AbstractAs global average temperature increases, the effects of climate change in Canada’s natural resource sectors will become more intensified, negative effects will outweigh the positive ones and resulting in possible disruption to natural resource extraction. Some of the potential negative effects of climate change on five of the important natural resource sectors within the Canadian economy are far-reaching, those are the following: shrinking boreal forest due to shifting forest types in the North; increasing risk of damages to oil and gas platforms due to extreme weather; experiencing frequent droughts and flooding in agricultural areas due to increasing temperature and precipitation; depleting fishery resources due to reducing habitats for ocean creatures; and causing a variety of impact from hydroelectric and transmission lines damages due to increasing rainfall and early thawing.

Canada’s natural resource sectors must deal with global climate change and its effects, and integrate those impacts into their strategic business planning and development.

ResultsThe pine forest of British Columbia are facing a loss of 53% from frequent droughts that led to increased mountain pine beetle on trees. According to CCPA report, productivity in oil and mining has declined by almost 25% in a decade. The negative precipitation trends in Quebec has resulted in wheat and soybean yields decline by 20-30%. According to Natural Resource Canada, the fishery catches in the country have reduced by 80%. According to UNEP , Canada saw US$5-billion in renewable energy investment last year, a decline of 8%. (See the bar graph below)

IntroductionCanada faces negative consequences of climate change that are most evident among the five natural resource sectors, namely the forestry, oil and mining, agriculture, fishery and renewable resource sectors. These sectors are highly prone to environmental changes caused by climate change such as intensification of forest fires, escalating risk of oil spill, outbreaks of insects and pathogens in cultivated land and pastures, migration of non-native species to Canada’s oceans, and changes in wind power production as well as alteration of dam operation.

There are also positive consequences of climate change for natural resource sectors in specific areas. For instance, there are effects of warm climates such as encourage tree growth, new opportunities for oil, gas and mineral extraction, longer growing season, expansion of fishing ground, and the increasing importance of clean and renewable energy.

Assessing the Potential Consequences of Climate Change for Resource ExploitationThe change in climate patterns determines or at least influences the extraction of Canada’s natural resources.

Forestry

In forestry sector of Canada, trees with economic importance are threatened to varying degrees as they adapt to environmental changes caused by climate change. As temperature and atmospheric carbon dioxide increases, growing seasons are altered, expecting enhance tree growth through carbon fertilization effect. However, as the natural weather events such as forest fires, windstorms, and outbreaks of pests and pathogens become more frequent, there would be a negative net effect of climate change. According to Intergovernmental Panel on Climate Change (IPCC), mitigating the impacts of climate change on forestry required risk reduction and adaptation strategies that factor in the unique interacting challenges of their ecosystem. Some of the adaptation strategies are the following: 1.) Identify vulnerable tree species and the implications 2.) Select suitable seeds and trees during reforestation 3.) Reduce the risk by practicing climate conscious management.

Oil and Mining

Oil and mining sector in Canada could benefit from climate change, with increasing oil demand shared by developing nations. Similarly, the reduction in Arctic sea ice could lead to new opportunities for megaprojects in the territorial North. Climate change, however, increases the frequency of extreme weather events that impede exploration, extraction, and development in energy and mining sector. For example, the risk of oil spills increases as storm surges and sea level increases, resulting in damages to offshore drilling facilities and pipelines. In addition, warmer climate means shorter season for ice roads used by transport freights to gain access to oil and gas wells. In efforts to motivate adaptation actions to climate change, the government are require to give incentives to producers and consumers of oil and mining products through subsidies and taxes. (e.g. Burton, 2008). Some other adaptation strategies are the following: 1.) Increase adaptive capacity in infrastructure and emergency response to natural hazard 2.) Implement management plans, vulnerability assessment and risk assessment that factor in climate change (Burton, 2008) 3.) Develop new technologies such as platforms that counter the effects of wave and storm surges in off shore drilling facilities. (Furgal et al. 2008)

