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www.policymagazine.ca September—October 2018
Canadian Politics and Public Policy
Clean Energy/Clean Tech
$6.95 Volume 6—Issue 5
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In This Issue
9 From the Editor / L. Ian MacDonald
Clean Energy/Clean Tech
Canadian Politics and
11David McLaughlin
Climate at the Crossroads
Public Policy 15Dan Woynillowicz and Merran Smith
Clean Growth is More Than a Goal—It’s a Reality
EDITOR
L. Ian MacDonald
lianmacdonald@policymagazine.ca
18 Dan Gagnier
In Clean Tech, Consumers Will Set the Pace of Change
ASSOCIATE EDITOR
Lisa Van Dusen 20Janet Drysdale
Rail—Pulling Toward a Cleaner Future
lvandusen@policymagazine.ca
CONTRIBUTING WRITERS 23 Nathalie Pilon
Digitalization: The Path to Sustainability
Thomas S. Axworthy,
Andrew Balfour, Yaroslav Baran,
Derek H. Burney, Catherine Cano, 27 Karen Hamberg
A Clean Tech Case Study
Margaret Clarke, Celine Cooper,
Rachel Curran, Susan Delacourt,
Graham Fraser, Dan Gagnier, 30 Derek Nighbor
Forestry: A Success Story in Clean Tech
Martin Goldfarb, Sarah Goldfeder,
Patrick Gossage, Frank Graves,
Brad Lavigne, Kevin Lynch,
32 Guest Column / James Scongack
Clean Nuclear Power and Lower GHG Emissions
Jeremy Kinsman, Andrew MacDougall,
Carissima Mathen, Velma McColl, 33 Tim McMillan
Keeping Canada Competitive: A Petroleum Industry Perspective
David McLaughlin, David Mitchell,
Don Newman, Geoff Norquay,
Fen Osler Hampson, Robin V. Sears, 35 Guest Column / Elizabeth May
Renewable Energy as Reconciliation
Gil Troy, Lori Turnbull, Jaime Watt,
Anthony Wilson-Smith
WEB DESIGN Canada and the World
Nicolas Landry
policy@nicolaslandry.ca 36 Geoff Norquay
The Ontario Campaign that Went from Time for a Change to
SOCIAL MEDIA EDITOR Throw the Bums Out
Grace MacDonald
grace@policymagazine.ca 39 Patrick Gossage
Ontario’s Ford Fiesta: Liberals and Media Didn’t Get It
GRAPHIC DESIGN & PRODUCTION
Monica Thomas
monica@foothillsgraphics.ca 41 Graham Fraser
The Quebec Election: A Primer
Policy
Policy is published six times annually
44
Chand Sooran
The Future of Government Procurement is Virtual
by LPAC Ltd. The contents are
copyrighted, but may be reproduced 47 Kevin Lynch
The Financial Crisis Ten Years On: Is the Repair Job Finished?
with permission and attribution in
print, and viewed free of charge at
the Policy home page at 50 Jeremy Kinsman
Moving On: The West Adjusts to a Rogue U.S. President
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Capturing What Makes PMs Tick
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Trudeau’s Energy/Environment Pre-election Peril
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September/October 2018
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From the Editor / L. Ian MacDonald
Clean Energy/Clean Tech
W
elcome to our special issue clean technology in a material way to Liberals outside Montreal, with the
on Clean Energy/Clean diversify our economy.” Derek Nigh- Parti Québécois a distant third. How
Tech, one of the defining bor of the Forest Products Association to explain it? “For the first time since
economic and environmental issues of Canada writes of the Canadian 1970,” Fraser writes, “Quebec inde-
of the day. forestry industry as a success story in pendence is not on the ballot.”
David McLaughlin, former president clean tech. In a guest column, James Government procurement can be un-
of the National Round Table on the Scongack of Bruce Power writes of wieldy at the best of times, with un-
Environment and the Economy, sets nuclear power as a clean energy alter- known challenges ahead in the digital
the table with a survey piece on cli- native, notably to coal. And Tim Mc- age, particularly for small business.
mate change and how the conversa- Millan, president of the Canadian As- Procurement consulting executive
tion has changed, notably on carbon sociation of Petroleum Producers, sees Chand Sooran offers his thoughts on
pricing: “Canada has swung from a a world that will need “more energy in SMEs doing business with large corpo-
seeming inevitability on climate ac- every form, including more Canadian rations and government.
tion with carbon pricing to a pitched oil and more Canadian natural gas.”
Ten years after the financial crisis of
battle between Liberals and Conser- Finally, Green Party Leader Elizabeth 2008-09, Kevin Lynch looks back at
vatives, some provinces and Ottawa, May sees the development of renew- those dark days and asks if the repair
challenging the very notion of carbon able energy as a path to reconciliation job is finished. As clerk of the Privy
and climate action at all.” with Canada’s Indigenous Peoples. Council during the crisis and now as
I
Dan Woynillowicz and Merran Smith a vice-chair at BMO, Lynch considers
n Canada and the World, we take
of Clean Energy Canada write that some of the challenges facing both
a look at the Ontario election, and
clean growth is more than a goal, it’s a government and the private sector.
the changes upcoming under
reality. For example, they point out “a Our foreign affairs writer Jeremy Kins-
record-setting 1.1 million electric cars Premier Doug Ford. Geoff Norquay
writes that “by any measure, the PC man, a former senior Canadian dip-
were sold in 2017.” Canada saw a 68
victory on June 7 was both decisive lomat, looks at the chaotic world of
per cent increase in EV sales over 2016.
and strong.” He also notes that Ford Donald Trump, who is shaking the
Dan Gagnier, ex-chair of the Interna- wasted no time in holding a sum- multilateral institutions of western de-
tional Institute on Sustainable Devel- mer sitting of the Legislature, mov- mocracies created and led by the U.S.
opment, looks at clean tech and writes ing quickly to “cancel Ontario’s From the G7 in Quebec to the NATO
that consumers will drive the pace of cap-and-trade program on carbon summit in Brussels, it’s been a sum-
change, in an environment where dis- mer of discontent.
emissions.” Veteran Liberal strategist
ruption is the new normal.
and media consultant Patrick Gos- In a book review, Historica Canada
Janet Drysdale, vice president respon- sage writes that both pundits and President Anthony Wilson-Smith
sible for CN’s sustainability strategy, pols were wrong about the June elec- looks at J.D.M Stewart’s Being Prime
makes the case for rail as a choice for tion. “How could the media have got Minister, and finds the author captures
clean energy. Transportation accounts it so wrong?” he asks. The obvious what makes Canadian PMs tick, in
for 28 per cent of Canada’s GHGs, but answer—a state of denial. their private as well their public lives.
rail only 1 per cent.
With an October 1 Quebec election Finally, columnist Don Newman
ABB Canada President Nathalie Pilon on the horizon, veteran journalist considers the conundrum of Justin
writes that “never has there been a and author Graham Fraser offers a Trudeau as he heads into an election
better time for leaders to adopt sus- primer on the campaign. By all the trying to balance his environmental
tainable business practices by taking leading economic indicators and fis- promises with the energy file, partic-
ownership of the digital space…” in cal frameworks, the re-election of ularly the Trans Mountain pipeline
the Fourth Industrial Revolution. Philippe Couillard’s Liberals should project, of which the government
Karen Hamberg of Westport Fuel Sys- be a slam-dunk. But it’s not. Going has taken ownership. Newman writes
tems in Vancouver writes of the op- into the campaign, François Legault’s that the Liberals have also taken po-
portunity to “deploy made-in-Canada Coalition avenir Québec easily led the litical ownership.
September/October 2018
— Digital innovation at ABB is about people We are living through an information technology revolution set against a context of sustainability, energy concerns, and the fourth industrial revolution – the meshing of the digital world of people and machines as internet meets production. This is our ever-evolving workspace, where technology accelerates growth and innovation like never before and more than ever we aim to create a Canada whose people, technology and innovation ecosystem can compete on the global scale abb.com/future
11
The Tuktoyaktuk Winter Road, an ice road in the Northwest Territories, whose operations could be effected by winter warming. Wikipedia photo
Climate at the Crossroads
Canada’s climate change efforts have reached a cross- David McLaughlin
I
roads. Mounting opposition from some provinces to the t began and ended with two new
Trudeau government’s carbon pricing policy has serious- cabinets and two new words: cli-
ly dented any guarantees that the Pan-Canadian Frame- mate change.
work on Clean Growth and Climate Change will endure. They were added to the title of Prime
Minister Justin Trudeau’s first Minis-
The federal government is facing an uncomfortable but ter of the Environment and Climate
unavoidable choice. Does it impose carbon pricing on Change in 2015; and taken away
recalcitrant provinces in an election year or not? Acting from the new title for Ontario Pre-
mier Doug Ford’s first Minister of
risks a carbon tax backlash by voters. Not acting risks the Environment, Conservation and
alienating the federal Liberals’ own voting base on a key Parks in 2018.
policy issue. Those two cabinet changes mark
the high- and low-water marks of
climate change progress in Canada.
With the first, the Trudeau govern-
ment set about creating the Pan-Ca-
September/October 201812
nadian Framework on Clean Growth 2005 levels by 2030, he just as effec-
If Harper effectively
and Climate Change (PCF) in Decem- tively boxed-in future government
ber, 2016. With the second, the Ford poisoned the action. Thinking this target would
Progressive Conservative government political well on using a be politically bullet-proof from their
repealed its cap-and-trade system and carbon tax, he bequeathed a Conservative opponents, the Liber-
commenced a legal challenge to Ot- poisoned chalice to both his als adopted it with alacrity in 2015.
tawa’s plan to require provinces to Andrew Scheer, the new Conserva-
implement carbon pricing regimes
own party and the Trudeau tive party leader, then drank from it
by 2019. government: his Paris earlier this year with a public com-
2030 targets. mitment to reach the Paris target but
In just over two years, Canada has without a carbon tax.
swung from a seeming inevitability
on climate action with carbon pricing Yet, this target is proving just as resis-
to a pitched political battle between tant to actual achievement as every
Liberals and Conservatives, some other Canadian climate target from
F
provinces and Ottawa, challenging rom that moment on, federal Kyoto onwards. Now owning it, the
the very notion of carbon and cli- Conservatives became unalter- Liberals are criticized for instituting a
mate action at all. Climate policy has ably opposed to formal carbon modest carbon tax to help achieve it
reached a crossroads in Canada. Next pricing as a tool to reduce emissions, (it is either too much or not enough,
240
year’s federal election looks now as despite their own, soon-to-be-dis- say the same critics). Meanwhile,
the deciding event. 200 carded cap-and-trade plan known as the Conservative position will be ex-
160 Turning the Corner. A slow, sector- tremely difficult, if not outright im-
Despite the federal Liberal govern- possible, to accomplish with a regula-
by-sector regulatory approach was ad-
ment’s avowed commitment to glob-
120 tory approach alone.
opted instead. But the high-emitting
al and Canadian climate action un-
80 oil and gas sector was consistently
The basis, then, for sound climate
der the slogan “Canada is Back”, the
left out and Canada’s emissions rose
public policy in this pre-election year
terrain for what became the PCF40was
until the 2008-09 recession caused
tilled by “the two Stephens”: Harper is increasingly looking like a re-run of
0 them to drop, before rising again.
and Dion. The 2008 federal election2017 2020 2025 the 2008 campaign.
2030
put paid to the notion of a carbon But if Harper effectively poisoned the
T
PLDVs–BEV PLDVs–PHEV LCVs–BEV LCVs–PHEV Buses–BEV
tax to reduce emissions. Then Lib- political well on using a carbon tax, he Trudeau government’s ini-
Buses–PHEV Trucks–BEV Trucks–PHEV
eral leader Stéphane Dion promoted he bequeathed a poisoned chalice to tiative to knit together a pan-
his Green Shift carbon tax. Prime both his own party and the Trudeau Canadian climate approach
Minister Stephen Harper castigated government: his Paris 2030 targets. By was based on the realism of feder-
it as a “tax on everything”, winning setting yet another ambitious GHG alism and the state of climate play
an increased minority government. reduction target of 30 per cent below when he took office. Under the
Canada’s GHG Emissions 1990–2016
800
732 745
707 716 704
694
700
723 724 716 714
682 700
Megatonnes of CO2 equivalent
600
500
400
300
200
100
0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
Policy13
Harper government, provinces had
The Ford government’s withdrawal from the
been the leaders in climate action,
from British Columbia legislating climate sphere can be seen as either a brake or
the country’s first-ever carbon tax to an accelerator to a truly pan-Canadian climate policy for
Ontario closing down its coal-fired the country.
