Clean Technology Employment in Canada – new data from two Statistics Canada releases

Aerial view of the National Wind Technology Center; wind turbines

A December 15 article in Energy Mix reported   “More Canadians working in green jobs than in oil patch”; the National Observer wrote   “ There are nearly 300,000 high-paying clean tech jobs in Canada”.      Both articles  were based on data released by Statistics Canada on December 13 from its new  Environmental and Clean Technology Products Economic Account survey.  Statistics Canada estimates that  274,000 jobs were attributable to environmental and clean technology activity in 2016, accounting for 1.5% of jobs in the Canadian economy.   This represents a growth of 4.5% since 2007 – but at a time when employment in the economy as a whole grew 8.4%.  The good news of the data shows higher than average annual labour compensation per job (including benefits) for environmental and clean technology jobs –  $92,000, compared with an economy-wide average of $59,900.  This is largely because of the inclusion of electricity and waste management – without those two sectors, the average compensation per job was $82,000.

Environmental and Clean Technology Products Economic Account, 2007 to 2016   is a 3-page summary report; full, interactive data is provided in  CANSIM tables , including a separate table for employment .

Smaller employment numbers are reported by the  Survey of Environmental Goods and Services (SEGS), most recently published on December 12, 2017, and providing data from 2015.  Amongst the findings: “Ontario ($600 million) and Quebec ($247 million) businesses exported almost $850 million worth of environmental and clean technology goods and services in 2015. This accounted for 71.7% of all Canadian exports in this sector…..  In 2015, about 11,000 people held environmental and clean technology positions in Ontario, while almost 4,000 people were employed in this sector in Quebec. Waste management services provided jobs for another 15,000 people in Ontario and 7,000 people in Quebec.”  CANSIM Tables for the SEGS are here , including a table showing employment by region of Canada.

How to explain the differences? The Environmental and Clean Technology Products Economic Account includes clean energy, waste management, environmental and clean technology manufacturing industries, and technical services, which gives it  a broader scope than the Survey of Environmental Goods and Services (SEGS), as explained here .

First Nations, Renewable Energy, and the benefits of community-owned energy projects

“These are exciting times in British Columbia for those interested in building sustainable, just and climate-friendly energy systems.” So begins the October 12 featured commentary, “BC First Nations are poised to lead the renewable energy transition”, published by the Corporate Mapping Project, a research project led by the University of Victoria, Canadian Centre for Policy Alternatives (BC and Saskatchewan Offices) and Parkland Institute. The commentary summarizes the results of a survey conducted for the B.C. First Nations Clean Energy Working Group  by academics at the University of Victoria , published in April 2017 . The survey reveals that 98% of First Nations respondents were either interested in, or already participating in a renewable energy projects – 78 operational projects, 48 in the planning or construction phase, and 250 further projects under consideration in B.C. alone.  The responses reveal a growing interest in solar photovoltaic (PV), solar thermal, biomass and micro-hydro projects under development—compared to already-operational projects, 61% of which are run-of-river hydroelectricity. Survey respondents identified three primary barriers to their involvement in renewable energy projects: limited opportunities to sell power to the grid via BC Hydro – (mostly because of the proposed Site C hydro project), difficulties obtaining financing, and a lack of community readiness.

Although the discussion focuses specifically on B.C.’s  First Nations, the article holds up the model of community-level energy projects beyond First Nations : “Instead of proceeding with Site C, BC has an opportunity to produce what new power will be needed through a model of energy system development that takes advantage of emerging cost effective technologies and public ownership at a community scale. Doing so would enable an energy system that can be scaled up incrementally as demand projections increase. It would also ensure the benefits energy projects are channelled to communities impacted by their development, and help respond to past injustices of energy development in our province….Choosing this path would result in a more distributed energy system, more resilient and empowered communities, a more diverse economy and a more just path towards climate change mitigation.”

CBC reported on another survey of First Nations – this one at a national level –  in “Indigenous communities embracing clean energy, creating thousands of jobs” ( October 11). The article focuses on First Nations renewable energy projects on a commercial scale, stating: “nearly one fifth of the country’s power is provided by facilities fully or partly owned and run by Indigenous communities”. The article links to case studies and numerous previous articles on the topic, but focuses on the job creation impacts of clean energy: “15,300 direct jobs for Indigenous workers who have earned $842 million in employment income in the last eight years.”

The CBC article summarizes a survey conducted by Lumos Energy , a consultancy which specializes in energy solutions, especially renewable energy, “for First Nations, Métis and Inuit leaders and communities”. Lumos Energy  leads the Indigenous Clean Energy Network ; its principal, Chris Henderson, has written the book Aboriginal Power: Clean Energy and the Future of Canada’s First Peoples (2013).

