Canada's Electrification Initiative: A Call for National Action
Ottawa, Tuesday, 18 November 2025.
New Economy Canada urges the government to prioritize clean electrification, driving investment and growth in manufacturing, AI, and resources, highlighting its critical role in economic strategy.
The Call for a National Electrification Effort
New Economy Canada, an initiative comprising over 60 organizations representing 410,000 workers, has urged the Canadian government to prioritize a national electrification strategy as a cornerstone of the country’s economic future. This initiative emphasizes the integration of clean electricity into the nation’s economic fabric as a key driver for investment, productivity, and growth across sectors such as manufacturing, artificial intelligence, and natural resources [1].
Governmental Plans and Stakeholder Reactions
Following the passing of Budget 2025, which included provisions for clean electricity generation and transmission projects, stakeholders, including industry leaders and Indigenous partners, have expressed both support and calls for further action. Merran Smith, president of New Economy Canada, highlighted that while current efforts are appreciated, the pace of change must accelerate to overcome barriers to development, particularly in accessing affordable and reliable electricity [1].
Strategic Initiatives and Economic Implications
The proposed ‘United Canada’ grid initiative aims to enhance interprovincial transmission and energy corridors, facilitating an integrated clean power system across provinces. This strategic move is expected to unlock private investment through mechanisms like the Clean Electricity Investment Tax Credit, fostering a favorable environment for economic expansion and innovation [1]. Such initiatives are crucial as they align with global trends, evidenced by the International Renewable Energy Agency’s (IRENA) push for energy transition investments, aiming for USD 1 trillion by 2030 [3].
Broader Economic and Environmental Context
The urgency for Canada’s electrification strategy is underscored by rising electricity demands, such as those in Toronto, where the Independent Electricity System Operator (IESO) is actively planning to ensure a reliable long-term supply [2]. Additionally, the Ottawa Board of Trade highlights the need for modernized energy infrastructure to support the region’s technological and industrial growth, projecting a 75% increase in electricity demand by 2050 [6]. These demands reflect a broader global shift towards clean energy, as exemplified by the commitments made at recent COP conferences [3].