From the development of new, low-carbon energy systems to embracing environmentally responsible operating practices, leading Canadian businesses are seeing value in going green. We asked a panel of experts for insight on this movement and what it means to Canada's future.
ECONOMIC OPPORTUNITY
Cleantech, or the production of green technologies, is a solid industry that is worth $11.3-billion, employs 41,100 people and puts energy-saving and greenhouse gas-reducing tools in the hands of operators and business leaders in all of Canada's major economic sectors, says Jon Flemming, vice-president of public affairs, Sustainable Development Technology Canada (SDTC).
In the oil sands industry, for example, clean technologies reduce water and power usage and environmental impact – all of which translate into savings and therefore a stronger core Canadian industry, Mr. Flemming explains. In the forestry sector, byproducts are increasingly used in a number of innovative ways, such as fuel for cleantech heating and cooling systems, creating a revenue stream from what would otherwise be considered waste. "Or even a third cornerstone of Canada's economy, agriculture: non-food crops make their way into the green chemistry sector, making bio-products that replace a number of petroleum-based products," he adds.
Clean technology also creates energy efficiencies that bring down demand on the electricity grid and reduce greenhouse gas emissions, says Mr. Flemming. "It puts people to work, builds businesses and creates export opportunities in a world hungry for cleantech innovation. All that translates into economic opportunity that's ours for the taking."
INNOVATION-POWERED PERFORMANCE
Environmental leadership is one of the platforms on which the Forest Products Association of Canada (FPAC) has built the sector's reputation, says Mark Hubert, FPAC's vice-president of environmental affairs. "In 2007, we committed to be carbon-neutral throughout the value chain without the purchase of offsets. And the Canadian Boreal Forest Agreement – the first and largest agreement of its kind between the forest sector and the environmental community – is garnering accolades from around the world," he says.
It's a course FPAC is keen to continue, and its Vision2020 document defines goals to "further reduce [the sector's] environmental footprint by 35 per cent by the end of the decade while creating $20-billion worth of increase of economic activity," says Mr. Hubert, who sees innovation as key for achieving these goals.
"We are extracting more value from every tree in the form of bio-energy, bio-chemicals and bio-materials. And material derived from trees goes into an increasing number of products, such as car parts, cosmetics, clothing," says Mr. Hubert, adding that he sees growth opportunities in areas like nano-technology and 3D printing.
"When they replace products from carbon-intensive resources, forest products – which are derived from a renewable resource – lighten the load on the planet," he says.
EXPORT OPPORTUNITIES
About 74 per cent of Canadian cleantech companies were exporters in 2012, with revenues of approximately $5.8-billion, according to Analytica Advisors. With the global market for cleantech expected to grow to $2.5-trillion by 2022, how can Canadian businesses identify opportunities? Government price support mechanisms can be an important driver for making markets attractive, says Rod Lever, cleantech lead at Export Development Canada (EDC). "While a few clean technologies – such as wind, solar and, to some extent, geothermal – are already competitive with incumbent energy generation technologies like coal, natural gas or even nuclear in some markets, newer technologies almost always need price support, i.e. subsidies of some kind," says Mr. Lever. "The cost of capital is initially very high for newer technologies and tends to fall as they are successfully deployed. Consequently, subsidies are required up front and should be designed to decline and ultimately fall away when technologies are fully accepted."
Integrating renewables can also cause utilities and power authorities to consider related clean technologies, adds Mr. Lever. He explains that wind and solar energy can be intermittent – meaning it fluctuates according to the wind or sun levels – and the utilities may need to store that energy for the time when it is needed, or require technologies that help "smooth out" the power levels hitting the grid.
FINANCIAL AND POLICY INCENTIVES
Over the past decade, a growing number of corporations have given their services or products an environmentally friendly bend, says
Penelope Comette, program director at Pembina Institute, adding that policy and financial incentives could further advance green business opportunities.
Leading companies have integrated environmental sustainability objectives across the entire breadth of the operation, says Ms. Comette. In the financial sector, for example, co-operative institutions like Vancity initiated change that has now been widely adopted and includes initiatives for employees, like green teams and recycling programs, as well as "green loans and insurance practices" for customers.
Lowering the environmental impact of branches and corporate centres is important, but the real potential lies with investments, she says. Practices that take the carbon impact associated with loans and investments into account have already been embraced by progressive international and U.S. institutions, and Ms. Comette hopes Canadian financial institutions will follow suit.
Pembina Institute is currently compiling data on B.C.'s clean energy sector to address a "lack of understanding at the political level about the impact of the environmental part of our economy," she explains. The findings indicate a strong green energy performance. In B.C., for example, the renewable energy sector accounts for over 14,000 jobs, a higher number of jobs than in oil and gas extraction.
"It's a significant industry that's worth investing in. And if we have policies to grow that part of the economy across the country, it can really change the landscape," says Ms. Comette.
CLEAN ENERGY POTENTIAL
While markets for clean technology can be found worldwide, Jacob Irving, president of the Canadian Hydropower Association (CHA), sees a lot of potential for the export of hydro power close to home. "In the U.S., more than 70 per cent of electricity is produced through thermal generation – a combination of burning coal and natural gas – and if we increase Canadian hydro power exports to the U.S., it could mean a significant reduction of greenhouse gas emissions," he says.
Access to hydroelectricity can also enable the shift to other renewables – like wind and solar – that need a firm backup due to their variability. "Storage hydro is extremely dispatchable, and we believe it's an ideal complement to wind and solar, because it's clean and renewable, enabling clean and renewable," says Mr. Irving.
"Canada is the third largest hydro-power producer in the world, right after China and Brazil. With over 60 per cent of electricity coming from hydro power, we have one of the cleanest and most renewable electricity systems in the world," he explains.
Yet from coast to coast, there is room to expand, with undeveloped technical potential to more than double the current installed capacity, Mr. Irving says.
What about electric vehicles? Just half of Canada's hydro potential alone could theoretically power all light duty vehicles in Canada and a quarter of the light duty vehicles in the U.S., if they were all plug-in electrics, says Mr. Irving. In short, Canada has the clean and renewable power to help electric vehicles take off across North America.
This content was produced by Randall Anthony Communications, in partnership with The Globe and Mail's advertising department. The Globe's editorial department was not involved in its creation.