Advancing prosperity and economic opportunities through a twin transition

It’s time for Canada to consider what role it wants to play in the twin transition. That is, as the benefits of a society-wide transformation towards digitization and sustainability converge, will Canada vie for a leadership position? According to the European Commission, managing the twin transition is the key to a sustainable, thriving future. In this regard, mobility is an example of a sector that is challenging to address and has the potential for meaningful impact. Transport accounts for the second largest component of Canada’s greenhouse gas emissions (GHGs), representing nearly one quarter of total emissions. A twin transition involves innovation and the application of digital technologies that enhance sustainability. If managed successfully, the twin transition can advance prosperity and economic opportunity. One study estimated that by 2030, mobility services could more than double their revenues while at the same time, support efforts focused on air-quality improvements, shift emphasis towards renewable energy sources and reduce GHG emissions. In the EU, Digital Twins, a virtual analytical tool that mimics the physical world, including transportation systems and networks, is at an early stage of experimentation. With continued testing, its use may point to opportunities for improvement in energy efficiency and identify areas for optimizing investment. So, how can Canada position itself for success with respect to the twin transition in the transportation sector? Mobility innovations that have the potential to reduce emissions hold the promise of contributing to sustainability efforts. Canada is the only G7 country without high-speed rail. Japan has the Shinkansen. The United Kingdom has the Eurostar. And in Italy, it’s the Frecciarossa. In the United States, the Acela runs between Washington, D.C., and Boston, Mass., and travels at high speeds, albeit for less than 10 per cent of the route. In general, rail travel is less polluting than air or car travel. But, as with any mode of transport where people have a choice, travel by train must be convenient, affordable, and reliable. High-speed rail requires significant investment. For instance, the EU dedicated $25-billion in funding to create a high-speed rail connection between Italy and France. Estimates suggest that the Chinese government invested $300-billion to develop a high-speed rail network. Reduced transport emissions are one benefit of high-speed rail. In addition, investments in high-speed rail infrastructure can also spur manufacturing innovation, which in turn can promote economic opportunity. A second area of attention with respect to the twin transition is urban public transit. Significantly expanded public transit ridership in cities across the country could radically move the dial on GHG emissions. Public transit is ripe for innovation that helps it meet the demands of the twin transition, including the application of digital tools that enhance network capacity or routing algorithms that enable greater operating efficiency. Acknowledging the role of public transit in the creation of jobs, reduction in GHG emissions, and in addressing equity and accessibility, the federal government has taken steps to provide cities with transit funding. However, this much-needed funding will not arrive until 2026-2027. In the meantime, cities such as Toronto are approving transit budget cuts and service reductions. Expediting federal government contributions to public transit, alongside other interventions involving all three levels of government, is needed—both to ensure the viability of transit, and to support transit’s role in promoting sustainability and economic development. Lastly, let’s consider the twin transition with respect to innovation and experimentation in urban mobility. App-based ride and bus hailing, e-scooter and e-bike sharing, autonomous delivery robots and on demand food delivery all credit their growth potential to digital innovation. Whether or not they also contribute to sustainability measures including the reduction in GHG emissions, creation of good jobs, and improvement in the lives and livelihoods of those they serve, is a matter that can be directed through intentional governance and policy leadership. The IPCC reminds us that to ensure that emerging mobility technologies contribute to building climate change resilience, the attention of national policymakers is required. Fostering an environment in which mobility innovations that promote sustainable outcomes can be developed, marketed, regulated and implemented can go a long way towards this. Can Canada position itself for success with respect to the twin transition? Yes, if Canada commits to prioritizing investment in mobility innovation and transformation. Shauna Brail is an associate professor at the Institute for Management & Innovation, University of Toronto Mississauga, a faculty affiliate at the Munk School of Global Affairs and Public Policy’s Innovation Policy Lab and the associate director of the Mobility Network, University of Toronto.

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Advancing prosperity and economic opportunities through a twin transition

A twin transition involves innovation and the application of digital technologies that enhance sustainability.

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