Priorities: Inclusive and long-term economic resiliency.

We envision a diversified economy that enables talent to thrive across sectors, provides greater fiscal stability and creates opportunities for businesses in all industries to succeed. Diversification must include and go beyond our traditional sectors of strength. 

Challenge

Alberta’s energy transition towards diversification and innovation.

Alberta’s natural resource sector has spearheaded our province’s economic growth and wealth for decades and currently accounts for approximately 25 percent of the province’s GDP. The energy sector has been critical for employment and in 2020, it employed 125,200 Albertans. As the energy sector transition progresses, Alberta has a unique opportunity to diversify its economy, both within and beyond the energy sector.

We are proactively moving towards a low-carbon future – and Alberta is leading the way. Given the investments underway in carbon capture and sequestration, hydrogen, biofuels, small modular nuclear reactors and other clean tech, Alberta is uniquely positioned to transform our global climate challenge into economic opportunity.

Talent and innovation are now the drivers of economic growth – and are more mobile than ever. To attract and retain talent, we need to create diverse opportunities, enabling young people to build careers in the field of their choice. With the imminent high risk of Alberta’s young talent being attracted to opportunities in other jurisdictions, this issue is critical and urgent.

The provincial government’s fiscal position is tied closely to commodity prices, which leaves our social services and public service sector vulnerable to market price fluctuations. By investing in diversification, we can reduce the volatility of our balance sheet and create more stability for the important services government provides.

Opportunity

Building a resilient and diversified economy for Alberta’s future.

A diversified economy will increase certainty and stability of provincial and municipal revenue. In equal measure, it offers varied economic opportunity so Albertans can contribute to the workforce in a manner better aligned with their experience, skills and interests.

Calgary already has multiple burgeoning sectors that will be essential to our long-term resiliency and economic growth, including software development, biotechnology, sustainable agriculture, clean energy innovation, operations and logistics centers, arts and entertainment and others. Our city also has a strong talent pool with a young and educated workforce: Calgary’s median age is 36 and 55 per cent of citizens aged 25 to 64 held a post-secondary degree as of 2020.

A diversified economy is key to promoting innovation across industries, remaining competitive on domestic and global stages and attracting the best talent to our city. Diversification is not achieved by a single solution or strategy; collaboration, support and investment are needed from all orders of government, businesses and institutions to succeed. With an entrepreneurial spirit, access to immense natural and human resources and one of the most educated populations in Canada, Alberta is well-positioned to thrive in areas we have succeeded in traditionally, and  in new areas that will allow us to successfully diversify and expand revenue sources.

How we move forward

Diversify based on our strengths.

Further develop and market hydrogen.

Hydrogen holds significant potential as a fuel source in the economy of the future domestically and internationally. While provincial and federal governments have both made significant investments in the development of hydrogen energy, including through the Hydrogen Roadmap, marketing the province’s technology beyond Alberta is critical and can accelerate growth of technology as a key export domestically and internationally.

Commercialize and support bioenergy innovation.

Bioenergy is renewable energy from living matter like plants and animal by-products. Bioenergy often emits less carbon and involves waste recycling– for example converting restaurant grease or feedstock into diesel fuel. Between 2009 and 2015, bioenergy product revenues went from $1.3 billion to $4.3 billion with Ontario and Quebec generating most of this revenue.

Biofuel production is forecast to increase 25 percent by 2024 globally. While bioenergy projects are underway in Alberta, it is the large-scale commercialization and adoption of these innovations that generates significant impact in our sustainability and recycling efforts. Sharing our innovation on the world stage can make bioenergy a key export for Alberta and cement our position as a global leader in clean and renewable energy.

Scale our minerals and metals development as key exports.

Metals and minerals such as gold, copper and silver are essential to numerous technology products including electric vehicle batteries, electronic devices and wind turbines. Rapidly growing demand for innovative and sustainable technology products in the coming decades is expected to spur the need for mineral and metal inputs. For example, the electric vehicle market is projected to be worth $236.3 billion by 2027, up from $121.8 billion in 2020 and personal computer sales were up 13 percent since 2020 as remote work and learning became commonplace – a trend many expect to continue.

In Canada, B.C., Ontario, Quebec and Saskatchewan are currently leading mining and mineral resource development, even though Alberta has all the key elements to thrive in the minerals and metals industry. Our geology is favourable, we have a workforce experienced in extraction and development of natural resources and we have an ideal geographical proximity to the large U.S. market.

Scale sustainable architecture.

With the world’s population forecasted to reach $9.7 billion by 2050, the demand for agricultural and farm exports such as meat, dairy and grains are expected to increase over the next few decades. As a staple sector in Alberta, rising demand in agriculture presents an opportunity to scale by investing in efforts to expand, modernize and export agricultural practices.

Scaling operations needs to occur with parallel support for sustainable agricultural production, as environmental impacts often increase with growth. Further incorporating sustainability practices and environmental, social and governance principles into operations will aid the transition to a low-carbon economy and increase attractiveness of Alberta’s agricultural exports.

Strengthen supply chains.

Manufacturing and supply chains have seen major disruptions from the COVID-19 pandemic while e-commerce sales increased globally, driving the need for adequate manufacturing and logistics hubs across industries and countries, especially for last-mile delivery and pick-up warehouses.

Invest in manufacturing hubs.

Updating Calgary’s infrastructure to build and support large scale manufacturing facilities, multi-purpose business centers and supply chain hubs that have the most up-to-date technology will strengthen our export market, mitigate vulnerabilities in supply chain and assist in attracting international business to our city. A strong manufacturing sector is crucial to creating economic opportunity and scaling our economic growth.

Provide e-commerce supports for businesses.

Consumer use of e-commerce and digital retail platforms has skyrocketed in recent years. Many large retailers are shifting from traditional brick and mortar stores to largely online platforms. For Alberta businesses to remain competitive, government support from all levels would support small and medium businesses in building their online presence.

Diversify beyond our strengths.

Support the growth of the tech industry.

Invest and expand the aviation and aerospace sector.

Develop and promote medical innovation.

Build a vibrant arts and culture scene.

Incentivize film and television production.

It is estimated that in 2021, the film industry brought in $482 million dollars in spending to the province with television series like ‘The Last of Us’ filming in Calgary through summer 2021. Billions are spent each year by entertainment productions vying for viewers, and the entertainment and media industry is projected to reach $2.6 trillion by 2025.

Invest in world-class sports and entertainment infrastructure.

Given Calgary’s climate, terrain and proximity to the mountains, we have an opportunity to become the winter sport hub in Canada. Government support to expand programs and modernize facilities will help attract international athletes, spectators and sport tourism. With several facilities like Winsport and UCalgary hosting thousands of athletes each year, we have a strong foundation upon which to build.

Support Calgary’s restaurant and hospitality sector.

Calgary’s restaurant and hospitality sector is a direct reflection of the diversity and culture of our city. To remain competitive as a tourist destination and improve the vibrancy of our communities, a thriving restaurant and hospitality sector is necessary. Festivals and other cultural events, our food landscape and our art scene are often produced by companies that work in the restaurant and hospitality sector.

Pre-pandemic, Alberta’s tourism sector contributed $8 billion per year to the province and over $3 billion per year in tax revenues. Many businesses including hotels, restaurants, retail stores and recreational services comprise the restaurant and hospitality sector and have been hit hard by revenue and staffing losses during the pandemic.

Government support through grants, subsidies, and tax credits such as the Tourism and Hospitality Recovery Program and the Calgary Reopening Grant Program, are needed now more than ever to support this industry.