The Building a Green Prairie Economy Act: Discussion paper and engagement questions

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Context

the late Honourable Jim Carr
The late Honourable Jim Carr

On December 15, 2022, the late Honourable Jim Carr’s Building a Green Prairie Economy Act became law. In championing the Act as a private member’s bill, he often spoke of the ingenuity and resilience of the Prairie’s diverse people, and all that Alberta, Saskatchewan, and Manitoba have to offer Canada and the world. He firmly believed in the abilities and drive of our entrepreneurs, industry, and workers to adapt and thrive in a changing economy, as they have always done.

The global economy is indeed changing rapidly. Markets are demanding cleaner energy and other sustainable products for a net-zero future, and the Prairies have what it takes to keep up with demand.

Across the Prairies, conversations are taking place on how we compete for the economic opportunities these trends are creating. Prairie companies are considering how to be reliable suppliers for what global partners need today, while also setting the stage for next generation goods and services. As other countries take ambitious actions, we need to act quickly to seize these economic opportunities together.

The Act

At its core, the late Honourable Jim Carr saw the Act as a new way of doing business – to better focus federal efforts to support regional economic growth, and create good, sustainable, and well-paying jobs across the Prairies. The Act requires collaboration between federal departments on cross-cutting Prairie priorities, naming the Minister responsible for economic development in the Prairies as lead, in collaboration with the Ministers of Environment, Transport, Industry, Agriculture and Agri-Food, Finance, and Natural Resources. A key part of his vision for continued prosperity was also ensuring local voices are heard and strengthening collaboration between Prairie Canadians and all orders of government.

To achieve this vision, Prairies Economic Development Canada (PrairiesCan) is calling for your suggestions, ideas and feedback. We want to hear about the regional economic opportunities that you believe will best position the Prairies for success, now and in the future. We want to hear what is needed to advance those opportunities, as well as your ideas for stronger collaboration.

PrairiesCan is conducting outreach in Alberta, Saskatchewan and Manitoba, and inviting online feedback. The feedback we receive will go into building a framework that strategically positions the Prairies for key investments that promote economic sustainability, growth and employment.

Feedback is open to all, including provincial government partners, Indigenous and municipal governments, businesses and industry groups, economic development organizations, think tanks and academia, and individual Prairie Canadians.

This discussion paper provides regional context and describes some of the economic opportunities already being pursued. Click here to jump to our discussion questions and ways you can participate.

Regional landscape

The Prairies at a glance

Total area: 1.96M km2
% of Canadian total: 19.6%

Population (2021): 6,737,293
% of Canadian total: 18.2%

Nominal gross domestic product (GDP) (2021): $543B
% of Canadian total: 21.6%

Total value of exports (2021): $192.5B
% of Canadian total: 33.1%
% of Prairie exports to U.S. 82.1%

Top exports (2021)

  • Energy products ($109.6B)
  • Farm, fishing and intermediate food products ($31.8B)
  • Consumer goods ($10.9B)
  • Chemicals, plastics and rubber products ($10.7B)
  • Forestry products and building and packaging materials ($9B)

Net migration (2021): +48,426
(international + interprovincial)

Population identifying as Indigenous (2021): 709,540
% of Canadian population identifying as Indigenous: 39.3%

Sources: Statistics Canada; Immigration, Refugees and Citizenship Canada

The Prairies are an economic, agriculture and energy powerhouse, contributing significantly to Canada’s prosperity.

The region’s rich natural resources include world-leading reserves of commodities such as oil, natural gas, potash, and uranium. Its vast landscape spans nearly two million square kilometers of land and freshwater, which accounts for over 82% of Canada’s farmland,Endnote 1 and is also home to the Port of Churchill, the country’s only inland deep-water port.

