Competition for Capital in Canada’s Critical Infrastructure Sector

There is a global competition for capital, with investment dollars flowing to projects with the highest returns and least resistance. This challenge is evident in Canada’s critical infrastructure sector, as shown by the investment decisions of pipeline giants Enbridge and TC Energy. Despite political calls for infrastructure development in Canada, these companies are focusing on the U.S. market due to higher returns.

In the Canadian telecom sector, the need for regulatory stability to attract investment is paramount. Recent legal rulings underscore the importance of creating a favorable investment climate. Changes in government policies, such as the Mobilicity spectrum transfer rules, have highlighted the impact on investment decisions and the need for consistency.

Both the pipeline and telecom industries face competition for capital, emphasizing the significance of regulatory predictability. With global trade dynamics evolving, maintaining a stable regulatory and policy environment is crucial to encourage private sector investment in critical infrastructure and ensure long-term growth and competitiveness.