Despite policy blunders, Ontario can’t afford to miss out on clean energy
low-carbon, green energy economy can be an engine of growth for decades to come. And I want America to build that engine. I want America to build that future — right here in the United States of America.
— President Barack Obama, Washington.
When Obama uttered those words in a speech last month, he added another telling observation: “Countries like China and Germany are going all in, in the race for clean energy. ... I want America to win that race, but we can’t win it if we are not in it.” So the U.S., China and Germany are in, as are many others. What about Canada you say, and more particularly, what about Ontario?
The question is apt because in the wake of the gas plant cancellations, and controversy over the Green Energy Act and Feed In Tariff for electricity, “green energy” have become bogey words, and in our justified anger at the Liberal government’s mismanagement, we are losing sight of the immense possibilities of renewable energy. Opposition leader Tim Hudak has staked his reputation on killing the Green Energy Act and ending wind and solar power subsidies, but he has offered no road map on a green energy future. NDP leader Andrea Horwath has also slammed the Liberal bumbling but it is unclear where she stands on renewable energy. Indeed, in all the debate and commentary, green energy has become so toxic, so radioactive that we are in danger of throwing out the baby with the bathwater. It is a path Ontario should not take.
Why? Think about what is happening around the world.
According to a number of reports, investment in the race to develop clean energy technology, and capture the markets of the future, stands today at more than $250 billion. In the next 10 years, it could hit $2 trillion.
An International Energy Agency (IEA) report released last month says that green energy is expected to grow by 40 per cent in the next five years, spurred by declining costs and rising demand in emerging markets. While hydro power accounts for the bulk of the growth, the share of wind, solar, and other clean energy sources is rising. In 2018, these sources will make up eight per cent of the global electricity supply, compared to four per cent in 2011 and two per cent in 2006.
What does all this mean? It means much of the world sees green energy as the future and is investing heavily in its manufacturing infrastructure. Today, Germany leads the world in solar energy production, while China has edged the U.S. in wind energy.
According to Forbes magazine, China spent $52 billion on renewable energy in 2011, with the U.S. closely behind at $51 billion. Germany, Italy and India were the others in the Top 5. China is emerging as a powerful driving force, with plans to invest $473 billion in clean energy over the next five years. Indeed, the competition is so hot, a trade war has broken out, with the U.S. and the EU accusing China of dumping, and imposing tariffs on Chinese solar panels.
All this is not to say that the road to green energy is paved with gold. The initial costs of getting green energy projects off the ground have been huge. Ontarians know too well that part of the reason for rising electricity costs is the lucrative rates the government pays to help develop a green energy economy. And there is a serious debate over how many jobs this will actually create.
Similar things have happened elsewhere. Germany has struggled with high electricity rates and the U.K. has had to slash its green energy subsidies to rein in costs. And major Chinese solar manufacturing companies are believed to have lost more than $1.5 billion in 2011. In the U.S., we all know about the scandal involving Solyndra, the solar company hailed as an exemplar of green technology that received a $535-million government loan guarantee and soon after filed for bankruptcy.
Despite all these problems, no country has abandoned the enterprise. It is just too important for the future to ignore. Through innovation, research and cost-cutting, different countries have found ways to keep going. Indeed, the IEA cites lowering costs as part of the reason green energy is growing. Ontario should learn from what other countries have done.
Dalton McGuinty may have botched the implementation of his green energy plan, but at its core the policy is a sound one. Ontario is a manufacturing province, and we need inspired leadership to allow us to stake a claim in this important new industry. This is not about whether you believe in climate change or not. This is about the innovations and technologies that will create the jobs and economic prosperity of the future, and Ontario should be among the leaders chasing the dream.