1. Canadian Northern Economic Development Agency (CanNor) May 2014 Building a Strong North Together

2. 2 Canada’s Northern Strategy The Government has a vision for the North and is taking action to ensure that vision comes to life – for the benefit of all Canadians. To meet the challenges and opportunities of a changing North, the Government established an integrated Northern Strategy (2009) and is taking concrete action in four priority areas: Exercising our Arctic sovereignty Promoting social and economic development Protecting our environmental heritage Improving and devolving Northern governance World-leading Arctic science and technology underpin the Northern Strategy and help ensure sound decision-making.

3. 3 Geopolitical Landscape Aboriginal Groups Comprehensive land claims and self- government agreements: the North’s legal framework for land and natural resource development on settled Aboriginal lands Each claim includes provisions for economic development and the participation of Aboriginal people in the economy Governments and Aboriginal organizations all have a role Territorial Governments Powers transferred through devolution of land and resource management responsibilities Federal Government Responsible for management of Crown land and resources north of 60°

4. 4 The Northern Economy While each territory and region is unique, there are some shared characteristics: –Natural Resources: resource development is a key driver –Public Sector: Government work and federal transfers remain important –Traditional Economy: Hunting, trapping, fishing, and traditional arts and crafts continue in many communities –New Sectors: Tourism and transportation are developing –Cyclical: Changes in commodity prices can have a big impact –Public and private sector and Aboriginal governments are key all partners and need to work together

5. 5 Northern Opportunities North-South Linkages Many jobs in southern Canada depend on the North Northern natural resources are an important part of Canada’s – and the world’s – economy Climate change can bring new opportunities (e.g., transportation); with adaptation needs and risks to infrastructure Natural Resources An estimated 13% of the world's undiscovered oil and 30% of its undiscovered gas lie in the Arctic; many of these deposits are in Canada Canada’s North has one of the world’s most diverse series of mineral deposits (e.g., base metals, gold, diamonds, rare earths) Northern Transportation Linkages Possibilities for Future Northern Economic Infrastructure

6. 6 Northern Opportunities Increasing Foreign Investment = Opportunity International corporations are investing in major natural resources projects and exploration in the North Part of Global Governance and the World Economy The territories are part of the circumpolar world through political and economic linkages Canada is the Chair of the Arctic Council 2013-15 Diversification and Business Development Aboriginal business community in the North is getting stronger, and has a tradition of working in partnership Comprehensive land claims and First Nations self-government are a platform for development Foreign Involvement in Major Projects in the North 2010

7. 7 Northern Challenges Skills and Capacity Northern Aboriginal workforce is small and does not always have the skills and expertise needed Importing skilled workers from the South significantly increase the labour costs paid by northern employers Community and Entrepreneurial Capacity More people work for the public sector in the North than for the private sector, or are self-employed Entrepreneurship can increase wealth and private sector employment, but starting a business in the North is challenging Need to Close Knowledge Gap Canada is developing knowledge about geo-science and environmental sustainability in the North Linking public and private sector science Canadian High Arctic Research Station targeted for 2017

8. 8 Northern Challenges Investment Climate Investment is challenging due to regulatory processes, lack of public infrastructure, and high cost of doing business in the North – coupled with a competitive global market for capital. Capital and Infrastructure There are significant gaps in community, economic, telecommunications, and transportation infrastructure However, businesses are investing in critical infrastructure for major projects and other development Community and Regional Readiness With so many players, communities, governments, business, and regional institutions must work together to take advantage of economic opportunities Most attractive 2 nd Quintile 3 rd Quintile 4 th Quintile Least Global Investment Climate for Petroleum Development: 2009 Survey Fraser Institute company survey

9. CanNor CanNor created by Prime Minister in August 2009, as part of Canada’s Economic Action Plan Key deliverable under Economic and Social Development pillar of Canada’s Northern Strategy Mandate to foster economic development in Canada’s North CanNor’s Goal: A strong, diversified, sustainable and dynamic economy for all Northerners Iqaluit (HQ) Yellowknife Whitehorse 9

10. Building a Strong North Together 10 CanNor five-year Strategic Framework addresses key challenges and opportunities 3 key priorities for 2013-2018: –An engaged and skilled northern workforce; –Enabling infrastructure; and –Community capacity Partnerships are key to success

11. Building a Strong North Together CanNor’s building blocks to acheive its priorities: –Business and community development through contribution programs and services –Leadership and advocacy to align and leverage opportunities among partners and stakeholders, and advance major projects –Socio-economic research and policy development to ensure evidence- based programs, services and activities 11

12. 12 Contribution Programs The Strategic Investments in Northern Economic Development program focuses on strengthening key sectors such as resource development, tourism, fisheries, cultural industries and community and business development. Its goal is to promote economic diversification and encourage Northerners’ participation in the territorial economies ($18.2M/year). Northern Aboriginal Economic Opportunities programs build capacity and support economic development within Aboriginal communities and businesses ($10.8M/year). Northern Adult Basic Education Program, launched in February 2012, this 5 year program helps Northerners develop the basic workplace skills needed to enter the labour market or take further vocational training ($6.6M/year).

13. Leadership & Advocacy Working with partners, CanNor serves as a centre of expertise on economic development in Canada’s North The Agency promotes Northern interests both within and outside the federal government – in Ottawa, across Canada and around the world CanNor brings a Northern lens to national policies and strategies, while advancing a coordinated and planned approach to economic development in the North 13

14. Northern Projects Management Office Established in 2010 with mandate to support communities and industry in advancing northern resource development. –Provides issues management, path-finding and advice to industry and communities –Coordinates the participation of federal departments and agencies in the regulatory review process –Works directly with Aboriginal communities to support them in the resource development process –Publicly tracks the progress of projects to bring transparency, timeliness and effectiveness to the regulatory system –Coordinates Aboriginal Crown consultation and holds the official consultation record –Undertakes northern resource development policy initiatives 14

15. Major Projects in Various Regulatory Phases NPMO Project List – January 2014 Once in production, the 33 projects moving through the regulatory process represent:  over $27 billion in capital investment,  over 10,000 long-term direct operating jobs Once in production, the 33 projects moving through the regulatory process represent:  over $27 billion in capital investment,  over 10,000 long-term direct operating jobs 15

16. 16 Policy & Research Policy and research provides empirical evidence and analysis to guide all of CanNor’s activities, programs, services Effective performance measures to demonstrate value for money ­ Northern Economic Index measures the state of economic development in Canada's three territories. ­ Northern Economic Diversification Index (EDI) measures the state of economic diversity in Canada’s northern territories.

17. Building a Strong North Together CanNor is delivering on its priorities Partnerships are key to success Focus programs, services and activities on three priority areas: –an engaged and skilled workforce, –enabling infrastructure, and –community capacity Facilitate resource development opportunities and foster strong, sustainable northern businesses 17

18. Thank you Merci Qujannamiik Mahsi’ Choo