A vision and action plan to make Canada’s heavy industries our low-carbon “Next Frontier”

Clean Energy Canada’s new report, The Next Frontier, sees Canada’s heavy industries—including steel, mining, cement, and wood—as the “Next Frontier” – already employing more Canadians than the oil and gas industry (300,000 in heavy industry compared to 237,000 in oil and gas), and poised to increase exports to the rest of the world. The report contends that Canadian heavy industries have a competitive advantage over their global peers, largely because our electricity sector is now 83% emissions-free. And according to the introduction, the time is now: “The production of certain metals and minerals could increase by up to nearly 500% over the next three decades to meet growing demand for clean technologies, according to the World Bank Group. Global steel demand, meanwhile, is projected to increase by up to 55%; Canadian steel and aluminum are among the world’s cleanest and could be even cleaner. Mining companies such as Vancouver based Teck are also global leaders in copper production, while Canada is the world’s fifth-largest nickel producer—both key metals for electrifying transportation. And Albertan companies like E3 Metals and Summit Nanotech are finding ways to recover lithium from oilsands wastewater.”

The Next Frontier , released on March 24, calls for an action plan to allow Canada to capitalize on the convergence of global market trends and climate imperatives.  The report Canadian strengths and provides more examples of existing companies. It concludes with an action plan to move towards this lower-carbon economy, including recommendations: to expand domestic markets through clean procurement policies for government infrastructure materials; to identify strategic directions such as “establishing a self-sufficient battery and critical minerals supply chain to build and grow domestic battery and clean technology manufacturing”;  investment and research and development in well-positioned industries; and establishing standards which will support a “Clean Canada” brand to the world.  

And regarding our largest and most important trading partner, the U.S., the bottom line message is: “If we want Biden’s “Buy American” approach to include an asterisk beside Canada, we must adapt to what this new administration wants more of (clean energy and low-carbon goods) and what it wants less of (fossil fuels and emissions-intensive products).”

Clean200 list of global companies released

Corporate Knights released the 2021 edition of its annual Clean200 list of publicly traded companies on February 18  –  a list of global companies with total revenues over $1 Billion annually, ranked by green energy revenues.  According to the press release:  “The Clean200 utilizes Corporate Knights Clean Revenue database which tracks the percent of revenue companies earn from clean economy themes including energy efficiency; green energy; electric vehicles; banks financing low-carbon solutions; real estate companies focused on low-carbon buildings; forestry companies protecting carbon sinks; responsible miners of critical materials for the low-carbon economy; food and apparel companies with products primarily made of raw materials with a significantly lower carbon footprint; and Information and Communications Technology (ICT) companies that are leading the way on renewable energy while also being best-in-sector according to currently accepted privacy benchmarks.”   Certain companies are automatically excluded from consideration: weapons and  military arms manufacturers, palm oil, paper/pulp, rubber, timber, beef and soy producers (as identified by As You Sow’s Deforestation Free Funds), as well as companies using child or forced labour, and companies that engage in negative climate lobbying.

According to the introductory article : “On average, 39% of revenues earned by Clean200 companies are classified as clean, which the majority of other revenues classified as neutral, compared to just 8% clean revenue for their peers.” Notably, the Clean200 companies also outperform others financially.  Forty-six of the 200 Clean companies are headquartered in the United States; followed by Japan (26), China (17), France (15), and Canada and Germany (8 each). The top performing company is Alphabet Inc., parent company of Google,  with 83.33% percent green revenue for 2019.  For Canada, the list includes the Canadian Pacific and Canadian National Railways as well as Bombardier, Cascades Inc., Canadian Solar, Telus, Hydro One, and Brookfield Renewable Partners.

New European and global alliances launch, calling for Just Recovery economic plans after Covid-19

In an Open Letter  signed in the first week of April,  the environment and climate change Ministers of eleven European Union countries call for the European Green New Deal to be central to the post-pandemic economic recovery plans of the EU.  By April 14, that initiative was boosted by the launch of a larger Green Recovery Alliance, including over 70 Members of the European Parliament and civil society groups, including  CEO’s, business associations, NGO’s, think tanks, and the European Trade Union Confederation.  In its 4-page Green Recovery Call to Action, the Alliance acknowledges the urgency of the Covid-19 health crisis,  and states:

 “After the crisis, the time will come to rebuild. This moment of recovery will be an opportunity to rethink our society and develop a new model of prosperity. This new model will have to answer to our needs and priorities.These massive investments must trigger a new European economic model: more resilient, more protective,more sovereign and more inclusive. All these requirements lie in an economy built around Green principles. Indeed, the transition to a climate-neutral economy, the protection of biodiversity and the transformation of agri-food systems have the potential to rapidly deliver jobs, growth and improve the way of life of all citizens worldwide, and to contribute to building more resilient societies…… “Projects such as the European Green Deal, and other national zero carbon development plans have a huge potential to build back our economy and contribute to creating a new prosperity model. We therefore consider that we need to prepare Europe for the future, and design recovery plans, both at the local, national and at the EU level, enshrining the fight against climate change as the core of the economic strategy. The time has come to turn these plans into actions and investments that will change the life of citizens and contribute to the quick recovery of our economies and our societies.”  [emphasis by the WCR editor].

