In an earlier post I lauded Angela Merkel for seeing greentech (or cleantech) as a means to propel Germany and the EU out of the recent recession and not just a bone to throw out to voters, like some Canadian politicians seem to view it. Turns out that Greentech allround has truly come into itself as a strong investment engine once again, not only in Europe but here in North America and perhaps most of all in China. It’s only taken 30 years- including Tesla’s inventions about 100 years I suppose- but I’m feeling pretty positive about the recent news that Cleantech has become the largest U.S. venture capital sector and that China’s cleantech market was now potentially valued at one trillion annually. But really, we have few other options considering the finite and externality plagued industrial sectors of old are running out of gas- literally. So is it Obama’s generous opening of future American’s wallets that has caused this impressive growth? Some believe it is. I’ve been critical of Obama not putting enough funding into specific large scale greentech projects in the past- but maybe he and his super genius advisors knew that the scent of government funding to VC is like the scent of blood to sharks. In any event the funding for greentech still remains lower than it was in 2008 according to Daily Finance but the news is positive.

Instead of a frenzy of survival investments, the “IPO market has clearly reopened” as  Parker Weil, co-director of the Merrill Lynch and Bank of America’s North America Energy and Power Group stated at a recent conference in San Francisco. Basing this belief on a number of things but perhaps most notably on the explosive success of A123 Systems’ IPO on the market late last month.  As the A123 System website shows, they were recipients of a US Department of Energy Grant to build better batteries. That grant money came out of the Obama stimulus bill. So maybe my past criticisms can be abayed for now.

So what’s going on in Canada and in British Columbia?

Well, in Alberta the new Carbon Technology Fund has been growing thanks to the abundance of greenhouse gas emitters in that province. Now with $120 million to burn, Greentech is the buzzword in Edmonton.

In March Ontario announced a $250 million Greentech fund while shortly after that the Canadian Federal Government launched a $850-million clean energy fund, about $650-million of which goes more or less directly to Alberta in the form of carbon capture and storage initiatives. Something I believe the oil companies should be using their insane profits for instead of receiving tax dollars.

In Vancouver, Premier Campbell and Minister Stockwell Day celebrated the arrival of a hydrogen fuel cell powered bus.  The bus is the first of what will eventually be the world’s largest fleet of fuel cell busses at 20 strong. The 2008 BC energy plan makes lots of noise about new emissions standards and in the process through the ICE (Innovative Clean Energy Fund) has “approved investments of over $47 million in 34 projects” throughout communities in the province (even though the fund is only $25-million) helping to develop clean and renewable energy; the exact details of which I would love to know. The Provincial Liberals seem committed to hydrogen, even though it has proved to be less viable than other forms of energy. Could it be that when they started thinking clean was cool, Ballard’s stock was roaring, and they haven’t really put much thought into it since? In any event, the fact that a new coal mine in the province is being seriously proposed, discredits any green credentials the current BC government is trying to build in my opion.  And the mine has nothing to do with our energy needs either- 40% owned by Japanese and South Korean interests it will be for coking, in the manufacturing of steel products made in those countries. Much like Norwegian Salmon Farming corporations who own 90% of industrially farmed salmon operations in BC, keeping the profits but leaving the province with 100% of the pollution and problems, the BC government is keen to open the door to our environment to foreign interests once again. If the BC liberals really want to get greentech cred they’d embrace closed containment technology for salmon farms, like China has for trout, and put a stop to the Raven Site mine proposal.  Both activities will otherwise take their environmental tolls in the same area of our Province, the Georgia Strait. And to the overall health of our environment globally.

So to sum it up, BC is being outdone by both China and Alberta when it comes to investing in clean, green technologies. How does that make you feel? You Alberta and China slagging, granola chewing, MacBook using, lululemon wearing, mountain biking, grouse grinding British Columbian?

$25 million to greentech in our province? And 100 million to a new coal mine? When Alberta is dwarfing BC in funding for cleantech, and China is embracing the clean technologies produced and rejected here, you have to shake your head and wonder how hypocritical it makes us look? Or rather how hypocritical the current provincial government make us look? Maybe, if and when, Gregor Robertson is Premier, he’ll take the same kind of leadership he’s shown in Vancouver with the Vancouver Greenest City initiative and we can really have something to show for in the province. Until then, we’re chasing the cleantech train instead of riding it.

Well, that’s how I might have worded it if I had Industry Minister Tony Clement’s job; waving my fist like Lennin. As textbook economics go, countries move through transitions from relative serfdom to primary resource extraction to manufacturing and industrialisation, services, high technology and higher order services, and then finally to a blogging and SEO based economy (kidding).

Canada, though home to many promising and innovative technology and software companies is still very dependent on resource extraction and services. Our economy has not transitioned fully to a robust and globally competitive IT based model. So earlier this year, leading CEOs from Nortel (hanging in there) and Research In Motion (CEO obsessed with buying a hockey team) met with Steven Harper, Tony Clement and several other leading high tech executives to discuss the future of Canada’s economic growth and how the technology sector will play a vital role.

We may move on from, car parts, uranium, smoked salmon and oil yet. Not fully, but perhaps our technoloy sector will helpe to diversify our economy enough so that we can escape the branch plant capitalism label that has been hung on our collective economic identity. While what happens in Alberta is quite different than what happens in southern Ontario and from what happens in BC, we still have a national identity that we sometimes overlook. And national leadership on this issue I dare say might help.

In this bloggers opinion, it is essential that the government of Canada form a strategy to assist economic development at the local and provincial level to foster job creation and innovation in the IT, software and greentech sectors. The meeting earlier this year in Ottawa, hopefully illuminated this point to the conservative government who haven’t taken much initiative to create a strategy to support and foster our high tech sectors. Vancouver’s Green City Action Team and Monthly Greentech Forum at Simon Fraser University’s Harbour Centre campus illustrate the leadership that mayor Gregor Robertson (our best looking mayor yet) has shown regarding transitioning Vancouver’s economy into a global high tech and specifically a green tech leader. Other organizations like the Vancouver Economic Development Commission have also put research into how government policy might better encourage growth in these sectors as Vancouver positions itself to become dominant in high tech development, design and services. I love my city, I just want to give it a great big hug. I always get like this around the time of the Vancouver Pride Parade.