electricity plants to Quebec bring-
ing in cap-and-trade. Any national
policy had to realistically account
.1Here’s a thought experiment: if
the Liberals took office today de-
termined to bring in a national cli- agreement, Ottawa should not sun- up receiving rebates totalling more
mate policy, would they bring in der it. than a thousand dollars.
their current PCF plan? The answer Second, bring in a national carbon tax Fifth, bring in output-based carbon
is very likely “no”. With dimming floor of $25 or $30 per tonne (or 5-7 pricing for large emitters as current-
provincial support for climate ac- cents per litre of gasoline) for all other ly being implemented in Alberta,
tion, it would be up to the federal provinces at once. Instead of just do- and planned for Saskatchewan and
government to impose a uniform ing this for two provinces now and Manitoba. This system of industrial
carbon price and the elements of a presumably Alberta later, apply it to performance standards reduces the
pan-Canadian climate plan. In less all of them. Provinces could have a cost of carbon pricing for emitters
than two years, Canada has moved higher price if they so desired, but they by returning a portion of their pay-
from a provincially-led, federally- could not have a lower price. This is ments in the form of a subsidy. This
backstopped climate policy to one
higher than the current $20 per tonne prevents carbon leakage and reduced
that looks more and more ‘federally-
price set for 2019 but not unduly so. production for trade-exposed sec-
led, provincially-backstopped’.
A higher price would also incent more tors. The recent adjustments by the
In that vein, the Ford government’s emissions reductions at the outset. federal government to its proposed
withdrawal from the climate sphere output-based system actually eased
(A $30 per tonne “carbon price col-
can be seen as either a brake or an ac- the cost burden even further on in-
lar” was in fact recommended by the
celerator to a truly pan-Canadian cli- dustry; smart recognition that indus-
now-defunct National Round Table
mate policy for the country. Carbon try needs more transition support to
on the Environment and the Econ-
pricing opponents are framing it as implement carbon pricing, even if
omy in 2010 as a competitiveness
unstoppable momentum to ending the politics of doing so has left the
measure to allow Canada to move on
the “Trudeau carbon tax”—the brake. Trudeau government open to largely
climate action without getting too far
Seen another way, it actually creates specious charges of back-tracking on
ahead of the U.S.)
an opportunity for the federal gov- its carbon policy.
ernment to re-cast its pan-Canadian Third, keep that price flat until the
A
climate policy and bring about the 2022 review. Business is worried t one bold stroke, the federal
carbon price uniformity and certain- about escalating carbon prices and a government would take the
ty sought in the PCF—an accelerator. “layering” of regulations on top of it, policy responsibility to go
The tool to do so: revenue recycling and this would give a pause to busi- with the political responsibility it
to people. nesses’ benefit while NAFTA is settled has for all practical purposes already
with the United States. assumed for its carbon and climate
T
here is today a window to approach. The effect of hundreds
Fourth, recycle all of the carbon tax
implement a truly national of dollars in rebate cheques going
revenue directly back to residents in
PCF that fits more directly into into peoples’ pockets is the best, and
each jurisdiction in the form of divi-
a federally-mandated carbon and cli- frankly, only way at this juncture to
dend or rebate cheques. Better still,
mate policy. One that does not focus ease carbon pricing into place for all
do it for individuals, not households,
on price stringency to achieve envi- Canadians.
to maximize the size and visibility
ronmental outcomes. Here are the el-
of the dividend. For those provinces The federal government’s legal au-
ements that could make it up:
with revenue recycling systems al- thority to tax and distribute is wide-
First, leave Quebec alone to imple- ready in place, they could have the ly agreed. By having an equal carbon
ment its cap-and-trade system with choice of retaining their current floor price across the country, all
California under the Western Cli- system or withdrawing in favour of jurisdictions are being treated the
mate Initiative. There is no move- the federal government’s dividend same. A uniform carbon price for the
ment currently in Quebec to with- cheques, which would actually be country takes root. Since the effect
draw from carbon pricing or climate worth $200-$300 for each person. A of the legal challenge from Saskatch-
action. As this is an international four-person household could wind ewan and Ontario is to curtail fed-
September/October 201814
Province/Territory Carbon Pricing Regime Compliance with Federal Benchmark
British Columbia Carbon tax. $35/tonne. Rising by $5/tonne annually. Yes
Alberta Carbon tax. $30 per tonne. Future increases beginning Yes to 2020.
in 2020 paused pending outcome of Trans-Mountain No in 2019 if United Conservative
pipeline dispute with B.C. Party wins Spring election and repeals
Output-based carbon pricing for large industrial emitters. carbon tax.
Saskatchewan No. Legal challenge via Saskatchewan Court of Appeal
No. Eligible for federal backstop in
reference. Published Prairie Resilience climate plan with
2019.
form of output- based carbon pricing.
Ontario No. Cap-and-trade regime being repealed.
No. Eligible for federal backstop in
No alternative plan at present.
2019.
Legal challenge via Ontario Court of Appeal reference.
Quebec Cap-and-trade regime. Yes
New Brunswick Plan not finalized. Stated intent not to introduce new
carbon pricing but convert existing fossil fuel taxes to No. Unless deemed equivalent.
climate change fund.
Nova Scotia Internal cap-and-trade regime for electricity. Yes, due to deemed equivalency in
No formal carbon tax or output based pricing system. outcomes.
PEI Plan being developed. Uncertain
Newfoundland
Plan being developed. Uncertain
& Labrador
eral action period on climate, it can based industrial pricing, revenues
be seen as a necessary but limited Ottawa has lost kept in each jurisdiction, a 2022
assertion of federal authority in this control of the review, and provincial flexibility to
important field. climate narrative in the do more.
