A recent report suggests that Canada will require a minimum of $30 billion in new capital investments by 2040 to meet the demand for critical minerals essential for transitioning to a green economy. However, the report warns that cutting back on environmental safeguards and Indigenous consultation to expedite projects may lead to delays in the future due to community opposition or litigation.

The report emphasizes the importance of supporting Indigenous participation and reducing environmental risks to minimize regulatory delays. It also highlights the significant opportunity for Canada to capitalize on the growing domestic and global demand for critical minerals, which are crucial for producing batteries, solar panels, and electric vehicles to reduce greenhouse gas emissions.

The estimated domestic demand for key critical minerals, including lithium and copper, is projected to reach $16 billion by 2040, with a substantial portion coming from electric vehicle manufacturers. To meet this demand, Canadian mining projects will require a total of $30 billion in capital investments, and potentially more to meet international demand as well.

The report suggests that government intervention may be necessary to support the sector through equity investments or financial risk-sharing agreements. However, the authors stress that this should not come at the expense of Indigenous consultation or environmental oversight.

According to the report, successful projects are those that involve participation from Indigenous communities and adhere to the highest environmental standards. Critics have raised concerns about recent legislation in British Columbia and Ontario that grants sweeping powers to exempt mining projects from environmental oversight, potentially undermining constitutional obligations to consult First Nations.

The report recommends that governments support Indigenous communities in exercising their right to self-determination and economic participation, including funding for Indigenous-led environmental assessments. Additionally, it suggests that provinces strengthen mining regulations to reduce environmental risks and liabilities, such as requiring producers to make their closure plans publicly available.