Feds missing opportunities to make Canada global leader in green economy, say critics

The federal government is missing a huge opportunity to position Canada as a global leader in a green economy, say critics who are calling on the Conservatives to implement a policy strategy that includes major incentives for industry to develop more green energy. "The federal government has no policy," Sierra Club of Canada executive director John Bennett told The Hill Times. "All the federal programs are running out and the Conservatives are showing no intentions of continuing them." Clean energy is energy that can be readily reused with minimal impacts on the environment. Among the most recognizable sources of clean energy are solar, wind, hydrogen and hydro electric. The domestic wind energy industry in 2008 accounted for 1,200 jobs in Canada. The hydrogen fuel cell industry produced more than 2,000 full time jobs and more than $160-million in revenue in 2007, according to Industry Canada. While the hydro power and solar industries employ over 2,000 people, the renewable fuel sector employs another 1,000 Canadians. Sustainable Development and Technology Canada's statistics also show that the clean energy sector grew 50 per cent in 2008-2009 and is expected to grow roughly 117 per cent over the next two years. This provides a host of opportunities for Canadian green energy companies, though they'll require some significant assistance from the federal government, Mr. Bennett said. "There are huge amounts of jobs in green energy and conservation," he said, noting that Canada has a poor history of commercializing research and development and this is where the federal government should step in. "A committed effort is necessary. You need to shepherd these things through, that's how you build an industry." In the 2010 federal budget, the Conservatives introduced clean energy and conservation investments to supplement its $4.1-billion ecoEnergy program to assist in the development of alternative energy sources. It expires in 2011. The 2010 budget measures also included allocating some $300-million for Atomic Energy Canada Limited and more than $100-million for green technologies in the forestry sector. Since coming into power in 2006, the Conservatives have pledged to reduce green house gas emissions by 17 per cent by 2020, primarily through forcing Canadian industries to meet emission reduction targets. The federal government has also introduced $300-million for tighter chemical regulations, as well as $2-billion for renewable fuel production and created a $1.5-billion "clean air and climate change" provincial and territorial partnership, which included investments in British Columbia's hydrogen programs. In 2009, the Harper government dedicated $1-billion over five years, as part of the stimulus package to a green infrastructure fund, that, since its inception, has funded projects from the Yukon to St. John's, according to Infrastructure Canada. Programs include an organic waste system, that will convert waste into biogas in Rivere-du-Loup, Que., a $13-million wind energy project in New Brunswick that will boast 30 wind turbines and enough electricity to power more than 8,000 homes in the maritime province. The Conservatives also invested $795-million in a green energy research fund "to advance Canadian leadership" in the industry, $500-million towards Sustainable Development Technology Canada to assist burgeoning clean technology companies, and $1-billion for Natural Resources Canada's Pulp and Paper Green Transformation Program, which invests in creating clean energy from forest biomass. According to Natural Resources Canada, "the 15 projects announced to date are expected to produce a total of 949,838 MWh/year of renewable energy," which will reduce approximately 95,000 tonnes of greenhouse gases. Natural Resources Canada's website says that the government's ecoEnergy renewable energy program has already produced over 4,000 MW of clean energy, with the retrofit program leading to 22 per cent energy savings and reducing GHG emissions by three tonnes a year. The government also predicts that its renewable energy investments will stimulate the clean technology sector's growth. John Tak, executive director of the Canadian Hydrogen Fuel Association, said he commends the federal government's previous financial support to the hydrogen industry and respects its need to balance the economy and environmental priorities, but urged Ottawa to craft a strong policy to attract private sector support. "The government is investing in the sector but what we need is a broad policy initiative to secure and draw in private investors," he told The Hill Times. "We'd like commercial purchase incentives of fuel cell and hydrogen infrastructure." Mr. Tak said that such efforts will culminate in a private sector response, much like an earlier government plan. "The federal government gave $170-million from 2003-2008 to boost the fuel cell industry and as a result the private sector ended up investing $1-billion," he said. " policy signals stimulated this." Opposition MPs also criticized the federal government for the lack of effort in formulating a comprehensive green energy strategy. NDP MP Linda Duncan (Edmonton-Strathcona, Alta.) said that the federal government doesn't have a clean energy strategy and intends to do nothing. "This is the time, and the government must make these policy decisions now." Ms. Duncan said that the Conservatives are consistently failing to seriously approach alternative energy, instead dedicating their focus too heavily on the oil and gas industry. She noted that even one of the government's chief clean energy subsidies is indicative of this favouritism. The $650-million investment towards carbon capture and storage technology is nothing but a giveaway to oil companies operating in the tar sands, she said. "The only energy policy of the Conservative government is to subsidize oil and gas," she said. "The government made a policy decision based on ideology to choose one sector over another sector ." The government needs a more proactive approach, Ms. Duncan said, urging rich subsidies and consistent support for the green energy sector, as well as substantial benefits to encourage more conservation by Canadians. "We hear a lot about how the public has to do its