International Energy Agency roadmap for a sustainable recovery forecasts job growth led by retrofitting and electricity

The International Energy Agency, in cooperation with the International Monetary Fund, released a roadmap which would require global investment by governments of USD 1 trillion annually between 2021 and 2023 to create jobs and accelerate the deployment of clean energy technologies and infrastructure.  The World Energy Outlook Special Report: Sustainable Recovery , released on June 18th states:  “Through detailed assessments of more than 30 specific energy policy measures to be carried out over the next three years, this report considers the circumstances of individual countries as well as existing pipelines of energy projects and current market conditions.” The report data and analysis will form the basis for the IEA Clean Energy Transitions Summit on July 9 2020, where decision-makers in government, industry and the investment community will meet to discuss policy options for economic recovery post Covid-19.

From the report: ” Our new IEA energy employment database shows that in 2019, the energy industry – including electricity, oil, gas, coal and biofuels – directly employed around 40 million people globally. Our analysis estimates that 3 million of those jobs have been lost or are at risk due to the impacts of the Covid-19 crisis, with another 3 million jobs lost or under threat in related areas such as vehicles, buildings and industry. “ The recommendations promise to save or create approximately 9 million jobs per year, with the greatest number in building retrofitting for energy efficiency, and in the electricity sector.  The Sustainable Recovery Plan also seeks to avoid the kind of rebound effect which occurred after the 2008/2009 recession, claiming that it would stimulate economic growth while achieving annual energy-related greenhouse gas emissions which “would be 4.5 billion tonnes lower in 2023 than they would be otherwise”,  decreasing air pollution emissions by 5%, and thus reducing global health risks.

Under the heading of “Opportunities in technology innovation”, the report examines four specific technologies: “hydrogen technologies, which have a potentially important role in a wide range of sectors; batteries, which are very important for electrification of road transport and the integration of renewables in power markets; small modular nuclear reactors, which have technology attributes that make them scalable as an important low-carbon option in the power sector; and carbon capture, utilisation and storage (CCUS), which could play a critical role in the energy sector reaching net-zero emissions. We also compare the near-term job creation potential of some of these measures.” The IEA is preparing an Energy Technology Perspectives Special Report on Clean Energy Technology Innovation, which will be released in early July 2020.

Which Canadian companies rank as  Sustainable or as Clean Tech innovators?

Corporate knights cover 2020Canadian magazine Corporate Knights recently published the 2020 edition of its annual Global 100 , which ranks the 100 most sustainable corporations in the world.  This overview article describes the environmental and social responsibility indicators which are considered in the rankings, including average CEO pay ratio, the number of women on their boards and female executives, linking executive compensation to targets related to the UN Sustainable Development Goals (SDGs), and “the carbon-productivity measure” of revenue per tonne of CO2 emitted.  The ranked list is topped by Orsted of Denmark (formerly DONG (Danish Oil and Natural Gas) – profiled here . The top-ranked Canadian corporation, at 10th position, is Algonquin Power & Utilities Corp. , which describes itself as: “a growing renewable energy and regulated utility company with assets across North America. The Corporation  acquires and operates green and clean energy assets including hydroelectric, wind, thermal, and solar power facilities, as well as sustainable utility distribution businesses (water, electricity and natural gas) through its two operating subsidiaries: Liberty Power and Liberty Utilities.”   The Global 100 issue also include general articles which focus on Canadian sectors: “Hydro-Quebec plugs into China’s EV push”;  “The EV Revolution will take batteries, but are they ethical”  ;  “Financing our future with a green building bonanza”, and “The ultimate guide to responsible investing“.

The Global Cleantech 100 report, published in San Francisco,  is an industry-based annual ranking of private companies judged “most likely to make significant market impact globally over the next five to ten years.” An Expert Panel of cleantech investors reviewed over a thousand possible private companies and selected 100, of which 12 are Canadian.  Although U.S. companies dominate the list,  the twelve  Canadians which were judged to be global leaders are : Axine industrial waste-water technologies ; Carbicrete  in Montreal (cement-free, carbon free concrete); Carbon Engineering in Calgary (Developer of technologies for the capture of carbon dioxide at industrial scale); Carbon Cure of Dartmouth N.S.,   (manufactures a technology for concrete producers that introduces recycled CO2 into fresh concrete); Ecobee ,developer of Wifi smart thermostats for home and commercial applications; Enbala  (provider of demand side energy management systems); GaN Systems of Ottawa (Developer of gallium nitride (GaN) semiconductors); LiCycle of Mississauga (developer of lithium ion battery recycling technology); Minesense of Vancouver (developer of sensor technology for mine operation) ; OpusOne of Richmond Hill Ontario (developer of optimization solutions for distributed electricity grid systems) ; Semios of Vancouver (Developer of precision crop management systems); and Svante of Burnaby B.C.  (commercial scale carbon capture).