In 2021, oil and gas extraction (including support activities for oil and gas extraction) accounted for over 22% of the Prairie provinces’ GDP.Endnote 2 At the same time, the Prairies’ agriculture sector accounted for over 70% of Canada’s crop production, and its mining sector contributed 14% of the total value of Canada’s mineral production.Endnote 3

The Prairies’ economic potential extends well beyond its natural resources and geographic advantages, with strengths in sectors such as clean technology, digital industries, and life sciences, tourism, and manufacturing. The region is also home to many of Canada’s leading research-intensive universities that contribute significantly to the region’s rich innovation ecosystem.

None of the region’s economic success would be possible without its people. The Prairie provinces are home to a young, diverse and growing population. In 2021, the average ages in Manitoba, Saskatchewan, and Alberta (between 39 and 39.8 years), were more than two years younger than the rest of Canada (41.9 years),Endnote 4 and from 2011 to 2021, the Prairies’ population grew by 9.5%, compared to 5% nationally.Endnote 5 In 2021, the Indigenous population comprised nearly 11% of the total Prairie population and it has grown by nearly 14% since 2011.Endnote 6 There were also nearly 300,000 recent international immigrantsEndnote 7 in the Prairie provinces in 2021 – accounting for around 22% of all recent immigrants in Canada.Endnote 8

Seizing economic opportunities

Below are examples of how innovators, industry, communities, and governments are already adapting to global trends and working to seize new opportunities.

Building on our strengths to grow and diversify our economy

The Prairies are known for our strong energy, resource, and agricultural sectors. Across the region, we are building on these strengths to add new areas of value and increase economic growth.

Global food insecurity is rising, as is demand for other agricultural products. The Prairies are known as the ‘bread basket’ of Canada, and farmers and food producers are working to increase both the volume and range of products we bring to global markets. At the same time, they are taking strides to increase sustainability and lower costs by adopting innovative, cleaner technologies and implementing sustainable land management processes. The region's manufacturing sector is also increasing the value of agricultural commodities, creating new food products and ingredients, materials, and clean bio-fuels. By building out value-chains in these and other areas, communities are capturing more of the economic benefits. Canada's new Sustainable Canadian Agricultural Partnership is a $3.5 billion, 5-year agreement between the federal, provincial, and territorial governments to strengthen the competitiveness, innovation, and resiliency of the agriculture, agri-food, and agri-products sector.

Spotlight: Protein Industries Canada (Regina, Saskatchewan)

Building on regional agricultural expertise, the Regina-headquartered Protein Industries Canada believes that by 2035, Canada has the potential to supply 10% of the plant-based protein the world needs. This is an opportunity to create a $25 billion-a-year industry, with considerable impact on the Prairie economy. The Government of Canada recently announced that Protein Industries Canada, one of Canada’s initial innovation superclusters, would receive an additional $150 million for the next five years (2023–2028), to continue co-investing in projects to grow Canada’s protein value chain.

Critical minerals are the building blocks for the green and digital economy. Global demand is growing and the Prairies has mineable deposits of many of the 31 critical minerals that have been identified by Canada.Endnote 9 In addition to uranium and potash, the world is looking towards the region as a dependable source of critical minerals required for clean energy, such as lithium and nickel (batteries and other energy storage), copper (solar panels and other clean technologies), rare earth elements (permanent magnets and wind turbines), and helium (coolants). The Canadian Critical Minerals Strategy will help advance opportunities on the Prairies, while providing Canada and its allies with a stable and secure supply of these valuable resources.

Innovations in our energy sector have made us a leader in areas like carbon capture, utilization and storage. Similarly, our upstream oil and gas industry is making progress to reduce methane emissions as a result of action plans and mitigation programs in Alberta and Saskatchewan. With global interest in the hydrogen economy growing, this energy expertise has positioned us to be a leading producer of clean hydrogen and early adopter of applications in areas such as transportation, heating, and power generation.

