Throne speech pledges 'energy superpower' future but observers flag climate impact on cost of living

King Charles’ speech from the throne was widely welcomed by clean energy, environmental and industry organizations in Canada for its emphasis on strengthening the country’s economy led by a strategy to become a world leading “energy superpower” that was more competitive globally and combatted the climate crisis. 

But several cautioned that job creation and economic growth in the face of the ongoing US trade war must not impede progress on the energy transition when the cost of living is skyrocketing due to grocery prices jacked up by climate change-fuelled supply-chain upheaval; rising home insurance premiums connected to extreme weather; and tax hikes linked to paying for disaster recovery and infrastructure repair.

In the throne speech, the first in almost 50 years by a sitting sovereign, King Charles said Canada could see “the largest transformation of its economy since the Second World War,” if a number of anti-growth “barriers,” including those related to interprovincial trade, were removed.

“Given the pace of change and the scale of opportunities, speed is of the essence. By removing these barriers that have held back our economy, we will unleash a new era of growth that will ensure we don’t just survive ongoing trade wars, but emerge from them stronger than ever,” King Charles said.

“It will enable Canada to become the world’s leading energy superpower in both clean and conventional energy. To build an industrial strategy that will make Canada more globally competitive while fighting climate change. To build hundreds of thousands of good careers in the skilled trades. And to build Canada into the world’s leading hub for science and innovation.”.

‘Time for change, not status quo’

Rachel Doran, executive director at Clean Energy Canada, a think-tank, said the common theme of the throne speech was that it is a “time for change, not status quo thinking,” especially around the shift away from fossil fuels.

“Change means rethinking our trade relationships, investing in new and growing industries, building faster and more efficiently, and ensuring that affordability and sustainability are written into the DNA of all of these efforts from day one,” she said in a statement. 

“It is clear, as mentioned in the throne speech, that Canada can and should action an industrial strategy that will both make us more globally competitive and combat climate change. These are not distinct but complementary objectives.”

Doran pointed to studies from the International Energy Agency, a global energy watchdog, that showed Canadian household energy bills “will shrink as we near net zero.”

Rick Smith, president of the Canadian Climate Institute, a policy research body, praised the speech for its focus on speeding up development of “nation-building” projects and infrastructure and working to make Canada a clean energy superpower as well as a global hub for science and innovation. 

Yet he flagged that “any robust economic strategy must include effective action to fight climate change, make life more affordable, and invest in low-carbon innovation.”

Five ‘critical’ priorities 

“We urge the federal government to act decisively on five specific, critical priorities: strengthening industrial carbon pricing systems, finalizing methane regulations for the oil and gas sector, enacting Canada’s Clean Electricity Tax Credit, establishing a made-in-Canada climate taxonomy for Canada’s financial sector, and applying clear flood and fire resilience criteria for federally supported housing,” Smith said. 

Climate change is “already making life in Canada less affordable,” he stressed — and building a “strong and resilient” domestic economy meant protecting homes and communities from the impacts of the emissions-driven environmental emergency.

“Acting swiftly on policy priorities [outlined in the speech from the throne] will strengthen Canada’s competitive advantage in an increasingly unpredictable global economy, while enhancing Canadian sovereignty, resilience and energy security," said Smith.

Environmental activist group Stand.earth emphasized that the Liberal government should invest in the clean energy transition to create jobs and build the economy “without robbing our children of a liveable future.”

Government must avoid 'false solutions' 

The group said Carney’s goal of becoming an energy superpower must not depend on “embracing false solutions like carbon capture technology, biomass, and liquified natural gas, which receive massive taxpayer subsidies and perpetuate pollution while masquerading as clean energy sources.”

Speaking before the Calgary Chamber of Commerce last week, federal natural resources minister Tim Hodgson indicated that the government would, in fact, be investing in carbon capture, among other oil and gas industry priorities.

Fernando Melo, federal policy director at the Canadian Renewable Energy Association, an industry group, said the throne speech signalled the country stood “at a moment of fundamental change which is also an incredible opportunity to think big and to act bigger.”

“Renewable energy and energy storage are the most rapidly deployable, clean and affordable options available. We are pleased to see that Canada's government is looking to build. As the King said, ‘In this new, fast-evolving world, Canada is ready to lead,’” he said.

Cleantech not mentioned by name

Lynn Cote, executive director of the Canada Clean Tech Alliance, a coalition of industry advocacy bodies, noted that while “cleantech” had not been mentioned in the speech from the throne, she “anticipated that advanced technologies will be included in building key infrastructure projects.”

Dan Kelly, president of Canadian Federation of Independent Business, which advocates for the country’s small and medium-sized businesses, said he was glad to hear “conventional” mentioned alongside “clean” in the stated aim to make Canada an energy “superpower.” 

He said that the 2,000 energy sector companies in the CFIB’s membership would be cheered by the throne speech “in that it both continued the Trudeau government’s focus on clean energy but included conventional energy too. 

“That is a definite change in tone,” said Kelly. He added that his “worry” having listened to the throne speech is that the government will not table a budget before the fall, when the “rubber hits the road.” 

Trudeau’s ‘unfulfilled promises’

He highlighted the “unfulfilled promises” of the preceding Liberal on business carbon tax rebates, with some $600 million still yet to be paid to CFIB members from 2024, and $2.5 billion in payments that remains “taxable, unlike the consumer carbon tax rebates” which are tax-free.

“If we want to get our economy rebooted, we have a lot of unfinished business to do. Small- and medium-sized businesses  are on shaky footing [due to the pandemic and US trade war] and this is all capital that could be invested in supporting Canadian entrepreneurship in evolving [toward the emerging clean economy],” said Kelly.

Lana Payne, president of Unifor, a Canadian union representing 320,000 workers, said while it supported the government “unlocking Canada’s potential as a global energy leader, both in clean and conventional energy,” this ambition “requires more than simply speeding up approvals.”

“It demands streamlined, comprehensive review processes that protect the environment, uphold Indigenous rights, and ensure public safety— all while creating good, unionized jobs and building a more competitive, sustainable economy,” she said.