Pan-Territorial Growth Strategy: Working together for a better future

Our Vision: Vibrant and inclusive economies across Canada's territories, increasing the prosperity of the North and contributing to Canada's success as a whole.

The Pan-Territorial Growth Strategy (Strategy) is a plan to advance economic growth over the next five years. It builds on the unique strengths and opportunities of Canada's North. The Strategy sets out the priorities that the Canadian Northern Economic Development Agency (CanNor) will advance with the support and collaboration of our northern and federal partners. At its core, the Pan-Territorial Growth Strategy is designed to enhance the economy, attract investment, and create jobs so that all Northerners can benefit from the economic opportunities that are unfolding across the territories. Success in building a vibrant, inclusive economy will contribute to the resilience of northern communities and the overall wellbeing of Northerners.

The Pan-Territorial Growth Strategy is aligned with other federal frameworks such as the Canadian Minerals and Metals Plan. In addition, it draws upon the work already completed by our territorial and northern partners such as the Pan-Territorial Vision for Sustainable Development (Vision), released by the territorial governments in 2017, which emphasizes the importance of resource development, economic diversification, improved infrastructure and innovation. At the heart of this Vision is the goal that "every Northerner deserves the opportunity to experience wellness and the strength of community that characterizes Canadians."

Why this matters

The nature of work–automation, telework and the gig economy–is changing. This trend will impact the North; for example driverless vehicles at mining operations.

All territories have a younger population than Canada as a whole; over 60% of the population is under the age of 40. The average age of the Indigenous population in the North ranges between 2 and 5 years younger than for the non-Indigenous population. The territories have a large Indigenous labour force whose potential is underutilized. The National Aboriginal Economic Board estimated that Indigenous people in the territories could earn an additional $1.1 billion in annual income if they had the same education and training as non-Indigenous people. A barrier to increasing participation of northern Indigenous peoples is lower educational and skills attainment levels.

Many people work in the North but do not live there. For example, the mining sector relies heavily on a fly-in/fly-out workforce from southern Canada. The Conference Board of Canada expects that only 27% of the jobs created in the Nunavut mines between now and 2025 will go to people living in the territory, compared with 70% of jobs in the services sector.

"We've found that mentorship and matching young Inuit with a professional in the field is a highly effective way of training technical skills. Learning is done in the context of the high-pressure, creative and collaborative environment of live performance and trainees quickly find themselves mastering skills."

Northerners often need to leave the territories to acquire necessary training and post-secondary education. Access to business training or supports can be limited, particularly outside the territorial capitals. Other barriers, such as a lack of daycare or transportation or employment opportunities in smaller communities prevent some Northerners from participating in the labour force.

Actions

In collaboration with its partners and stakeholders, CanNor works to ensure that all Northerners have the skills and training necessary to take part in the economy of today and in the future. Priority actions for CanNor include:

Some improvements are on the horizon, for example, Yukon College will be Yukon University in 2020 (pictured above is the architectural drawing of a new science building which is being constructed with the help of federal funding).

In the Northwest Territories, the Dechinta Centre for Research and Learning (an on-the-land learning facility) will be expanding its offerings with the assistance of federal funding. In addition, the Government of Northwest Territories is exploring whether to transition Aurora College into a Polytechnic University.

In Nunavut, the Canadian High Arctic Research Station in Cambridge Bay is a science 'hub' for Canadian Arctic research and is another example of exposure to acquiring skills and opportunities.

Helping to close the infrastructure deficit

CanNor invested in the pre-construction work associated with the 137 km Inuvik–Tuktoyaktuk highway in the Northwest Territories. Completed in 2017, this is the first Canadian highway to connect with the Arctic Ocean. The new highway has spurred an increase in visitors to the area with over 15,000 people visiting the area in 2018. CanNor is working with both communities to expand tourism offerings and related infrastructure in the area.

CanNor is currently funding the Kivalliq Inuit Association to conduct a technical and feasibility study on the potential to develop a hydroelectric and fibre-optic link between the province of Manitoba and the Kivalliq region of Nunavut.

Teslin Tlingit Council received support from CanNor for their installation of a district biomass heating plant in the community of Teslin, Yukon.

• helping northern entrepreneurs gain the skills they need to start or grow their business, including funding for dedicated business supports to encourage Indigenous, youth, and women's entrepreneurship as well as targeted access to capital;
• increasing the availability of ongoing skills development opportunities, including Indigenous-based knowledge and skills, through investments in training infrastructure as well as the development of certification standards, curriculum or other materials;
• supporting the capacity of Indigenous communities to participate in economic opportunities by funding community economic development functions (e.g. planning, research, liaison, advocacy, coordination, monitoring); and
• working with businesses operating in the territories to implement employment strategies that create pathways for entry and advancement for Northerners.