The effect of this would be to impose country. 2018 is not 2015 Next year—an election year—is likely
a carbon price on the following prov- or 2016 in terms of its to determine whether Canada will act
inces: Alberta (if there is a change in political authority and as one on climate or reanimate the
government), Saskatchewan, On- fragmented approach of the recent
tario, New Brunswick, PEI, and New-
willingness of provinces to
past. If elections matter, this next one
foundland and Labrador. The floor collaborate on climate. promises to be consequential.
carbon price is modest enough not Only a bold move will David McLaughlin is Director of
to create significant economic dif- suffice to salvage it. But to Climate Change, Canada at the
ferentials between provinces. The
flat rate ensures the political impact
bite the bullet on climate, it International Institute for Sustainable
is equally modest as consumers and must water its wine too. Development. He is the former
businesses are not hit with rising fuel President and CEO of the National
bills each year. And, it requires gov- Round Table on the Environment
ernments to look at more politically- and the Economy. He has been a
acceptable non-pricing measures to deputy minister in the New Brunswick
close the Paris gap. to salvage it. But to bite the bullet on government and is a former
climate, it must water its wine too. Conservative chief of staff to the prime
Ottawa has lost control of the cli- A revised national carbon floor price minister of Canada, premier of
mate narrative in the country. 2018 with full revenue recycling cheques New Brunswick, and federal
is not 2015 or 2016 in terms of its back to individuals does just that. finance minister.
political authority and willingness
of provinces to collaborate on cli- It still features key elements of the
mate. Only a bold move will suffice current PCF: carbon pricing, output-
Policy15
Clean Growth is More Than a
Goal—It’s a Reality
Just as social media upended communications, the transi- So, why is China all-in on EVs?
tion to clean energy is rapidly undoing century-old expec- As Amy Myers Jaffe of the Council
on Foreign Relations wrote recently,
tations around electricity, transportation and oil—and it’s “China is banking on clean energy
happening faster than most Canadians realize. technologies as major industrial ex-
ports that will compete with U.S.
and Russian oil and gas and make
China the renewable energy and
Dan Woynillowicz and The costs of renewable electricity— electric vehicle superpower of a fu-
such as wind and solar power—are
Merran Smith falling year after year, while more
ture energy world.”
P
and more projects are seeing massive Anthony Milewski of Pala Invest-
investments. But electricity isn’t the ments put it even more simply: “Chi-
only chapter in this transition’s story. na, unabashedly, wants to be the De-
rotests. Politics. Polarization. troit of electric vehicles.”
The tale unfolding in transportation
Whether you’re reading a newspa- promises to be just as disruptive. And this push to electrify isn’t lim-
per, tuning into the news, or scroll- ited to passenger vehicles. There are a
Consider this: A record-setting 1.1
ing through Twitter, you’ll notice a million electric cars were sold in 2017, growing number of electric buses, bi-
common theme: coverage of energy and roughly half of those were sold cycles, garbage and transport trucks,
and climate change is dominated by in China, which saw a 73 per cent in- even ferries.
pipelines. crease in EV sales over 2016. There are Last year, China put 90,000 fully elec-
Are pipelines a serious matter? Cer- now more than three million electric tric buses on its roads, and in Decem-
tainly. And yet the time and atten- cars cruising roads around the world, ber the city of Shenzhen announced
tion they consume risks distract- and over a million of those are in a that all 16,359 vehicles in its fleet
ing Canada’s business and political single country. were electric. To put that in perspec-
leaders from the much broader and China is now also the world’s biggest tive, New York City has one-third as
deeper shifts occurring in the world’s manufacturer of electric cars and is many buses, period.
A
energy system. home to an incredible 487 EV makers.
nd by no means is this tran-
sition confined to China.
Number of Electric Cars in Circulation Britain, France, Germany,
Norway, the Netherlands, Scotland—
and yes, China—have all announced
3.5
they will eventually prohibit the sale
3 of gas- and diesel-fuelled vehicles.
2.5 The transportation transition is hap-
2.
pening here in Canada, too, albeit
millions
more slowly. While we’re trailing
1.5 leading jurisdictions, Canada saw a 68
1 per cent increase in electric car sales
in 2017 over the previous year. The
.5 Toronto Transit Commission, mean-
0 while, recently placed an order for ten
2013 2014 2015 2016 2017 electric buses from New Flyer’s Cana-
China Europe United States Others dian subsidiary in Winnipeg, with an
option for another 30. This was fol-
Source: International Energy Agency, Global Electric Vehicle Outlook 2018 lowed by an order for 40 more from
September/October 201816
Electric Vehicles 30@30 Scenario It’s a smart move, according to a re-
cent report from Wood Mackenzie,
which says oil and gas companies
240
that adopt renewables early will be
200 at a competitive advantage, while
slow adopters could find themselves
millions
160
at a structural disadvantage. Their
120 analysts—among the financial com-
munity’s most respected—have pro-
80
jected that oil demand could peak by
40 2036, the result of a “tectonic” shift
0
in transportation toward electric and
2017 2020 2025 2030 autonomous vehicles.
W
Passenger battery electric vehicle Passenger plug-in hybrid electric vehicle hile Canada’s oil and gas
Light duty battery electric vehicle Light duty plug-in hybrid electric vehicle
Buses battery electric vehicle Buses plug-in hybrid electric vehicle sector remains focused on
Trucks battery electric vehicle Trucks plug-in hybrid electric vehicle doing what they’ve always
done, other businesses are moving ag-
Source: International Energy Agency, Global Electric Vehicle Outlook 2018 gressively to seize part of the growing
global market for low-carbon goods
BYD, China’s leading EV maker. (BYD the number of available models will and services—now worth $5.8 trillion
will also supply Seattle with electric grow to 217. And that number will and growing by 3 per cent a year.
garbage trucks early next year.) keep ticking up as more and more Toronto-based Hydrogenics and
As momentum builds, so too do pro- vehicle companies set new targets for Vancouver-based Ballard Power, for
3.5 model offerings and electric car sales.
jections for the rapid uptake of EVs example, produce fuel cells that con-
around3 the world. In its most recent Evolution is also underway among vert hydrogen into clean electricity.
outlook,
2.5 the International Energy the world’s largest publicly traded oil Growing Chinese and European de-
Agency projected there could be as and gas companies. Total, a top play- mand have been a boon for them, in
many 2.
millions
as 228 million EVs on the road er in solar and battery power, aims for applications ranging from forklifts to
by 2030,
1.5 including passenger vehi- low-carbon business to account for trains and buses.
cles, commercial vehicles, buses and 20 per cent of its portfolio by 2035. Also based in Vancouver, all-electric
1
trucks. Counting electric two- and Statoil has made big investments in bus company GreenPower has joined
three-wheelers—which
.5 are incredibly offshore wind power, drawing on its traditional Canadian bus companies
popular in developing countries— experience with offshore oil drilling; including Lion and New Flyer in of-
0
that would add2013another 585
2014million 2015
the company 2016 2017 roughly
plans to invest fering electric buses to the growing
vehicles. TheChina
sum total? Closing
Europe in C$16
United billion in
States renewables by 2030.
