TD Bank Report on Canada’s Green Economy: Reconcile the Economy and Environment

On October 2nd, one of Canada’s Big Five banks, the TD Bank, released a report on “green economics” in Canada. TD found that environmental considerations have already become entrenched in corporate decision-making in Canada, and that reducing environmental impact often reduces costs, drives innovation, and stimulates growth. TD’s preliminary analysis indicates a recent “decoupling of economic growth from environmental degradation”, wherein the percentage of GHG emissions per 1% GDP increase has fallen, while improved air and water quality, recycling rates and protected lands have accompanied strong overall growth. The report suggests that in order to better understand and encourage these trends, Canada needs a holistic focus on the “greening of the economy” in all sectors, rather than dichotomizing “green” and “brown” economics. To this end, TD calls for the development of environmental, economic, and government policy, and corporate responsibility indicators to help measure gains across industries and at all levels.         

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Canada Caught in a “Staples Trap” and a “Carbon Trap” by Current Pace of Oil Development

The authors of a new report released jointly by the Canadian Centre for Policy Alternatives and the Polaris Institute reject the polarizing framework of “economic interests vs. environmental interests”, or “East vs. West”, and call for a public debate of the social, economic and environmental complexities of Canada’s current “bitumen path”. They argue that Canada’s current “gold rush” approach is creating a double threat to the country: a “staples trap,” which is making our economy less diversified, productive and resilient, and a “carbon trap,” which will make the inevitable day of reckoning for climate adaptation much more expensive and difficult. The report discusses employment impacts, income distribution, international trade, currency effects, and “Dutch Disease” and the Canadian manufacturing sector. An alternate policy approach is recommended, which uses tighter regulation to slow the pace of bitumen extraction and to boost Canadian content in the upstream and downstream supply chains. At the same time, Canada’s economy needs to encourage more balanced, innovative and low-carbon industries.

 

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The Bitumen Cliff: Lessons and Challenges of Bitumen Mega-Developments for Canada’s Economy in an Age of Climate Change by Tony Clarke, Jim Stanford, Diana Gibson, and Brendan Haleyis available at: http://www.policyalternatives.ca/sites/default/files/uploads/publications/National%20Office/2013/02/Bitumen%20Cliff.pdf