This House of Commons Standing Committee on Natural Resources meeting, part of its study on Canada’s electrification, energy self-sufficiency and domestic energy security, heard from Bob Larocque of the Canadian Fuels Association, Cherith Sinasac of Electro-Federation Canada, Margareta Dovgal of Resource Works Society, and Ken Kalesnikoff and Frédéric Verreault of the Canadian Forest Sector Transformation Task Force.
Bob Larocque argued that Canada’s conventional fuel sector demonstrates energy security through domestic production and infrastructure, but that the country is increasingly reliant on imports for low-carbon fuels, with about 60% of renewable diesel and ethanol coming from the U.S. He recommended amending the Clean Fuel Regulations to include a multiplier that incentivizes Canadian production, and simplifying compliance to remove investment barriers, noting that U.S. production incentives under section 45Z put Canadian producers at a disadvantage.
Cherith Sinasac stated that the technologies needed for electrification exist but face deployment barriers, primarily supply chain pressures and utility regulatory frameworks that favour capital-intensive infrastructure over digital solutions. She recommended expanding investment tax credits to include critical grid equipment, modernizing utility rate-setting to enable non-wire alternatives, and aligning codes and standards to allow bulk purchasing, which would help secure domestic supply chains and reduce reliance on imports.
Margareta Dovgal emphasized that British Columbia’s growing natural gas and LNG sector will drive electricity demand that cannot be met solely by hydro and transmission, making industry self-generation with natural gas as firm power a practical necessity. She recommended that the Clean Electricity Regulations be made flexible and durable, that provincial jurisdiction be respected, and that a comprehensive review of energy and climate policies be conducted to ensure they align with leveraging Canada’s natural resources for economic benefit.
Ken Kalesnikoff and Frédéric Verreault, presenting the forest sector transformation task force report, argued that Canada’s forest sector is a manufacturing industry suffering from a loss of investor confidence due to unstable fibre supply, regulatory duplication, and an uncompetitive rail system. They recommended a $10-billion investment fund over 10 years, conditional on provinces providing predictable raw material access, and called for increased domestic wood consumption through mass timber construction and changes to CMHC financing to support modular building, which would reduce reliance on U.S. markets.
During questions, witnesses disagreed on carbon pricing: Larocque said it is needed to support biofuels, while Dovgal called it a hidden cost that harms competitiveness. Dovgal also argued that policies have been designed to keep resources in the ground and that structural reform is needed, while Larocque focused on regulatory amendments rather than legislative changes for his sector. The committee did not conduct any procedural debate, motions or votes during this meeting.
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