Others number of transit agencies around
on a billion EVs on the road in a little And BP is once again investing heav- the world that are looking to clean
over a decade. ily in solar, wind and biofuels. up their fleets.
It’s little wonder these projections Perhaps most significant are the And Canada’s two largest auto parts
are sending shockwaves through the moves by Shell, whose CEO, Ben makers—Magna and Linamar—have
auto and oil sectors—driving an ac- van Beurden, put it bluntly last year: both diversified into EVs. Just this
celerating evolution of their business “Societal acceptance of the energy past June, Magna signed a deal with
models and product offerings. system as we have it is just disap- China’s BAIC Group—the parent
pearing.” His next car, he said, will company of Beijing Electric Vehicle
be electric, but that’s just the tip of Co.—to build electric cars in China.
the melting iceberg. Shell announced While this accelerating transition
last year that it will be investing up poses challenges to oil companies, it
General Motors As of 2019, all Volkswagen has
will introduce 20 new Volvo cars pledged 20 electric to $2 billion annually in clean energy offers new opportunities for the min-
new EVs over the will be fully models by 2020
next six years. electric or hybrids. and 300 by 2030. by 2020—while also divesting all of ing industry due to growing demand
its Canadian oilsands assets. These for a range of metals needed for EVs
investments and acquisitions span and their batteries. As the CEO of the
B
y Bloomberg New Energy Fi- EV charging networks in the U.K., hy- Mining Association of Canada re-
nance’s count, at the end of drogen refuelling stations—including cently noted, “For the mining sector,
2017 there were 156 electric here in Canada—and wind, solar and a shift to a low-carbon economy has
car models to choose from, up from other renewable energy technologies a lot of potential upsides because the
just 97 at the start of 2016. By 2020, around the world. kinds of materials that are going to
Policy17
Global Metals and Materials Demand from EV Lithium-Ion Batteries What does all this boil down to for
Canada?
2500K The very real risk of falling behind.
Not fully seizing a world-shifting
opportunity.
Clean growth is more than an goal—
1500K it’s a reality. As the world combats cli-
mate change, growth is shifting away
tons
from century-old fuels and technolo-
gies toward clean energy solutions.
500K We would be wise to prioritize pres-
ent trends over past ones—with an
eye to the future.
2015 ’16 ’17 ’18 ’19 ’20 ’21 ’22 ’23 ’24 ’25 ’26 ’27 ’28 ’29 2030
Whether or not more pipelines
Graphite Nickel Aluminum Copper Lithium Cobalt Manganese should be pursued, the global energy
transition is happening with or with-
Source: Bloomberg New Energy Finance out us. And Canadians don’t want to
be left behind.
be needed will grow exponentially.” thirds said Canada should prioritize Dan Woynillowicz is the policy director
Canadians understand the need to other ways of growing our economy. of Clean Energy Canada at Simon
transition. When asked about the best In a follow-up survey, 74 per cent Fraser University.
way forward for Canada’s economy in agreed that the pace of innovation dan@cleanergycanada.org
an Abacus Data public opinion sur- in new forms of energy is quick, and Merran Smith is the executive director of
vey last year, just one third suggested Canada must be part of this new en- Clean Energy Canada and serves on the
Canada should prioritize promoting ergy revolution—and not fall behind board of the Canadian Climate Forum.
the use of Canada’s oil and gas. Two- because of a reliance on oil. merran@cleanenergycanada.org
LEADING BY EXAMPLE
The Canadian forest products
industry has been leading the way
to advance the development of
clean technology innovation for a
clean energy, zero-waste
bioeconomy future.
Learn more at fpac.ca
THE FOREST PRODUCTS ASSOCIATION OF CANADA (FPAC) provides a voice for Canada’s wood, pulp, and paper
producers nationally and internationally in government, trade, and environmental affairs.18
In Clean Tech, Consumers Will
Set the Pace of Change
The last decade has seen myriad political and regulatory re- systems is proving more difficult. The
reality, when we look at type of extrac-
sponses attempting to address population anxiety provoked tion, is that it is here to stay (U.S. un-
by increasingly dire scientific assessments of environmental conventional-oil production—frack-
realities. At the same time, global demand for fossil fuels has ing, oil sands and other non-drilled
product—rose from almost nothing
in-creased as people in developing countries accede to middle in 2007 to 3.7 million barrels a day in
class consumption habits. As our energy landscape adjusts 2014) but it is vehemently opposed in
many jurisdictions for fear of ground
to these competing forces, choices made by consumers will
water and aquifer contamination.
decide which new technologies thrive and which do not.
The great hope 10 years ago was for
energy efficiency as the greater mitiga-
tor. Innovation has come faster than
McKinsey predicted and the deter-
Dan Gagnier “Photovoltaic (PV) installations [so-
mining factor underlying this faster
lar panels] have taken off much faster
W
pace is consumer behaviour; cheap
ith the political and trade than we expected,” according to McK-
mobile communications, for example,
realms in disarray, disrup- insey. In fact, the compression of costs
are enabling the connected home. In
tion is the new normal. happened throughout the solar-energy
system, from sourcing raw materials to addition, hardware costs have fallen.