The Prairies are also home to growing digital, life science, manufacturing, and transportation sectors that are attracting investments and global partnerships. The amount of venture capital funding raised by tech firms across the Prairies has increased significantly over the past five years.Endnote 10

Spotlight: NFI Group Inc. (Winnipeg, Manitoba)

NFI Group Inc. is a Winnipeg-based global leader in bus and coach manufacturing with operations in 9 countries, over 7,700 team members, and over 100,000 vehicles in service. NFI has 2,500 employees in Manitoba at its New Flyer and MCI manufacturing facilities, Carfair fiberglass production facility, and NFI Parts™ aftermarket parts distribution warehouse and customer support center. Winnipeg is also home to the company’s New Product Development, where it designs and develops industry-leading vehicles, including its battery-powered, fuel cell-electric, and autonomous platforms. NFI’s products enable cities to lower emissions, decrease congestion, and support economic opportunities.

According to President and Chief Executive Officer, Paul Soubry, “the Prairies offer strong access to local talent and a supportive ecosystem that enables NFI to drive innovation, and deliver smarter, safer, more sustainable, connected transportation.”

New Flyer Xcelsior CHARGE FC™ fuel cell-electric bus
New Flyer Xcelsior CHARGE FC™ fuel cell-electric bus. Photo used with permission from NFI Group Inc.

Boosting the competitiveness of our resource sector in a low-carbon economy

The Prairies’ natural resource sector is a key driver of Canada’s economic output. The Prairies alone produce over 90% of the country’s oil and 65% of its gas,Endnote 11 which are a significant source of greenhouse gas emissions.

Investors and consumers are looking for cleaner energy sources and products as the world moves towards net-zero. Manitoba already has one of the cleanest grids in the world and exports clean power. Alberta was the first province to regulate greenhouse gas emissions for large emitters and is phasing out coal-powered electricity in 2023, seven years ahead of schedule. Saskatchewan is also a world leader in adopting carbon capture to abate emissions.Endnote 12 The Government of Canada is supporting the transition to clean energy through a variety of programs, tax incentives, and partnerships, including the Regional Energy and Resource Tables.

Spotlight: Shell Canada (Fort Saskatchewan, Alberta)

At the Shell-operated Quest carbon capture and storage, (CCS) facility near Edmonton, Alberta, Shell Canada has successfully captured and stored more than 8 million tonnes of CO2 since the facility opened in late 2015. Quest’s results, along with the Prairies’ world-leading expertise in CCS development and operation, are creating the potential for significant greenhouse gas emissions reductions across the conventional energy sector, and drawing interest from energy companies around the world.

The Quest CCS facility pipeline
The Quest CCS facility pipeline. Photo used with permission from Shell.

Other electricity and resource producers across the Prairies are also adapting, deploying technologies to reduce or capture emissions, using cleaner energy sources, more efficient processes, and increasing sustainability in other areas, such as water-use and recycling. Similar progress is occurring in other sectors too.

Prairie firms and innovators are exploring additional future uses for the energy and other resources we already produce. For example, oil has many applications beyond combustion, such as petrochemicals, asphalt, and other materials that will still be needed in a low-carbon economy. By establishing new value-chains, Prairie industries are continuing to benefit from our resources and build-out our exports.

Strengthening communities and creating opportunities for all

Across the Prairies, communities of all sizes are tapping into opportunities created by a global economy that needs secure and reliable sources of food, cleaner energy, and other commodities. They are strengthening innovation ecosystems, supporting entrepreneurs, attracting talent and investments, and developing links to global supply chains.

Increasing economic opportunities for all is another priority. With skills and labour shortages a growing challenge, the participation of all Prairie Canadians is important, including Indigenous peoples, women, youth, 2SLGBTQQIA+, Canadians with disabilities, newcomers to Canada and immigrants, members of Official Language Minority Communities (OLMCs), members of racialized communities, youth, and other underrepresented groups.

Building resilient communities and inclusive economies is key to adapting and competing for global opportunities. Across the Prairies we are seeing new collaborations to advance new growth opportunities that benefit us all.

