Ontario’s climate plan must be aggressive

Ontario’s new climate plan is bold. And that’s what is needed. As CEOs of three major organizations (a forestry company, a clean tech firm and Canada’s biggest environmental group) we recognize this is a moment of extraordinary technological, economic and environmental change. The world is shifting toward cleaner growth and we understand, viscerally, that leading through this transition requires bold action.

But ambitious plans always court scrutiny. In our opinion, the main criticisms launched over the past week miss some essential realities that underpin the need for this particular climate plan at this particular moment.

First, there are those who criticize the plan’s destination. What they call a move to fundamentally change our economy is in fact Ontario’s response to global changes that are already in motion. Last year, for the first time, global investment in renewable energy exceeded that in fossil fuels. The booming clean tech market is set to exceed $2 trillion by 2020. And massive cost reductions are scaling up solar panel and electric car battery technologies faster than imagined. In line with governments around the world, Ontario is aiming to incentivize these kinds of investments; its plan is about keeping us with the front of the pack.

The province has made progress in this direction over the past decade, phasing out coal and reducing emissions by 19 per cent while growing its economy. Ontarians, for our part, are also embracing this global shift. We’re demanding increased transit infrastructure. We’re starting to live in energy-efficient homes and buying lower-emission vehicles. Some already have solar panels on their roofs. We want to live, and believe we should live, in vibrant communities with less pollution.

We support Ontario’s plan, because it is designed to get us further and faster down that path. And pace matters. Accelerating progress is critical to achieving our Paris climate commitment and to grasping an “early mover” advantage as other global jurisdictions move in the same direction.

That brings us to a second criticism — not about the destination, but about the path. Ontario’s plan includes a range of strategies — carbon pricing, regulations and public investments. Some argue this is too much government involvement. Ontario should simply have stuck with carbon pricing, they say, and let the market take care of the rest.

It’s true that putting a price on carbon is the most cost-effective way to boost energy efficiency and innovation. And that’s what Ontario’s system will do. It starts with a modest fee (about $17/tonne), which will rise gradually over time, to give people and business time to adjust. A carbon price is critical. But it’s wrong to suggest it is a silver-bullet solution that will drive all of the changes we need at the pace we need them.

This is a complex job, and it will take a set of policy tools to get it done — to complement the price signal and spark broader, faster innovation. For example, regulatory standards are a smart way to spur more energy efficient buildings and vehicles. Public investment is a critical tool to support innovation at the R&D stage and to build the 21st-century infrastructure we need now.

The fact is: most major technology innovations of the past century — from the smartphone to the oilsands — were achieved through a mix of public and private investment. And that’s what Ontario’s plan calls for now. Strategies such as creating a clean tech fund and starting a Green Bank (based on best practices from Vermont, New York and the U.K.) will accelerate the development of smart electrical systems, zero-emission vehicles and other clean technologies that are necessary to Ontario’s success in a changing world.

Of course, Ontario’s plan isn’t perfect. There are important details that still need to be addressed — such as ensuring public investment is done by arm’s length, expert bodies removed from day-to-day politics. But on the whole, Ontario is right to be bold — both in its destination and its path. Taking a clear vision of where the world is heading and mobilizing a range of resources to get us there — that’s how you lead through change.