This European initiative is consistent with a worldwide movement for a Just Recovery from Covid-19, co-ordinated by 350.org.  In the U.S., this is allied with the People’s Bailout movementdescribed in a previous WCR post  , and sharing the same five principles.   The #Just Recovery Open Letter states:

“ We, the undersigned organisations, call for a global response to COVID-19 to contribute to a just recovery. Responses at every level must uphold these five principles:

  1. Put people’s health first, no exceptions.
  2. Provide economic relief directly to the people.
  3. Help our workers and communities, not corporate executives.
  4. Create resilience for future crises.
  5. Build solidarity and community across borders – do not empower authoritarians.”

Both the European and Global movements are described in “Pairing ‘Green Deal’ With ‘Just Recovery’ in EU, Groups Embrace Tackling COVID-19 and Climate Emergency in Tandem”  in Common Dreams (April 10).  The newsletter Euractiv describes the European initiative in ‘Green recovery alliance’ launched in European Parliament (April 14) .

Australia Senate Committee Report shows a green economy is possible

Flag_of_Australia.svgOn 31 July 2019, the Australian Senate established a Select Committee into the Jobs for the Future in Regional Areas, with a mandate to inquire and report on new industries and employment opportunities that can be created in regions and rural areas. The terms of reference were broad and included “lessons learned from structural adjustments in the automotive, manufacturing and forestry industries and energy privatisation ; the importance of long-term planning ; measures to guide the transition into new industries and employment; and the role of vocational education providers, in enabling reskilling and retraining.”

Public consultations were conducted in seven locations and 174 submissions were received from academics, policy experts, government representatives and unions, between July and September.  The Report of the Select Committee was released in early December 2019, but because Senators were unable to set aside politics and arrive at consensus recommendations, the report consists mostly of excerpts from the submissions heard.  There are 14 recommendations made by the Chair , and separate recommendations by Labor members and by Government Senators, who said: “The word ‘transition’ is a loaded term which necessarily involves preconceptions around the direction of the Australian economy. The issue surrounding the definition of ‘transition’ is one of the reasons why the committee could not reach agreement on recommendations.”

Neverthess, the report and submissions are a valuable record of the current situation in Australia because they discuss examples of the technological innovations in current industry, and future job opportunities in renewable energy, biofuel, mining, lithium-ion battery manufacture, waste management, hydrogen energy export to Asia, and ecological services and natural infrastructure (including site rehabilitation and reef restoration).

Some excerpts:

“… the growth in renewable energy generation presents direct opportunities for increasing manufacturing activity: Installation and construction employs large numbers of people for short periods of time, but a globally competitive renewables manufacturing industry creates jobs for decades. The Victorian state government has only scratched the surface of the opportunity for Australia in this space. They have reopened the Ford plant in Geelong and allowed Danish multinational Vestas to start assembling wind turbines, but there is also Keppel Prince in Portland and Wilson Transformers in Wodonga, who have also been involved in the renewables supply chain, creating high skilled, meaningful manufacturing jobs.”

“…. the GFG Alliance in Whyalla which is proposing to revitalise the steelworks and bring down the cost of production with a variety of innovative and technologically advanced initiatives. Depending on the final configuration, a portion of the energy used at the steelworks would be sourced from a 280 MW solar farm in the Whyalla region….. Sun Metals, a solar electricity generation farm, supplies the existing zinc refinery with about 30 per cent of its electricity needs. That refinery is expanding its zinc production and is looking to expand its portfolio of renewable generation assets to further reduce its exposure to volatile electricity grid prices. Similarly, the development and commercialisation of the EnPot technology for aluminium smelting has the potential to redefine and expand the role of aluminium smelting in Australia as an electricity grid stabiliser as well as a value-adding base metal producer.”

Regarding future skills and labour market concerns:

The Centre for Policy Futures characterized the role of industry skills councils as critical to ensure that training matches the available jobs.  “… These councils must be part of the community consultation process; work with the public authority to identify what future employment opportunities might look like; and determine the future employment, reskilling and retaining opportunities that might be available.”

Concerns about the skill differences between workers currently employed in coal mines and power-stations were highlighted by the Institute for Sustainable Futures: “The nature of the workforce in coalmining means that the transition there is going to be more challenging than it is in power generation. Power generation has a lot of trades, technicians and professionals. One in two coalminers is a truck driver or a machine operator—the second-lowest skill category. So it is going to be a lot more challenging than power generation, where you’ve got a relatively skilled workforce.”…. Regional Development Australia South West noted that: Average wages here in the mining sector are $137,000. Average wages in tourism are $49,000. You can’t replace those mining jobs with tourism jobs.”

Regarding Transition Planning :

Several submissions supported the creation of a National Transition Authority, with responsibility for planning and collaboration, but  not replacing the need for local transition planning bodies.