ILO report about Indigenous People’s role in the green economy; Canadian First Nations and clean energy

An April report released by the ILO, Indigenous peoples and climate change: From victims to change agents through Decent Work rejects the characterization of Indigenous people as “victims”.  The report states that indigenous peoples, numbering  over 370 million worldwide , “are at the vanguard of running modern green economies”, and “if they have access to decent work opportunities; if they are empowered to participate in decision making; if their rights are protected; and if policies address their social, economic and environmental vulnerabilities while honing their positive potential as partners, workers, entrepreneurs and innovators, indigenous peoples will become empowered agents of change who can play a vital role in spurring green growth and combating climate change.”

As if to prove the points of the ILO report, a press release on April 24 announced the results of a survey conducted by the University of Victoria Environmental Studies for   B.C. First Nations Clean Energy Working Group and  Clean Energy B.C.First Nations and Renewable Energy Development in British Columbia reports the results of a survey conducted from October 2016 to February 2017, showing that 47% of the 105 First Nations respondents are involved in the clean energy industry in some way – from ownership to receiving royalties. There are currently 78 operating projects, (in which they have invested over $35million), plus 49 projects under development and an additional 249 projects that they want to build, ranging from wind farms to solar installations to run of river power generation. 61% of First Nation respondents said the biggest barrier for their projects is the lack of opportunity to sell power to B.C. Hydro, because the utility has stopped buying power from independent producers,  projecting a surplus of power from the controversial Site C dam.  (DeSmog Canada compiles the latest news and research about the Site C project here.)

First Nations across Canada are also active investors in green energy, according an article in the Toronto Star April 26, “Six Nations of Grand River lead the charge on green energy”   . The article mentions projects in Quebec and Manitoba, and highlights the Ontario Six Nations of the Grand River solar and wind projects as exemplary – most recently, the Oneida Business Park in Ohsweken, Southwestern Ontario, which was awarded Aboriginal Project of the year by the Ontario Sustainable Energy Association in summer 2016.

six nations development corporationSix Nations of the Grand River Development Corporation (SNGRDC) manages the Six Nations’ economic interests in 17 renewable energy projects and numerous economic development opportunities. It employs over 100 people.  SNGRDC’s current green energy portfolio is capable of producing over 900 MW of renewable energy through its direct or indirect involvement in 10 solar, 6 wind and one hydroelectric project(s). Consultation is currently underway about another investment in a solar project near the now-decommissioned Nanticoke coal-burning power plant – which will consist of  175,000 to 210,000 solar photovoltaic  panels on 4 parcels of land either owned or leased by Ontario Power Generation.   The Grand River Employment and Training (GREAT) administration is involved to promote employment of First Nations workers in the contruction phase.

In January 2016,  the Whitesand First Nation also received an OSEA award for their sustained efforts to launch a 3.64 MW combined heat and power biomass plant, which will provide electricity to three communities of the Far-north.

Opposition to Trump’s Executive Order targeting the Clean Power Plan

The Labor Network for Sustainability in the U.S.  released a new paper,  “Trump’s Energy Plan: A Brighter Future for America’s Workers? , which urges the labour movement to “unwrap the package” and examine the proposals in Trump’s America First Energy Policy , released on the first day after his  Inauguration.  LNS reviews and refutes the major planks in that policy, including the “bring back the coal industry” claim, and states, “Our hard-hit coal miners and communities deserve a plan that will enable them to find decent livelihoods in the future, not one that lures them with illusions that it will bring the coal industry back.”  LNS has previously published its plan,  The Clean Energy Future: Protecting the Climate, Creating Jobs, Saving Money , written by Synapse Economics .

trumphardhatThe most recent installment of the America First Energy Policy was released on March 28: the  Presidential Executive Order on Promoting Energy Independence and Economic Growth , replete with the illusory promise to bring back coal jobs.  Summaries and explanations are easy to find: from the Office of the White House Press Secretary ;  the Brookings Institute  ;  “The Giant Trump Order is Here. What it is, what it does”  in The Atlantic; “Trump just gutted U.S. policies to fight climate change”  from Think Progress . Dismay and outrage is also widespread, summed up by Vox :“This is it. The battle over the future of US climate policy is officially underway”.  Even the mainstream Washington Post brings out the battle imagery in its headlines:   “The standoff between Trump and green groups just boiled into war” (March 30)  ,  and “The assault on climate science is evil, and evil must be fought”   (March 31).

Although disguised in the language of job creation for coal miners, the Executive Order goes beyond the attack on the Clean Power Plan and coal-fired power plants  –  empowering the Cabinet to review and rollback  other Obama-era policies, including limits on methane leaks, a moratorium on federal coal leasing, and the use of the social cost of carbon to guide government actions. The Editorial Board of the New York Times sums up the scale of the attack:  “President Trump risks the Planet”  (March 28) .

