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Results: 1 - 15 of 45
Eric Choi
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Eric Choi
2021-05-27 11:26
Thank you very much, Madam Chair, and members of the committee for the opportunity to appear this morning.
Let me start by saying a little bit about GHGSat. We're a small SME that was established in 2011 as a private sector solution to climate change. We are headquartered in Montreal, with offices in Ottawa and Calgary, and we now have international offices in Houston and London, England.
Our vision of GHGSat is to use satellites to become the global reference for the remote sensing of greenhouse gas emissions from any source in the world, thereby enabling stakeholders in the energy, resource, power generation, agricultural, waste management and sustainability sectors to make informed environmental decisions.
While there are obviously other satellites up there in space that also measure greenhouse gases, satellites from NASA and from the European Space Agency, for example, it's kind of a neat and remarkable fact that GHGSat, a Canadian SME, is currently the only private sector or government entity in the world that has satellites capable of high-resolution greenhouse gas measurement down to a resolution of only 25 metres. Our satellites—these Canadian satellites—are the only ones that can measure greenhouse gas emissions from sources as small as individual gas wells. This is a critical capability for attribution.
Space technology is going to play an increasingly important role in Canada’s transition to greener and more sustainable practices and to building back better. Out of the 50 essential climate variables identified by the World Meteorological Organization as needed to monitor climate change, 26 of these variables can only be effectively observed from space. Environmental satellites are therefore directly aligned with the goals of Canada’s 2030 agenda for sustainable development, specifically for taking urgent action to combat climate change and its impacts—which is goal number 13—and promoting inclusive and sustainable industrialization and fostering innovation, per goal 9.
When we talk about fields of technology, be it space technology or green technology, there are two ways in which the Government of Canada can play a role in nurturing innovation and expanding sustainable trade opportunities. The first is by investing in early-stage research and development. The second is by being an early adopter of new innovations, thereby lowering the risk and allowing the private sector to bring their new products and services to the international market.
Canada is a world leader in supporting early-stage R and D in both industry and academia. As an example of that, the innovative technology behind our methane monitoring satellites was developed with the support of Sustainable Development Technology Canada, the Canadian Space Agency and the industrial research assistance program of the National Research Council.
To ensure that Canada builds back better during the post-COVID economic recovery, an area of improvement for the Government of Canada would be to support industry beyond the initial R and D phase. One of the most effective measures that could be undertaken in this regard is to be an early adopter of new innovations and, furthermore, to be an ongoing anchor customer for green and sustainable technologies. This would strengthen Canadian competitiveness and expand trade opportunities, because one of the first things that a prospective customer asks internationally is whether a new product or service has been adopted by the domestic market.
There are examples of anchor tendency in the field of environmental satellites that we are familiar with, such as the NASA commercial small satellite data acquisition program in the U.S. or the third party missions programme of the European Space Agency.
This is going to be a pivotal year for Canada as we look forward to COP26 in November. One of the high-profile projects expected to come out of this UN climate conference is the International Methane Emissions Observatory—or IMEO—which is the project of the UN Environment Programme that is seeking contributions precisely of satellite data to identify methane super-emitters and thereby provide actionable data for diplomatic follow-up.
In recent months, we at GHGSat have been engaged with the relevant Government of Canada departments to discuss the potential of providing Canadian satellite methane data to the IMEO as a very highly visible demonstration of our country's commitment to fighting climate change.
To conclude, and to reiterate what some of the earlier speakers have said, the success of our post-pandemic recovery and the industrial transition to greener and more sustainable practices go hand in hand with both the government and the private sector as partners in this endeavour to build back better.
This concludes my prepared remarks, and I look forward to taking your questions.
Geneviève Aubry
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Geneviève Aubry
2021-05-13 11:13
Thank you for having me here today.
I am speaking to you today as the director of Collectif Territoire, a non-profit organization based in Abitibi-Témiscamingue, whose mandate is to unite the geniuses of science, arts and industry to produce benefits for ecosystems and communities.
Since 2018, the collective has been working on a project that is gaining support in the community, the Osisko Lake project. This project aims to rehabilitate and improve Lake Osisko, located in downtown Rouyn-Noranda, in a creative and participatory approach that unites several sectors and the population.
Lake Osisko has been damaged by human and industrial activities over the past decades, and is suffering from a variety of problems, many of which are common to different lakes in the region and across the country. These include contaminated sediments, high phosphorus levels, invasive aquatic plants, emerging contaminants, and more. In order to preserve the biodiversity and vitality of this ecosystem, it is important to find creative and adapted solutions to promote its recovery. It is therefore through the search for solutions that we are setting up a true regional innovation laboratory.
