Balancing Economic Growth and Decarbonization in Ontario

The Clean Economy Bridge visits Toronto, Ontario 

On September 19 and 20, 2024, The Clean Economy Bridge visited Toronto, Ontario, engaging in insightful discussions with provincial government, civil society leaders, and private sector pioneers. This meetings focused on Ontario's energy landscape, particularly the challenges and opportunities in transitioning to a cleaner economy as well as the role of youth in facilitating the transition. The discussions also emphasized the critical intersection of investment pricing, policy, and the triad of climate, economic, and energy security, asserting that all three can be achieved without compromise.

Investment Strategies and Challenges

Ontario's strategic initiatives aim to attract investments in the clean economy, focusing on key sectors such as battery electric vehicles, green steel, grid-attached storage, and the circular economy. Germany’s significant investment in Ontario, totaling $11 billion USD and involving 255 enterprises, underscores the province's attractiveness to foreign investors. The importance of the electricity sector's carbon content in business decisions was highlighted, with companies prioritizing regions with higher renewable energy proportions. Ontario’s grid, currently 90% emission-free, is a testament to its commitment to clean energy, though with a projected 60% increase in electricity demand by 2050 there is work to be done to ensure that the new capacity is green and that the grid's emission profile does not increase through investments in fossil fuel production.

Despite these strengths, challenges in the clean economy investment landscape were identified. Stronger policy signals and stability are needed to reassure investors. The short lead time on tenders also complicates land scoping. Economic and business considerations should be prioritized, with decarbonization as an added benefit. The federal policy framework was deemed largely adequate, similar to the IRA, but the importance of involving Indigenous communities—key renewable energy asset holders—was stressed, given their capacity challenges in approval processes.

Opportunities for Collaboration with Germany

Several avenues for potential collaboration with Germany were highlighted, including the design of renewable energy tenders, procurement strategies, and reducing investor risk. Expediting approval processes for renewable energy investments and implementing energy efficiency measures to manage demand growth were also identified as critical areas for cooperation.

Empowering the Next Generation: Student Energy's Role

Student Energy (SE), a global organization dedicated to empowering future leaders in the energy sector, was also a focal point during the visit. SE's programs, including the Student Energy Fellowship and the International Student Energy Summit, aim to inspire and equip young people to drive the transition to a sustainable energy future. With chapters across Canada, the US, and South America, there is opportunity to expand its reach to Germany, potentially establishing new chapters and tailoring fellowship opportunities for German youth. This expansion would enhance youths' awareness of career opportunities in clean energy and support their involvement in the global energy transition.

Future Directions

The discussions in Toronto emphasized the importance of balancing economic growth with decarbonization, a challenge Ontario is poised to tackle with strategic investments and policy development. The province aims to leverage its strong municipal engagement to support new generation projects and explore innovative energy solutions.