Add to this the impacts of climate
manufacturing to installation and ser- For example, LED bulbs now cost
change and the dizzying pace of tech-
vice. McKinsey expected costs to fall about $12 each, down by 80 per cent
nological innovation and it’s little
to $2.40 per watt by 2030 but weren’t from 2010.
wonder that people are increasingly
exercising their ability to choose what bullish enough; “in fact, they are on In fact, people are already making
they can; the way they want to con- course to hit $1.60 per watt by 2020.” clean-tech choices as they build/
nect, the manner in which they con- On wind-generated power and tur- renovate and rent accommodations
sume their news and watch every- bines, the projected global base of and professional space. And why
thing from movies to each other. 94 gigawatts installed in 2007 would not? These systems are re-liable, user
expand to 800 gigawatts by 2030. As friendly and in line with peoples’ in-
Clean tech falls into that burgeoning creasing expectations for an inter-con-
with solar, growth has been faster
array of choice. It is a term generally nected world.
than expected—another proof point
used to define a set of technologies
W
demonstrating the ability of consum-
that either reduce or optimize the
ers, with or without state incentives,
use of natural re-sources, while at the
to move to new technology. By 2014, hat about the future?
same time reducing the negative effect
McKinsey estimated a 22 per cent in-
that technology has on the planet and crease or—370 gigawatts—of installed In the International Energy Agency’s
its ecosystems. capacity compared to its prediction latest outlook for renewable energy, it
A 2007 Study by McKinsey & Compa- for 2014. The same consumption/ projects renewables growing by about
ny looked at a number of potentially cost trajectory has applied to batteries, 1,000 gigawatts—or 43 per cent—by
disruptive technologies and assessed electric and hybrid cars. Lower costs, 2022. The report points out that this
their prospects. It is worth noting just improved manfacturers’ maintenance equals about half of the current global
how accurate these forecasts were by protocols and turbine efficiency have capacity in coal power, which took 80
the end of 2017. Many jurisdictions combined to push adoption rates for years to build.
without the resources or infrastructure clean tech. Part of the IEA’s analysis leads us to
enjoyed by countries such as Canada With both traditional and unconven- consider the probability that renew-
encourage and incentivize the instal- tional oil and gas production encoun- able energy could replace 25 per cent
lation of solar panels with the grid tering ground level as well as policy of the world’s coal power within half
buying surplus to supply and increase protests, demand for oil and gas is a decade—a growth rate that should
generation capacity. still rising but delivering new delivery worry coal investors. (See Next Gen-
Policy19
eration. Renewable Energy Comes at You mercialization of new technology in- made be-tween a healthy environ-
Fast, by Liam Denning, 2017.) creases our competitiveness and im- ment and a healthy economy—both
proves our living standard. of which depend on well-defended
Similarly, IEA projects the share of re-
S
and managed IP.”
newable energy in the world’s electric- o, how does Canada stack up? It
While policies and regulations can set
ity mix to rise from about 24 per cent will surprise few to learn that
the stage for new or better choices re-
in 2016 to 29 per cent by 2022. This Denmark, Finland and Sweden
garding how we use energy, transport
is still bigger than the entire electric- take the gold, silver and bronze med-
and house ourselves, in the final anal-
ity consumption of China, India and als on clean tech in the WWF 2017
ysis, consumers have to exercise their
Germany combined. Index. Canada and the U.S. complete
prerogatives. Technology and applica-
the top five. Canada and Nor-way do
tions that turn our home appliances,
get favorable mention as coming from
IEA projects the share 18th and 25th respectively to amongst
lighting at a distance and intelligent
security systems are an easy jump for
of renewable energy the top four for improvements in driv-
a population on tablets, smart phones
in the world’s electricity mix ing their national clean tech ecosys-
and computers. Businesses and insti-
tems forward.
to rise from about 24 per tutions push us into internet banking
As an ex-board member of Sustainable
cent in 2016 to 29 per cent and using our tablets/phones to pay
Development Technology Canada for goods, services and even for pro-
by 2022. This is still bigger (SDTC) I was fortunate to see over a cessing our cheques and receivables.
than the entire electricity decade the evolution in how we orga- As a majority of people sign on, disrup-
consumption of China, India nized ourselves and came to grips with tion will impact the poor, elderly and
and Germany combined. the challenges around innovation, other minorities who exist off these
research and commercialization of systems. There are already two types
promising energy technologies. SDTC of people left behind by disruption:
clean tech companies now employ Those who have problems grasping
more than 180,000 Canadians and and adapting to technology, and the
In studies such as the Word Wildlife generate some $26 billion in goods economically disadvantaged who can-
and services. When combined with not afford today’s technology, never
Fund’s Clean Tech Survey, certain
other agencies and providers, it is a mind facing fast-paced introduction
trends jump out in terms of both appli-
welcome reality that at fourth in over- of new applications. With inequality
cability, economic/investment choices
all scoring, Canada has strong results already a growing problem, the issue
and sustain-ability options. There is
for clean tech. of technological disenfranchisement
still a considerable space open to large
We need to continue to create clean will likely only exacerbate it.
public transit projects such as sustain-
able and energy-independent office tech funds, provide public funding to As we move through the next decade
complexes. Developers are erecting supplement private sources from all the introduction of more and more
buildings that serve as urban agricul- levels, and encourage and facilitate impressive clean technology har-
early entrepreneurship. Our weak- nessed by entrepreneurs and venture
tural producers and CO2 mitigators.
ness is our limited number of clean capitalists will pro-vide new, better
The natural advantage in terms of in- tech organizations and clusters. My and more numerous choices at differ-
frastructure enjoyed by renewable en- take-away from looking at many suc- ent price segments. How Canadians
ergy projects employing clean tech lies cess stories in this sector is that we exercise choice will create business
in the ability to expand through mod- have the ability, the brains and the opportunities and drive investments.
ular applications. These projects, wind, entrepreneurs. We need to increase In our regulatory world legislators will
solar, tidal, biomass etc. are capable of our efforts and increase our ability to have a challenge keeping up. Con-
starting on one scale and moving to commercialize the offerings of our in- sumer consumption and purchasing
expansion by adding modules. novators and entrepreneurs. decisions will determine the pace of
The 2018 SDTC Clean tech Leader- that direction as well as its economic
It would have seemed like science fic- ship Summit Report says it eloquent- underpinnings.
tion a decade ago but the technology ly: “A record 13 Canadian clean tech Dan Gagnier was a deputy minister as
exists today to deliver these options companies made the 2017 Global well as a chief of staff to Liberal premiers
and will only improve as innovators Clean tech Innovation Index, earning in Ontario and Quebec. He was also
and entrepreneurs continue innovat- the country a top-four ranking. Those Senior VP of Alcan for Environment,
ing. The role of municipal, provincial/ achievements in a highly competitive Health and Safety, a board member
state and national governments is to global marketplace are testament to of SDTC (Sustainable Development
facilitate change and encourage the the innovation power of clean tech Technology Canada) and ex-chair of
right choices. Incentivizing research, firms and to the government’s as- the IISD (International Institute for
demonstration projects and com- sertion that there is no choice to be Sustainable Development).
