector for Canada to meet its goal of achieving carbon neutrality by 2050 will be colossal: $ 2 trillion, according to a report released by the banking institution last week. “It’s a considerable sum. This represents $ 60 billion to $ 80 billion a year. According to him, the private sector is ready to get started. But governments absolutely must have a precise roadmap to encourage these investments.