Canada has almost no chance of reaching net zero by 2050 with its present regulatory systems, according to a new report by the Business Council of Alberta..In “Future Unbuilt” the council argues Canada needs to invest $125-140 billion every single year until 2050 to build “an unprecedented” amount of infrastructure. Right now, companies are only investing a fifth of that amount, say the report authors..“The reality is that to meet these targets, we need to build major infrastructure at a scale never before seen in Canadian history,” they said. “With our current regulatory systems, we won’t be able to achieve this goal.”.The report says this will require record levels of investment in many areas including critical minerals, power generation and transmission, hydrogen and small modular nuclear reactors, to name just a few..The report says a majority of Canadians support “responsible and sustainable” development. But the process to do just that is “complex, fractured and frustrating,” the report says. .Historically, regulatory systems have been put in place “to stop bad things from happening.” Now it needs to be revamped to “make good projects happen — and happen fast.”.“We need pragmatic, balanced, and solution-focused ideas to improve the systems that can enable Canada to meet our climate ambitions and sustainably expand the economy,” it added..Too often the regulatory process is politically motivated and emotionally driven. Instead, it needs to be non-partisan and fact driven. Regulatory reviews should also be as cost and time-efficient as possible without sacrificing comprehensiveness and intended policy objectives to restore trust in the system..“This does not mean that elected governments cannot establish a clear framework for the types of major projects considered to be in the public interest,” it says. “Rather, regulators should have guidance from a clear, upfront policy framework within which they can conduct evidence-based project assessments.”.Likewise, a Canada West Foundation report released in April backed up those claims with respect to the federal Impact Assessment Act, which came into effect in 2020.. IAA backlog .Of more than two dozen projects submitted under the act, almost all remain in the first two phases of a four-part approvals process. Under the Canadian Environment Assessment Act that preceded it, it took 3.5 years on average for projects to either receive approval or be rejected. Some projects took more than 10 years to get a go-ahead, the report found..BCA’s VP of policy and chief economist, Mike Holden, who had a hand in authoring both reports, said government agencies simply need to do better..“In a global competition for investment, Canada’s project review process needs to be a strategic advantage for businesses. This report shows that more work is needed to provide businesses with the stability and predictability they need to invest in Canada.”
