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Canadian Manufacturers & Exporters
- Endorsement date: December 18, 2020
- Organization: Canadian Manufacturers & Exporters (CME)
Since 1871, Canadian Manufacturers & Exporters (CME) has been fighting for the future of Canada’s manufacturing and exporting communities and helping them grow. The association directly represents more than 2,500 leading companies nationwide. More than 85 per cent of CME’s members are small and medium-sized enterprises. CME’s manufacturing membership network accounts an estimated 82 per cent of total manufacturing production while its exporting membership accounts for 90 per cent of Canada’s exports. Manufacturing in Canada is directly responsible for 1.7 million jobs, 10% of Canada’s GDP, and 66% of exports. The total direct and indirect contribution of manufacturing to Canada’s economy is 4.75 million jobs, 30% of all economic activity, and 30% of government revenues.
As Canada’s leading business network, CME, through various initiatives including the establishment of the Canadian Manufacturing Coalition, touches more than 100,000 companies from coast to coast, engaged in manufacturing, global business and service-related industries. The Canadian Manufacturing Coalition is comprised of more than 50 major industry groups, united by a common vision for a world-class manufacturing sector in Canada. The Coalition speaks with one voice on priority issues affecting manufacturers, and what must be done to ensure all Canadians continue to enjoy economic growth, high-value outputs and high-paying jobs.
The CME recently conducted a consultation across Ontario to determine how we can double manufacturing output by $600 billion by 2030. As a result of this consultation, CME released Industrie 2030. A recurrent issue in CME’s Industrie 2030 Ontario consultations was that the province’s energy policies were effectively pushing local manufacturers to relocate to the United States. Data identified that 45 per cent of respondents thought the business environment in the province was deteriorating and pointed to higher energy costs as one of the main reasons why. As a result, one of the recommendations to ensure a competitive business environment in Canada is to increase investment in economic and trade-related infrastructure, including physical, energy and electronic infrastructure.
CME members are very supportive of a transition to low cost low emissions energy supplies that can address the triumvirate of the most critical public policy questions today: Climate, Energy, Economy.
The CME looks forward to working with NRCan and other energy stakeholders to advance home grown Made-in-Canada solutions to Canada’s climate, energy, and economic objectives and ensuring a place for Canada’s manufacturing in the SMR opportunity.
CME Commitment and Vision
The CME believes that addressing Canada’s climate, energy and economic objectives must support the desired outcomes for affordable electricity rates and low carbon emissions produced through the generation of electricity. Canada should focus on its energy advantages and its supply chain strengths. The organization of Canadian Nuclear Industries (OCNI) is a member of the CME and the CME supports their role in the SMR Action Plan and their endorsement of the Principles of it. Analyses show that many manufacturers that are members of OCNI are either also members of the CME or also supply Canada’s aerospace and auto sectors.
SMRs bring a potential to increase the role of manufacturing in Canada’s energy future unlike any other low emission technology on the horizon, and strengthen the entire manufacturing sector as a result.
The CME would like to contribute to three Pillars of the SMR Action Plan:
Demonstration and Deployment
- Bringing a priority focus on transitioning manufacturing to support a Canadian SMR supply chain and the jobs, and economic benefits that will accrue
- Bring SMRs to the attention of CME members in industries that might be end users of SMRs, such as mining, oil, and gas
Policy, Legislative, and Regulation
- Informing the role that SMRs may play in Canada’s climate and energy policies
- Supporting the national conversation through the Nuclear Energy Advisory Council
DEMONSTRATION AND DEPLOYMENT
Manufacturing Supply Chain Strategy
Responds to SMR Roadmap recommendation(s): 20, 37
The roadmap recommended that provinces should support Canadian industry to successfully capture benefits from emerging global SMR value chains (Action 20).
The roadmap also recommended that OCNI look to their members and lead in several activities to support the transition of Ontario’s nuclear sector to a new SMR role. For OCNI the objective is to prepare the supply chain by pivoting from the refurbishment work into the needs of the potential SMR market (Action 37).
While OCNI is a CME member with actions that the CME supports, the actions of OCNI alone may not achieve the ultimate end goals of the Action Plan which is to ensure the strongest manufacturing presence in the unfolding SMR supply chain.
The CME proposes to participate in the broader dialogue around what role Canadian manufacturing should play in providing SMRs and do so by leveraging many of its existing collaborations with the energy sector.
Inform the potential for maximizing Canadian content in the SMR supply chain before large utilities complete their down select process.
The Canadian manufacturing sector is primed and well-positioned to lead in the development of global value chains for SMRs and capturing benefits for Canada.
Canadian nuclear suppliers partner with SMR vendors in planning the construction of a fleet of SMR’s in Canada and in offshore markets and enable making Canada a leading hub for the $150B worldwide SMR market.
DEMONSTRATION AND DEPLOYMENT
Engagement on End Use SMR Applications
Responds to SMR Roadmap recommendation(s): 51, 52
The roadmap recommended that the mining sector and organization in heavy industry and oil and gas collaborate with NRCan to explore the role for SMRs as a source of low carbon heat and power (Actions 51 and 52).
The CME proposes to convene discussions amongst its members through the CME energy and environmental interest groups.
Efforts to develop SMR technologies are informed by the needs and end-use requirements of mining and heavy industry and potential business models and partnerships.
POLICY, LEGISLATIVE, AND REGULATION
Climate, Energy and Economic Policy
Responds to SMR Roadmap recommendation(s): 9, 18, 42
The roadmap recommended governments recognize that nuclear has a role to play in climate change and to take action to place nuclear within those governments’ clean energy programming and planning (Actions 9 and 18). It also recommended that Utilities develop a white paper on potential pathways for deployment (Action 42).
The vast majority of Canadians support the government taking action to address climate change. There is currently no cohesive plan for Canada’s energy future that will achieve those goals and connect these goals to the energy transition that must take place. The CME believes that the nuclear options can play favorably in Canada’s energy transition.
The importance of understanding a fleet-based approach with a selected optimal solution for Canada cannot be understated. Selecting this properly can maximize the economic and jobs benefits to Canada.
The CME proposes to use its advocacy role to inform the national debate on how nuclear can address Canada’s climate policies and create economic opportunity across the country in doing so.
Identify the enabling steps to the pathways Canada needs for a clean economy in the future.
Key considerations and benefits for the transition to a fleet are identified.
Pathways are undertaken to enable a fleet-based approach for SMR deployment in Canada and maximise the jobs and economic benefits for Canadians.
POLICY, LEGISLATIVE, AND REGULATION
Nuclear Energy Advisory Council
Responds to SMR Roadmap recommendation(s): 5, 32
The roadmap recommended that the Federal Government and the Canadian Nuclear Association (CNA) work together with “Team Canada” partners to create a Nuclear Energy Advisory Council (NEAC) that would establish strategic priorities going forward (Actions 5 and 32).
However, the CME notes that the composition of the NEAC as delineated in the Roadmap does not include a full perspective of Canadian stakeholders, such as manufacturing, or other members of “civic society”.
The CME would like to participate in the NEAC in order to bring the full perspective of not only manufacturing to the discussion but to also consider the role of SMRs on Canada’s overall climate and energy policy.
A working Advisory Council that better represents a more fulsome stakeholder participation in charting the course of nuclear within Canada’s climate, energy and economic policies.
Transparency, accountability, & evidence-based decision-making that improves outcomes for Canadians and Canada.
Note: Natural Resources Canada was responsible for the translation of this chapter.