


Politics Insider: Federal ministers target contracts in search for savings


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Federal Ministers Eye New Contracts in Pursuit of Economic and Climate Gains
In a quiet, behind‑the‑scenes maneuvering that only a handful of senior civil servants and political insiders had seen, Canada’s cabinet is now actively hunting a series of large‑scale contracts that could reshape the country’s energy and infrastructure landscapes. According to a recent Globe and Mail Politics Insider piece, the government’s focus is two‑fold: create high‑paying jobs in the “green” sector and shore up the nation’s economic position in the face of a rapidly shifting global market.
The Context: A New Energy Paradigm
The impetus for this aggressive contract‑shopping came in part from a stark recognition that Canada’s fossil‑fuel‑heavy economic model is no longer sustainable—both from a climate‑change perspective and an international competitive standpoint. The federal government has already committed billions of dollars in “green” spending, including the $15 billion Canada Green Infrastructure Plan and the $12 billion Clean Energy and Climate Plan. But those funds alone have not yet translated into concrete, high‑value projects.
“Every year we look for something that can be turned into a tangible contract,” the Finance Minister told a private briefing in Ottawa. “It’s not just about the money we can inject; it’s about the leverage we can use to get the industry to build and operate something that will keep Canada in the conversation.”
The article explains that the new contracts are being sought in three main arenas:
- Hydrogen Production and Export
- Renewable Power Generation (Wind, Solar, and Hydro)
- Digital Infrastructure and Clean‑Tech Manufacturing
The focus on hydrogen, in particular, comes from an assessment that Canada’s abundance of hydroelectric power could be used to produce “green hydrogen,” a clean fuel that can be used in everything from industry to aviation. The federal government is courting the likes of Air Canada, Hydro‑Québec, and even foreign partners such as the United Arab Emirates to sign long‑term supply contracts.
How the Search Is Being Conducted
The article offers a behind‑the‑scenes look at the mechanics of the search. The Cabinet has formed a cross‑departmental task force, drawing on the expertise of the Department of Energy, the Department of International Trade, and the Canadian Investment and Trade Services. This group is tasked with identifying “win‑win” scenarios in which a Canadian company can secure a long‑term contract that is not only profitable but also provides significant domestic value—employment, skills development, and technology transfer.
“We’re not just looking for the biggest price,” the task‑force lead said in an interview. “We’re looking for the biggest impact. That means jobs, skills, supply chain resilience.”
A key part of the search is a new procurement framework that aims to reduce the time and complexity of awarding contracts. The government has been working with the Canada Open Data portal to provide a public, searchable list of upcoming opportunities in the green sector. That platform is expected to go live next month, allowing potential bidders to gauge competition and prepare proposals well in advance.
Stakeholder Reactions
The move has not gone unnoticed by provincial governments, industry groups, and labor unions. Ontario’s premier has already signaled support, saying that the provincial government is ready to provide additional incentives for a potential hydrogen project. Meanwhile, the Canadian Association of Energy and Mining (CAEM) has urged the federal government to keep its promises regarding fair pricing and transparency.
Labor unions, represented by the Canadian Labour Congress, are cautiously optimistic. “We’re happy to see the focus on high‑paying jobs in the clean‑tech sector,” said the CLC’s head of industrial policy. “But we will insist on strong labor standards and meaningful community benefits.”
International partners have also taken notice. The article includes a reference to a recent meeting with European Union officials, who have expressed keen interest in Canadian hydrogen exports. The EU’s “Fit for 55” package is targeting a 55 % reduction in greenhouse‑gas emissions by 2030, and it sees hydrogen as a critical element of that strategy. The EU is now working with the Canadian government to explore a “dual‑purpose” contract that would supply hydrogen to both the EU and the United States.
Challenges and Risks
While the government’s enthusiasm is high, several obstacles loom. The article points out that Canada still lags behind the United States and China in terms of hydrogen infrastructure, both in terms of capacity and the necessary pipelines for transport. Building that infrastructure would require huge upfront capital and a reliable policy framework—both of which are in flux.
“Any contract we sign has to be long‑term and stable,” cautioned an independent economist quoted in the article. “We can’t afford to have a project that ends up being a sunk cost if the market moves.”
Another risk highlighted is the possibility of “greenwashing.” Critics worry that the government could use the contracts to chase public funds for projects that have little real environmental benefit. The article notes that the task force has a rigorous environmental assessment process built into every contract, designed to mitigate that risk.
What’s Next?
The Politics Insider piece ends on a forward‑looking note: “The next few months will be crucial,” said the Finance Minister. “We’re in the early negotiation phase with several potential partners, and the contracts that we finalize could set the pace for Canada’s green economy for decades.”
If the government is successful, the projected outcomes are staggering. According to estimates quoted in the article, a hydrogen export contract of $10 billion could create up to 5,000 high‑skilled jobs in the next five years, while a renewable‑energy contract of a similar scale could shave an estimated 2 million tonnes of CO₂ emissions annually.
For now, the story remains in its early draft. But the fact that federal ministers are actively hunting for contracts shows a clear shift in Canadian policy—from passive subsidies to proactive, partnership‑driven procurement. Whether that strategy will deliver the promised economic and climate benefits remains to be seen, but the stakes are unmistakably high for a country that is already grappling with its identity as both a traditional resource exporter and a future‑oriented, low‑carbon economy.
Read the Full The Globe and Mail Article at:
[ https://www.theglobeandmail.com/politics/article-politics-insider-federal-ministers-target-contracts-in-search-for/ ]