Criticism of oil and gas stimulus funds in Canada’s Covid Economic Response Plan

Canadians were generally relieved and positive when Prime Minister Trudeau announced the energy-related provisions of the federal Covid-19 Economic Response Plan  on April 17,  with this statement: “Just because we’re in a health crisis, doesn’t mean we can neglect the environmental crisis.”  The economic stimulus included $1.72 billion to clean up orphan or inactive wells in British Columbia, Alberta and Saskatchewan, which the government claims “ will help maintain approximately 5,200 jobs in Alberta alone.” The second initiative is $750 million to create an “Emissions Reduction Fund” to help oil and gas companies meet federal methane-reduction standards.  The announcement is summarized in a CBC report  and an article in the National Observer , which also summarizes some of the generally positive reactions from environmental groups. Press releases by  Stand.earth and Clean Energy Canada reflect that generally-held relief that the government had resisted the extensive lobbying from Canadian Association of Petroleum Producers (CAPP) – as outlined in a memo leaked by  Environmental Defence Canada –  and appeared to have listened to the voices of Canada’s clean energy advocates.

An April 17 press release from Climate Action Network Canada embodies a more cautious reaction:

“While we acknowledge and appreciate what this cash infusion achieves – stimulating the economy through well-paying work, while repairing ecosystems damaged by oil and gas operations – we expect to see the federal government hold companies accountable by making enforcement of existing regulations meant to require those companies to clean up orphaned materials and restore land and waterways a condition of its support to the government of Alberta. We will be watching how fiscal measures available through Export Development Canada (EDC) and Business Development Bank of Canada (BDC) will further support the government’s stated commitment to using COVID-relief public money  to move Canada further along its path to a more sustainable and resilient net-zero economic future.”

Many of these same concerns appear in an Opinion piece by Dianne Saxe, the former Environmental Commissioner of Ontario, “Canada’s murky bail-out deal for oil and gas will cost us all”  (in the National Observer, April 21) . Saxe begins with: “it is shameful that Prime Minister Justin Trudeau is using your tax dollars to bail out the oil and gas exploration and production industry, perhaps the wealthiest and most polluting industry in human history.”  She credits the “one good program” to be the $200 million loan to Alberta’s Orphan Well Association because it is structured as a loan, to be repaid under the oversight of a special committee which will include local and Indigenous representatives. As for the $750 million Emissions Reduction  funding, Saxe criticizes the terms as unclear, and objects to the roles of the Alberta government, the Export Development Corporation and the Business Development Bank of Canada whose previous oil-friendly financial record she documents.

Finally, Saxe objects to the lost opportunity – suggesting other, more impactful ways to spend the economic funds, and stating:

“These multi-billion dollar bailouts …. are one of the most expensive and polluting ways of protecting jobs. As well as their mountain of debt, the oil and gas extraction industry creates a puny 2.7 jobs per million dollars of output, while pumping out 704 tonnes of greenhouse gases for each full-time job.”

This job creation estimate is based on research by Eric Miller, in an unpublished presentation: The Pandemic from an Ecological Economics perspective: Assessing consequences and appraising policy options (March 31 2020). More related resources are here  .

342,000 jobs by 2040 in zero electric vehicle production in Canada

electric school busA report published by the International Council on Clean Transportation in March,  “Simulating zero emission vehicle adoption and economic impacts in Canada”, was researched by Navius Research of Vancouver. Using economic modelling, Navius forecasts that, even with current policies in place, the ZEV economy in Canada will grow to $43 billion of GDP and 342,000 workers by 2040. With stronger policies, that job creation potential could approach 1.1 million people by 2040.

The employment forecast accompanies a White Paper by the International Council on Clean Transportation which analyzes sales and production trends for conventional and electric vehicles in Canada. It  finds that Canada is the 12th largest vehicle producer in the world, but it’s production of electric vehicles is 80% lower than the global average, at only 0.4% of the total.  The report, Canada’s role in the electric vehicle transition  states that the most important action Canada can take to encourage production is grow its domestic electric vehicle sales market. It also recommends: ….. “Supply-side policies such as research and development funding, loan guarantees, and tax breaks for manufacturing plants are warranted” and “domestic manufacturing requirements for the procurement of public transit vehicles can serve to increase production of electric buses in Canada.” In addition, “Canada can build on its early leadership in developing and producing hydrogen fuel cell technology—especially for heavy-duty vehicles. … hydrogen fuel cell vehicles are likely to play a critical role in Canada’s on-road freight sector…”

In February 2020, the Canadian Urban Transit Research and Innovation Consortium (CUTRIC) announced  the creation of North America’s first-ever cluster of post-secondary institutions dedicated specifically to researching battery electric and fuel cell electric buses.  Canadian manufacturers already producing electric buses include New Flyer Industries, Nova Bus, GreenPower Motor Company, and The Lion Electric Company, as well as U.S. -owned Proterra.

Environmental benefits of electric vehicles and heat pumps

A technical  study led by researchers from the Exeter University, University of Nijmegen, and Cambridge University used life cycle analysis to show that in 53 out of the 59 regions studied, electric-powered  vehicles and heat pumps generated less carbon dioxide than cars and boilers powered by fossil fuels. The only exceptions came in the heavily coal-dependent regions of Poland.  “Net emission reductions from electric cars and heat pumps in 59 world regions over time”  appeared in Nature Sustainability in late March,  and is summarized in The Guardian as “Electric cars produce less CO2 than petrol vehicles, study confirms” (Mar. 23). The Guardian article emphasizes that this study is proof against a campaign of disinformation which has slowed the acceptance of these two technologies – and which they address in an accompanying primer, “How Green are Electric Cars?” 

Green New Deal for Public Housing Act provides concrete proposals and benefits

sanders cortezOn November 14, Bernie Sanders and Alexandra Ocasio-Cortez led a press conference to announce the introduction of the Green New Deal for Public Housing Act in the United States Senate, under Sanders’ sponsorship. The Bill would eliminate carbon emissions from federal housing, invest approximately $180 billion over ten years in retrofitting and repairs, and create nearly 250,000 decent-paying union jobs per year, according to the many summaries which appeared: for example, in Common Dreams . Bernie Sanders’ press release is here, linking to the legislation, summaries, and a list of  the 50 organizational supporters.  Co-sponsors named are Sen. Jeff Merkley (D-OR) and Sen. Elizabeth Warren (D-MA).

As stated in a press release,  progressive think tank Data for Progress “conducted policy and public opinion research to support this pathbreaking progressive legislation, which advances housing, racial, economic, environmental and climate justice together.” The Green New Deal for Public Housing Act can stand up to Scrutiny  reports the results of the political polling done by Data for Progress.  A related article, “Why Bernie Sanders and AOC are targeting public housing in the first Green New Deal bill” in Vox contends  “By starting with housing, the legislators appear to be trying to make inroads with a broad political base and avoid some of the more contentious aspects of the Green New Deal, like the transition away from fossil fuels. That issue in particular has divided labor unions because it would lead to the end of mining and drilling jobs.”

Data for Progress also conducted economic research which  “shows that a ten-year mobilization of up to $172 billion would retrofit over 1 million public housing units, vastly improving the living conditions of nearly 2 million residents, and creating over 240,000 jobs per year across the United States. These green retrofits would cut 5.6 million tons of annual carbon emissions—the equivalent of taking 1.2 million cars off the road. Retrofits and jobs would benefit communities on the frontlines of climate change, poverty and pollution and the country as a whole. Our analysis shows the legislation would create 32,552 jobs per year in New York City alone. A large portion of the jobs nationally—up to 87,000 a year—will be high-quality construction jobs on site at public housing developments.”  A Green New Deal for New York Housing Authority (NYHCA) Communities report is now available, and  a National report is forthcoming- until then, data is available here  .

The right policy mix determines the extent of job creation for California’s proposed offshore wind industry

floating offshore windCalifornia Offshore Wind: Workforce Impacts and Grid Integration  is a report released on September 27 by the Center for Labor Research and Education at University of California, Berkeley, in partnership with Energy and Environmental Economics Inc. The report seeks to quantify what benefits for workers and communities would emerge from a major offshore wind power sector, given that the depth of California’s waters require floating platform wind installations, and floating wind is in its infancy. (According to the report, the only commercially operating project now is the 30 MW Hywind  project , opened in 2017 off the coast of Aberdeen, Scotland). The author interviewed union leaders, offshore wind industry participants, workforce training professionals, and port and transportation specialists for their firsthand accounts of the impacts of offshore wind, as well as analyzing the research to date on the economic and employment impacts of the fixed-bottom offshore wind industry around the world. A press release provides an executive summary of the report.

The conclusion: state policy intervention is a crucial determinant of the level of benefit for offshore wind.  Excerpts from the report: The largest economic benefits would occur “if an in-state supply chain were developed for the primary components of wind turbine generators—blades, nacelles (hubs), and towers—as well as the floating platforms, thus creating thousands of manufacturing and construction jobs. But the offshore wind industry is highly globalized, with its supply chain centered in Europe, and by the mid-2020s, China is likely to become a major exporter of wind components. … policymakers should set a clear goal for offshore wind as part of the long-term renewable energy planning process (for example, a mandate for at least 8 GW over a decade). If the offshore wind planning process were to evolve in a more piecemeal basis, without strategic direction or fixed targets, wind developers and manufacturers would lack incentive to make major California investments…. Although the state has a strong workforce training system, including the construction industry’s state-certified apprenticeships, skills gaps are likely to be a challenge for offshore wind on the North Coast. The state should consider creating a High-Road Training Partnership (HRTP) for offshore wind to fill these gaps and broaden community access to offshore wind jobs. HRTPs are a new state program of industry‐specific training programs that prioritize job quality, equity, and environmental sustainability.”

 

 

With progressive policies, Canada’s clean energy sector will provide over 500,000 jobs by 2030

Two new economic studies project the potential for growth in the clean energy sector to 2030 in  Canada and in Nova Scotia.

fast laneOn October 3, Vancouver-based Clean Energy Canada announced  its new report, The Fast Lane , which predicts that “ Canada’s clean energy sector will employ 559,400 Canadians by 2030—in jobs like insulating homes, manufacturing electric buses, or maintaining wind farms. And while 50,000 jobs are likely to be lost in fossil fuels over the next decade, just over 160,000 will be created in clean energy—a net increase of 110,000 new energy jobs in Canada.”  That translates into a job growth rate of 3.4% a year for clean energy from 2020, compared to an overall job growth rate of 0.9% for Canada as a whole and a decline of 0.5% a year for the fossil fuel sector.

missing the bigger pictureNavius Research conducted the economic modelling underlying The Fast Lane, as well as a May 2019 Clean Energy Canada report, Missing the Bigger Picture  , which reports on clean energy investment and jobs from 2010 to 2017.  The more detailed economic modelling reports by Navius are available as  Quantifying Canada’s Clean Energy Economy: A forecast of clean energy investment, value added and jobs  , and Quantifying Canada’s Clean Energy Economy: An assessment of clean energy investment, value added and jobs (May).

The message for policy-makers is made clear in the introduction to The Fast Lane by Merran Smith, Executive Director of Clean Energy Canada: “The sector’s projected growth is modelled on policy measures either in place or announced in early 2019 at both federal and provincial levels. If climate measures are eliminated—as we’ve recently seen in Alberta and Ontario—our emissions will go up and Canadians working in clean energy could lose jobs.”

An article in The Energy Mix summarizes  The Fast Lane . It quotes Lliam Hildebrand, Executive Director of Iron and Earth , a worker-led non-profit which promotes upskilling and retraining for fossil fuel workers:  “It’s really important for people to know that most fossil fuel industry workers are really proud of their trades skills and would be excited—and are excited—about the opportunity to apply those skills to building a sustainable energy future …. But they need support in making that transition.”

A similar message comes through in “After oil and gas: Meet Alberta workers making the switch to solar”  , an article in The Narwhal which profiles three workers who have transitioned from jobs in the fossil fuel industry. The article also summarizes the policy environment in Alberta, where according to Statistics Canada, roughly 1 in every 16 workers in Alberta is employed in the category described as “forestry, fishing, mining, quarrying, oil and gas.” The Narwhal quotes  Rod Wood, national representative from Unifor, who states that the global energy transition “is going to happen in spite of Alberta…You’re either part of the conversation or you’re lunch. It’s just going to steamroll over you.” And  Mark Rowlinson of the United Steelworkers Union and BlueGreen Alliance Canada states: “ The market tends to move with its own feet. If the market sees that the future of the fossil fuel industry is not looking great, it will move quickly… And it will move without a plan. That means there will be wreckage left behind it, and that’s what we need to try to avoid.”

Clean economy policies could bring 180,000 jobs to Nova Scotia by 2030:

Nova Scotia’s Ecology Action Centre submitted what it calls a “Green Jobs Report” to the province’s consultation on its proposed Environmental Goals and Sustainable Prosperity Act, just ended on September 27.  EAC proposed six policy choices, including supplying 90% of the province’s electricity from renewables by 2030, with a summary  here.  A detailed report, Nova Scotia Environmental Goals and Sustainable Prosperity Act: Economic Costs and Benefits for Proposed Goals  was prepared by economic consultants Gardner Pinfold and estimates the benefits of each proposal,  with the conclusion that the proposed policies could create over 15,000 green jobs per year in Nova Scotia, for a total of just less than 180,000 job-years between now and 2030.