From energy to water and food to minerals, the world’s natural resources are dwindling. Canada must act fast to manage and secure its supply sustainably and more efficiently—it relies on its abundant reserves for economic growth, not only as a direct contributor to GDP but also as a critical driver for manufacturing, capital, robust housing supply, and strong labour force participation. And as it’s been highlighted in international forums such as the World Petroleum Congress, energy security—a component of natural resource security—is a top priority for nearly every government that’s decarbonizing.
Canada is well positioned to be a sustainable and responsible energy producer as well as a global leader in this sector. How can government help to capture this opportunity?
Over the past few months, Deloitte leaders have come together to consider the evolving role of government and bring perspective to the state of this country’s natural resource security. Our collective aspiration is for a Canada whose natural resources are managed, secured, and developed in a responsible and sustainable manner that empowers economic growth and global competitiveness. This is done in a manner that preserves shared cultural and ecological environments, and honours the heritage of Indigenous Peoples.
This article is part of Deloitte’s future role of government series, which examines trends that are provoking governments to act and seeks to provide Canadian governments with bold ideas to help them address the underlying issues. Underpinning our work is a recognition that the role of government is evolving. Read our introductory report, The future role of government: Society is evolving. So must the way it is governed, for more context. We also acknowledge that, for the topic this article addresses, developing global situations and events are affecting trade, transport, and security; the perspectives here reflect our thinking as of January 2024.
Canada's natural resources—oil, gas, timber, minerals, fish, freshwater, and more—have long played a vital role in developing the country's economy, identity, and culture, and they still do in areas that depend on the industry for livelihoods and community. In 2023, natural resources directly and indirectly accounted for 1.7 million jobs and 19.2% of the nominal GDP.
But, like many other nations, Canada is facing the looming depletion of these finite resources and is working to establish sustainable alternatives. A changing climate not only jeopardizes the supply of natural resources but also our ability to access them—for example, extreme conditions that undermine critical infrastructure may result in having to alter extraction processes. The economic toll of floods, droughts, and storms could amount to a staggering $139 billion over the next 30 years in Canada, according to a report by a global engineering firm.
Climate is not the only challenge to the security of these resources, of course. Geopolitical tensions that directly or indirectly disrupt supply chains, such as attacks on ships carrying key natural resources across the Red Sea or events of the Russian-Ukraine war, magnify the fragility of nations’ energy security.
The delicate balancing act between preserving its domestic resources and remaining globally competitive underscores the complexity of Canada’s natural resource security. These challenges must be handled in a way that secures environmental sustainability and economic growth to preserve societal well-being.
We have identified four major trends in the natural resources industry that require Canadian governments to act: sustainable ecosystems; Indigenous reconciliation and partnerships; economic growth and export promotion, regulatory, and management innovation; and supply chain resiliency and natural resource availability.
To help governments in Canada adopt an efficient, balanced approach to managing the country’s natural resources sustainably, we’ve developed numerous targeted recommendations. They are organized through four levers: people and leadership; policy and processes; technology; and collaboration.
People and leadership
How can we transform Canada’s governance and leadership structures to secure our natural resources?
Policy and processes
How can Canada future-ready its policies and regulations to be a leader in this area?
The Kitigan Zibi Anishinaebeg First Nation, in Quebec, has employed a two-eyed seeing approach to conservation, bridging Indigenous knowledge with Western conservation methods. With a strong emphasis on water sampling and monitoring endangered species, its conservation program entails community members going out on the land to monitor ongoing resource extraction projects on their traditional territory. |
Technology
How can governments use technology to safeguard Canadians and guarantee inclusive access to natural resources?
Collaboration
How can governments collaborate with each other and with non-government actors to align and scale best practices?
If our governments, from federal to municipal, act now on these recommendations to ensure the security of the country’s vast natural resources, Canada can continue to enjoy the benefits while ensuring the health and safety of ecosystems and communities in an increasingly complex global economy, trade system, and environmental climate.
We aspire to a future state where:
Thank you to our key contributor, Leo Xu.