Energy agreement an important first step to generating renewed prosperity in Canada

Calgary Chamber of Commerce president and CEO Deborah Yedlin writes: 'It’s through the lens of needing to boost productivity—and our economic prospects—that we must view Thursday’s historic memorandum of understanding between the federal and Alberta governments, setting a new course for energy development in Canada.'

There isn’t a week that goes by where the words “productivity” and “economic growth” are not grabbing headlines.

Last week, the Bank of Canada sounded the productivity alarm bell—again—about Canada’s lagging productivity.

In addition to tying affordability to the lack of productivity, it’s hard not to miss the subtext of the comment: Canadians shouldn’t expect the Bank of Canada to bail them out with further interest rate cuts.

It’s time to think differently.

If anything, it’s through the lens of needing to boost productivity—and our economic prospects—that we must view Thursday’s historic memorandum of understanding (MOU) between the federal and Alberta governments, setting a new course for energy development in Canada.

The economic significance of the MOU can’t be underestimated.

It strikes the entirely misguided regulations that caused investment uncertainty in the energy sector for a decade—or more—and opens the doors to investment, economic growth and new export markets, coming at a time when ensuring Canada’s economic sovereignty is paramount.

The building of a new oil pipeline is now a possibility because of the underlying certainty created by the MOU.

The fact Prime Minister Mark Carney received not one, but two standing ovations when he spoke to the Calgary business community following the official signing of the MOU should be testament to both relief and optimism for what is now possible for Canada’s most productive sector in the country.

With this in mind, the Calgary Chamber of Commerce released a report this week entitled Infrastructure in Waiting—with 83 recommendations along five separate but integrated categories that we believe will help Canada improve its productivity.

We have taken this initiative, in consultation with our members, because Alberta plays an important role in the country’s economy—from energy to agriculture, as an inland port and with growing technology and aerospace sectors.

At a macro level, Canada is a trading nation.

That’s the reason Carney has been travelling to Asia, the Middle East and Europe.

We must expand our markets and trading partners to secure the country’s long-term economic future.

To achieve this objective, modern, trade-enabling infrastructure is critical.

Upgraded ports and rail corridors, efficient pipelines and clean, reliable power systems and nationwide digital connectivity can unlock new efficiencies, connect regions and position Canada to compete on the global stage and reduce reliance on the United States.

ATCO chief executive Nancy Southern, speaking to business leaders at the annual Bennett Jones Lake Louise Business Forum, said while it’s important to focus on gaining access to tidewater, it needs to go beyond that.

“The conversation must broaden to include the infrastructure that moves goods, data and electrons. Congestion at our ports and persistent bottlenecks along the railways illustrate how fragile our gateways have become,” Southern said.

We need bold investments in marine and air freight infrastructure.

Marine-based shipping accounted for 60 per cent of total exports outside the U.S., while air freight made up 35 per cent.

The expansion of both gateways is critical to Canada’s global trade and to being the supplier of choice to the world.

That includes, obviously, continued growth in liquefied natural gas (LNG) exports to Asian and other markets.

Between LNG Canada I and II, Woodfibre LNG and the recent Ksi Lisims project referred to the Major Projects Office, Canada’s LNG exports are close to reaching 50 million tonnes export capacity per year by 2030.

That’s table stakes for being a meaningful player in the global LNG market and foundational for future growth.

But removing barriers also means rethinking how we build.

Canada must streamline regulatory approvals to move projects from concept to construction faster, embed Indigenous participation and ownership at every stage of project development and ensure growth is shared across communities and regions.

Our overburdensome regulatory system was one of the factors singled out by the Bank of Canada for our lagging productivity because it has decreased domestic investment and also discouraged foreign capital from investing in Canada because of the lack of certainty.

This latter fact must be kept in mind: Canada is about two per cent of global capital markets.

This means we don’t have the financial horsepower domestically to develop big projects.

We need to attract private capital—and foreign capital—without delay.

In addition to upgrading and growing our trade infrastructure and removing regulatory barriers, our report identifies the need to advance innovation and competitiveness, support Indigenous participation in projects and business and increase the competitiveness of our labour market.

With the recent release of The State of the Science, Technology and Innovation in Canada report, the need to advance innovation and competitiveness couldn’t be clearer.

Canada continues to lag in its investments in research and development despite having a highly educated workforce.

In 2024, approximately 63 per cent of working-age Canadians held a post-secondary credential compared to the OECD average of 41 per cent.

This gap points to an important disconnect.

If we want to increase productivity, not only must we close the gap between innovation and higher education, but we also need to increase investment in R&D as a percentage of GDP.

Equally—perhaps more—important, we need to do better at adopting technology developed in Canada rather than waiting for validation by non-Canadian companies.

We don’t have the luxury of time—speed has to be the new strategy.

Finally, none of this happens without including Indigenous communities.

We are proud Alberta was the first to create the Alberta Indigenous Opportunities Corporation (AIOC), which provides loan guarantees to Indigenous communities seeking to invest in opportunities that pave the way to economic sovereignty by providing a stable revenue stream allowing for investment in local services.

The $1.12-billion investment between Enbridge and Athabasca Indigenous Investments in 2022 was the first deal to be done through the AIOC and stands as an example of what is possible across the country.

Infrastructure investments of size—from the St. Lawrence Seaway, the Trans Canada mainline, the national railway and more recently the TMX expansion and LNG Canada—have been few and far between.

Yet, as the contribution of TMX to the country’s GDP shows, the correlation between infrastructure investment and economic growth is irrefutable.

Canada must deliberately invest today and position the country for a prosperous future benefitting all Canadians.

Reigniting energy development is the fastest way to generate renewed prosperity in Canada, and the MOU signed this week represents an important first step.

Deborah Yedlin is the president and CEO of the Calgary Chamber of Commerce.