This is a guest post by Davidย Suzuki.
Whatโs the fastest-growing sector in Canadaโs economy? Given what you hear from politicians and the media, youโd be forgiven for thinking itโs the resource industry, especially extraction and export of fossil fuels like oil sands bitumen and liquefied natural gas. But weโre no longer just โhewers of wood and drawers of waterโ โ or drillers of oil, frackers of gas and miners ofย coal.
Although extraction, use and export of natural resources are economically important and will remain so for some time, weโre starting to diversify. According to Ottawa-based consultants Analytica Advisors, clean technology, or clean-tech, is the countryโs fastest-growingย industry.
The firmโs โ2014 Canadian Clean Technology Reportโ, found direct employment by clean-tech companies rose six per cent from 2011 to 2012, from 38,800 people to 41,000, with revenues increasing nine per cent to $11.3-billion. According to Industry Canada, mining and oil and gas sector revenues grew just 0.3 per cent in the same period, manufacturing 1.9 per cent and the construction industry 3.9 perย cent.
At the current growth rate, Analytica estimates Canadaโs clean-tech industry will be worth $28 billion by 2022. But with the global market expected to triple to $2.5 trillion over the next six years, Canada hasnโt come close to reaching its potential. Itโs our choice to seize the opportunity. With just two per cent of the global market (matching our share of population), we could have a $50 billion clean-tech industry by 2020 โ double the size of todayโs aerospaceย industry.
Clean-tech also outshines other sectors on research and development investment, with $1 billion invested in 2012 and $5 billion from 2008 to 2012. Thatโs more than the combined R&D investments of natural resource industries (oil and gas extraction, mining, agriculture, forestry and fishing), and only $200 million less than the aerospaceย sector.
โIf you look at the sum of the investments and revenues of all these companies, we have a significant industry today,โ Analytica president Cรฉline Bak told the Hill Times. โGiven the growth in investments today, it will continue to be significant and can grow into an industry comparable in size to other significant industries, like aerospace forย example.โ
The clean-tech sector is broad. โThese companies are working on problems that we all care about, like how to use the constant temperature from the ground under our offices buildings for heating and cooling and how to replace expensive and polluting diesel power in our remote communities with clean affordable energy or transforming greenhouse gases into stronger concrete to build greener buildings,โ Bak said in a Vancouver Sun article. Clean-tech comprises about 700 companies in 10 sectors across Canada, including renewable energy, water treatment, green building and development of environmentally friendly consumerย products.
Many experts argue that putting a price on carbon, through carbon taxes or cap-and-trade, is a good way to stimulate clean-tech, by targeting greenhouse gas emitters and encouraging technologies and measures aimed at energy conservation andย renewables.
But we could lose out if we take the industry for granted โ especially because 74 per cent of clean-tech companies here sell products and services outside Canada, with export revenues of about $5.8 billion in 2012 and 42 per cent going to markets other than the U.S. โHigh-performing companies are often bought by international players that take the intellectual property, manufacturing and jobs to other countries,โ Bak cautioned, adding, โThe world already looks to Canada for our clean technology solutions. Isnโt it time that we didย too?โ
And, while the federal government has strategies to track and promote the fossil fuel and aerospace industries, it has yet to do this forย clean-tech.
Diversity in nature is important โ ensuring ecosystems remain resilient in the face of threats. So, too, for the economy. Itโs folly to rely too heavily on extracting and selling finite resources, especially those that cause pollution and contribute to climate change and other threats to the environment and human health and survival. Canadaโs economic growth potential through clean energy is huge, but it needs to be given the same priority government gives otherย industries.
Clean-tech may not be the answer to all our problems, but itโs a sector that offers a lot of promise for our economy andย environment.
Written with contributions from David Suzuki Foundation Senior Editor Ianย Hanington.
Learn more at www.davidsuzuki.org.
Photo: Liz via Flickr
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