President Obama is quoted in this weekend’s Globe and Mail, stating with authority that “America must finish first in the global race to dominate new energy technologies”, and why? Because in Obama’s estimation “The nation that wins this competition will be the nation that leads the global economy”. Maybe he read my earlier post about how Angela Merkel said the exact same thing about Germany’s economic recovery over a month ago. He probably didn’t, but maybe one of his aides did! Or maybe he spent some time strolling through Washington’s National Mall where the recent international Solar Decathlon was held. Incidentally team Germany’s solar powered house (or haus) won the event for the second time in a row. Canada placed near the top (4th out of 20)  led by a joint effort between Simon Fraser University of Vancouver, and Ontario’s University of Waterloo and Ryerson University, whose project North House will be on display at the Vancouver 2010 Olympics. It looks like they still fell short of convincing some in Washington that we’re doing enough up here to create green technology solutions. Canada has been criticized, even by Canadian party leaders like Michael Ignatieff for falling behind the U.S. and other countries in researching and developing sustainable green energy technology, but perhaps most poignantly by aides and advisors within or close to Obama’s administration; who are steering the economy and moral compass of our largest trading partner. This was the case with former Clinton Chief of Staff and co-chair of President Obama’s transition team, John Podesta. The current President and CEO of the Center for American Progress spoke recently in Ottawa. He makes some very important observations, but I think he ignores a major point in our energy dialogue. He and others, cite access to capital as a significant problem to greentech startups in Canada, as has been addressed in a previous Senses post. As the economic cleantech train leaves the station, Canada might be rushing with some heavy luggage-in-hand to catch up. 

According to Gerald Butts CEO of World Wildlife Fund Canada, we’re at the bottom of the list out of all the G-8 countries for our efforts to develop new technologies and become a serious player in the emerging greentech economy. Just this month, perhaps inspired by the Decathlon, the U.S. House of Representatives passed bill H.R.3585, the Solar Technology Roadmap. The bill designates $2.25 billion for solar research over the next five years. America clearly wants to develop and rely on sustainable and clean energy, but the elephant in the room right now is the growing importance of Canada’s oil sands and the continuing environmental challenges they pose. The oil sands (located almost entirely in Alberta) and their labour intensive bitumen extraction are a key pillar in American energy security. And a key pillar standing in the way of recent environmental treaties that Canada is hoped to be part of.  So while close aides to Obama can criticize us for falling behind, they’re glossing over the reality that it’s largely because of their own industrial-economic needs. However, there are two new developments are aimed at making the process far less environmentally damaging.

New technology and methods to quicken reclamation of tailing ponds, coined Tailings Reduction Operations (TRO), will dramatically increase the speed at which tailing ponds can be cleaned up from years to weeks. This according to Suncor Energy who recently submitted a regulatory application for changes to the company’s oil sands mining and extraction operations dealing specifically with these tailing ponds. The several energy companies who operate tailing ponds in the province have come under fire repeatedly from environmental and native groups as well as scores of scientists and angry self righteous college students. Recently 1,606 ducks died in a tailing pond owned by Syncrude Energy causing international outrage; the energy company pleaded innocent in court to charges laid against it in those deaths. After that incident the Federal Government implored the industry to create new measures to deal with the tailing ponds. This announcement by Suncor is in response to that pressure. It will no doubt come under fire from some environmentalists regardless of how progressive and successful it may be, but I hope it’s a sign that things are rounding the bend in Alberta.

The second development involves a proposed $800 million dollars of Federal funding for carbon capture and sequestering in the province. The process of burying greenhouse gasses underground however is expensive, and some have been vocal about the economic realities and political trivialities preventing the CCS initiative from really catching on in Alberta. I think most of those voices might reside within the province itself, which has been historically cautious about federal involvement in its energy industry.

Politics and economics aside, it appears the will is there to develop the technology and practices to better the environmental record of Canada in relation to our role as an energy producing state. Until we deal with the Alberta issue though, we will continue to trail- if not fall behind- the United States, Germany and numerous other countries when it comes to the greentech economy that we’re told is unveiling itself around us. In markets around the world greentech IPOs are leading the economic recovery, but some worry we may be witnessing the birth of a greentech investment bubble. Caution aside, we know one thing is for sure. When the U.S. makes big changes to its economy it has a big impact on Canada. So maybe by proxy Obama will steer both his and our country to this promised land of unlimited clean energy and high paying jobs despite what actions political parties here might take.  Or maybe his aides will simply continue to criticize us while their economy continues to gorge itself on our exported energy, including the oil sands, Quebec Hydro, BC Hydro etc. etc. Maybe some of their cleantech funding could’ve found its way north of the border being that they’re our largest customer.

