Creating Utopia

Canada is one of the most resource-rich countries in the world. But natural resources are finite –you can't keep extracting them forever. Other nations have been proactive about saving some of the funds generated through natural resources in sovereign wealth funds. These are large pools of money owned by a country, invested in stocks, bonds or other assets, with the goal of saving and growing wealth for the future. Norway's SWF holds $2.5 trillion CAD. In Canada, we have the Alberta Heritage Fund, but its modest in comparison. This also exposes Canada to the volatility of markets, with boom-bust cycles that impact families, businesses and investors. With the accelerating global shift away from fossil fuels, Canada must establish a unified strategy now to capture the value of oil, gas and other non-renewable resources. How this could work: 1. Foster Partnership Through Shared Benefits – Provinces can choose to join the Fund by putting in their own money. When they do, the federal government matches it—giving provinces more value for every dollar and access to bigger investment opportunities. 2. Legislate the Canadian Sovereign Wealth Fund Act – Create federal legislation that establishes this as an arms-length agency. 3. Implement Diverse Funding Sources – The Fund can be financed through federal revenues (like carbon pricing, royalties, and windfall taxes), provincial matching contributions, and a temporary 1% consumption levy. All funding will be time-limited, transparent, and guided by a clear sunset clause. 4. Return Value to Citizens Through the Canada Dividend – Starting in year 6, 20% of the Fund’s earnings will be paid out annually to all Canadians. The more a province contributes, the more its residents receive—ensuring fairness and public support. 5. Reduce Public Debt for Future Generations – Another 20% of earnings will go toward paying down federal and provincial debt. This eases long-term burdens on taxpayers and builds lasting fiscal strength. 6. Leverage Canada’s world-class investment capabilities – The Fund can use Canada’s top institutional managers (like CPPIB) to invest in global infrastructure and real estate. Strict cost caps, passive index investing, and competitive performance reviews will keep it efficient and effective. 7. Ensure Rigorous Oversight and Transparency – Regular audits, clear reporting, and legal firewalls will protect the Fund from political misuse. Canadian investments will be limited to 10% of the portfolio, with strict repayment rules if returns fall short. This is our chance to turn Canada's natural wealth into a permanent economic engine. Just as past generations built the roads, bridges, and institutions we depend on today, we now have the opportunity—and responsibility—to build the financial foundation for a stronger, more secure future for all.  Read the full memo below: