Canada West Foundation Blog

By: Shawna Stirrett

In November 2011 the Canada West Foundation in partnership with the National Round Table on the Environment and the Economy (NRT) conducted a series of roundtables about developing a low-carbon growth strategy for Canada with particular emphasis on the opportunities and risks facing the West.

You can read all about the main themes, policy recommendations, and overview issues in the report (click here to view) but, just for fun, here is a visual overview of the roundtables:

These word clouds were created from my notes, which were typed up during each of the sessions. Words that appeared more often in the conversation appear larger in the clouds and words that were less common are smaller. In a sense, these clouds give a visual overview of what ideas were most prevalent during the roundtables and which topic generated the most interest.

What is really fun is to see how the conversations—which were all structured around the same questions—varied from province to province.

For example, in Saskatoon, one of the main themes was on how to deal with carbon constraints in an environment of economic growth.

Those in Vancouver were most concerned about how carbon should be constrained, should it be a tax or cap and trade?

Calgary roundtable participants were pretty set on the need for a national framework around energy and emissions.

While in Winnipeg the discussion centered on how challenging it can be to put in place carbon policies when power is so cheap and emissions rates are so low in the province.

Of course these word clouds do not tell the whole story, but they do provide an interesting visual overview of what issues were important to roundtable participants and how the conversation varied across the region.

Click here to download a copy of Cautious Optimism: Western Perspectives on a Low-Carbon Economy.

By: Dr. Roger Gibbins

When the federal, provincial and territorial energy ministers met over the last two days in Kananaskis, Alberta, they faced a surprisingly vocal and concerted call by industry associations, environmental groups, think tanks, editorial commentators and even some of their own members for a Canadian energy strategy.

But, when the ink finally dried on the official communiqué, there was no mention of a Canadian energy strategy, only much softer language around a “collaborative approach” to energy.

As one voice in the chorus calling for the creation of a Canadian energy strategy, I was initially disappointed that the energy ministers had pulled up short. However, the documents released by the ministers outlined a shared vision for greater pan-Canadian collaboration, a guiding set of principles, a comprehensive list of key objectives, and action plans.

In short, most of the components of a Canadian energy strategy are there, albeit clothed in the language of “collaboration.” The ministers have set the stage for an expanded national conversation on energy policy, which is precisely what the advocates of a Canadian energy strategy had hoped to achieve.

To adopt the old cliché, if it walks like a duck...it is probably a duck, or in this case, a Canadian energy strategy. The ministers have delivered, and should be forgiven the awkward language that the realities of Canadian federalism impose on any policy debate. The fact is there is a consensus that a collaborative, pan-Canadian approach to energy should be achieved and although the words may be more subdued, it still sounds like a Canadian energy strategy to me. Good progress has been made.

Read the 2011 Energy Communiqué.
Visit the 2011 Energy and Mines Ministers' Conference page.

Dr. Roger Gibbins is President & CEO of the Canada West Foundation and attended the Energy Ministers’ Meeting in Kananaskis.

The latest research released by the Canada West Foundation delves into the world of natural gas, explaining its economic benefits for Canada over the past 50 years, and its value as a foundational fuel for our energy systems going forward. Sound policy decisions will ensure that natural gas continues to be a cost effective and stable energy alternative as we move toward a carbon reduced future. 

Seismic Shifts: The Changing World of Natural Gas by Michael Cleland, Nexen Executive-in-Residence, examines the future of natural gas from the perspective of both consumers and producers. Natural Gas accounts for about one-quarter of Canadian energy end use as well as a growing share of fuel for power generation. Seismic Shifts concludes that natural gas is not a “bridging” fuel, but rather a stable foundational fuel that will remain a part of the energy mix in the future.

“Although the energy landscape in Canada is shifting with new technologies and resources, the future of natural gas is extremely positive for consumers. Lower costs underpin the competiveness of the Canadian economy, and in addition to being affordable, natural gas is abundant and reliable and can significantly reduce the environmental impact of the energy system,” author Michael Cleland explains. “While the producer’s perspective is less optimistic, Canada needs to look at both internal policies and Asian export opportunities to remain in the game.”

The Seismic Shifts paper outlines several policy directions that need to be discussed when outlining future policies that deal with this resource.

“Natural gas is abundant, has relatively low emissions and may be the only part of the energy system not facing increasing commodity costs in the coming decade,” said Cleland. “It is a natural foundation fuel in an increasingly carbon constrained world.”

Since the policy foundations for natural gas were laid in the mid-1980s, supply sources, markets, environmental imperatives and technologies have changed. Up to this point, Canada has benefited from a successful natural gas industry, and with some refining and additions to existing policies, has the ability to succeed in the future.