The Osisko Lake project is a research and experimentation ground for engineers, scientists, artists and other inventors, who unite their expertise and talents in the pursuit of this noble and inspiring goal. The project already has more than 40 partners. They include industrial companies, artists, universities, college technology transfer centres, schools, public and parapublic environmental organizations, and more.
Numerous people are uniting around the project because it is a positive, constructive project with multiple and powerful benefits. It is a project in which the partners find benefits. It is also a project with a territorial impact. It was selected by the Future of Good organization as one of the 100 best recovery projects in Canada.
The Osisko Lake project is a technological showcase for industrial and mining companies, mainly, that are very active in our region. Their expertise is recognized worldwide. Through this project, these companies enhance and develop inspiring practices in environmental innovation, rehabilitation of degraded ecosystems and bioremediation, and so on. There are many of them collaborating on this project, and they are proud of it.
Added to this rich contribution is that of the Université du Québec en Abitibi-Témiscamingue, about which Mr. Rousson has just given us an eloquent presentation. Researchers from UQAT are participating in the project by contributing their expertise in biology, mining engineering, ethics and digital creation.
The college centre for technology transfer associated with the Cégep de l'Abitibi-Témiscamingue, the Centre technologique des résidus industriels, or CTRI, is also involved in the project, particularly in bioremediation.
The artists bring creativity, a perspective, beauty and questioning, which give the project its colour.
In addition to having a strong core of local and regional partners, the project has reached out, and it has sparked partnerships elsewhere in the province, the country and the world.
The Standing Committee on Industry, Science and Technology is interested in examining how the Government of Canada, in its stimulus package, can support industries in their transition to greener, more sustainable practices, and support local and regional development and innovation initiatives.
Faced with the magnitude of the environmental, economic and human challenges doubly highlighted by the health and climate crisis, this plan is an opportunity to implement territorial development models in tune with the needs, particular characteristics and strengths of communities.
To support industries in their transition, the Government of Canada must demonstrate its confidence in community-led territorial development and innovation initiatives. You will not be surprised to hear me say that one sure way to support these initiatives is to put in place a territorial innovation support fund. This type of fund is managed by and for regional communities, and it evaluates projects based on their ability to adequately respond, in an innovative way, to community needs.
The most successful projects are often those that emerge from the regions, and whose development is not hindered by the restrictive or exhaustive criteria of certain government programs.
A territorial innovation support fund is a fund based on the evaluation of the impact potential of projects according to the needs and distinctive features of the regions from which they emerge.
An innovation support fund is a fund administered independently, by a selection committee whose legitimacy is widely recognized by people in the area concerned.
It is a fund that provides support to understand and document the impact of projects and mobilize the knowledge gained. It is also a fund that promotes the transfer and scaling of the innovations, knowledge and skills developed, to benefit other communities and regions.
I have long dreamt of such a fund, and I hope that today's forum has allowed me to make you aware that, in Canada's green recovery efforts, it is essential to give the regions a free hand to choose for themselves the projects that have the greatest potential to impact and benefit communities.
View Sébastien Lemire Profile
BQ (QC)
Thank you, Madam Chair.
I would simply like to say to the honourable member from Pontiac that his riding is enormous and includes the municipality of Grand-Remous, which is close to the UQAT centre in Mont-Laurier. Our ridings are neighbours.
Ms. Aubry, the city of Rouyn-Noranda will soon be celebrating the 100th anniversary of its foundation. The city is not as old as Montreal, which will be 400 years old soon, or La Pocatière, but it will nonetheless be marking its centenary and you will probably be involved in the celebrations.
What can you tell us about the role Collectif Territoire is playing in our economic and environmental recovery in terms of regional innovation and helping industry to transition? What role can Collectif Territoire play in this recovery?
Geneviève Aubry
View Geneviève Aubry Profile
Geneviève Aubry
2021-05-13 12:09
Collectif Territoire is a middleman in the world of innovation. A middleman plays a vital role when there is a systemic vision for innovation which calls upon the skills and expertise of various organizations. This role is all the more important when stakeholders are using the innovation ecosystem to bring key actors together and tear down silos and borders. This is the role we are playing.
We add value to the transfer of scientific knowledge to industry, as Mr. Rousson mentioned, because we bridge the gap between applied and pure research. We also work to foster scientific awareness among school-aged children by encouraging artists and cultural organizations to contribute to efforts aimed at gathering knowledge, teaching and communication.
