Minister of Energy and Natural Resources Tim Hodgson in Ottawa, on March 26.Spencer Colby/The Canadian Press
Energy and Natural Resources Minister Tim Hodgson predicted on Friday that up to 10 new major natural resource projects will be under way by this time next year, as the Liberal government doubles down on its strategy to boost Canada’s economy during the trade war.
Prime Minister Mark Carney’s Major Projects Office was launched last year with the objective to identify certain natural resource projects for regulatory fast tracking, as well as facilitating hundreds of millions in dollars in funding.
So far, 15 projects in mining, electricity, energy and transport with the potential to invest $126-billion have been referred to the Office.
“We need to keep moving projects from approval to final investment decision, construction, and, ultimately, production,” Mr. Hodgson said in a speech in Toronto on Friday at The Empire Club of Canada.
“In Spring 2027, you will see projects not just having been added to the Major Projects Office, but at least five to ten new projects having reached FID or broken ground.”
The Mark Carney-led Liberal government is hoping that moving resource projects along faster will offset some of the pain being generated by U.S. President Donald Trump’s trade war.
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Since early last year, Canada’s aluminum, steel, autos and forestry sectors have been dealing with punishing tariffs. The 50-per-cent levy on steel imports into the U.S. has essentially closed off the American market entirely for Canadian manufacturers.
Echoing a well-received speech made by Mr. Carney in Davos earlier this year, Mr. Hodgson on Friday said that Canada can no longer rely on the U.S. economically, that Canadians can’t be complacent, and that self-sufficiency is the way forward.
“For too long, Canadians felt overly secure in the hand we had been dealt: abundant resources, a world order generous to middle powers like Canada, and a social safety net that provided a decent quality of life for most Canadians,” he said.
“It is now clear that the world has changed. Economic integration with our neighbour – once a strength – has been weaponized against us. It is time to stop relying on Neighbourhood Watch, and install our own security systems.”
While there is still work to be done to cut red tape in moving natural resource projects forward, Mr. Hodgson said that significant progress had been made, including Ottawa working more efficiently with the provinces, such as co-operating with Alberta on the “One Project, One Review” agreement.
“When I took office, the thought of building big things like we used to again felt nearly impossible. We were mired in slow bureaucracy; duplicative, overcomplicated permitting and regulatory processes; and apathy about the need to build,” he said. “We still have a lot to do. But a year into our mandate, it no longer feels impossible.”
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Mr. Hodgson in his speech referenced Enbridge Inc.’s decision on Friday to forge ahead with a $4-billion expansion of a natural gas pipeline system in British Columbia, after receiving approval from Ottawa.
As the federal government talks up its efforts to boost the resource economy, Canada faces the spectre of impending negotiations with the U.S. to try to end the trade war by renewing the United States-Mexico-Canada Agreement.
Mr. Hodgson said that leveraging Canada’s strength in energy and natural resources will be key in those negotiations.
“Ultimately, it is about knowing which cards are your best, and playing them effectively. Energy, electricity, forest products, minerals: these are our best cards,” he said.
Mr. Hodgson in his speech also called for a coherent strategy for electricity and nuclear energy and predicted that one will be announced and implemented within a year.
“Every major ambition we have, from AI to advanced manufacturing to mineral processing, depends on reliable and affordable electricity,” he said.