How to Prioritize Strategic Projects for Better Net-Zero Industrial Policy

December, 2024
By Bentley Allan, Derek Eaton, Heather Exner-Pirot, Travis Southin

How can Canada act more strategically when investing in its future economic competitiveness? While its peers and competitors use sophisticated strategies to claim their place in emerging clean industries, Canada’s approach has been more fragmented. Without an overarching strategy to maximize the economic potential of its investments, it risks ad-hoc decision-making, wasteful spending, and reduced long-term economic opportunities.

Presented with the MacDonald-Laurier Institute, How to Prioritize Strategic Projects for Better Net-Zero Industrial Policy provides that high-level framework, outlining five factors that can help governments choose the projects that are most likely to contribute to sustainable industries and a competitive economy. The brief offers a simple set of questions to determine how a project fits into the broader economic landscape and to ensure investments have the potential to add up to more than the sum of their parts.

As a medium-sized economy, Canada cannot and should not attempt to compete with larger rivals for the same potential investments. By asking the right questions and applying this framework, governments will be better able to target sectors where they have a strategic advantage, creating more value for taxpayers and positioning domestic firms for lasting success in the global economy

For more on this framework, be sure to watch our webinar with report authors Heather Exner-Pirot and Bentley Allan here.

About the Authors

Bentley Allan, PhD

Transition Pathway Principal

Bentley Allan, PhD, is a Transition Pathway Principal at the Transition Accelerator, as well as an Associate Professor of Political Science at Johns Hopkins University. Dr. Allan is an award-winning scholar who has written on the dynamics of international order, science and politics, climate policy, and the political economy of decarbonization. He provides regular advice to government and industry on geopolitics, industrial strategy, and policy.

He has co-lead the development of three sector strategies and roadmaps in collaboration with industry partners. He is the co-coordinator of the Centre for Net-Zero Industrial Policy which advances research and action to strengthen and mobilize Canada’s expertise in modern industrial policy, enabling strategic collaboration between government, industry, indigenous communities, labor, and financial institutions in pursuit of good jobs and a competitive economy.

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Derek Eaton, PhD

Director of Future Economy

Director of Future Economy at the Transition Accelerator, Derek Eaton is an economist with more than 30 years of experience in developing policy insights and recommendations to integrate sustainability into decision-making. Derek’s global career has ranged across the energy, agriculture, food, water, trade, investment, finance and innovation sectors. His professional focus has centered on understanding how economic change and transformation take place. He brings valuable insights from his experience working for the UN, government, research organizations, universities, think tanks and consulting spanning the research, policy and practice interface.

Prior to joining the Transition Accelerator, Derek was Senior Director of Public Policy Research at the Smart Prosperity Institute. Some of his previous positions include Principal Consultant, Technopolis Group (the Netherlands); VP Research, the Global Footprint Network (Oakland, CA and Switzerland); Executive Director, Centre for International Environmental Studies, Graduate Institute (Geneva), Green Economy Research Lead, United Nations Environment Programme (Geneva). Derek holds a PhD in Economics from Wageningen University, Netherlands.

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Heather Exner-Pirot

Senior Fellow and Director of Natural Resources, Energy and Environment

Heather Exner-Pirot has over fifteen years of experience in Indigenous and northern economic development, governance, health, and post-secondary education. She has published on Indigenous economic and resource development, energy security, Indigenous workforce development, First Nations taxation and own source revenues,  distributed & distance education, Arctic human security, regional Arctic governance, the Arctic Council, and Arctic innovation.

Exner-Pirot obtained a PhD in Political Science from the University of Calgary in 2011. In addition to her role at MLI, she is currently a Global Fellow at the Wilson Center in Washington DC, a Special Adviser to the Business Council of Canada, and a Research Advisor for the Indigenous Resource Network. She has published over 45 peer-reviewed journal articles, book chapters, and edited volumes, and presented at over 75 conferences and events nationally and internationally. She has chaired or moderated dozens of provincial, national and international panels, workshops and conferences.

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Travis Southin, PhD

Future Economy Lead

Travis Southin has deep expertise on the role of innovation and industrial policy in facilitating the transition to a net-zero economy, with a particular focus on scaling Canadian cleantech firms. Prior to joining the Transition Accelerator, he provided analysis and policy recommendations for the Net-Zero Advisory Body.

Travis has worked with James Meadowcroft as a Postdoctoral Fellow at Carleton University’s School of Public Policy and Administration. His research examined the politics of innovation policy and the broader role of the state in facilitating the transition to a net-zero economy in Canada and Australia. Travis completed a PhD in Political Science from the University of Toronto working with David Wolfe at the Innovation Policy Lab of the Munk School for Global Affairs. His dissertation, titled “Overcoming Barriers to Policy Change: The Politics of Canada’s Innovation Policy,” illuminates the political barriers constraining the Government of Canada’s ability to shift its innovation policy mix away from neutral/horizontal policy instruments, such as research and development tax credits, towards more targeted innovation policy instruments, such as large-scale direct grants, loans, and public procurement.

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Allan B., Eaton D., Exner-Pirot, H., and Southin, T. (2024). How to Prioritize Strategic Projects for Better Net-Zero Industrial Policy. Transition Accelerator and MacDonald-Laurier Institute. Version 1.0