Spotlight: Edmonton Region Hydrogen HUB (Edmonton and Area, Alberta)

An alliance of municipalities, Indigenous leadership, economic development organizations, non-governmental organizations, and federal and provincial governments, the Edmonton Region Hydrogen HUB is advancing a vision of economic, environmental, and social success for the region, and pioneering an approach that can support greener economies across Canada. A living example of how local engagement and collaboration can advance green economic initiatives for everyone’s benefit, the HUB is enabling the development of infrastructure, an inclusive workforce, and the business and policy environments needed for a prosperous zero-emission future.

When the HUB was launched in April 2021, Chief William Morin of Enoch Cree Nation, noted that, “Achieving the low-carbon economy required of us will be a challenge; the hydrogen HUB checks all the boxes representing solutions to this challenge including: practical use of our current energy sector infrastructure and resources, the opportunity to be a global leader in an emerging industry, and the local, unprecedented collaboration needed to achieve our ambitions.”

Ways to share your ideas

This discussion paper lays out an overview of the Prairies’ economic landscape and highlights the economic progress already being pursued.

A number of in-person and virtual discussions have already occurred, with more being planned. We look forward to your feedback and ideas in response to the discussion questions provided. Below are other ways that you can participate and our discussion questions.

Please send us your ideas by June 30, 2023, using:

Consultations will continue until June 30, 2023. The input received will be used to help inform the framework, which will be tabled in Parliament by December 2023. The framework will inform future federal actions and investments, and will include regular reporting to Parliament to ensure ongoing accountability. Read more about the Act and its requirements here.

Discussion questions

  1. As the world pivots to a greener economy, what are the opportunities for growth that matter most for your community and the Prairies?
  2. Other countries are actively pursuing the economic opportunities and benefits created by the shift to a greener economy. To stay competitive as a region, what actions are needed now to seize the opportunities that you see for the Prairies?
  3. Building a greener economy will require collective effort and leadership. How can the Government of Canada collaborate better with other governments, industry, and Prairie Canadians on the opportunities you have identified? We would like to hear examples of strong partnerships and lessons learned.
  4. Economic growth that works for everyone is a goal we all aspire to. What steps can we take to include the economic participation of under-represented groups and communities across our region? For example, how do we ensure opportunities for Indigenous peoples and rural communities?
  5. What does success look like for you as we work together to build a greener Prairie economy?

Annex 1: Overview of the Act

The Building a Green Prairie Economy Act was introduced as a Private Members Bill by the late Honourable Jim Carr and became law in December 2022. The Act requires the federal government to develop a framework for cooperation and engagement in the implementation of federal programs across various sectors to build a greener regional economy.

It requires consultation with provinces, municipalities, Indigenous peoples, industry, and labour organizations in the Prairie provinces. The Minister responsible for PrairiesCan will lead this work in collaboration with the Minister of Environment, the Minister of Transport, the Minister of Industry, the Minister of Agriculture and Agri-Food, the Minister of Finance, and the Minister of Natural Resources. The goal is to hear from regional partners on what they see as the key economic opportunities and priorities for the Prairies, and the supports they need to advance them.

The Act identifies six areas to promote economic sustainability, growth, and employment.

  1. Improving transportation options, including for small communities;
  2. Fostering jobs and skills;
  3. Advancing natural infrastructure and clean energy projects;
  4. Supporting  the development of clean energy in all sectors;
  5. Establishing programs and projects to build a green economy; and,
  6. Developing infrastructure projects for climate change adaption and mitigation.

Additional areas of focus may also be raised through consultations. PrairiesCan will advance priorities in collaboration with other federal departments.

As a first step, the Act requires that the framework be tabled in Parliament by December 2023. Two years after that, and then every five years, there will be a report to Parliament on the progress and effectiveness of the framework, including any conclusions and recommendations for improvement.

The full text of the Act can be found here.

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