All this contributes to a holistic vision and ensures that we are not only talking about radical innovation, but also reworking existing innovative projects that will lead us to a sustainable green recovery.
View Ali Ehsassi Profile
Lib. (ON)
View Ali Ehsassi Profile
2021-05-13 12:47
Thank you, Madam Chair; and thank you to all of the witnesses for appearing before committee today.
Mr. Mills, I wonder if I could pick up where you left off. You were explaining to us the need to stimulate innovation and risk-taking, and things of that nature.
Given that you explained to us how it's important to incentivize risk-taking to spur innovation, I take it that you look at it from a comparative context. What jurisdiction or country would you say has done the best job on that particular front?
Mark P. Mills
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Mark P. Mills
2021-05-13 12:48
Traditionally, it has been the United States and Canada. This has been the epicentre of new business development. New small business formation has been in North America, not in Europe. In fact, whatever measure you use to look at new companies, new formation of companies, North America has been, up until very recently, what we'll call the “friendliest jurisdiction” in which to be an innovator, an entrepreneur or a small business.
That has become more difficult, certainly in some areas, especially resource extraction. Most small, privately funded mines have left the United States a long time ago, and Canada has had the same trouble. However, it has been the best jurisdiction.
Germany, France and Italy have lagged. This is not a criticism of them as people; it's just the reality of the governance.
Let's go back to BlackBerry, the beginning of the smart phone revolution. It's traced to Canada, frankly, and then the United States, of course, because Apple did one better. I still like my BlackBerry, by the way. I don't use one anymore, for obvious reasons.
Those are good examples.
We hope and expect to have that kind of innovation in physical resource areas like mining and oil and gas. It's a tougher one because they're [Technical difficulty--Editor] industries. Innovation is harder because of the scales involved, but not impossible.
Mark P. Mills
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Mark P. Mills
2021-05-13 12:50
Well, let's clarify. [Technical difficulty--Editor] hedge funds with private equity, which is a different category of private money. Hedge funds have a notorious role because they hedge investments, so to speak.
For most innovation, obviously there's a role for government. This is a very old debate, and a very important one, especially in modern times. [Technical difficulty--Editor] last 80 years since World War II, we've talked about how governments can play a role. However, the essential answer is because of the nature of risk in doing something different than everybody else is doing today, if you want to reward the innovator, you have to give them the latitude to do it, which means they have to find money. It's always still the money.
The risk-taking is taxed. Let's just use a specific example. If you tax risk-takers the way you tax non-risk-takers, you get fewer risk-takers. It seems unfair to reward the risk-taker for the outsized gain in lower taxes, but what you don't see is behind the scenes, for every successful company, there are hundreds that fail. As we all know, it's an old truism, but it's a true truism. Therefore, simplistically, if you want more of it, tax less of it.
Jean-François Samray
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Jean-François Samray
2021-05-11 11:31
Thank you very much, Madam Chair.
Good morning, ladies and gentlemen members of the committee.
Thank you for inviting me to contribute to your discussion on the green economic recovery from the COVID-19 pandemic.
My name is Jean-François Samray, and I am president and chief executive officer of the Quebec Forest Industry Council, which brings together sawmill, veneer, pulp, paper, cardboard and panel companies in Quebec, as well as engineered wood manufacturers.
Today, I want to stress not only the importance of the forest industry's role in our communities' economic recovery, but also the fact that it will be just as much of a key player in the fight against greenhouse gases, or GHGs. Various levels of government will be responsible for creating the context to enable the forest industry to participate fully in those two issues and to support its efforts in innovation, so that it can help reach our objectives.
The Quebec forest industry, which generates over 142,000 jobs, is the economic engine of some 900 municipalities. Nearly 70% of Quebec's municipalities are connected to that industry. The average annual income in the forest industry is $66,500. That sector contributes $41.5 billion to the province's economy and $17.7 billion to the gross domestic product.
Just recently, a study conducted by PricewaterhouseCoopers showed us that, in 2019 dollars, and not at the cost of wood today, $150 is collected in taxes per cubic metre of processed wood. Of that amount, $50 is going to federal coffers. So investing in the forest sector is a win–win–win initiative. It is a win for the economy, for communities and for the environment.
A number of international studies emphasize the importance of an active and responsible forest industry. Among them are studies carried out by the United Nations Department of Economic and Social Affairs, the Food and Agriculture Organization of the United Nations, or FAO, and the International Energy Agency, or IEA. Added to those studies is the Natural Resources Canada annual report titled “The State of Canada's Forests”, which demonstrates that triple role.
