MEMORANDUM OF UNDERSTANDING

MEMORANDUM OF UNDERSTANDING
BETWEEN
THE DEPARTMENT OF NATURAL RESOURCES OF CANADA
AND
THE DEPARTMENT OF ENERGY OF THE UNITED STATES OF AMERICA
CONCERNING COOPERATION ON ENERGY

The Department of Natural Resources of Canada and the Department of Energy of the United States of America and, hereinafter referred to as the “Participants”:

RECOGNIZING the urgent need to address the pressing challenges facing the world, including the climate crisis that threatens their populations, the environment, human health, national security, and economic well-being;

NOTING the longstanding and productive history of working together on energy issues of mutual interest;

CONSIDERING that deep economic integration, geographic proximity, unified critical infrastructure, and common values underpin their strong collaboration on energy and environment matters;

COMMITTED to working together to advance and ensure energy justice for disadvantaged communities, recognizing that both countries face converging economic, health, and climate crises that have exposed and exacerbated inequities for those who have been historically underserved, marginalized, and adversely affected by systemic racism, poverty, and decades of neglect;

AFFIRMING their shared commitment to achieve net-zero emissions by 2050, to ensure the energy transition is sustainable and inclusive, and to explore enhanced collaboration on relevant clean energy and climate change policy as well as clean energy innovation and value chains within the context of bilateral energy cooperation;

NOTING that the global energy transitions, together with commitments to address climate change, present an historic opportunity to deliver energy security, create and maintain well-paying clean energy jobs, and spur innovation and economic growth;

RECOGNIZING that securing responsible critical mineral value chains is expected to be integral to the success of North America’s energy transition and future global competitiveness;

NOTING that by acting together, they may address individual national interests while achieving shared and interconnected goals of economic prosperity, energy and national security, and environmental responsibility and sustainability;

RECOGNIZING the important role that oil and gas and other energy sector stakeholders and workers will play in the energy transition in providing expertise, capacity, and investment to bolster energy security, economic prosperity, and energy independence in the promotion of climate stabilization in Canada and the United States;

ACKNOWLEDGING there are nation state adversaries and related cybersecurity threats;

GUIDED by a mutual desire to promote responsible development of natural resources; protect citizens and their environment; and encourage investment and economic development in their countries’ respective energy sectors and the regional and global energy markets, consistent with their shared global temperature stabilization targets; and

SHARING an interest in expanding their energy collaboration, and desiring to work together regionally and globally,

Have reached the following understanding:

1.         PURPOSE

The purpose of this Memorandum of Understanding (MOU) is to create a framework for cooperation on energy between the Participants.

2.         COOPERATIVE ACTIVITIES

1. The Participants may participate in cooperative activities such as sharing knowledge and exchanging information, facilitating training and services, and other activities they may jointly decide upon, including:
1. sharing knowledge and exploring options to enhance reliability and security of the North American critical energy infrastructure, including through strengthening cybersecurity;
2. supporting the advancement of an efficient and clean electric grid to help achieve the goals of 90 percent non-emitting electricity in Canada by 2030, and a net-zero carbon pollution free power sector in the United States by 2035;
3. maintaining understanding of cross-border permitting regimes for electric transmission facilities, and encouraging clean energy cross-border transmission build-out;
4. supporting the advancement of production, distribution, and use of clean fuels as a key means to lower emissions across multiple hard-to-abate sectors of their national economies;
5. collaborating on new and updated energy efficiency standards and test methods for energy-utilizing consumer products and equipment where legally permissible, and promoting industrial and commercial energy efficiency;
6. collaborating, through the Canada-U.S. Joint Action Plan on Critical Minerals, on research and development that accelerates the development and adoption of clean energy technologies and promotes shared economic opportunities;
7. sharing knowledge and strengthening existing collaboration to accelerate the adoption of zero-emissions light- and medium duty vehicles; and zero- and low emission heavy duty vehicles, maritime, and aviation transport;
8. sharing knowledge and exploring options for enhancing cooperation in areas of mutual interest, such as those related to nuclear energy policies, technologies and fuel cycles;
9. sharing knowledge and best practices regarding generation of, and improving access to, sustainable, resilient, and affordable energy for remote and Indigenous communities; and addressing the impacts of climate change in the Arctic;
10. sharing policies, technical information, programming and research plans, and best practices related to improving environmental performance in cleaner and responsible oil and gas development, with a focus on reducing methane emissions, including joint efforts to reduce such emissions globally;
11. enhancing collaboration in the areas of Carbon Capture, Utilization, and Storage (CCUS) and carbon dioxide removal (CDR), to advance technology development and deployment;
12. collaborating on water use across a range of energy applications;
13. exploring partnerships among research institutions to pursue innovative and transformational clean energy collaborations, and building on existing linkages;
14. continuing joint renewable energy integration studies;
15. enhancing coordination of their engagement in regional and multilateral fora on energy, critical minerals, and environmental issues to align positions and advance shared priorities, including global energy security, net-zero outcomes, energy technology and innovation, examining ways to advance skills, workforce development, and inclusivity; and,
16. other cooperative activities the Participants may jointly decide upon in writing.
2. The Participants intend that the planned cooperative activities address technical, regulatory, policy, and financial issues through a cross-cutting approach.
3. The Participants understand that:
1. Cooperative activities may include in-country operations, consultations, technical events, meetings, workshops, conferences, exchanges of personnel, surveys, recommendations, and reports.
2. Activities under this MOU are intended to complement other mechanisms of energy cooperation and engagement between the Participants, or among the Participants and other relevant government institutions, as appropriate, in order to make effective use of resources and capabilities across both governments.

3.         TECHNICAL EXPERT GROUPS

1. The Participants may organize technical expert groups to exchange technical information and data, and to carry out training and develop proposals to ensure the effective implementation of this MOU.
2. The Participants intend to coordinate on how best to protect shared sensitive information concerning cooperative activities and energy infrastructure, in accordance with their respective national laws and protection rules.

4.         FUNDING

Unless otherwise decided in writing, each Participant intends to pay the costs it incurs in conducting their cooperative activities under this MOU. This MOU does not represent an obligation of funds, and carrying out activities under this MOU is dependent upon the availability of funds.  

5.         ADDITIONAL ORGANIZATIONS

Each Participant may invite additional organizations to participate in the cooperative activities conducted under this MOU, at its own expense and on such terms as the inviting Participant may determine. These additional organizations may include, but are not limited to, government agencies, universities, laboratories, science and research centers, private sector firms, international organizations, and others.

6.         MEETING

1. The Participants intend to convene an annual Minister-level bilateral meeting, with venues alternating between their two countries, to share information, review progress, and set priorities for the conduct of their cooperative activities.
2. The Participants intend to inform other relevant bilateral mechanisms, such as the U.S.-Canada High-Level Ministerial Dialogue on Climate Ambition, as needed, on progress under the MOU.

7.         LEGAL STATUS

This MOU is not legally binding.

8.         FINAL DISPOSITIONS

1. This MOU is expected to commence upon signature by both Participants and continue for five (5) years
2. The Participants may extend cooperation under this MOU for additional periods upon their mutual consent in writing.
3. The Participants may modify this MOU upon their mutual consent in writing.
4. The Participants may discontinue participation in this MOU at any time by mutual consent in writing.
5. Either Participant may discontinue its participation in this MOU at any time, but should endeavor to provide 90 days written notice to the other Participant of its intent to do so.

 

Signed in duplicate at                this            day of                2021, and at              this           day of                2021, in the English and French languages.