The stakes are enormous: Decline vs. Prosperity


Tuesday, July 31st, 2012


Tuesday, July 31st, 2012


Natural resource sectors support Canada’s economy, with energy, mining and minerals processing, and forestry accounting for approximately 10 per cent of Canada’s gross domestic product.

We need sustainable development of our natural resources, and all decisions must be based on scientific evidence, must safeguard our environment and natural habitats, and must respect the legal and historical rights of Aboriginal people.

Last week a disagreement regarding the proposed Northern Gateway oil pipeline to Canada’s Pacific Coast upset plans by provincial premiers to develop a common policy concerning Canada’s rich energy resources. Regrettably, the federal government has reduced its role in monitoring natural resource development, and has shown no interest in engaging with the provinces. But it is only the federal government which can convene a First Ministers Meeting to coordinate a coherent energy strategy.

The federal government must recognize: non-renewable, high-carbon energy sources are unsustainable; Canada must also have a plan for a transition to more sustainable energy sources; and the need for a pan-Canadian sustainable energy and economic growth strategy to succeed in the global economy and to make progress on its 2020 greenhouse gas emission reduction target.

The federal government should collaborate with relevant federal ministers and departments, as well as with provincial, territorial, and municipal leaders in Canada to develop a pan-Canadian sustainable energy strategy. It must also fully consult and accommodate Aboriginal peoples when development projects affect their rights and traditional territories.

Such a strategy should: ensure fairness to all emitters and emitting sectors, and regions. It also should include the creation of new markets and opportunities, and improved competitiveness for Canadian companies, particularly regarding low-carbon technologies.

Both renewable energy and energy efficiency offer the promise of economic growth, job creation, energy security, and reductions in greenhouse gas emissions. The government should therefore also develop an action plan to achieve identified targets for the deployment of low-impact renewable energy in Canada for the years 2020, 2030, 2040 and 2050.

In the United States, more than 30 states have established a mandate for renewable energy, requiring that electric utility companies produce a specific share of their electricity from some form of clean energy (typically 20-25 per cent by a target year, such as 2020 or 2025). In January 2011, President Obama proposed a national clean energy standard of 80 percent by 2035 in his State of the Union Address.

The federal government should also develop an action plan to achieve energy efficiency targets for the years 2020, 2030, 2040 and 2050. The European Union is now on track to deliver a 15 per cent energy saving below business-as-usual by 2020.

We also need a strategy for sustainable transportation in Canada that sets targets for 2020, 2030, 2040 and 2050; and an action plan for phasing out inefficient fossil fuel subsidies for 2015, 2020 and 2025 (in order to achieve the G20 goal of a ‘medium term’ phase out).

Former Conservative environment minister Jim Prentice had previously urged Finance Minister Jim Flaherty to phase out the oil and gas subsidies to honour the commitment made by Canada with the G20 countries. But Minister Flaherty has protected many of the existing tax incentive programs for exploration and development.

The government should: develop an action plan and milestones for increasing energy literacy, and research, development and deployment of low-carbon technology in Canada; and work in partnership with provinces, territories, municipalities, labour organizations, industry sectors, Aboriginal peoples and others to develop a clean energy employment transition strategy. This strategy should include skills development, training programs, certification courses, and transitional policies for workers.

Finally, the stakes are enormous. Leading countries are creating a new energy future, and investing billions to be at the front of the curve in the new green economy. While the government invested $3 billion in green stimulus spending, Germany invested $14 billion, the United States $112 billion and China $221 billion in green infrastructure, and in the process, created thousands of new ‘green’ jobs.

Instead of reverting to 1950s’ thinking of development at any cost, the government should be mapping the best way forward to a prosperous, energy-secure, and healthy future. The government must understand that it is a choice between being a producer and consumer in the old economy, and being a leader in the new economy. It is a choice between decline and prosperity.

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