NOTES FOR FINANCE COMMITTEE PRESENTATION

Tuesday, May 7, 2002
9:30 – 11:30 am, Room 253D Centre Block.
Meet at 8:45 am.

Introduction

We are here to talk about innovation, competitiveness, and a sustainable economy for Canada. We’re also here to talk about ensuring a high quality of life for Canadians – And we’re here to make the case for a Green Budget.

How can we have a clean environment and an innovative economy? – How can we not?
"Sustainability is not just a societal obligation, it is a real business opportunity. The objectives of those of us who seek increased environmental sustainability and better social responsibility are, in many ways, exactly the same as the objectives of those of us who seek increasing shareholder value."

These words may sound like an environmentalist making the case for environmental protection, but they are the words of Gary Pfeiffer of DuPont, the oldest Fortune 500 company in the world, from the Year 2000 Conference on Environmental Innovation.

Increasingly, business leaders are making the connection between environmental protection, social responsibility, sustainability and good business sense.

We are pleased that the Committee has invited an Environment and Green Economy panel again this year, and thank the Committee for this opportunity to present our case for a Green Budget.This morning, we would like to demonstrate that:

We would also like to emphasize that, not only is there a strong link between the environment and a strong, innovative economy – but making this link is also the key to healthy Canadians and sustainable communities.

As a result there are tremendous benefits that can be gained for Canadians, their environment and their economy.Last year, the Finance Committee report did begin to make some of these connections. Now, we want to build on this theme - to make the case for a Green, Innovative Budget this year.

There is one other advantage to environmental innovation, and that is the reverse brain-drain or “brain-gain”. An investment in innovation means research, development and implementation of leading edge technologies and policies. Couple that with an environmental leading edge, high quality of life, and healthy communities – and you will find Canada keeping and attracting the best and the brightest.

However, unless government investments are smart and targeted, so that they are interlinked with other government objectives, such as clean air, clean water, and the conservation of our natural ecosystems – a high quality of life, a sustainable economy for Canadians, and “brain gain” may not become a reality.

Here are just a few examples of how a Green Budget will create economic opportunities, while improving our quality of life.

When it comes to protecting our climate, we need to begin by ratifying Kyoto now.

Here are some reasons why it’s a good idea.

Since 1995, global wind power has increased 487%, or nearly fivefold. Just in the past year, wind power has jumped 31% globally, and 63% in the U.S. And, still the development of the world’s wind resources has hardly begun.

What we need is a kick-start to grab hold of this opportunity. The former head of Royal Dutch/Shell, recently called for a commitment to increasing renewable energy targets. He recommends that,

“If renewables are to flourish we must look at methods of financing the high up-front cost of green energy. Governments from Northern countries need to remove inappropriate subsidies and switch to supporting renewable energy.”

Renewables are economically viable, in fact a recent study also by Royal Dutch/Shell has concluded that renewable energy sources could supply 50% of the world’s energy needs by 2050.

Renewables will also create enormous potential for Canadians in terms of jobs. Studies have shown that investments in green energy create about 50% more jobs than similar investments in conventional energy.
Similarly, energy efficiency retrofits create more jobs per dollar spent than mega-projects such as construction to expand roads or bridges. They also save money: The success of the Toronto Better Buildings Partnership, could be spread right across Canada, providing energy savings for households, businesses, and schools.

Public transit and sustainable transportation also hold great opportunities for our cities. For example, a recent World Bank study found that the world’s wealthiest cities have the best sustainable transportation systems; and that those cities also spend the least per capita on transportation.
Not only will investments to deal with climate change and air quality create more jobs, they will cut both greenhouse gas emissions and air pollutants – saving Canadians, especially children, from respiratory ailments such as asthma, and the public health costs they cause.
And, of course, when we talk about dealing with climate change and air quality, we are really talking innovation. Set a target, and the best and brightest will take on the challenge. They will also most likely stay because they will be enjoying good health and a high quality of life.
These economic opportunities match the need for investment in climate protection and air quality. We therefore are developing 4 recommendations:

Another untapped source of economic opportunity and improved health for Canadians is an investment in healthy communities. To protect the quality of life and our health here in Canada, we need to reduce the use of toxics and pollutants. In doing this, Canadian communities and businesses will respond again by innovating new ideas and new technologies to address this challenge.

Currently, Canadian environmental industries export about $1 billion per year, generate over $19 billion in sales domestically, and employ about 220,000 people – making it the third largest employment sector in Canada.

With targeted investments, the potential of this emerging sector can be unleashed. Such investments are not only economically viable, they can also address several issues that Canadians are highly concerned with. Namely, the protection of our air, water, soils, and food, which is key to ensuring healthy communities and a high quality of life for Canadians.
For example, according to a recent Environics poll, 84% of Canadians felt cleaning up communities affected by toxic waste was very important, and 78% felt it was more important than cutting personal income taxes.
Another recent Environics poll reported that 64% of Canadians believe that organically grown food is safer and healthier than regular food.
Therefore, to ensure healthy communities, clean water and high quality food for Canadians, we are developing 3 recommendations:

In addition to innovation, Canada wants to ensure a highly competitive economy. Well, Canada’s greatest competitive advantage is its great, vast natural capital.

We are best known internationally for our natural areas, wilderness, and wildlife. Tourists from Europe and Japan fly directly to remote areas of Canada to experience what they do not have the opportunity to experience at home.

Canadians, alone, spend at least $11 billion annually on nature-related activities, generating over $16 billion in gross business production, and over $5 billion in government revenue from taxes. This economic activity sustains over 200,000 jobs.

To take advantage of this domestic and international demand, and to protect our biodiversity and the essential ecological services they provide, such as clean water, we are developing 4 recommendations:

I started this case for a Green Budget quoting from Gary Pfeiffer of DuPont on sustainability as a real business opportunity. His further comments resonate at the governmental level, and I quote from him:
“every corporation is under intense pressure to create ever-increasing shareholder value, and environmental sustainability is an enormous opportunity to do just that.”

At the federal level, this statement can be translated to an intense pressure from Canadian society to increase their well-being. The federal government should take heed of the enormous opportunities Canada still has to invest in a clean and healthy environment. By doing so, it will be promoting an innovative, smart, and competitive economy. It will also be increasing the well-being of Canadians.

In conclusion, we recommend that the Finance Committee recognize the need for a Green Budget that will link a high quality of life with an innovative, competitive, and sustainable economy.

Leading communities and businesses have already made the connection. Let’s spread their achievements and best practices across Canada, and create a 21st century sustainable economy!

We challenge you to have a Green Budget!