There seems to be a general consensus that the biggest challenge for 2009 will be to recover from the enormous economic hangover of 2008. In that search for the perfect cure, I would like to issue our decision makers in Ottawa a challenge — be bold!
There's a whole new global economy emerging from the current crash. It's a brand new way of thinking about business and capital, and it has a colour scheme. The 21st century belongs to green. And that's the colour Ottawa's next budget should be, too.
The world is actually facing two crises: the economy and the environment. But don't get even more depressed because solving the economic crisis does not have to be done at the expense of the environment. The reality is the new economy is a green economy.
With a few bold moves, a green stimulus package could turn Canada into a global renewable energy powerhouse. We're talking tens of thousands of new jobs in things like turbine manufacturing, home retrofits, solar panel installation, wind farm construction and transit-line building. These are skilled, made-in-Canada jobs that feed families, build wealth and help communities grow and prosper.
Federal Finance Minister Jim Flaherty has already said Canada needs to spend its way out of this recession. By spending money on green stimulus, there will be a lot of money to be made as well.
According to figures from the Calgary-based Pembina Institute, Canada will be able to nearly triple its investment in renewable energy projects. The think-tank predicts that just by investing in energy efficient buses and light rail alone, Canada's GDP could benefit as much as $31 billion.
We can even make money by doing nothing. Last summer our organization released a paper showing the logging industry can make more money keeping the forests standing than by cutting them down. Canada's forests have economic value in the emerging international carbon markets and their services (i.e. sucking and storing carbon dioxide out of the atmosphere) are worth something that others will pay for in the global fight against climate change.
A study released last month by The David Suzuki Foundation and Pembina shows Canada's economy can grow by almost 20 per cent and meet its greenhouse gas commitments to reduce emissions by 25 per cent of 1990 levels. Green investments make both economic and political sense in a world where there is increasing pressure to reduce greenhouse gas emissions.
The private sector is looking to Ottawa for leadership in this time of crisis. In a rapidly emerging "carbon constrained economy," industry and businesses need to inspire their investors. Canadians want policies that protect rather than destroy the environment. Point them toward green energy solutions with clear objectives, and the investments will quickly result in a more competitive, prosperous and sustainable 21st century economy.
For years now, Canadians have comforted themselves with the belief that we are doing more for the environment than our neighbour to the south. But all of that's about to change. Next week President-elect Barack Obama is expected to bring a green "revolution" to the United States by shifting toward environmentally sustainable industries. Canadian business and manufacturing cannot be left behind.
The current economic crisis offers an unprecedented opportunity to make Canada a renewable energy powerhouse. The time for our very own green revolution is now.
Originally published in The Toronto Star, January 16, 2009. Link: http://www.thestar.com/comment/article/571781
