Transforming Canada into an energy superpower: Q&A with the Minister of Energy and Natural Resources, Tim Hodgson

 
What does Canadian economic and energy sovereignty look like to you, and how is your Ministry working to achieve this in the next 5 to 10 years?

To me, Canadian economic strength and energy sovereignty rest on three pillars: prosperity, security, and sustainability.

First, prosperity. Chiefly, this means attracting investment and getting Canada building again, so we can make the most of the natural resources with which we have been blessed, and leverage them into real investment, capital, jobs, and revenue.

We need to get our energy and natural resources to global markets by exploiting them responsibly and building the infrastructure that connects producers to customers at home and abroad. Our government is taking a holistic approach to this, whether that is in the form of energy grid buildouts, critical minerals processing facilities, clean technology implementation, or opening new trade and export routes. We have been too slow and limited in what we were willing to build and do in the past. Now, everything is on the table—as is clear based on the mandate and the breadth of projects and transformative strategies that have been referred to the new federal Major Projects Office (MPO).

In today’s world, building major infrastructure at the pace and scale required to face this hinge moment requires mobilizing private sector capital quickly and effectively. To do this, the federal government has a responsibility to ensure Canada is an attractive investment environment. The MPO, new tax incentives (including the Clean Economy Investment Tax Credits), an urgent focus on strategic federal financial intervention, and regulatory alignment with provinces and territories are responsibilities this government takes seriously, and we are using all those tools to show investors that Canada is the place to put their dollars. As the Prime Minister said in Davos, Canada’s stable governance, environmental standards, Indigenous partnership model, educated population, skilled workforce, and sophisticated pension funds are competitive advantages, which we must leverage to attract investment. We still have a lot more to do, but I am very proud of what we have achieved in a relatively short time. In less than a year, foreign investment in Canada has surged to its highest level since 2007.

Prosperity also means diversifying our trade relationships so we are no longer reliant on a single customer. It is less about decreasing trade with the United States and more about increasing trade with the rest of the world. This is a conscious strategy by our government so that Canadian industries can grow and stay here at home while feeling assured they have access to the best markets and opportunities in the world.

Second, security comes from the fact that we are one of the most resource-rich countries in the world. We must be our own best customer. If we have abundant oil, gas, uranium, critical minerals, and more, we should not be overly reliant on other countries to import those resources. Building stronger domestic markets and supply chains is not only economically sensible but reduces vulnerability and strengthens resilience. Across sectors, our government is aligning our policymaking and industrial strategy with the fact that electricity—including nuclear—and critical minerals are essential to our national security, whether that means mineral stockpiling or onshoring supply chains.

Another important consideration right now is our Arctic security. A strong northern presence ensures we have control over our resources and can play an active role in shaping the region’s future—which will only become more contested as it opens up, due to climate change. Through the MPO and our security and defence agenda, we recently invested nearly $35 million to defend, build, and transform Canada’s Northern and Arctic region, and referred major projects that represent around $10 billion in investment in the Arctic to the MPO. This will catalyze ambitious dual-use infrastructure that will underpin Arctic sovereignty, connect the North with the rest of Canada, and unlock new trade and natural resource development.

Finally, sustainability is both a challenge and an opportunity. The global economy is moving toward lower-carbon alternatives, and Canada has the chance to lead in that transition and seize opportunities that will make us stronger in the long term. Technologies like carbon capture and storage, nuclear supply chains, and accelerated critical minerals development will be key—luckily, we are already ahead of many nations in terms of Canadian innovation in those spaces. To continue building low-carbon leadership, our government is focused on stimulating investment, not imposing prohibition. Our approach to climate competitiveness is about building, innovating, and positioning Canada as a global clean energy leader for decades to come, because we need to protect and enhance the most beautiful country in the world.

2025 was a transformative year for Canadian projects with the enactment of the Building Canada Act and the establishment of the MPO. What are the top priorities of the MPO over the next 12 to 24 months?

Our government has a clear mandate to build Canada Strong and respond to a moment the Prime Minister aptly called a rapture. But we cannot do things differently if our processes remain the same. In less than a year, we have fundamentally changed how the federal government interacts with major nation-building projects—from permitting to regulations to financing—which is both an important step and ongoing work. Over the next 12 to 24 months, my top priority for the MPO is simple: bring more projects to final investment decision, construction, and production. These projects will be laser-focused on the five criteria laid out in the Building Canada Act: (1) contribution to Canada’s resilience, autonomy, and security; (2) economic benefits; (3) likelihood of successful execution; (4) contribution to Indigenous interests; and (5) alignment with clean growth and Canada’s climate objectives.

We also continue to use the MPO as a platform for broader regulatory streamlining, along with the Impact Assessment Agency of Canada. This is not about lowering standards; it is about improving timeliness, coordination, clarity, and predictability. We are working across departments, with provinces and territories, and with Indigenous partners to ensure reviews remain rigorous but also efficient and aligned with our economic targets. I feel confident in saying that success here will be measured by outcomes. If, over the next two years, we see more projects built, more Canadians employed, and more energy and critical minerals reaching global markets, then we will know the MPO and our entire permitting system are fulfilling their mandate.

How are you facilitating more federal and provincial partnerships to achieve a “one project, one review” model to reduce regulatory overlap?

Reducing regulatory overlap through a “one project, one review” model has been one of my top priorities since I was sworn in as Minister of Energy and Natural Resources, alongside Minister of Environment and Climate Change, Julie Dabrusin. Quite simply, Canada cannot compete for investment if our regulatory and permitting processes are duplicative, inefficient, or inaccessible for proponents. Unfortunately, this has been the case in the past. Between 2006 and 2021, Canada’s regulatory requirements rose by 37%—an increase that is estimated to have lowered GDP growth by 1.7 percentage points and employment growth by 1.3 percentage points in the business sector. As someone who spent my career in the private sector, I understand the detriment to Canada’s economy and Canadians’ quality of life those numbers represent.

