Energy has been a cornerstone for human progress since the moment we harnessed the power of fire to produce heat.
For many generations in Canada, we’ve been blessed with an abundance of energy resources, and we’ve utilized them effectively. It’s hard to imagine a time when this fundamental force wasn’t there to satisfy our personal and economic needs.
But history has shown that our relationship with energy is dynamic. The 1970s brought a temporary jolt with fears of a global oil shortage. This energy-shortage scare resulted in government promotion of energy conservation. For Canadians, the energy-shortage scare was fleeting. However, conservation and energy-efficiency programs have been instituted.
Primarily because of hydrocarbon resources in its western provinces, Canada has enjoyed a rich supply of oil and gas over the years. These fossil fuels – coal, oil, and natural gas – have powered Canadian’s personal needs, industries, transport, and fueled economic expansion. For example, Ontario’s manufacturing sector grew significantly after the arrival of natural gas through TransCanada Pipelines.
As we consume hydrocarbon natural resources there are consequences. The use of hydrocarbons results in emissions, including carbon dioxide (CO2), which have implications for our atmosphere, environment, and the global climate.
In recent decades, Canadians have shared a growing global concern about the environmental impact of hydrocarbons. Throughout the 21st century, many Canadian leaders have determined pressing issues related to climate change and hydrocarbon fuels demand more immediate and decisive actions. Canadian governments at various levels – federal, provincial, and municipal, including in Ontario – have expanded and deepened environmental policies. These policies have spurred changes in energy practices, aligning practices with government incentives aimed at cutting carbon emissions and greenhouse gases.
Now, the spotlight is firmly on reducing hydrocarbon usage, with electrification becoming the central strategy for decarbonization.
Canadian policies have set up rewards for decarbonization. Positive rewards include direct incentives – grants and tax breaks. Other incentives include carbon taxes, applied to use of hydrocarbon energies.
Electrification initiatives are widespread, with emphasis on:
- removing hydrocarbon fuels for generation of electricity,
- replacing internal combustion engine vehicles with electric vehicles, and
- replacing natural gas space heating and water heating with electric space heating and water heating.
These electrification initiatives come with a high price. Green energy and innovative solutions often aren’t economically viable without government support.
Economic dimensions are a consideration.
Globally, the recent years have been tough. Economic downturns spurred by COVID-19 led to reduced activities, forcing many to work remotely or not at all. This new approach to work has reshaped work-life balance perceptions, making it challenging for employers in Canada [and other countries] to find skilled workers.
Moreover, rising inflation has triggered policies to increase interest rates in an effort to keep inflation in check. Rising interest rates and inflation have heightened financial challenges.
Ontario energy businesses are grappling to align their service and product offerings to align with environmental policies while also trying to deal with human resource and economic uncertainties. The current policy, regulation, staffing, and economic complexities present leaders of small to mid-size energy businesses in Ontario with most uncertain and challenging times of their careers.
In conclusion, as we navigate the ever-evolving landscape of energy and environment in Ontario, it’s crucial to recognize and address the intricacies of the challenges we face.
The challenges will be ongoing but with shared commitment and collaboration we can pave the way for sustainable future energy businesses.