So it goes without saying that we are happy the federal government is investing $3 billion over the coming years, so that two billion trees can be planted in the near future. However, a portion of those trees must be harvested eventually to enable sustainable forestry, which could make the most of the various iterations of that carbon neutral product. When a tree is cut down and sawn into planks, it sequesters its carbon longer than its counterparts left to themselves in the forest. In other words, when wood is used as a building material, its CO2 retention period is extended. It is a better alternative to other building materials, such as steel and concrete, which consume up to 34% more energy and emit 81% more GHGs.
Our industry is not short on challenges. The softwood lumber sector is booming, and the demand comes from the United States, Canada and from around the world.
However, the United States Department of Commerce imposes countervailing duties on softwood lumber imports from Canada. But the World Trade Organization, or WTO, concluded in its final report that Quebec is complying with international trade rules. We are counting on the Canadian government to use the WTO's conclusions and require an exemption from countervailing duties on products from public forests, an exclusion for businesses that mostly get their supply on the American side, and an integral refund of the money already collected.
When it comes to innovation, the panel sector and the pulp and paper sector are undergoing a complete transformation and are innovating constantly. Concerning panels, a great deal of research is going into the production of new green adhesives to meet consumer demand. The pulp and paper sector is no exception. A number of innovations have been announced over the past few months, including by FPInnovations, which uses cellulose in the manufacturing of products to fight against COVID-19.
So government support in research and development and in innovation is crucial, especially for FPInnovations, but also for the academic sector and for businesses, to help the industry make a shift and remain a leader in the new green economy.
We also think that using biomass in the heating sector must be done by adding depth to the stream, and not by cannibalizing existing businesses that are making value-added products.
In conclusion, we feel that the government must invest much more in the Investments in Forestry Industry Transformation program, the IFIT, because $55 million, the amount allocated over two years, is clearly insufficient.
Thank you.
Michel Chornet
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Michel Chornet
2021-05-04 11:19
Thank you.
Good morning, Madam Chair, and ladies and gentlemen of the Standing Committee on Industry, Science and Technology.
Thank you for inviting me to appear before the committee.
My name is Michel Chornet, and I am Executive Vice-President, Engineering, Innovation and Operations, at Enerkem.
The theme of the economic recovery provides a unique opportunity for Canada's energy transition. First, I will say a few words about our company.
Enerkem was cofounded in 2000 by my father Esteban, an emeritus professor at the Université de Sherbrooke, and my brother Vincent. They developed and brought to commercial scale a revolutionary technology that is unique in the world. It produces advanced biofuels and renewable chemical products from biomass and nonrecyclable waste.
Our technology is a key link in a genuine circular economy. We therefore contribute to energy diversification and to the manufacture of everyday, low-carbon products. This is a sustainable alternative to burying or incinerating waste materials. While many see waste materials as garbage, we at Enerkem see them as a source of accessible, circular and inexpensive carbon.
Our headquarters are located in Montreal and we operate large-scale commercial demonstration facilities in Edmonton, Alberta, and two innovation centres at Westbury, Quebec and Edmonton, Alberta. We employee more than 250 people across Canada.
With our advanced recycling technology, we have succeeded in creating industrial partnerships in Canada and abroad, including with Suncor, NOVA Chemicals, Shell, Repsol, Proman and SUEZ.
Enerkem is founded on a business model that relies on innovation. We are developing a technology that required, and continues to require, a lot of research and development. To continue our development and to demonstrate that our technology was viable and, above all, commercially scalable, we had to secure private and public capital.
Through our plant in Edmonton, Enerkem has succeeded in demonstrating the flexibility, efficiency and maturity of our advanced recycling technology. The need to innovate never stops, however. Although the technology has reached commercial maturity, the competition is such that additional investments in innovation are required.
Canada has a unique opportunity to develop an advanced recycling model. This would keep the chemical and petrochemical industries competitive through major reductions in greenhouse gases and the creation of high-quality jobs. The Canadian model of advanced chemical recycling would be based on infrastructures already in place, such as low-carbon electricity, and on nonrecyclable waste, which is a major source of carbon.
Last December, we announced the construction of a biofuels plant in Varennes, on the Montreal's South Shore. Our group of strategic partners includes Shell, as the lead investor, Suncor, Proman and Hydro-Québec, which will supply renewable hydrogen and oxygen. We also have the support of the governments of Canada and Quebec. This C$875-million project is called Recyclage carbone Varennes.
