Employment in Canadian Clean Tech and U.S. Clean Energy

On April 19, with Environment and Climate Change Minister Catherine McKenna in attendance, Analytica Advisors held a press conference to release their 2016 Canadian Clean Technology Industry Report   . This is the fifth report, based on the business results for 2014 and plans for 2015 reported by 107 companies – (the report is available in full only to the participants). Although it includes clean energy generation, the scope of the report also includes energy infrastructure and green buildings, transportation, recycling, water and waste water treatment, and others.    From the publicly-available Synopsis, we learn that this broad Clean Technology sector in Canada includes 775 technology companies directly employing 55,600 people, an increase of 11% from 2013. The Backgrounder    states that “More people are now directly employed in the clean technology industry than are employed in the aerospace manufacturing, forestry and logging or pharmaceuticals and medical devices industries.” 21 percent of employees are under age 30; 20 percent of clean technology company employees are engineers.

The main focus of the report is on revenues and market share: “after Japan, Canada’s is the steepest decline in global market share among top exporters.  For Renewable Energy and Energy Efficiency manufactured environmental goods, Canada has lost 39 percent of its 2005 market share and is the biggest loser of market share among the top exporting countries.”  The report advises: “To reverse this trajectory and get back to the spectacular growth of previous years will require a price on carbon as well as a rethink of innovation, regulation and green infrastructure policies.  Equally important, it will require new models to finance the growth of companies including those with high capital requirements.”   Industry associations BC Cleantech CEO Alliance, Écotech Québec, the Alberta Clean Technology Industry Alliance and Ontario’s MaRS Discovery District are co-ordinating their efforts to lobby the federal government for funding, according to a recent  Globe and Mail article  .

In the U.S., a March 2016 report from  consultants Environmental Entrepreneurs (E2), found that  2.5 million Americans work in the clean energy industry.  With 1.9 million workers, energy efficiency is the largest sector, followed by  renewable energy generation, which employs nearly 414,000 people, and advanced vehicles with nearly 170,000 jobs.  Clean Jobs America  is  based on U.S. Bureau of Labor Statistics and Department of Energy data and a survey of tens of thousands of businesses across the country. It provides “ a comprehensive analysis of clean energy and clean transportation jobs” across the U.S., providing detailed statistics and an overview of the policies which have encouraged investment and growth, including the Clean Power Plan.  The report was written in conjunction with the Clean Energy Trust, The Solar Foundation and Advanced Energy Economy.  The Wind Industry Annual Market Report, released   by the American Wind Energy Association on April 12, showed a 20% increase in jobs in the past year, with 88,000 at the start of 2016.  The national business association Advanced Energy Economy (AEE)  is quoted as saying that  California leads the  U.S. in energy employment  with an industry growth rate of 18% last year – six times the overall state employment growth rate . California also ranks first in installed solar capacity and number of jobs, according to the Solar Energy Industries Association , the national trade association.

CANADIAN CLEAN TECH INDUSTRY – CONTINUED EMPLOYMENT NEEDS INVESTMENT

Ottawa-based research and consulting firm Analytica Advisors released the 2015 edition of its annual Canadian Clean Technology Industry Report    at the Canadian Energy Summit in Toronto at the end of May. The report notes that more than 800 clean tech firms in Canada directly employed almost 50,000 people in 2013 – a growth rate of almost 21% since 2012, making the industry a bigger employer than the aerospace manufacturing sector, logging or pharmaceuticals and medical devices. 20% of workers in the industry are 30 years old or under. While current employment growth is encouraging, continued growth of the sector may not be assured, as the report documents a troubling loss of export markets. U.B.C.’s Sauder School of Business in “ The Ups and downs of Cleantech Venture Capital in B.C.” also casts doubt on the future of clean tech by contrasting the risk-averse culture of Canadian capital markets to that of the U.S. The interview concludes that “Without strategic changes brought on by the private sector and government, business will continue as usual.” – i.e. companies will continue to favour the U.S. over Canada as a place to invest.   Case in point:   the Obama administration announced “More than $4 Billion in Private Sector Commitments and Executive Actions to Scale up Investment in Clean Energy Innovation ” on June 16. Note also the analysis of the U.S. funding by The Guardian which states “.. arguably more important than the $4bn raised was the fine print: a new federal information source and new financing options for would-be investors.”

Growth of Canada’s Clean Tech Sector

The fourth annual Canadian Clean Technology Industry Report by private consulting company Analytica Advisors was released on March 6 in Ottawa, stating that the clean-tech industry is “coming of age”. According to the report, the industry is comprised of over 700 Canadian companies which in 2012 generated $5.8 billion in exports, spent $1 billion in research and development, and created 41,100 new jobs across Canada. Twenty percent of the workforce in the sector is 30 years old and under. The survey authors predict that, at current growth rates, “this will become a $28 billion industry by 2022, employing over 75,000”. The clean tech industry has benefited from government investment of $598 million in 246 projects through the Sustainable Technology Development Fund and the NextGen Biofuels Fund, both administered by Sustainable Development Technology Canada (SDTC).

LINKS

Press release re Canadian Clean Technology Industry Report is at: http://analytica-advisors.com/sites/default/files/2014%20Canadian%20Clean%20Technology%20Industry%20Report%20Analytica%20Press%20Release%20March%206th%202014%20SHORT_EN_Final.pdf.

The Table of Contents is at: http://analytica-advisors.com/sites/default/files/CTIR_TOC_2014.pdf, indicating the level of detail of the survey, but the full report is available only for sale at $2,500.

Sustainable Technology Development Canada website is at: http://www.sdtc.ca/index.php?page=alias-3&hl=en_CA (English), and http://www.sdtc.ca/index.php?page=home&hl=fr_CA (French); their Knowledge Centre has an archive of reports on the sector.