Despite what America does, Canada doesn’t owe it to them to be a greentech leader. We owe it to ourselves. Whether Canada’s greentech economy will be developed on our own terms and of our own free will and accord, or if  by the gravity of our neighbour we’re to be dragged into Obama’s new energy policy, remains to be seen. As of now though, it seems that the greatest challenge to becoming a clean energy leader are the oil sands; the largest source of oil outside of a politically volatile middle east. That puts us between a rock and a hard place and consumes a considerable amount of funding that could otherwise go to other greentech projects struggling for capital. Unless US energy policy is open and clear about elephant in the room, it falls short of addressing its full energy and environmental realities. And unless Canada can shift focus from cleaning the oil sands to utilizing and developing our clean alternatives we’ll continue to fall short of our friends hopes and expectations; but telling us to clean up our act when they’ve had the keys to the candy shop for years, piping oil from Alberta to their own refineries, is hypocricy. Now that this new and different kind of American self righteousness (which franklyI prefer) has taken hold of Washington, let’s hope that they’ll realize that in order to be the global greentech leader Obama wants them to be they should look to Canada as both a prime place to invest in and an ally to cooperate with, not just a country to criticize for not keeping up with them. John Podesta, if you want Canada to “keep up with you”, how about a little quid pro quo. We gave you Alberta, and now we’re trying to clean it up. Why not invest in our clean energy now too?

German Chancelor Angela Merkel laid down the gauntlet recently by stating clearly and emphatically that job creation from developments and investment in technology- particularly new era automobile technology, are going to help Germany lead the EU out of the global recession. Wunderbar, but Germany has been a technology leader and particularly a greentech leader for years already. Unlike Canada, the European nations were quickly put in positions where they knew that traditional energy and industrial resources like oil and gas couldn’t power the European economy for very long. They were running out of useable land to develop, and many of them- like Germany, would have to import energy from countries like Russia; giving it a lot of leverage over the EU. A few decades ago the countries of Europe began to invest in and develop renewable energy sectors like wind and solar. Today they help to reduce Germany’s and other EU country’s dependence on imported energy. Imagine that…What’s interesting is the United States has become the fastest and largest renewable energy market in the world; driven by geothermal, solar and wind. In fact renewables represented more than 50% of total added power capacity in both the United States and Europe over the past year. Studies have shown however, that Canada has been lagging behind both Europe, the U.S. and the developing world when it comes to responsible use of our energy and resouces. We’ve seen companies develop wind and solar here in the country but with less zeal than our cousins accross the water and to the south. We’re spoiled with all this land, all these resources, and a false belief that we also have just as much time to use them as we like.

But a new cross atlantic venture being launched by Toronto-based Solar Income Fund Inc. plans on getting Canadian investors more involved in greentech by investing in the stable German solar industry- the fund will also be investing in solar power in Ontario. This is great, but still a drop in the bucket when we look at Canada’s energy investment trends as a whole. Even in British Columbia, hailed as en eco-haven for forward thinkers, our government’s plan for renewable energy and environmental protection has been withering from lack of leadership. Unlike Merkel, who emphatically sees greentech and innovation as the path to economic strength and job creation our provincial government has seen it more as a political necessity, a bone to throw at voters and while we gnaw it, the Campbell government is looking to invest in BCs first new coal mine since the 1980s. While Merkel thinks of the future, Campbell thinks of the 1980s. In fact, in an effort to completely eliminate any need to develop any coal or nuclear power in the future, a new initiative to lease micro-power plants to German households is gaining momentum in the country. Installing the mini gas-fired power plants in people’s basements will produce as much electricity as two nuclear reactors within a year, and any surplus energy not used by the consumer can be sold back to the government for a rebate. Producing energy on site is both more efficient as less is lost in transport, and it also encourages users to conserve- as surplus can be sold back for rebates. This makes energy more affordable for everyone in the long run, including industry and large employers who are looking to decrease costs.

Why or how the BC government is so unable to see greentech in the same light as the Germans and other EU countries is troubling. We are spoiled, with rivers, mineral rich mountains, even offshore oil that has yet to be tapped. So, unlike the Germans we don’t have to focus on innovation and technology to serve our needs. Our next-door neighbour has billions of barrels of oil and natural gas, and we act like the future will be like the present- it will always be there and we will continue to have everything we need at hand. While the Europeans are building sustainable eco cities with the newest technologies and planning we’ve been subsidizing dirty energy producers and looking to build coal mines, like it’s the 1800s again. BC can and should be just as technologically industrious as Germany. We can create job growth in similar manners and focus on creating surpluses of energy from renewables instead of tapping every other non renewable source dry. The US, China, the countires of Europe even the developing world all see the need to invest in greentech to create jobs, and to supply energy to our grid. Unlike them and unlike Germany though, we seem to believe that we don’t have to; there is no imperative. So will we have to wait until it’s too late? Or will someone in Victoria please start looking to the future, like Merkel. Instead of the past, like Campbell.