OTTAWA, ON (November 3rd, 2022) — Adam Auer, President and CEO of the Cement Association of Canada (CAC), made the following statement in response to the Fall Economic Statement:
“We welcome the Government of Canada’s commitment to seizing the opportunities provided by a net-zero economy. The Fall Economic Statement (FES) is the clearest articulation yet that Canada understands its competitiveness through this economic transition will depend on attracting its share of clean growth capital into critical technologies, including carbon, capture, utilization and storage (CCUS) and green hydrogen. With the Inflation Reduction Act (IRA) and similar measures around the globe, the competition for that capital has grown significantly more intense.”
“Despite Canada’s laudable early efforts to support the overwhelming costs of deploying first-commercialisation technologies like CCUS, Canada risks falling behind the leapfrogging ambition of the U.S. incentives for clean technologies, which are already drawing significant attention and investment south of the border. Additionally, Buy Clean policies better position U.S. companies vis-à-vis their Canadian counterparts by creating demand for lower carbon materials and domestic green supply chains. In a nutshell, our largest trading market has managed to build a strong incentive package to invest in expensive technology (i.e. CCUS) while increasing demand for the end-product (i.e. low carbon concrete).”
“We are pleased to see a very clear commitment to respond to the IRA in the FES, to ensure Canada remains a first choice for the trillions in private capital waiting to be invested in clean technologies around the world. In combination with existing supports like the Net Zero Accelerator and Investment Tax Credits for CCUS and other clean technologies, the establishment of the Canada Growth Fund and its use of innovative financial tools, such as Carbon Contracts for Difference (CCfDs), has the potential to close the gap with the IRA and help Canada’s industrial sectors thrive in a competitive global green economy.”
“As the second-most used material in the world after water, concrete has unsurpassed characteristics of strength and durability, all while standing up to the increased pressures of climate change. Our industry remains steadfast in its commitment to lead in tackling climate change and achieving net-zero while supporting jobs in communities across Canada”.
- Carbon emissions resulting from the production of cement are approximately 7% globally and 1.5% of Canada’s annual GHG emissions.
- Canada’s cement and concrete industry has committed to reducing over 15 megatonnes of GHGs cumulatively by 2030 and achieving net-zero by 2050.
- In a partnership with Innovation, Science and Economic Development Canada (ISED), the cement industry is developing a Roadmap to net-zero concrete by 2050. It was also the first industry to join Canada’s Net Zero Challenge – a voluntary initiative which requires public transparency and disclosure.
- Decarbonization pathways for the cement industry include low carbon fuels, performance-based codes, standards and procurement policies, material efficiency, and carbon capture (CCUS). With approximately 60 percent of cement emissions resulting from industrial processes in the manufacturing of clinker (the key ingredient in cement), clean technologies like CCUS are needed for the industry to meet net-zero emissions.
- The Canada Growth Fund will focus on the need to make investments that will attract substantial private sector investment in Canadian businesses and help them seize the opportunities provided by a net-zero economy. It will offer a flexible suite of investment tools such as CCFDs to provide predictability and reduce risks for long-term investments in clean technologies – based on a predictable price on carbon and carbon credits. These new investment tools will be complementary to the Net-Zero Accelerator and Investment Tax Credit for CCUS.
The Cement Association of Canada (CAC) is the voice of Canada’s cement industry, representing five vertically integrated cement companies that provide a reliable local supply of cement to help build Canadian communities and critical infrastructure. The cement and concrete industry contributes approximately 158,000 direct and indirect jobs across the country, and $76 billion dollars in direct, indirect, and induced economic impact into the Canadian economy.
Chief, Corporate Communications and Marketing