2025 Key Trends in Canada’s Energy and Natural Resources Sectors
As we look ahead to 2025, there are a few key trends in Canada’s energy and natural resources sectors that are going to shape our future especially for students and
FPAC acknowledges Indigenous peoples provide a vital role in forest development and management, and forestry has an important place in Indigenous culture and communities.
FPAC provides pulp and paper to domestic and international firms. These products are found in a variety of day-to-day products, even those beyond classic wood items. FPAC products play a role in toothpaste and ice cream too! In the COVID-19 pandemic, forestry products are also essential to masks and other items. Forestry and related products are an $80 billion industry in Canada, providing work and wealth for over 600 communities across the country. This is managed by the federal government, provincial governments, third-party forestry certifications, Indigenous peoples, and the communities surrounding a forest. Economic reconciliation with Indigenous peoples is also a strength for the Canadian sector. 10% of all the Canadian volume of forestry is managed by Indigenous peoples. And there’s an impressive commitment to the environment in Canadian forestry–the sector now runs on 66% bioenergy, and has pledged to a net zero future.
Sustainable development in forestry is about long-term health of forest ecosystems while providing opportunities and products for current and future generations. Etienne discussed how it’s not just about the trees themselves, it’s about the surrounding ecosystem and communities who are potentially affected by development in forestry. Canada’s primary strength is its longer-term planning (picture HUNDREDS of years), as there’s a great emphasis on the “landscape” approach, which encompasses more than just trees. Some of the biggest obstacles to forest management include forest fires (which have doubled in area burned since the 1970s), insect infestation (like the mountain pine beetle), droughts, and illness. Massive farms, or plantations are now providing over half of the world’s forestry products, though they are not as environmentally positive. An international challenge is the illegal logging in the market–some sources have said it’s almost 30% of the international market that comes from illegal sources, where the forests are not renewed. Over half of the forests surveyed in Canada are left alone (AKA “intact” forests), and that’s part of Canada’s fantastic leadership record.
FPAC constantly updates their website with the latest legal frameworks, so check them out if you are interested in Canadian forestry management!
Canada has very cheap, reliable, accessible energy, but this is not the case for the entire world. The energy crisis is a macro trend that will challenge politics everywhere in the world in the near future. There is not enough affordable, reliable supply to meet the world’s energy demands. LNG has hit record prices in Europe and Asia, and US commercial crude oil inventories are at their lowest since 2018. Of course, the COVID-19 demand collapse saw low lows, followed by a quick rebound in 2022. Heather says there’s no short-term or medium-term solutions, as even OPEC can’t keep up with modern-day demands.
It’s almost universally recognized that oil demand will continue to grow for at least the next 30 years, and this is causing some concern for the long term. It’s not surprising, considering the history (and ongoing) wars over oil and energy supplies. For example, there are concerns about Russia decreasing their supply as tension in the Ukraine mounts, and this raises questions about how Europe will get their energy if Russian natural gas is not available. Globally, governments are starting to subsidize energy costs–Norway, for example, is paying 55% of household power bills. Japan, the United States, and Spain are all turning to direct fossil fuel subsidies to help keep their citizens alive. In Canada, this is hitting households really hard, especially those with lower incomes. Atlantic Canada, for example, is spending an incredible percentage of their incomes on energy.
Dr. Exner-Pirot discussed the common claim that we just need to cut down on energy use. She looks to research which suggests energy use per capita is associated with societal well-being, lower child mortality, literacy rates, and access to clean drinking water. The issue right now is not between renewable and non-renewable energy, it’s between cheap and expensive energy. Dr. Exner-Pirot’s proposal: that if we want to subsidize getting rid of emissions, directly subsidize those! Reward the firms who are able to innovate in carbon capture and sequestration utilization.
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As we look ahead to 2025, there are a few key trends in Canada’s energy and natural resources sectors that are going to shape our future especially for students and
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