The U.S. and Canada collectively have a goal of net-zero emissions by 2050. This calls for comprehensive, strategic action from both the public and private sectors. Governments need to foster business investment, and stakeholders must form deep collaborations across all industries.
Transitioning to a net-zero economy hinges on the electrification of sectors like transportation, heating, and industrial processes. This will require a significant increase in clean electrical energy generation and a comprehensive overhaul of the electrical grid.
Transitioning to a net-zero economy hinges on the electrification of sectors like transportation, heating and industrial processes.
We Need Government Leadership
Businesses are reluctant to commit capital to long-term projects when future market conditions, regulatory landscapes, trade policies, and technological advancements are unpredictable. If governments establish clear, long-term policies—binding commitments to netzero targets, carbon pricing mechanisms, and robust financial incentives—businesses become more confident in investing in clean energy and critical infrastructure.
Action from governments on clean electrical energy has often been fragmented and ineffective. Despite the need for a clean energy infrastructure, governments have mostly focused on small-scale, localized projects that address only parts of the broader strategy. This piecemeal approach does not adequately help us meet our emissions goals.
Currently, investments and policies only support elements like pilot projects, small-scale initiatives, and electric vehicle and battery development. These alone will not foster the massive increase in renewable energy integration we need, much less the electrification of other sectors.
Governments must be more proactive and strategic in directing investments to strategies that consider the entire electrical energy system. We need broader upgrades to the grid, long-term energy storage, and resilient supply chains.
Without a holistic approach, we can miss critical components of the energy transition, such as large-scale grid modernization, smart grid technologies, and expanded infrastructure. We will not have the system to reliably deliver clean energy across North America and will fall short of our clean energy goals.
Expanding Clean Electrical Energy and Modernizing the Grid
Solar, wind, hydro, and other renewable sources should dominate our energy landscape. Beyond just adding capacity, we need a strategic, coordinated expansion. Governments must put the necessary incentives and regulatory frameworks in place to stimulate investment.
The current electrical grid, much of which was built decades ago, cannot handle the demands of a clean energy future. We need to significantly expand and modernize our electrical infrastructure, upgrade power lines and substations, and integrate advanced equipment like transformers, switchgear, and smart grid components. The new grid needs to support an electrified transportation industry, with a robust network of EV charging stations, to dramatically reduce carbon emissions.
We need broader upgrades to the grid, long-term energy storage, and resilient supply chains.
The Importance of Strategic Collaboration
Governments cannot push the expansion and modernization of our electrical infrastructure alone. It requires deep, strategic collaboration between public and private sectors.
Businesses must find new ways to work together across supply chains, from raw material suppliers to parts producers and original equipment manufacturers (OEMs). Collaboration will foster innovation, maintain competitiveness, and reduce dependencies on foreign sources that undermine our progress.
Collaboration Within USMCA
Like our business trade, the North American electrical grid is highly interconnected. It will take strong leadership and work between Canada and the U.S. to create a sustainable clean energy system for the future. By working together, we can innovate faster and lead the world in new energy technology. This will require having an open mind, for technical and business partnerships and cooperation, and for trade. Only by working together can we build the energy systems we need for the future, supported by political leaders who must create a trade framework that fosters innovation and speed of execution.
The Bottom Line
Moving to a clean energy economy is one of the most significant challenges and opportunities of our time. We can’t just rely on technological breakthroughs and favourable market forces; we need strong government leadership to boost investment and collaboration across the private sector. We must collectively focus on expanding clean electrical energy resources and modernizing our grid. This will forge the path to our goals of net-zero emissions by 2050 and a prosperous and sustainable future.
Businesses must find new ways to work together across supply chains, from raw material suppliers to parts producers and original equipment manufacturers (OEMs). Collaboration will foster innovation, maintain competitiveness, and reduce dependencies on foreign sources that undermine our progress.
Ron Harper is CEO and President of JFE Shoji Power Canada, a Burlington-based company that is one of the largest processors of electrical steel transformers in the world. JFE Shoji Power Canada is integral to the North American supply chain for electrical steels for power generation equipment, motors, power and distribution transformers, and specialized magnetic components.
Ron has 35 years of experience in manufacturing, mostly in senior leadership positions in marketing, engineering, operations and general management. He has served on major industry and community Boards for the past fifteen years. He has been a member and Chairman of the Association for Manufacturing Excellence Executive Committee and AME Board of Directors, and a board member of The Centre for Skills Development and Training in Canada. He regularly advises with Next Generation Manufacturing on policies and initiatives for local government action, sustainability, and clean electrical energy.
