Report Calls for Tailored Support, Local Input, and a Dedicated Center for Community Transformation

One in 10 Canadians Face Economic Disruption from Green Transition

A new report by the Institute for Research on Public Policy (IRPP) highlights the challenges faced by communities susceptible to workforce disruption due to the transition to a greener economy. The report identifies 68 communities across Canada that are particularly vulnerable, with many relying on high-emitting industries or facing significant market transformations.

While existing government programs offer some support, the report emphasizes the need for more tailored approaches to guide communities through large-scale economic and societal transformations. This includes directing investments to communities in need and increasing local-level input in charting the energy transition.

The report acknowledges that disruption doesn't necessarily equate to job losses. Some communities could see long-term job creation, with workers transitioning to new roles or acquiring skills in the renewable energy sector. However, a large influx of new workers, as seen in Ontario with the establishment of electric vehicle battery plants, can also lead to disruptions, particularly in areas with housing shortages.

The report recommends that the federal government tailor its tax incentives and subsidies to drive investments to communities in need. Currently, only about 10% of projects announced under the $18.5-billion Strategic Innovation Fund are located in susceptible communities.

Furthermore, the report suggests expanding the mandate and resources for community futures organizations, which are federally supported non-profits governed by local volunteer boards. These organizations offer community-driven business guidance and strategies, but their funding has remained stagnant since 2009, leaving many with operational funding gaps.

The report also recommends establishing a Canadian Centre for Community Transformation. This center would provide market analysis, community-level data, and case studies to support local decision-makers in navigating the energy transition.

The report emphasizes the importance of community involvement in shaping the green transition. Top-down policy approaches are insufficient, and greater local control and agency are crucial for ensuring a just and equitable transition for all Canadians.