Premiers Committed to Economic Competitiveness and Responsible Resource Development

Clean Fuel Standard
Premiers discussed the many measures being introduced by the federal government, which may affect the economic competitiveness of Canadian resource industries.

Premiers call on the federal government to ensure that any national clean fuel standard adheres to the following principles:

  • Analyze impacts: an in-depth and transparent analysis of direct and indirect costs and the impact on competitiveness, investment and consumers, must be carried out in consultation with provinces and territories, industry and other impacted stakeholders to avoid undue impacts on consumers, households and businesses;
  • Achievability: targets should be realistic and provide for progress to be made towards Canada’s 2030 target under the Paris Agreement, taking into consideration the capacity for domestic low carbon and renewable fuel supply;
  • Account for regional circumstances and energy security: standards should recognize regional energy security restraints and the unique challenges (including liquid biofuel reliability in cold environments and storage stability) faced by the residents of northern, rural and remote communities, and the possibility of exemptions from the proposed standard;
  • Minimize carbon leakage: the potential for Canadian industry moving to jurisdictions with more lenient rules must be minimized through responsible policy actions, such as providing maximum flexibility for achieving compliance;
  • Support emission-intensive and trade-exposed sectors: emission-intensive and trade-exposed sectors must not be disproportionately harmed as a result of the standard;
  • Ensure domestic growth and greenhouse gas emissions reductions: implementation should be phased-in to allow Canadian industry the time to invest in clean technologies and to adapt to other climate response mechanisms being introduced over the same period, with the goal of meeting the standard through domestic renewable fuel production;
  • Complementarity: minimize duplication and ensure federal action recognizes and supports provincial and territorial actions; and,
  • Reasonable/achievable compliance pathways: provide options for compliance that do not cause disproportionate regional impacts.

Strategic Infrastructure and Economic Corridors
Natural resources, including hydroelectricity, oil and gas, and minerals, play a vital role in Canada’s economy. Ensuring these resources get to markets, on time and safely, contributes to a stable and strong economy and further promotes Canada’s energy independence. Premiers noted that all regions in Canada should be enabled to develop resources in an economically efficient and environmentally responsible manner.

Premiers share a commitment to getting environmentally responsible and economically significant strategic infrastructure projects built in order to ensure goods, services and natural resources get to markets safely and efficiently and communities are better connected. Infrastructure investments are key to strengthening growth in all regions of Canada.

Premiers encourage the federal government to direct its investments towards projects that support provincial and territorial priorities, including transportation, communications, and energy infrastructure, in a way that is respectful of provincial and territorial jurisdiction over natural resources. Increased investments in these areas will contribute to sustainable and diversified economies, vibrant rural, remote and northern communities and improved domestic and international market access.