September/October 201820
Ship to rail at Halifax Harbour. Intermodal transport significantly reduces GHG emissions. CN photo
Rail—Pulling Toward a
Cleaner Future
Transportation accounts for 28 per cent of Canada’s Janet Drysdale
A
GHG emissions, but railways generate only 5 per cent of s one of the most efficient and
that, or just 1 per cent of the country’s emissions. CN, environmentally friendly ways
North America’s largest railway, leads the industry with to move goods, rail has tre-
mendous potential to reduce the en-
fuel consumption 15 per cent below the industry aver- vironmental impact of freight trans-
age. In 2017 alone, renewable fuels resulted in the rail- portation by offering sustainable
transportation solutions today and
way producing 79,000 tonnes less carbon. Rail is clearly into the future. On average, freight
a sustainable choice in transportation. trains are approximately four times
more fuel efficient than trucks. Rail
can move a tonne of freight more than
200 kilometers on a single litre of fuel
Policy21
and a single train can remove more Intermodal helps lower transportation costs by
than 300 trucks from our congested
road and highway network.
allowing each mode to be used for the portion
of the trip to which it is best suited. But it goes beyond
Canada’s transportation sector gen- cost savings. Effective intermodal service also helps
erates approximately 28 per cent
of the country’s GHG emissions,
reduce emissions by up to 75 per cent by shifting long
however railways produce just 5 per haul truck traffic to rail.
cent of that total, and one per cent
of the country’s overall GHG emis-
sions. Intermodal freight shipping
combines the resources of different
transportation modes, such as truck-
ing and rail, to move products from controllers are continuously being Tonnage Analyzer (HPTA). Leverag-
the manufacturing site to their final trained on best practices for fuel ing data from locomotive telemetry
destination. Intermodal helps lower conservation, including locomotive systems, the HPTA tool was built
transportation costs by allowing shutdowns in our yards, streamlined in-house and gives crews instruc-
each mode to be used for the portion railcar handling, train pacing, coast- tions and real-time monitoring al-
of the trip to which it is best suited. lowing them to use only the loco-
ing and braking strategies. For ex-
But it goes beyond cost savings. Ef- motive power needed during that
ample, in 2016, we decreased train
fective intermodal service also helps trip, by optimizing a locomotive’s
idling by 14 per cent.
reduce emissions by up to 75 per cent horsepower-to-tonnage ratio. In ad-
by shifting long haul truck traffic to dition, we use Trip Optimizer, which
rail. According to the Railway As- With approximately regulates the speed of a train by
sociation of Canada, “A 10 per cent 84 per cent of our controlling the locomotive throttle
shift in truck traffic to rail would carbon emissions and braking system, and computes
translate to a 3.7-megatonne reduc- generated from rail the most efficient manner to handle
tion in carbon emissions in Canada, the train. The Locomotive Telemetry
while 15 per cent would result in a
operations, our focus is
System collects data to drive im-
5.6-megatonne reduction.” to continuously improve proved locomotive and train perfor-
locomotive fuel efficiency. mance, including fuel conservation.
We recognize our responsibility to
provide a more sustainable transpor-
Operating efficiently has The use of distributed power, where
a locomotive is placed further back
tation service to our customers while been the hallmark of our
in the train, is another technology
minimizing the impacts of our op- success and CN continues used to improve train handling and
erations. With approximately 84 per to lead the North American fuel efficiency.
cent of our carbon emissions gener-
rail industry, consuming
ated from rail operations, our focus is Our rail fuel efficiency innovative
to continuously improve locomotive approximately 15 per cent mindset extends to all aspects of
fuel efficiency. Operating efficiently less fuel per gross tonne our business. For example, routing
has been the hallmark of our success mile than the industry protocols facilitate the movement
and CN continues to lead the North average. of customer shipments in the most
American rail industry, consuming efficient way. We also collaborate
approximately 15 per cent less fuel with ports and terminal operators
per gross tonne mile than the indus- to minimize dwell times and fur-
try average. ther drive efficiency. Together with
Furthermore, the installation of fuel- other technologies and initiatives,
Our unique operating model allows we have achieved fuel efficiency im-
us to move more freight in a tight, re- efficient technologies and big data
management analytics capabilities provements between 2008 and 2017
liable and efficient operation for our that have avoided 5 million tonnes
customers. We continue to purchase are helping us reduce our carbon
of carbon emissions.
new locomotives that meet stricter footprint. Our Fuel Productivity
regulatory emissions standards, pro- team uses a variety of technologies The growth of the renewable fuel
ducing less air contaminants while to improve locomotive fuel effi- market has presented an impor-
being more fuel efficient. In 2018, ciency and a key focus of this strat- tant opportunity for CN to further
we announced the purchase of 200 egy is putting just the right amount reduce our emissions by using bio-
new high-horsepower locomotives, of locomotive power on each train diesel blends in our locomotive fleet.
and our train crews and rail traffic using what we call our Horsepower In 2017, the use of renewable fuels
September/October 201822
O
saved over 79,000 tonnes of carbon. ne example is Kruger Prod- build our homes, the cars we drive,
In the coming years, we look forward ucts, Canada’s largest pro- the appliances that make our lives
to working with our suppliers to ex- ducer of consumer tissue easier, the products that improve
plore the use of renewable fuels. brands. John O’Hara, Kruger’s Vice our quality of life, and the energy to
President of Business Planning and power our activities. Many of these
As we prepare for the future, our con- Logistics has said: “Our ecological goods are being transformed into
nections with our customers, supply footprint is linked with our cor- more sustainable products, enabling
chain partners and governments are porate strategy. CN’s leadership in us to play a key role as the backbone
enabling us to deliver sustainable sustainable practices, like the Eco- of the clean economy. We also con-
and profitable business that drives Connexions program, allows us to tinue to engage with our customers
economic prosperity in a low carbon partner with them to reduce our car- to strengthen our position within
environment. As a true backbone of bon footprint and eliminate waste cleaner energy markets and thanks
the economy, CN is committed to in our supply chains. As a result, our to innovation by our customers,
playing a key role in the transition partnership has grown dramatically
we are now moving cleaner energy
to a lower carbon economy. Over the over the last five years.”