More innovative Canadian companies are profiled at the website of  Sustainable Development  Technology Canada,  an arms-length agency overseen by the Minister of  Innovation, Science and Industry . On January 15, the Minister announced government investment of $46.3 million in 14 start-up cleantech companies.  The list of companies is provided in the press release. 

International clean energy experts discuss investment levels, zero emissions vehicles, building emissions, gender equality in Vancouver meetings

CEM10-MI4_LogoIn the week of May 27, representatives from global government, industry, and NGO’s met as Canada hosted the 10th Clean Energy Ministerial in Vancouver. Several announcements were made against that backdrop:

Investment support for clean energy: The federal government announced it will contribute up to $30 million to Breakthrough Energy Solutions Canada (BESC),  a public-private initiative to support “cutting-edge companies to deliver game-changing clean energy innovations to the market.” This Canadian program will be administered by Natural Resources Canada – in collaboration with Breakthrough Energy Ventures, a $1 billion investment fund launched in 2016 by billionaires such as Bill Gates and Michael Bloomberg.  The Canadian press release quotes Gates: “ We are hopeful that this Breakthrough Energy partnership with Canada will be a model for developing more collaborations…” A summary appears in “Canada launches homegrown version of Bill Gates-led clean energy fund”   in the National Observer (May 27).

The National Observer hosted a panel discussion on clean energy investment on May 28. The panel included the Vice-President of the European Investment Bank, the European Commissioner for Research, Science and Innovation, Canada’s Minister of Natural Resources, and Céline Bak, president of Analytica Advisors and author of the 2019 report,  Leveraging Sustainable Finance Leadership in CanadaA summary and video of the panel’s discussion is hereThe discussion revealed that, unbeknownst to Canada, the  European Commission and the European Investment Bank  have also reached agreement with Breakthrough Energy Ventures on a new €100 million fund to support clean energy investments – described in a May 29 press release.

Clean energy investment trends are worrying, as reported by the International Energy Agency in  World Energy Investment 2019 (May 14) : “Global energy investment stabilised in 2018, ending three consecutive years of decline, as capital spending on oil, gas and coal supply bounced back while investment stalled for energy efficiency and renewables.”  In May,  BankTrack and others published  Fool’s Gold – the Financial Institutions Bankrolling Europe’s Most Coal-dependent Utilities , naming the financial institutions behind almost €16 billion in support to the coal industry since the Paris Agreement was signed in December 2015.

electric truckZero emissions  vehicles: The International Energy Agency released the 2019 edition of one of their flagship publications, Global EV Outlook, which provides historical analysis, projections to 2030, and insights on electric vehicle and charging infrastructure deployment, ownership cost, energy use, carbon dioxide emissions and battery material demand. As part of the discussions on electrification of transportation at the CEM10, Canada became the first national government to endorse the Global Commercial Vehicle Drive to Zero (Drive to Zero) campaign, with British Columbia and the City of Vancouver also signing on . A press release explains “Drive to Zero is a strategic international initiative designed to catalyze the growth of the zero-emission (ZE) and near-zero-emission (NZ) medium- and heavy-duty vehicle sector (MHDV), which includes everything from transit buses to eighteen wheelers to box trucks to school buses. Pledge partners promise to collaboratively put in place supporting mechanisms to speed the early market for these vehicles and equipment.”  Drive to Zero is a program of CALSTART,  a nonprofit consortium with offices in New York, Michigan, Colorado and California, and international partners which include Clean Energy Canada.  As Canada’s Minister of Natural Resources stated in the press release, this is in line with Canadian priorities: the Final Report of the Advisory Council on Climate Action  ( May 28) recommends policies concerning zero-emissions vehicles, including “The Government of Canada, working with partners and stakeholders, should develop an integrated strategy to reduce emissions across modes of transportation, including actions to support modal shifts.”  Related: on May 2, the Pembina Institute published Fuel Savings and Emissions Reductions in Heavy-Duty Trucking : A blueprint for further action in Canada  . 