The Next Economy (Submission #16 here ) put forward a model for a national Transition Authority which would : 1.  oversee funding and coordination of transition planning at both a national and regional level 2.  coordinate with other authorities and government agencies to ensure that the scale, type and pace of the transition will enable us to meet international climate obligations to reduce emissions 3.  coordinate an industry-wide, multi-employer redeployment scheme to provide retrenched workers with the opportunity to transfer to other power generators 4.  ensure companies meet their responsibilities to workers in terms of redundancy payments and entitlements, retraining opportunities, and generating jobs through full decommissioning and rehabilitation of sites .

Sadly, these recommendations and examples hold little sway with the current government of Australia, as Prime Minister Morrison continues to support the development of new coal projects.  The Senators’ Comments in the Select Committee Report are a catalogue of government positions, summed up by this :

“In the view of the Government Senators, the majority report (approved by the Greens and the ALP Committee members) inadequately highlights the importance of jobs associated with coal mining and oil and gas production to the Australia’s economy.”

Newly-elected government in Canada outlines its climate priorities; faces first major test in the Frontier mine decision

Canada’s minority government is back in session after the October 2019 election, launched by the Speech from the Throne on December 5.  The Throne Speech traditionally is used to outline government priorities, and signals that Justin Trudeau and his Liberal party will try to stay in power by balancing the demands of the oil and gas proponents in Alberta against the environmental concerns of the rest of the country. The Toronto Star parsed the speech in “What does it mean? The Throne Speech Interpreted “.

On the issue of climate change, here are the actual words of the Throne Speech:

“In this election, Parliamentarians received a mandate from the people of Canada which Ministers will carry out. It is a mandate to fight climate change, strengthen the middle class, walk the road of reconciliation, keep Canadians safe and healthy, and position Canada for success in an uncertain world.”… A clear majority of Canadians voted for ambitious climate action now. And that is what the Government will deliver. It will continue to protect the environment and preserve Canada’s natural legacy. And it will do so in a way that grows the economy and makes life more affordable.

The Government will set a target to achieve net-zero emissions by 2050. This goal is ambitious, but necessary – for both environmental protection and economic growth.

The Government will continue to lead in ensuring a price on pollution everywhere in this country, working with partners to further reduce emissions.

The Government will also:

help to make energy efficient homes more affordable, and introduce measures to build clean, efficient, and affordable communities;

make it easier for people to choose zero-emission vehicles;

work to make clean, affordable power available in every Canadian community;

work with businesses to make Canada the best place to start and grow a clean technology company; and

provide help for people displaced by climate-related disasters.

The Government will also act to preserve Canada’s natural legacy, protecting 25 percent of Canada’s land and 25 percent of Canada’s oceans by 2025. Further, it will continue efforts to reduce plastic pollution, and use nature-based solutions to fight climate change – including planting two billion trees to clean the air and make our communities greener.

And while the Government takes strong action to fight climate change, it will also work just as hard to get Canadian resources to new markets, and offer unwavering support to the hardworking women and men in Canada’s natural resources sectors, many of whom have faced tough times recently.”

 

Reaction from environmentalists and Opposition party leaders appeared in the National Observer, in  “Liberals commit to carbon-pollution target of net-zero by 2050”   (Dec. 5); and in “Throne speech climate commitments dwarfed by spending on Trans Mountain” by the Dogwood Institute .

The Canadian Labour Congress reacted with this generally supportive statement:  “We need bold targets to fight climate change, we owe that to our children …. “We also owe the next generation good jobs and commitments to minimize the impact on workers. Today’s commitments move us towards a greener economy.”   In advance of the Throne Speech, the Green Economy Network, a union network of which the CLC is one member, had made  a harder-hitting statement: “The GEN is demanding that the Prime Minister make climate job creation a priority through investments in renewable energy, energy efficiency and green buildings, public transit and higher speed rail transit.”

Also in advance of the Throne Speech, a group led by the Smart Prosperity Initiative  delivered an Open Letter outlining detailed demands for clean economy initiatives. The twenty-six signatories include leaders from business, environmental advocacy groups, and the United Steelworkers and BlueGreen Canada.

One of the first major tests for the minority government, should it last that long, will be the decision required by the end of February on whether to approve the application by Teck Resources for the massive Frontier oil sands project – a $20-billion, 260,000-barrel-per-day open-pit petroleum-mining project near Fort McKay in northern Alberta. The Canadian Environmental Assessment Agency website provides official documentation, including the July 2019 Joint Review Panel Report , which includes discussion of the  economic and employment impacts of the project (beginning page 883).  Critiques of the Joint Review Panel approval were published in July by The Narwhal here  and the Pembina Institute here .

And now, as Parliament reconvenes and the COP25 meetings are underway, the Frontier mine is becoming the  litmus test of Canada’s climate change policy, as laid out in  “Trudeau will fuel the fires of our climate crisis if he approves Canada’s mega mine”, an Opinion piece by Tzeporah Berman which appeared in The Guardian on December 10.  Also on December 10, Greta Thunberg and fourteen other young people released an Open Letter to government leaders of Canada and Norway, calling on them to block any new oil and gas projects and quickly phase out existing ones. The National Observer explains in  “Greta Thunberg and other youth call on Trudeau to ditch fossil fuels” (Dec.9) .