products like wood pellets, wood
past 25 years, we have reduced our
chips, wind turbine components, so-
locomotive emission intensity by 40
Routing protocols lar panels, as well as biofuel.
per cent, resulting in the avoidance
of over 30 million tonnes of carbon, facilitate the Through the use of greener and
while achieving record growth in movement of customer cleaner technologies and more
the volume of freight we move. Our
approach is to reduce the carbon in-
shipments in the most efficient operating practices, rail-
roads are constantly improving and
tensity of our business progressively efficient way. We also
committed to even greater environ-
over time and at a pace that’s consis- collaborate with ports and mental excellence in the years to
tent with the objective of stabilizing terminal operators to come. By moving sustainable prod-
global temperature.
minimize dwell times and ucts, including cleaner energy sourc-
W
e are also working with
further drive efficiency. es, we are playing an important role
as a backbone of the clean econo-
many of our customers to Together with other
my and the lifeblood of healthier
measure and help them technologies and initiatives, communities.
reduce their transportation supply we have achieved fuel
chain GHG emissions by leveraging Janet Drysdale is a Vice-President at
efficiency improvements CN with responsibility for providing
rail for the long haul and trucking
over shorter distances. The greater
between 2008 and 2017 strategic direction and leadership for the
use of combined transport helps low- that have avoided 5 million company’s sustainability strategy.
er transportation costs by allowing tonnes of carbon emissions. deliveringresponsibly@cn.ca
each mode to be used for the portion
of the trip to which it is best suited
and also helps reduce emissions,
traffic congestion, accidents and the
burden on overstressed transporta- These efforts reach much further as
tion infrastructure. great strides have been made over
the years engaging our employees,
Launched in partnership with Tree
customers and communities through
Canada in 2014, CN’s EcoConnexions
our EcoConnexions program to con-
partnership program aims to both
serve energy, reduce waste and im-
partner with and recognize custom-
prove biodiversity through reforesta-
ers who are committed to building an tion. In recent years, we have been
efficient and more sustainable future. responsible for planting 1.8 million
Each year, customers are invited to trees and shrubs in Canada and the
partake in the program and submis- U.S., making us the leading private
sions are evaluated based on sustain- non-forestry company tree planter
able policies, energy efficiency, report- in Canada.
ing to the CDP, and modal shift. Since
2015, we have planted 310,000 trees Furthermore, every year, we handle
to recognize 32 of our customers for over 300 million tonnes of cargo
their sustainable business practices. from the food we eat, the wood to
Policy23
Digitalization:
The Path to Sustainability
As Canada adapts to the Fourth Industrial Revolution, tically across the globe. We should
focus on using all the digital tools
the necessities of clean growth, sustainability and global at our command to expand the ben-
competitiveness demand the innovation and implementa- efits of earlier industrial revolutions
to even more people while revers-
tion of connected solutions. ABB is a technology leader in ing any negative consequences. That
power grids, electrification products, industrial automa- means greening the grid, electrifying
tion and robotics, serving customers in utilities, industry transportation and combating cli-
mate change with smarter infrastruc-
and transport and infrastructure. ture. As the digital wave progresses,
we should all embrace it as it becomes
the new normal.
Nathalie Pilon current (HVDC) connection, enables
We should focus on
clean, renewable energy, generated
W
e are living through a so- in Newfoundland and Labrador to be using all the digital
cioeconomic revolution transmitted to the North American tools at our command to
amid competing pressures grid in Nova Scotia reducing depen- expand the benefits of earlier
of sustainability, energy concerns, dence on fossil fuels. The link made
and the fourth industrial revolu- history on December 8, 2017, by con-
industrial revolutions to even
tion—the meshing of people and ma- ducting the first exchange of electric- more people while reversing
chines as internet meets production. ity between the islands of Newfound- any negative consequences.
Never has there been a better time for land and Cape Breton, Nova Scotia. That means greening the
leaders to adopt sustainable business The stabilizing features of ABB’s solu-
practices by taking ownership of the tion allow Nova Scotia to integrate
grid, electrifying trans-
digital space and becoming connec- additional renewables such as wind portation and combating
tors, and for the federal government power and contribute to Canada’s climate change with smarter
to support our digital economy and emission-reduction efforts. infrastructure.
its players.
Technology innovation has been the
Canada has what it takes to become a core mission of ABB for more than
digital champion, and our industrial 130 years and year after year, ABB
D
sectors are flowing with untapped generates digital solutions for its igital systems that run
potential. Energy is a foundational partners worldwide, all in the name industrial plants and instal-
pillar of our economy. Ten per cent of clean energy. The rationale behind lations to maximize uptime,
of Canada’s gross domestic product this is simple. ABB supports clean speed, production and quality, indus-
is due to hydroelectric clean power, economy and sustainability with a trial automation products are specifi-
while the balance of the energy needs unified, cross-platform digital offer- cally designed to deliver collaborative
of our economic players in industrial ing. Our technology solutions envi- operations, cyber security solutions
and infrastructure relies increasingly sion ways to take our customers and and digital systems to manage entire
on power sustainability. The clean stakeholders in public infrastructure plants and factories.
electricity that hydropower supplies to the next level.
Canada is one of the largest mining
to Canadians supports the growth of
As society adjusts to the Fourth In- nations in the world. As such, it is
industry, commerce, infrastructure
dustrial Revolution, which merges only normal that the Canadian min-
and communities.
the physical and digital worlds, it’s ing industry turns to digitalization
In May 2018, ABB commissioned a our collective responsibility to build to increase its productivity and join
historic power interconnector in Can- on the accomplishments of previous our country’s commitment to reduce
ada. The Maritime Link project, a 500 industrial revolutions, which over carbon emissions. ABB is helping
megawatt (MW) high-voltage direct the last century improved life dras- to build the first electric and digital
September/October 2018You can also read