Gender Equality in Clean Tech:  Over 100 organizations have now signed onto the Equal by 30 initiative, an international campaign begun in 2018. It “ encourages companies and government to adopt gender-equal principles, advance the participation of women in the clean energy transition and take concrete actions to support women in the sector.” A summary of the Gender Diversity participants and events is here . 

Hydrogen as a source of clean energy: A new “Hydrogen Initiative was announced  under the leadership of Canada, the United States, Japan, the Netherlands and the European Commission, with the International Energy Agency as co-ordinating body. The initiative is intended to drive international collaboration on policies, programs and projects to accelerate the commercial deployment of hydrogen and fuel cell technologies across all sectors of the economy, especially industrial and transportation applications.

Building efficiency: Heating and cooling strategies in the clean energy transition: Outlooks and lessons from Canada’s provinces and territories is a report released at the Clean Energy Ministerial meetings on May 27. It is the result of collaborative research between the International Energy Agency and the National Energy Board of Canada. Using Canadian provincial data, it examines energy demand patterns and energy policies regarding  heating and cooling services in buildings, urging policies to move from natural gas to existing, cleaner technologies.  The National Observer summarizes the report in “Cutting fossil fuels could save Canadians  $24 billion a year by 2050”  .

Recommendations for Canada’s high growth industries, including natural resources and clean technology

Innovation report 2018On September 25, the federal Ministry of Innovation, Science and Economic Development released a report:  The Innovation and Competitiveness Imperative: Seizing Opportunities for Growth,  with over-arching “signature” proposals in the consolidated report, and specific proposals in individual reports by six “high-growth potential” sectors: advanced manufacturing  , agri-food , clean technology , digital industries,  health and biosciences  , and resources of the future  .  These six groups had been identified by the Advisory Council for Economic Growth  , a body which has issued many of its own reports, including the 2017 reports,  The Path to Prosperity   and Learning Nation: Equipping Canada’s workforce with skills for the future   .

In this latest series of reports, the identified Sector groups were led by  “Economic Strategy Tables— which the government characterizes as “a new model for industry-government collaboration”.   Each “Table” consisted of a  Chair,  and approximately 15 industry experts, with consultants McKinsey & Company providing “fact-based research and analysis”.  The reports are unmistakably written by management/industry authors (replete with many references to “agility”,  “own the podium” and “sandboxes”). A deeper dive into two of the sector reports reveals very substantial recommendations, with common themes of best practice examples from other countries, Canada’s international competitiveness, Indigenous relationships, and  attention to workforce issues of skills gaps and diversity.

The Clean Technology Economic Table Report  proposes: “the ambitious, export-focused target of clean technology becoming one of Canada’s top five exporting industries, nearly tripling the sector’s current value for exports to $20 billion annually by 2025” –  a growth rate  of 11.4% per year on average.  The report makes recommendations under six categories, including financing, engagement  with Indigenous communities in partnership and co-development of clean technology initiatives, increased government procurement, regulation, and workforce issues. Greatest attention is given to the regulatory environment, with proposals for a “Regulatory Sandbox for Water Regulation” and a “Regulatory Sandbox for air quality and methane emissions regulation”.    “Ultimately, we will need as much innovation in our public policy tools as there is in technology to ensure progress on critical economic and environmental objectives.”  Regarding  workforce issues, the report recognizes that Clean Technology will compete for Scientific, Technology,  Engineering and Math ( STEM) skills, but highlights a particular shortage of soft skills required for entrepreneurship, business development, finance, advocacy, risk management and forecasting. It calls  for “work-integrated learning programs”, and better labour market data collection and dissemination. Without ever using the term “Just Transition”, it does call for “Opening streams of these programs for workers to re-skill”, and “Adding new eligibility criteria for these programs to promote an inclusive and diverse workforce”.

resources of the future coverThe  “Resources of the future” Table Report  examines the mining, forestry and energy industries; the tone is set in the introductory remarks which state: “While resource companies are committed to the highest environmental and safety performance, they are burdened with an inefficient and complex regulatory system that adds cost, delays projects and is not conducive to innovation.” Recommendations are set out in five thematic sections, including “agile regulations, strategic infrastructure, innovation for competitiveness, indigenous people and communities, and attracting and re-skilling talent.