That is why we are taking fast action. We have moved more quickly on “one project, one review” than any government in Canadian history by taking a practical, bilateral approach and working province by province to tailor agreements to reflect realistic yet ambitious goals and standards. In less than a year, we have made concrete progress with Ontario, Manitoba, New Brunswick, Nova Scotia, Newfoundland and Labrador, and Prince Edward Island, in addition to our existing agreement with BC. Most recently, we signed an agreement with Alberta, enabled by the Memorandum of Understanding (MOU) between the Governments of Canada and Alberta. This is a significant step that reflects a shared understanding between Canada and Alberta that economic growth, environmental responsibility, and regulatory efficiency can and must go hand in hand.

It has been exciting to see this approach work in real time. For example, in September, through our “one project, one review” agreement with BC, Canada approved the Ksi Lisims LNG facility just thirty minutes after BC greenlit the project. That kind of synchronization and cross-jurisdictional alignment builds investor confidence and gets us towards shovels in the ground. Ksi Lisims’ permitting success is a perfect example of our commitment to fast-tracking nation-building infrastructure that strengthens diversified trade, advances sustainable resource development, supports Indigenous economic development, and contributes to Canada's long-term competitiveness as a reliable partner in global energy markets.

What is Canada doing to signal to investors that we are open to investment? What does Canada need to do to attract the private capital needed to meet Canada’s ambitious goal to be an energy superpower?

Canada is sending a clear and consistent signal to global investors: we are open for business, and we are serious about getting projects built.

The Prime Minister has set an ambitious goal of catalyzing $500 billion in private investment by 2030 to position Canada as a global energy superpower and the strongest economy in the G7. Based on Budget 2025’s plans to boost infrastructure projects, invest in research and development, and cut regulatory barriers, we expect to spur $1 trillion of total investment from the public and private sectors. At Natural Resources Canada, we are playing a leading role in achieving that objective.

A key part of our message to investors is delivery, not delay. Through the MPO and reforms under the Building Canada Act, as I’ve mentioned, we are streamlining reviews, reducing duplication, and ensuring clear timelines. At the MPO, we are supporting projects that unlock more than $126 billion in investment, with additional projects expected to be added in the coming months. We are also using targeted investment tax credits and other incentives to crowd in private capital, particularly in areas like carbon capture, clean electricity, nuclear, and critical minerals. These tools are designed to lower risk, improve returns, and make Canada one of the most attractive jurisdictions in the world for long-term investment.

For example, earlier this year at PDAC 2026, I announced a second round of deals under the Canada-led G7 Critical Minerals Production Alliance—one of the key tools we are instrumentalizing to attract and unlock mining investment. These 30 deals, in addition to the 26 I announced at the G7 Energy and Environment Ministers’ Meeting in October, are unlocking $18.5 billion in CAPEX for critical mineral projects across every region of Canada. The Production Alliance is a perfect illustration of how we are not only seeking investment but actively building the conditions and multilateral institutions that will make Canada the most stable and attractive investment destination in the world.

Beyond programs and policy, the most powerful signal we can send to investors is certainty. In an increasingly uncertain world, Canada offers stability. We have predictable regulatory systems, strong environmental standards, and a highly skilled, world-class workforce. Investors know that when they commit capital here, they are operating in a transparent and rules-based environment they can trust. Now more than ever, that is a premium I hear around the world that our allies are willing to pay.

What changes do you expect to see in the global energy market, and how might Canada position itself to benefit from these changes? What developments in the energy and natural resources space are you most excited about?

The global energy market is undergoing profound change, and Canada is well positioned to lead—in fact, we have already started to. Trade relationships and regional security dynamics are shifting rapidly, and many countries, including Canada, are reassessing their energy security and supply chains. In that environment, there is growing demand for stable, democratic suppliers of energy and natural resources who are committed to free and rules-based trade and do not use resources and economic integration as coercive tools. That is precisely where Canada comes in—and we are not wasting time. In the past six months alone, the Prime Minister has signed 20 new trade and security agreements, reinforcing Canada’s reputation as a reliable long-term partner.

Another defining shift is the global transition towards lower-carbon energy systems. Canada is a leader here too: our electricity grid is more than 80% non-emitting, giving us a strong foundation for sustainable growth and attracting clean investment. As demand increases for clean electricity, critical minerals, and low-carbon fuels, Canada has an opportunity to expand production while also exporting technology and expertise. I am particularly excited about developments in offshore wind and nuclear energy. Both present opportunities to not only generate reliable, clean power at home but also export innovation, engineering, and services abroad, creating high-quality jobs and generating revenue in Canada in the process.

At PDAC 2026, I was also energized by the innovation, ambition, and opportunity I saw in Canadian mining, and—along with the Production Alliance deals—I was proud to announce over $3.6 billion in new programs and investments to unlock Canada’s critical minerals advantage and deliver Canadian minerals from mine to market, underpinning domestic and global energy transitions, advanced manufacturing, and defence technology.

Finally, I am excited to see major nation-building projects in Canada move from vision to reality. The projects currently advancing are creating jobs, strengthening supply chains, supporting the low-carbon transition, working with Indigenous partners, and reinforcing Canada’s energy sovereignty all at once. Watching these projects move towards construction and production is exactly why I entered public life: to get real things done. It is one thing to talk about potential; it is another to see facilities built, workers hired, and Canadian resources reaching new global markets. That tangible progress, in both the near and long term, is what excites me most about the future of Canada’s energy and natural resources space.