share, well the public needs to be incentivized to do its part," she said. "There should be major incentives for retrofitting, major incentives to convert to smart grids, and major incentives to push for clean energy technology. Clean energy isn't a job killer; clean energy is a job creator." Liberal MP and environment critic David McGuinty (Ottawa South, Ont.) also said that the Conservatives' approach to green energy is leaving Canada at a steep disadvantage. He said the government is putting its short-term partisan interests over the country's economic well-being. "Their only plan for the past 54 months is to cobble ahead trying to avoid from becoming a crisis," Mr. McGuinty said. "They're burying this." Mr. McGuinty said the Conservatives only care about "the almighty majority" and are not focused on developing a long-term strategy when it comes a green economy. As a result, the alternative energy sector is "in despair, and fleeing to the U.S., where the Obama administration is outpaying the Canadian government anywhere from 14 to 18 to one." Mr. McGuinty said the government should formulate a comprehensive national clean technology strategy, start a provincial-federal green energy dialogue, review financial incentives and put a price on pollution. However, a spokesperson from Natural Resources Canada said the federal government is "taking action to advance clean energy technologies and create jobs for Canadians," while also ensuring "investments in clean energy technologies." Mr. Bennett disagreed, warning that the federal government's inaction is causing Canada to fall behind on the international scene, as well as restricting the growth of its alternative energy sector. "Every OECD nation has a major subsidization program except for us," he said, noting that more than 200,000 people in Germany are employed in the green energy sector because of its government's subsidies to the industry. "It should be that someone is able to go to the government and say, 'I've got an idea, I need money for research' and get those funds." University of Ottawa assistant economics professor and environmental economics expert Leslie Shiell criticized clean energy subsidies, however, and argued for more fiscal restraint when attempting to jump start the green energy sector. "People in the environment movement believe that to stimulate the green energy sector what's needed is by subsidies. The problem is the money is coming from some place—it's coming from the tax payers," Prof. Shiell told The Hill Times. "To find the money to fund these subsidies, the government is going to have to make some choices, for example whether to fund health care or these alternative energies." Prof. Shiell said that subsidies often lead to higher prices and inefficient solutions. Instead, he said there should be a simple carbon tax "that would push people to find the most efficient alternative energies." In addition, Prof. Shiell said he is skeptical of the potential role Canada could independently play in the global green energy market, urging the government to wait for the United States before making any drastic policy measures. "Moving ahead without the Americans is useless. It would certainly affect our competitiveness," he said. "Canada must harmonize with the Americans." However, Mr. McGuinty said this approach was disadvantageous, naive and potentially harmful to Canada, deriding it as a cheap political ploy by the Conservatives to hide behind President Obama. "Canada is a sovereign country. Taking action without the U.S. is entirely possible," he said. "The U.S. is never going to design carbon pricing to benefit Canada, just like we wouldn't. ... Canada and the U.S. are different and as a result, different approaches must be taken. ... To hide behind the U.S. is a cover-up to do nothing." NRCan spokesperson Micheline Joanisse said that due to the intertwined nature of the North American economy, going ahead with a green energy program independently of the U.S. is unwise. "The entire North American economy is integrated to the point where it makes little sense to proceed without harmonizing and aligning a range of principles, policies, regulations and standards," Ms. Joanisse said. She also refuted the notion that the federal government is hand wringing while the Obama administration struggles with pushing its climate change legislation through Congress, saying that they are actively collaborating with their American counterparts. "We are continuing to pursue work on a sector by sector basis," Ms. Joanisse said. "For example, we are working together with the U.S. towards common North American standards for regulating greenhouse gas emissions from vehicles. ... We are also working with the U.S. through the Clean Energy Dialogue, to spur rapid progress in clean energy technologies and help accelerate private sector investment to promote climate and energy security." news@hilltimes.com The Hill Times

Feds missing opportunities to make Canada global leader in green economy, say critics

If the federal government makes policy signals toward a green economy, industry will fill in the gap, say opposition MPs and stakeholders.

Provinces say no word from feds on striking pharmacare deals over a month after law passes

Public service job cuts loom as Ottawa misses spending and deficit targets

Conservative MPs bailed on France visit early, won’t say why

Ratna Omidvar on immigration, and eight years of legislating in the Senate

Relaunch advisory group to prepare for Trump’s return, says original NAFTA Council member

How to secure Canada’s low-carbon advantage in the global clean energy race

Will governments or markets drive Canada’s energy transition?

UN secretary general calls on developed countries to accelerate net-zero timelines to 2040

A golden opportunity for Canada in hydrogen

Canada will stop being global hydrogen leader without rapid federal follow-through right now

News

Get free news updates

Opinion

Submit a guest opinion article

resources

Advertise

subscribe

get help

Get free news updates

Submit a guest opinion article

Feds missing opportunities to make Canada global leader in green economy, say critics

If the federal government makes policy signals toward a green economy, industry will fill in the gap, say opposition MPs and stakeholders.

Become a Political Insider