The claim of “bringing back coal jobs” has been disproved repeatedly and convincingly. Typical is the press release from the Institute for Energy Economics and Financial Analysis , which sees “zero employment impact” from Trump’s measures, stating,  “Market forces overwhelmingly favor natural gas-fired electricity generation and renewable energy, and the trend away from coal will continue”…. Coal is simply being outpaced. It is an industry in decline, and the fundamentals are inescapable.”  “A simple way to see why Trump’s climate order won’t bring back many coal jobs”  in Vox refers to the Department of Energy  Annual Energy Outlook 2017 , which projected that without the Clean Power Plan,  U.S. coal consumption would rebound only as far as the  historically low levels of 2015, when there were approximately 63,000 coal miners in America.  Today, there are approximately 50,000.   Compare this to the solar workforce, which created 51,000  jobs in 2016 alone – to bring the total number to 260,077 U.S. solar workers, according to the Solar Foundation’s National Solar Jobs Census.  Even the CEO of Murray Energy, the largest privately-owned coal company in the U.S., acknowledged in a report in The Guardian, that coal jobs are not coming back.

What the Trump Executive Order could do, according to modelling by consulting firm the Rhodium Group,  is to limit U.S. greenhouse gas emission reduction to around 14 percent below 2005 levels by 2025 – a far cry from the Paris Agreement pledge of 26 %, and effectively ceding climate leadership to the European Union and China.  The Sierra Club USA provides a thorough discussion of the environmental impacts in  Donald Trump Orders EPA to Unwind Clean Power Plan in Setback for “Vitally Important” Clean Air   (March 28) .    The reaction of major environmental groups such as Environmental Defence Fund, Earthjustice, and  Natural Resources Defence Council is summarized in “Environmental groups vowing to fight Trump’s Climate Actions ”   in the  National Observer (March 29).

Is there any cause for hope?  Yes, according to analysis by  Inside Climate News in  “Hundreds of Clean Energy Bills Have Been Introduced in States Nationwide This Year”  (March 27).  This provides a state-by-state summary of bipartisan clean energy legislation, stating:  “At least eight states—California, Connecticut, Massachusetts, Minnesota, Nevada, New York,  Pennsylvania and Vermont—are considering legislation to dramatically boost their reliance on clean power in the coming decades. These bills specifically call for increasing the mandate to obtain electricity from sources like wind and solar, a common form of escalating quota called a renewable portfolio standard (RPS). Currently,  29 states in the nation, along with Washington, D.C., have them and eight others have voluntary targets.”

Voices of Business are also challenging the Trump agenda.  In  “Climate change is real: Companies challenge Trump”  in The Guardian  (March  29) , the CEO of the We Mean Business coalition calls  the transition to a low-carbon economy “inevitable”, and the Executive Order “regrettable “.  Further, he states: “This announcement undermines policies that stimulate economic competitiveness, job creation, infrastructure investment and public health.” Similar sentiments appear in the Business Backs Low Carbon USA statement signed in November 2016 by over 1000 companies and investors. The statement  calls for the U.S. economy to be energy efficient and powered by low-carbon energy, and  re-affirms “our deep commitment to addressing climate change through the implementation of the historic Paris Climate Agreement.”   The list of over 1000 companies is here  .

Finally, and giving everyone a voice: the People’s Climate March  on Washington D.C. on April 29 , organized by the coalition which emerged from the  2014 March in New York City and around the world.  The Labor Network for Sustainability will be leading a labour contingent in Washington – see their Facebook page for information , and see the People’s Climate March website for  locations of sister marches.

climate march

 

Ontario Teachers Pension Plan invests in clean technology

The  Ontario Teachers’ Pension Plan acknowledges that “ Climate change risks have global impacts that affect multiple sectors and companies. On the other hand, climate change will also present new investment opportunities, such as innovative technologies.”  The embodiment of that approach came with the  OTPP announcement  on March 9 that it has partnered with Anbaric, a developer of clean energy transmission and microgrid projects from Wakefield Massachusetts.  According to the Boston Globe newspaper  , Ontario Teachers  will invest $75 million  initially to gain a 40 percent stake in Anbaric, creating a new management company, called Anbaric Development Partners  . Potential exists to invest a further $2 billion in clean energy projects.   The OTPP press release  states,  “Ontario Teachers’ investment in Anbaric creates an attractive launching pad for generating innovative energy jobs and boosting local economies while replacing our deteriorating and outdated fossil fuel-oriented grid with new and sustainable energy alternatives. This includes sophisticated high-voltage direct current (HVDC) transmission technology and microgrid projects that will bring renewables online with greater efficiency.” The Ontario Teachers Pension Plan controlled $171.4 billion in net assets at December 31, 2015 on behalf of  the province’s 316,000 current and retired teachers.

As a sophisticated, global investor, it has examined the risks of climate change, and in Fall of 2016, published  Climate Change: Separating the real risks for investors from the noise   , which, like the Canadian Pension Plan Investment Board ,   seems to acknowledge the reality and complexity of climate risk, while rejecting divestment of fossil fuel assets.  The report states that “Investors need a toolbox of solutions to help manage physical and regulatory risks across their portfolios, both in the short and longer term. Portfolio carbon footprints are only one tool, and they have limitations. Divestment should be the outcome of a well informed and thoughtful investment process, rather than a wholesale approach to a single sector. “   And further  –  “ Engagement with policy makers and companies provides investors with key pieces of information and could be the impetus for governments and companies to be more proactive in climate change mitigation or adaptation. “