The report notes the established issues of an aging and gender-biased workforce in natural resources and identifies automation and digital skills as a neglected and misunderstood  issue in the industry.  It proposes a “Resources Skills Council” which, notably,  would include labour unions, along with all levels of government, industry associations, universities and polytechnics.

Federal budget gets high marks for conservation initiatives but disappoints on green economy spending

Budget 2018, Equality + Growth: A Strong Middle Class   was tabled by the federal government on February 27.  The Globe and Mail published a concise overview in  “Federal budget highlights: Twelve things you need to know” .  A compilation of reaction and analysis from the Canadian Centre for Policy Analysis is here , including statements from CCPA partner organizations such as the United Steelworkers   and the Canadian Labour Congress.

budget_analysis 2018The section of the Budget which relates most to a low carbon economy is in Chapter 4: Advancement .  The Budget commits an unprecedented $1.3 billion over 5 years for conservation partnerships and the protection of lands, waters, and species at risk – prompting the Pew Trust in the U.S. to call the biodiversity targets “an example to the world” in  “With earth in peril, Canada steps up” .  Responses from the 19 environmental advocacy members of the Green Budget Coalition are compiled here , applauding the  “historic” and “landmark” investments in the Budget.  DeSmog Canada summarizes the provisions, which aim to protect 17 per cent of land and 10 per cent of oceans by 2020 under the United Nations Convention on Biological Diversity, and commit to recognizing  Indigenous leadership.

But on the climate change front?

The National Observer writes: “Budget delivers new conservation fund but avoids climate commitments” (Feb. 27) , highlighting the Budget allocations announced for the  the  $2.6 Billion Low Carbon Economy Fund  (announced in 2016) : $420 million will go to Ontario, for retrofitting houses and reducing emissions from farms;  $260 million will go to  Quebec for farming and forestry best practices, as well as energy retrofitting, and incentives for industry;  $162 million will go to British Columbia, partly for reforestation of public forests; $150 million will go to Alberta for energy efficiency programs for farmers and ranchers, for  renewable energy in Indigenous communities, and for restoring forests after wildfires;  $51 million is going to New Brunswick and $56 million to Nova Scotia for energy retrofitting. Allocations for Manitoba will be announced later, and for Saskatchewan if it signs on to the Pan-Canadian Framework.

The Pembina Institute reaction is also fairly positive in  “Budget 2018 builds on last year’s commitment to climate change” . “We are pleased to see that Budget 2018 allocates $109 million over five years to develop, implement, administer, and enforce the federal carbon pollution pricing system. …Another $20 million over five years is allocated to fulfill the PCF’s (Pan-Canadian Framework on Clean Growth and Climate Change) commitment to assess the effectiveness of its measures and identify best practices. ”

Less positive reaction:  “Council of Canadians disappointed by Trudeau government’s budget 2018” (Feb.27), which  points out that the government has allocated $600 million to host the G7 summit in June 2018 in Quebec,  yet the Budget fails to phase out subsidies for the fossil fuel industry, as it committed to at the G20 meetings and in the October 2015 election.  Elizabeth May of the Green Party also “laments squandered opportunities” and points out that “Budget 2018 does not touch subsidies to fossil fuels in the oil patch and for fracked natural gas”.

In advance of Budget 2018, the Canadian Labour Congress published “What Canada’s unions would like to see in the federal budget” – a broad perspective which included a call for “a  bold green economic program of targeted investments over the next five years for renewable energy development and infrastructure” … and “ the establishment of Just Transition training and adjustment funds for workers affected by climate change and the transition to a low-carbon economy, automation, the digitisation of work, and job losses caused by trade agreements like CETA.” The CLC response  to the actual Budget emphasizes the positive  developments on issues like pharmacare and pay equity, but is silent on the green economy issues. Canadian Union of Public Employees’ reaction is similar.