Actions

In collaboration with its partners and stakeholders, CanNor will leverage significant planned investments in northern infrastructure to close infrastructure gaps and foster new economic opportunities. Priority actions for CanNor include:

• helping spur the development of multi-purpose corridors for broadband, energy, and transportation, including connections to hydroelectricity grids, through continued policy advocacy and funding of pre-construction readiness (e.g. feasibility studies, drawings) of these large scale infrastructure projects;
• investing in the construction and improvement of small-scale economic infrastructure
  (e.g. visitor centres, business incubator space, fish-harvesting/processing infrastructure, micro-grids) that help communities and northern businesses capitalize on economic opportunities;
• maximizing opportunities for northern firms, including Indigenous Economic Development organizations, to compete for the construction and ongoing operation of major infrastructure projects through continued policy advocacy and investments in capacity; and
• supporting the development of climate-resilient infrastructure, including repair and maintenance of existing small-scaled economic infrastructure, to help increase the North's overall resilience.

Why this matters

The mining sector is the cornerstone of the northern economy and is a significant customer of territorial and Indigenous businesses. Much of Canada's mineral resource potential lies in the territories; as 76% of the projects north of 60° are undeveloped, including minerals used in the production of new technologies such as solar panels.^{Footnote 1}

The sector serves as the economic pillar across the territories. In 2018, the value of mineral production in the North was approximately $3.5 billion: $2,110 million in the Northwest Territories, $1,164 million in Nunavut, and $217 million in Yukon.^{Footnote 2}

In the next five years, the outlook for the mining sector varies across the territories. Nunavut is expected to soon experience a period of strong growth due to increasing mining production and a number of new mines which are in development such as the Meliadine mine and the Back River project. Yukon is forecasting growth with three new mines on the horizon with the anticipated opening of Victoria's Eagle, and Goldcorp's Coffee and Casino mines.

While the mining sector will remain the cornerstone of the Northwest Territories' economy, none of the existing diamond mines plan production past 2034 and one mine is scheduled to close in six years. Although new metal mining operations are planned, these new operations will not fully offset declining diamond production. Future infrastructure projects, such as the Taltson Hydroelectric project expansion and development of an access corridor through the Slave Geological Province, would reduce operating costs for existing mines, and facilitate resource exploration and development activities.

There are also economic opportunities related to other parts of the mineral development cycle such as those connected to the remediation of Giant Mine in the Northwest Territories and Faro Mine in Yukon. Finally, the move towards green mining practices will allow for energy savings, energy efficient mining operations and improved productivity.

Developed by federal, provincial and territorial governments in collaboration with partners, Indigenous peoples, and stakeholders, the 2019 Canadian Minerals and Metals Plan will help drive the industry's long-term success. The plan will help capitalize on the economic opportunities which exist throughout the mineral development cycle, including employment, investment and better engagement with Indigenous and local communities.^{Footnote 3}

When the Geological Survey of Canada began the Geo-mapping for Energy and Minerals Program in 2008, only 20% of Canada's North was mapped to modern standards.^{Footnote 4} Supported through federal and territorial investments, the level of geoscience knowledge of the region has greatly improved and is being used to inform decisions on mineral and energy exploration, land-use and the environment. The development and deployment of next generation geoscience technology and programming will advance Canada's place as a leader and will help unlock future development.

Maintaining competitiveness is paramount in a sector which is subject to global economic forces and price fluctuations. The mining sector is embracing new technologies. For example, diamond mines in the Northwest Territories are employing blockchain technology^{Footnote 5} to modernize their supply chains and ensure the authenticity of their stones. Increased collaboration between the North's mining sector and other industries can help advance mutually beneficial technology development and adoption.

The energy sector— which includes primary energy sources such as oil, natural gas, and renewables— also makes an important contribution to the northern economy, contributing $196 million to northern GDP in 2017.^{Footnote 6} The energy sector contributes to employment in the territories through the creation of over 690 jobs in areas such as oil and gas, electricity, and construction.

Biomass energy projects are helping to displace the use of diesel, reducing environmental impacts and improving socio-economic conditions. In 2017, there were 7 operational biomass plants in Yukon (compared to only 1 in 2011) and 74 in the Northwest Territories (compared to only 19 in 2011).^{Footnote 7} Often locally-driven, these projects encourage community ownership and participation, while strengthening capacity. For example, the Teslin Tlingit Council's biomass district heating system, which provides heat to the community's main buildings, serves as demonstration-site of a community bio-energy project for visitors around the globe.

As is the case for mining, the energy sector represents additional social-economic contributions to the territories and Canada as a whole in areas including new technologies and innovation, clean energy development, and attracting investment. These sectors have the potential to advance economic reconciliation and Indigenous participation in the economy. Responsible resource development embeds the concept of sustainability — balancing economic, environmental, and social considerations — and integrates the use of Indigenous knowledge into decision making processes.