Agriculture

Canada’s agriculture sector has already benefited from climate change since its corn value are getting higher due to increasing demand of the biofuel. In a high atmospheric carbon dioxide, plants will require less water, and also high humidity will slow the transpiration rates of crops. Similarly, higher crop yield will result from longer growing seasons in the Prairie’s fertile belt. Negative precipitation trends, however, may counteract any potential benefits because crop yield in the Prairie’s dry belt is expected to decline from rapid losses in moisture. Another challenge for this sector is an increase in climate variability, resulting in more extreme natural weather events such as heavy rains, droughts, and flooding. Stakeholders and service sectors such as government and private firms within this sector have a key role to play in adaptation to climate change. Some of the adaptation strategies involve control or manipulation of the environment. Other strategies are the following: 1.) Practicing strip farming; improved tillage 2.) Build flexible facilities that withstand natural hazards 3.) Incorporate scenario-based farm collaboration into management practices.

Fisheries

Canada’s fisheries sector benefited from climate change as they gain new opportunities for fishing ground expansion when Arctic ice melts. Increasing marine photosynthesis by phytoplankton and increasing migration of non-native species to the colder water of the North could result in a good catch. Climate change, however, affects the reproduction and distribution of the commercially valuable Pacific salmon and other marine species. The destruction of the aquatic habitat like corals caused by the warming of ocean temperatures has resulted in significant damage and closures to fisheries. Similarly, First Nation in coastal communities are extremely vulnerable to coastal erosion and flooding caused by sea-level rise. The Aquatic Climate Change Adaptation Service Program of Canada has developed the three following components for adapting to climate change: 1.) Assess climate change risks and vulnerabilities in four large basins in Canada 2.) Research the impacts of climate change 3.) Research to create applied science to adapt to climate change.

Renewables

Canada’s renewable energy resources are largely dependent on climate, but they have the potential to occupy greater share in the global market in a changing climate. This sector have a broad class of technologies, from hydroelectric, wind mill, biomass, solar energy, and ocean thermal energy. The occurrence of the extreme weather events, however, could compromise infrastructure. For example, increasing damages to dam are caused by flooding, and transmission lines are being affected by storms. The Natural Resources Canada has utilized renewable energies from the sun, wind, water, and biomass that will accelerate the technology towards commercialization and self-sustainability through the following: (e.g. NRCAN, 2014) 1.) Meet energy demands 2.) Reduce greenhouse gas emission 3.) Generate economic development and jobs in Canada.

Limneo C. Miranda Jr.University of Manitoba| Department of Environment and Geography

ReferencesHussain, Yadullah.(2012). Revenge of the fossil fuels. Financial Post. Retrieved from: http://business.financialpost.com/2012/10/04/revenge-of-the-fossil-fuels/?__lsa=7815-8be6Dobson, Sarah et al. (2013). Booms, Bust,

and Bitumen: The Economic Implications of Canadian oilsands development. The Pembina Institute and Equiterre. Retrieved from: https://www.policyalternatives.ca/

The Effects of Climate Change in Canada’s Natural Resource Sectors

ConclusionsThe change in climate patterns determines or at least influences the extraction and sales of Canada’s natural resources. Rise in average temperatures can extend boreal forest further North but wildfires can consume the forest. Sea-level rise and increasing weather events can have detrimental effect on Canada’s oil and mining sector. The type of farming technique depends upon heat and humidity. Droughts can kill crops and increase erosion, while excessive wet weather can cause flooding which destroy crops and favor harmful fungus growth. The effects of climate change in the Arctic is most pronounced, it reduced quality and quantity of sea ice that is important to First Nations.

Forestry (pine trees)

Oil and Mining (Oil Sands &

Mines)

Agriculture (wheat & soy-

bean)

Fishery (fishery catches)

Renewable En-ergy Invest-

ment

Post-re-duction of Extraction Production & Sale

1 1 1 1 1

Actual Re-duction in Extraction Production $ Sales

0.53 0.25 0.3 0.8 0.08

5%15%25%35%45%55%65%75%85%95%

Reduction in Canada's Natural Resource Extraction and Sale (2013)

Annual Extr

acti

on &

Sale

s (

100%

)

ReferencesGovernment of Canada. (2014, September 16). Natural Resources Canada. Retrieved from: www.nrcan.gc.ca/home

Intergovernmental Panel on Climate Change. (2014). Impacts, Adaptation and Vulnerability. Retrieved from: http://ipcc-wg2.gov/AR5/