This report is part of the Canada West Foundation’s Powering Up for the Future Project, which focuses on public policy challenges at the interface of the economy, the environment and energy.

To download Seismic Shifts: The Changing World of Natural Gas, click here.

On June 29th, 2011, the Calgary Chamber of Commerce and Canada West Foundation released the research report Changing the Climate: A Policy Framework for Canada’s New Energy Environment. The report is the product of a series of high-profile events by the same name, focused on energy, the environment and the way forward for Canada.

Changing the Climate emphasized three main priorities for a robust Canadian energy strategy:

• Strengthening Canada’s energy relationship with the United States and with Asia Pacific markets;
• Driving continuous improvement on environmental performance across the energy system without adversely impacting the economy; and
• Building cooperation across the Canadian federation on energy issues.

“A Canadian energy strategy must respect the constitutional division of powers and responsibilities for energy development between the federal government and the provinces and territories,” said Dr. Roger Gibbins, President & CEO of the Canada West Foundation. “Canada’s regions have unique energy circumstances; however, there is potential for shared action.”

Critical action areas that a Canadian energy framework needs to address include intergovernmental collaboration; regulatory enhancement; environmental performance; national carbon management; energy efficiency; energy market diversification; energy sector innovation; and workforce issues in the energy sector.

The greater series brought together thought leaders from business, government and the broader community in the United States and Canada to discuss and analyze energy and environmental policy issues critical to Canada’s future.

Changing the Climate was released in anticipation of the 2011 Energy and Mines Ministers’ Conference, hosted by Alberta from July 16 – 19, 2011, where the topic of a Canadian energy strategy will be discussed.

To download Changing the Climate: A Policy Framework for Canada’s New Energy Environment, click here.

Latest research conducted by Canada West Foundation has identified broad agreement that a well designed Canadian energy strategy would contribute to a secure and prosperous future for Canada.

Finding Common Ground: The Next Step in Developing a Canadian Energy Strategy by authors William Kimber, Vice President, Research and Dr. Roger Gibbins, President & CEO, was released today as part of the Canada West Foundation’s Powering Up Project.

Between 2009 and now, a wide range of stakeholder groups including: the energy industry, environmental organizations, leaders of Canada’s top enterprises and policy experts in academia and think tanks have released papers and statements calling for reform of Canada’s energy policy framework.

The Common Ground paper is the first to provide a synthesis of these various initiatives and points of view, and identifies eight interconnected themes from this impressive body of work. These common themes are:

• embrace Canada’s energy diversity as a strength;
• ensure robust environmental stewardship;
• set a price for carbon;
• transform the demand side of the energy system;
• strengthen Canada’s position in the world;
• promote energy security in the North American context;
• drive innovation and technological development; and
• understand that strategy is a dialogue.

“The research shows that there is much that diverse stakeholders across Canada can agree on.” Co-author Will Kimber commented. “The common view is that we need an energy strategy for Canada, and we need it now.”

While impressive progress has already been made, there is much more work to be done. The report therefore proposes three next steps to ensure that momentum for policy reform is not lost.

To download Finding Common Ground: The Next Step in Developing a Canadian Energy Strategy, click here.

On Monday, January 17th 2011 in Calgary, Corporate Knights Magazine teamed with the Energy Policy Institute of Canada (EPIC) to invite key thought leaders to discuss the significant challenges facing the economy, energy, and the environment. They focused on the following question: Most Canadians expect that we all will eventually transition from carbon-based to low carbon energy. Given that the transition will take years, how can we best manage it?

While initiating change is one of the focuses of a Canadian energy strategy, decision makers must be cautious to ensure that proposed changes are attainable and sustainable. Dr. Roger Gibbins, President and CEO of the Canada West Foundation, is in favour of improving methods for handling our resources. “The prescription going forward is very simple, alarmingly simple. That is we have to continue doing what we do best only do it better, and much better, going forward." (Paul Wells, Daily Oil Bulletin January 17, 2011.)

In addition to building attainable goals, measuring environmental consequences should be considered when discussing an energy strategy. Preston Manning feels that, “The first principle should be proper measurement of the environmental impacts of all our major energy sources, not just oilsands within the petroleum sector. There's an old saying: 'If it matters, measure it.' I don't think we measure the environmental impact right across the board to the degree that we need to." (Wells) By measuring environmental impact in all aspects of energy, not only the oilsands, we will be able to obtain a more comprehensive look at our energy environment.

Marlo Raynolds, senior advisor to the Pembina Institute expressed the importance of reviewing our consumption, "I do think it has to focus and hit the greenhouse gas emission head on ... I don't see why we would move into strategy discussions around energy without really addressing the need for deep reductions." (Wells) While a greater understanding of more efficient processes and better tools to measure their impact will help us become more efficient, we must also focus on how we can reduce our reliance on carbon-based energy to ensure long-term success.

