Canada is set to take a leading role on the global energy stage with the launch of a new G7 alliance focused on securing reliable, transparent, and environmentally responsible sources of critical minerals, according to government sources.
Energy and Natural Resources Minister Tim Hodgson is expected to unveil the initiative during the G7 energy and environment meetings in Toronto, describing it as a cornerstone of Canada’s G7 strategy. The alliance aims to ensure that member nations have access to sustainably sourced minerals essential for clean energy technologies — from batteries and solar panels to electric vehicles — while reducing dependence on countries with questionable environmental or human rights practices.
In a keynote address to the International Energy Agency, Hodgson called the move a “turning point,” emphasizing that global energy markets are being reshaped by “geopolitical conflict, technological revolutions, and the accelerating drive toward net-zero.” He said governments and investors alike are seeking greater stability and confidence in the transition to cleaner energy systems.
“We are working with our provinces, territories, Indigenous partners, utilities, and regulators to cut timelines without cutting corners,” Hodgson said. “Predictable policies, faster permitting, and regulatory certainty are key to unlocking investment.”
The federal government’s efforts also include public funding for industrial decarbonization projects. One such initiative is a landmark deal between Microsoft and Vancouver-based Arca, an industrial mineralization company that captures carbon dioxide from the atmosphere and converts it into rock. The agreement will remove nearly 300,000 tonnes of CO₂ over the next decade.
Arca CEO Paul Needham explained that the company “repurposes mine waste from critical metal mining and turns it into a large-scale carbon sink.” Hodgson praised the project as a vital part of Canada’s broader net-zero strategy, saying that carbon removal technologies are essential to tackling the hardest-to-abate emissions.
In parallel, NorthX Climate Tech — formerly the BC Centre for Innovation and Clean Energy (CICE) — announced a $3.4 million investment in four Canadian carbon removal ventures. NorthX, backed by both the federal and British Columbia governments in partnership with Shell Canada, has invested $45 million in more than 70 clean-tech projects since 2021, generating 870 jobs across the country.
“For every dollar the Government of Canada has invested in NorthX, we’ve generated more than $30 in economic activity,” said NorthX COO Todd Sayers.
Hodgson also revealed that Montreal will host the 11th International Energy Agency Conference on Energy Efficiency, calling efficiency “the first fuel” in the fight against climate change. “Every unit of energy we save strengthens competitiveness, lowers bills, and eases pressure on grids,” he said.
With the G7 meetings set to begin, Canada is positioning itself as a global leader in building resilient, democratic supply chains for the resources and technologies that will drive the next century of clean energy growth.