Actions

In collaboration with its partners and stakeholders, CanNor works to capitalize on the North's immense resource potential in both mining and energy. Priority actions for CanNor include:

• advancing opportunities for meaningful engagement and participation of Indigenous peoples in the sector through supporting initiatives which foster early engagement and capacity building, Indigenous employment, and the involvement of Indigenous businesses in the supply chain;
• supporting the objective of timely and effective impact assessment and regulatory processes by coordinating federal technical and other input processes and federal Crown consultation with Indigenous communities and helping ensure that resource development proponents understand how to navigate these processes;
• providing support and guidance for Indigenous, foreign, and domestic investment in the Northern resource sector;
• encouraging the development and deployment of new technologies and innovative practices to support continuous productivity and environmental improvements within the sector; and
• facilitating opportunities for northern businesses to export their knowledge and expertise in cold climate resource extraction globally.

Why this matters

The key to economic success for Northerners is diversification and innovation^{Footnote 8} by embracing many different types of economic opportunities and increasing linkages to the global economy. In addition, there are opportunities for a variety of small- and medium-sized enterprises throughout the mineral development cycle, which can be leveraged to support the growth of other sectors.

It is important to acknowledge the large role of public spending in driving private sector activity and employment. For instance, over half of all individuals employed in the territories work in the public sector —public administration accounted for 31%, health and social services at 11% and education at 10% in 2016.^{Footnote 9} Growing the other sectors of the economy is important to not only increasing the size of the northern economy but also strengthening its overall resiliency.

Drawing on its landscape and rich cultures, the North offers a wealth of one-of-a-kind experiences. Tourism is a growing sector across the North. For instance, in 2017-18, for the first time, over 110,000 visitors travelled to the Northwest Territories while spending just over $203 million in the process; over the last five years, visitor numbers to the NWT have increased by 19%.^{Footnote 10} There are significant growth opportunities for Indigenous tourism operators to offer signature experiences. With the opening of the Northwest Passage, the North, particularly Nunavut, can expect to see an increase in the number of cruise ships.

These one-of-a-kind experiences may be located in smaller communities which lack the facilities and services to be full-service tourism destinations. Another challenging factor is developing export-ready products that are accessible and affordable for visitors.

There is strong desire and need to increase local food production—agricultural goods, country foods such as seal, caribou and muskox, and fisheries—in order to reduce the North's reliance on imported foods, reduce food insecurity, and increase local employment. In addition, some food sectors are looking to export their products. However, current regulatory systems and structures in the territories constrain the North's ability to bring their goods to domestic and international markets. In addition, climate change is impacting traditional harvesting practices in some areas due to changing ice conditions and migration patterns of caribou, marine mammals and fish which are traditional staples for many Northerners. Northern communities are looking for new and innovative technologies to produce a diverse range of local foods. For example, some initiatives include building northern greenhouses to take advantage of the Arctic summer's 24 hour sunlight, while others involve piloting green technology.

A significant focus of the northern innovation ecosystem^{Footnote 11} is to address territorial needs, markets, and issues. The ecosystem is very small, and quite nimble; however, access to the necessary expertise, capital, and markets may be limited. Strengthening the northern innovation ecosystem involves not only enhancing its internal capacity but also increasing its linkages to southern systems (e.g. venture capital markets). Due to its size, the northern innovation ecosystem will need to focus on its strengths, such as the development of cold climate technologies, and be driven by partnerships. The northern innovation ecosystem can also employ a circular approach (take-make-reuse) to new development and retrofits to existing businesses through leveraging new digital, biological, and engineering technologies as well as business models (e.g. sharing platforms). In addition to producing environmental benefits, a circular economy approach has broad economic benefits, including enhancing business competiveness.

"The value of collaborative spaces for ideas to flourish has been proven across the world. Building on the success of the growing communities of makers and coworkers at our two previous locations and the added partnership of Yukon College and Yukon Development Corporation, we are excited for a future of innovation in the north."

The enhancement and/or creation of new anchor institutions such as the transformation of Yukon College into a hybrid-university, the creation of the Canadian High Arctic Research Station, and the innovative initiatives at the Aurora Research Institute, are helping the northern knowledge economy grow.

Actions

In collaboration with its partners and stakeholders, CanNor works to capitalize on the diverse range of economic opportunities in the North. Priority actions for CanNor include:

• supporting the growth of tourism in the North by investing in marketing, tourism amenities, and product development;
• strengthening northern food sectors, including supporting the implementation of regional strategies and development of local producers and processors capacity (e.g. support for market development, facilities, and skills training) with the goal of increasing production and employment in the territories;
• enhancing the knowledge economy by increasing support for research and development, technology adoption and development of related skills, prioritizing projects that employ a network approach (i.e. multiple partners including the private sector);
• working to reduce policy barriers which make it difficult for northern businesses and social enterprises to access federal business development programming;
• fostering linkages among businesses, institutions and other communities, in concert with northern mining operations, to engage youth, attract people and talent, and invest in projects that create jobs and drive innovation;
• expanding regional innovation ecosystems through support for incubators, accelerators, networks and access to capital; and
• increasing businesses' capacity to grow through market diversification and entry into global markets.