In a candid interview, Canada Infrastructure Bank (CIB) CEO Ehren Cory underscored the vital role of energy and trade infrastructure projects, especially as trade tensions with the United States escalate. Cory’s remarks come at a pivotal time, with the U.S. administration contemplating sweeping tariffs and Canada on the brink of a federal election. The CIB, established in 2017 with a $35-billion capital injection, is no ordinary bank. It targets revenue-generating, public-good projects that struggle to attract private investment, with a keen focus on clean power generation, storage, and transmission.
The bank’s commitment to the clean power sector is substantial, with a $10-billion allocation expected to fund around 30 renewable projects over the next three years. Its portfolio is diverse, spanning hydroelectric, wind, solar, and nuclear projects across Canada, including remote areas and Indigenous communities. Notably, the bank has supported Indigenous ownership in energy projects, fostering inclusive economic growth.
Cory’s vision extends beyond immediate energy needs. He envisages ambitious projects like a cross-Canada power transmission line, which could insulate Canada from geopolitical headwinds. Such a project could revolutionize Canada’s energy landscape, enhancing grid reliability, integrating renewables, and unlocking economic benefits.
The CIB’s focus isn’t solely on energy; it’s also zeroing in on trade logistics. Earlier this year, it announced a $60.7-million loan for an Indigenous-led logistics hub in Prince Rupert, following a $150-million loan for a similar hub last year. These investments underscore the bank’s commitment to bolstering Canada’s trade infrastructure, crucial amidst ongoing trade disputes.
While the CIB has faced criticism for its slow investment pace, Cory remains optimistic. He believes infrastructure investment transcends political divides, with leaders at all levels recognizing its economic and social benefits. However, the bank’s mandate could shift with a change in government, potentially redirecting focus to areas like Northern development.
So, how might these developments shape the energy sector? First, the CIB’s emphasis on clean power could catalyze Canada’s transition to a low-carbon economy. By de-risking and crowding in private capital, the bank could drive down renewable energy costs, much like similar initiatives have done in Europe.
Second, the focus on trade infrastructure could enhance Canada’s competitiveness. As global supply chains evolve, investments in logistics hubs and transportation corridors could position Canada as a key gateway between Asia and North America.
Third, the bank’s support for Indigenous ownership in energy projects could set a new precedent for inclusive development. By aligning economic growth with reconciliation, the CIB could foster a more equitable and sustainable energy future.
Yet, challenges remain. The bank’s shift in mandate under different governments could create uncertainty. Moreover, while the CIB’s focus on revenue-generating projects is sensible, it may overlook high-impact, non-commercial projects crucial for deep decarbonization.
As Canadians prepare to go to the polls, one thing is clear: the CIB, and its role in shaping Canada’s energy and trade infrastructure, will be a critical topic of debate. The future of Canada’s infrastructure is not a spectator sport—it’s a collective endeavor that will define the country’s prosperity and sustainability for generations to come.
