A day doesn’t pass by without a media report relating to the economic downturn. Irrespective of its origin, architect, beneficiary or solution, a quick and robust solution to reverse this trend is inevitable. In this respect, governments around the world have been busy designing economic stimulus packages, necessitated by the unprecedented loss associated with this dire situation.

In a world of growing demand for energy and rising prices, the Canadian energy sector, a top five world energy producer, generated 5.6% of its national GDP in 2007. Canadian energy exports fuels a great deal of US energy imports, directly and indirectly breathing livelihood and economic sustenance to Canada.

More than two-thirds of the energy from a lump of coal is wasted before the resulting electricity enters our households, with an even worst efficiency experience observed by burning a litre of gasoline in our cars or lawnmower. This demonstrates that the way we use energy leaves much to be desired. The majority of global emissions result from consumption, rather than development of energy. The U.S., for example, is not among the top energy producers globally, but, it leads the world in emissions generation.

However, as the world continues to need fossil fuels, so will the need to find cleaner ways to produce and consume fossil fuels. Oil sands exploitation, for example, which account for 4% of Canada’s greenhouse gas emissions, have provoked huge media coverage and criticisms from some environmental organisations, with some calling for a phase out of its exploitation without any consideration on possible improvements through research and technology.

Some governments like those of the so called G20 group of nations have been busy designing economic stimulus packages. Most conspicuous of these packages, is the American Recovery and Reinvestment Plan that will jumpstart green job creation and long-term growth by: Doubling the production of alternative energy, modernizing more than 75% of federal buildings and improving the energy efficiency of two million American homes, saving consumers and taxpayers billions on energy bills. The Americans plan to save or create over 3 million jobs to offset the close to two million jobs already lost, as well as tackle climate change. The American plan sparks the creation of a clean energy economy, with a similar view shared in the plans of the EU and the Chinese to address the economic downturn. The Canadian Economic Action Plan promotes environmental awareness, energy efficiency in buildings, environmental reporting and research (especially carbon capture), and nuclear energy development, but unlike the American action plan, it does not lay much emphasis on the electricity grid modernization, and the green job and alternative energy potentials of the renewable energy sector of solar, biomass and wind.

A report presented by a team of leading economist in the Grantham Research Institute on Climate Change and the Environment, that prepared the influential 2006 Stern report, calls for a “green” stimulus in this period of economic downturn to enhance energy efficiency measures for homes and public buildings, boiler replacement programmes, efforts to fit cleaner appliances and lights, and a switch to renewable sources of heat, such as biomass. It also calls for greater investment in energy research and development, and promotion of renewable energy projects such as wind farms.

Canada has a rich endowment of renewable energy resources. By 2030, the world is expected to be consuming more than 50% more energy than it consumes today with renewables an attractive and environmentally sustainable option. Innovation in the energy sector is required such that we move the results of our research through technology development and commercialization to full scale commercial deployment in order to see our energy research investments pay economic and social dividends. We need technology today more than ever to keep our energy industry competitive and sustainable. Energy markets may be expanded beyond the US, which has long been our central destination for energy exports. The rising competition from China and Indian markets, give us an opportunity to reduce our single dependence on the U.S. market and improve our bargaining power.

With the increasing impacts of the economic downturn on our everyday life, the time to play the blame game; generated, packaged and perpetuated by the media; may be gone. Now may be the time to make the necessary decisions, prioritise our options and take the opportunities that the economic downturn brings or opens for our economy. While the economic downturn creates moments of crisis, we mustn’t relent our efforts to take all opportunities possible in innovation and creativity.


With the possibility to create new and green jobs in the energy efficiency and renewables sector, the need to keep the climate change flame burning, the realization of the fact that the demand site of energy is responsible for the bulk of the avoidably un-wise use of energy and significant green house gas emissions, and the role research and technology can play in greening Canadian industries, Canada may focus on research and technology, new market development and the demand site of energy with dividends likely to be realised if a more sustained integrated energy awareness campaign is launched. Like the UK and US governments who have just unveiled their vision for a transition to a low carbon economy, setting out the scope and ambition of a strategy for greening Canadian industries may be vital at this moment in time with the economic downturn serving as an opportunity and not as a deterrent.

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Tags: energy, Environment, global financial crisis, global warming, recession

This entry was posted on Wednesday, March 11th, 2009 at 1:54 am and is filed under Economy, Environment. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.