The plant will produce a second-generation, low-carbon biofuel. It will reduce the annual production of greenhouse gases by about 170,000 tons of CO2 equivalent. In the world of waste management, Recyclage carbone Varennes' contribution will be considerable. Each year, the plant will convert more than 200,000 tons of nonrecyclable material into almost 125 million litres of biofuel. The economic impact in Quebec will be $85 million per year, not to mention 500 jobs during the construction of the plant and 100 jobs when it is operating.
The economic future looks promising. Currently, we are actually seeing a very rapid progression in the market for new-generation biofuels, because few technologies have reached maturity in making the transition.
Let's quickly look at Canada's situation in the world. In 2018, Canada was in 10th place among greenhouse gas emitters. In 2019, total gasoline sales in Canada reached 45 billion litres. Prime Minister Trudeau has committed to reducing greenhouse gas emissions by 40% to 45% by 2030. Canada has also committed to have a carbon-neutral economy by 2050.
To reach our targets, market conditions that are favourable to rolling out innovative solutions must be created.
A competitive market must be created in order to attract private investment and develop bioenergy projects. An investment tax credit could make it easier to finance companies.
Consistent support for the lifecycle of technological innovation must be assured, through the use of current programs.
The Clean Fuel Standard must be used to support Canadian innovation.
In closing, let me repeat what I said a little earlier. Canada must create favourable conditions to allow the development of innovating companies, as they will contribute directly to our economic recovery in the post-COVID-19 period.
Thank you for your attention.
Michel Chornet
View Michel Chornet Profile
Michel Chornet
2021-05-04 12:03
In my opinion, Canada has a unique opportunity to meet those objectives. However, any standards or regulations must support innovation.
In California, the state standard supports innovation. For example, it recognizes renewable hydrogen, which is hydrogen produced with a renewable source of electricity. It has a standard and it provides transparency around the life cycle calculation, which is used consistently for all products industry-wide. It is able to recognize innovation and provide credits in our industry for waste diversion, for example, to account for what would happen if it were not recycled.
In my opinion, the Clean Fuel Standard being developed is an attempt to address this issue, but it needs to be more consistent. The standard needs to drive innovation, which we think California has done well, as has Europe with the Renewable Energy Directive.
View Nathaniel Erskine-Smith Profile
Lib. (ON)
Should we be looking to say, then, in our recommendations, that some fraction of the proposed SIF funding and the renewal of SIF should be devoted to early stage start-ups?
Lynne Manuel
View Lynne Manuel Profile
Lynne Manuel
2021-04-29 12:54
I've been talking about this for quite a while now, and I think that's really a necessary part of what the government needs to be supporting, and I will say that there's so much leverage on those dollars. We're talking about doing lab-scale work where people can take that data forward and convince other investors that they have a working technology.
Working at that scale is very economical for everyone concerned. We don't want people to reach that investable stage before they've done their homework, because it costs so much more to do the work at that point. I think it's really a good deal for everyone.
View Sébastien Lemire Profile
BQ (QC)
Absolutely.
What are the regulatory roadblocks to innovation currently faced by our businesses and entrepreneurs?
Jim Balsillie
View Jim Balsillie Profile
Jim Balsillie
2021-04-20 12:13
Well, there are many things.
In a sense, the ideas economy, the intangibles economy, works opposite to the tangible economy, so it's actually about creating regulations that favour you.
When we hear people like Robin Shaban speak, we know we have to look after the power of our own companies by how we run our Competition Bureau. We have to look at the power of our own citizens and companies for how we regulate data in our privacy economy, how we set standards, how we do trade agreements and how we do research funding.
It's really about programs that focus on what the gain is, which is generating the assets that determine our prosperity and our security. It's a totally different role for government. This is, frankly, what's been missing in our approach for the last 25-plus years. It's why we've faded in these regards, but it can be fixed.
View Earl Dreeshen Profile
CPC (AB)
Thank you very much, Madam Chair.
It's great to have all the witnesses here this morning.
Mr. Balsillie, some of the things you mentioned earlier were that we are first world as far as income is concerned, but we are third world as far as our outcome is concerned. We heard earlier that a bunch of money is going to be allocated to different potential projects to help out as far as industry issues are concerned, but you also indicated lots of money but poor results. The other thing that you mentioned on our research funding with great fanfare was that the superclusters are a great idea, but of course, so much of the intellectual property and the main focus go to other countries.
I know that in the past you've made comments about how we seem to be losing our place. I'm wondering if you can comment on some of those issues right away.
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