Regardless of the main driver behind a Canadian energy strategy, Dr. Gibbins supports the notion that a Canadian energy policy must focus on Canada’s strengths, one of which is Canada’s ability to make improvements on existing technology, "We will be the solar power panel installers," he said. "We won't design them. We won't build them." (Dan Healing, Calgary Herald January 18th 2011.)

"Our role going forward is not to figure out how to transition away from hydrocarbons—the world will be working on that. What we have to do is figure out how to get better—much better—at the green production of hydrocarbons." Gibbins said. (Wells)

The suggestions from the roundtables in Toronto, Montreal, Calgary and Vancouver will be taken into consideration as EPIC creates a proposal to the federal and provincial governments for a Canadian energy strategy.

The Canada West Foundation has multiple initiatives focused on driving constructive discussion about energy policy and Canada’s energy future under the Powering Up for the Future Project. In November 2010, the Canada West Foundation published Western Leadership for a Canadian Energy Strategy, which outlined the need for reform of current Canadian energy policy, along with the principles upon which western leadership for a Canadian energy strategy should rest.

A new project, Let’s Talk Energy, is built around a series of short articles authored by Nexen Executive-in-Residence, Michael Cleland. The purpose is to get people talking about whether Canada needs an energy strategy, and if so, why and what ideas should inform such a strategy. The discussion and debate on this website may also serve to be relevant to Canada’s energy ministers when they meet in Kananaskis, Alberta in July 2011. For more details see letstalkenergy.ca.

Articles referenced:
“Debate on National Energy Strategy Wide-Ranging” Paul Wells, Daily Oil Bulletin (January 17, 2011)
“Don’t count on officials for coherent energy policy: experts” Dan Healing, Calgary Herald (January 18, 2011)

This is the third installment of a series of posts on reinvigorating western Canada’s drive toward increased international economic competitiveness. The recession distracted us from this task but it is time to return to sharpening our competitive edge.

While it is naïve to think that opportunities in the green economy will magically transform western Canada into a land of elves making hacky sacks out of hemp for the international market, it is equally naïve to ignore the advantages of getting greener. The green economy is not a panacea. We should not, for example, expect green jobs to automatically fill the void that would be created if climate policy hammers the oil and gas sector.

It is also important to note that getting greener is not just about reducing greenhouse gases.  There are many other environmental opportunities and challenges out there other than climate change.

The West is home to one of the greatest stores of natural capital in the world. From the northern lights and diamonds to the boreal forest, from vast stores of oil and gas to the eastern slopes of the Rockies and the lakes of Manitoba, western Canada overflows with natural beauty, natural resources, and is home to an array of ecological “goods and services.” Harvesting this bounty as well as maintaining it are at the core of the region’s comparative advantage and its quality of life.

There is growing awareness that economic competitiveness and environmental issues are becoming linked in three key ways: 1) jurisdictions that do not take action on environmental issues, such as reducing greenhouse gas emissions, may be penalized by a global marketplace and policy space that are increasingly demanding greener processes and products; 2) there are significant direct and indirect economic costs created by degrading a jurisdiction’s natural capital (e.g., if the water supply becomes contaminated); and 3) there are opportunities to participate in new markets for green products and services, and to save money through less wasteful production systems (“eco-efficiency”). In addition, there are quality of life factors that argue in favour of greener practices that, while of value on their own, also play a role in attracting and retaining skilled labour and investment.

Conversely, it is sometimes argued that jurisdictions that do not adhere to greener practices have the advantage over those that adopt the new approaches. For example, if country X requires a reduction of greenhouse gases that adds to the price of a particular product and country Y does not, country Y has the upper hand in terms of price. While this may be true in the short-term, it is imperative that decision-makers consider the long-term and hidden costs of various policy alternatives, and that businesses adapt now to a higher standard of environmental performance rather than wait and play catch-up down the road.

Managing forest and water resources, reducing greenhouse gases, maintaining agricultural land, addressing conflicting land uses, and improving urban natural capital assets are just a sample of policy areas that have ramifications on competitiveness. An even tighter linkage between “the environment” and “the economy” than is currently in place is essential to the long-term economic success of the region.

Two policy recommendations come to mind:

1. Increase investment in the development of alternative energy production technology and generation.  The West can be a global leader in energy of all types.
2. Develop and implement a comprehensive regional ecological goods and services inventory and introduce pilot projects for paying land owners to provide those services with the goal of increasing the region’s stock of natural capital. There is much that the West can learn here from experiments with market-based incentives for environmental outcomes from Australia.

Posted By: Robert Roach