Renewables are driving a clean and just recovery towards a low-carbon economy

There is a clear and urgent need to hasten the transition to a low-carbon economy. Indeed, the transition we sorely needed over the past few decades has been so delayed and unenthusiastic that we now require a transformation in order to meet our Paris Agreement commitments, including limiting dangerous warming to 1.5 C. Nonetheless, the clean energy sector has demonstrated its value and capacity for growth. Fantastic new solar power generation facilities in Alberta will provide electricity for less than five cents per kWh—below that of natural gas. Wind generation has undergone a similar trajectory with costs dropping by 70 per cent over the past decade, positioning it as the lowest-cost subsidy-free option for new electricity supply. Together, the two sources have doubled their share of the global power mix in only the last five years. While major oil companies operating in Canada are laying off rather than creating jobs, the renewables and clean technology sector has demonstrated its resilience in the face of crises through exceptional financial performance even throughout the pandemic. For example, as of this week, the TSX Renewable Energy and Clean Technology Index is up 130 per cent over the past decade, while the fossil fuel-heavy Energy Index is down by 69 per cent over the same time period. The renewables and clean tech sector does not face the same geopolitical vulnerabilities, uncertainty due to insufficient climate action and disclosure practices, and market volatility that plague the outgoing incumbent. Those most affected by this transition want in: Iron and Earth, an oilsands worker-led, not-for-profit organization urges the federal government to invest in “climate careers that will kick-start Canada’s economic recovery and transition to a net-zero emissions economy.” Their prosperous transition plan also clearly states that “Canada’s energy workers have the skills needed to build the new, net-zero economy and kickstart Canada’s recovery from the pandemic.” I agree. Drawing from my experience as an environmental engineer and participant in both the Senate National Finance and Energy, Environment, and Natural Resources committees, I recently published Building Forward Better: A Clean and Just Recovery from the COVID-19 Pandemic. The paper explains how a clean and just recovery meets each of these criteria all while, suitably, addressing the climate and inequality crises which both contribute to the risk of transmission and lethality of diseases such as COVID-19. Activities which lead to climate change, along with climate change itself, are major contributors to our current situation. For example, encroachment into wildlife habitats and factory farming increase the proximity of humans to animals and pollution increases the severity of illnesses. A clean and just recovery targets stimulus towards sectors of the economy that contribute to environmental protection, as well as improve the well-being of Canadians and help Canada meet its net-zero emissions target by latest 2050. It encourages the development and construction of low-carbon energy sources, rather than keeping wasting subsidies on high-risk fossil fuels. It incentivizes the construction of energy-efficient buildings and retrofitting old ones to use less energy rather than business-as-usual construction methods. The recovery must generate sustainable gains over time, distribute social benefits equitably and respect the ecological limits of the planet we inhabit by reimagining the ways we produce, store, transmit, and use energy. A well-designed clean and just recovery allows the private sector to efficiently converge on the most cost-effective method while being held accountable for their environmental and social impacts through conditionality and transparency. If we have learned from previous crises, the recovery stage of our response must improve upon the foundations of our economy for it to become truly resilient and prosperous. Those who invested in “green recoveries” after the 2008 crisis recovered quickly, attaining low unemployment rates and high economic rebounds. Investments in renewable energy and efficiency also create more jobs than investment in fossil fuel development. Further, experts agree that overall, clean R&D is more effective than general R&D and clean connectivity infrastructure is more effective than traditional transport infrastructure. The stars are aligning for a clean and just recovery: public buy-in, support from business and community leaders, backing from economists, and precedent set by other jurisdictions. This is an opportunity to fend off the current economic and environmental crises and to strengthen our institutions so that we can meet inevitable future pandemics as well as the ongoing climate change emergency with resilience. Rosa Galvez is an engineer and expert in pollution who serves as an Independent Senator for Quebec. She chaired the Committee on Energy, the Environment, and Natural Resources in the 42nd Parliament and currently serves on the Senate’s National Finance Committee, which oversaw the federal economic response to the COVID-19 pandemic. She recently published a white paper entitled Building Forward Better: A Clean and Just Recovery from the COVID-19 Pandemic. The Hill Times