Jim Flaherty's budget announcement undermines the green economy.
Undermines the green economy:
The millions that the Harper government has earmarked for dangerousnuclear energy and the pipe dream of carbon capture and storage are anenvironmental travesty.This is also an unnecessary burden totaxpayers. Greenpeace hoped the Harper government would reject thesefalse solutions to our energy problems. They don't deservesubsidies,green energy does.
Greenpeace considers the Harper government's budget a miserable failureat seizing a golden opportunity to provide long-term investment for agreen economy. The government promised to create the 'jobs of tomorrow'in the Throne Speech yesterday, it failed to deliver.
Wealth of ideas for a green economy:
Greenpeace and other Canadian environmental groups gave the Harpergovernment a wealth of ideas for building a green economy, including:
- provide significant, long-term investment in energy efficiency programs
- invest sufficient funds to retrofit our homes and businesses to high standards of energy efficiency,
- inject a massive increase in support into public transit, and
- kick start an Energy Revolution with a huge increase in green energy.
A budget with significantgreen stimulus plans would have created new,long-term green jobs and helped nurture innovation and themanufacturing of green technology.
Lack of vision:
Since the budget undermines a concerted effort to develop a greeneconomy, it creates a bleakfuture for our children. The green futurethat Canadians should have seen in the budget for their children willonly come from a government with the vision to develop a green economy.
The Harper government's budget shows it doesn't know how to lead in aneconomic crisis and take advantage of an opportunity tobuild a greeneconomy for Canada. The Obama administration has demonstrated suchleadership, announcing more than $50 billion for clean energy.Greenpeace has publicly praised the Obama green initiative.
No significant response to climate change:
The Harper budget also fails to contribute to the fight against globalwarming. The Harper government has ignored Canada's target for reducinggreenhouse gas emissions under the Kyoto Protocol. The target of theHarper government would reduce emissions only three per cent below 1990levels by 2020. Greenpeace and others call for a minimum reduction of25 per cent by 2020.
Building a Green Economy: Insights on the Miserable Failureof theHarper Budget
Summary
The Harper government has failed to provide the stimulus needed tobuild a green economy. The budget made only a minimal green energycommitment of about $1.2 billion over two years. The total economicstimulus package is about $33 billion over two years (deducting loansand capital spending) (Budget 2009, January 27 2009, p. 30). So thegreen energy commitment is a tiny 4 per cent of the total package.
The Harper government's insufficient green energy measures include:
- $300 million over two years for the ecoENERGY Retrofit Program (Canada's Economic Action Plan: Budget 2009, January 27 2009, pp. 131 & 136). See notes below as to why this funding is problematic.
- $400 million over two years for the 'Green Infrastructure Fund' (Budget 2009, January 27 2009, pp. 144-5 & 160). See notes below.
- $500 million over two years for energy efficiency retrofits in social housing (Budget 2009, January 27 2009, pp. 131 & 136). See notes below.
New support is notably absent in the budget for the successfulecoENERGY Program for Renewable Energy. The program has provided anincentive for about 4000 megawatts of new renewable energy (mostly windturbines) since January 2007. See background below.
The Harper budget commitment of $1.2 billion to green energy measuresshould have been $6 billion to be proportional to the $50 billion (USD)that the Obama administration has committed to green energy.
The minimal commitment to green energy looks even worse in light of themajor commitment to the false climate change solutions of CarbonCapture and Storage (CCS) and nuclear power. Up to $400 million hasbeen committed for CCS (Budget 2009, January 27 2009, pp. 179 &185), and $351 million for nuclear power through Atomic Energy ofCanada Limited (AECL) (Budget 2009, January 27 2009, pp. 180). Seebackground below.
Background: ecoENERGY Retrofit Program - do it right
The government has committed $300 million over two years to theecoENERGY Retrofit Program (Canada's Economic Action Plan: Budget 2009,January 27 2009, pp. 131 & 136). However, the government seemsprepared to shift funding to spending-based tax credits rather thanbasing it on energy audits. Grants are being offered for up to $5000for a variety of measures relating to insulation or furnace upgrades.
To ensure that taxpayers' money is spent responsibly and generatesresults, Green Communities Canada believes that incentives shouldreward verified improvements in home-energy performance and not simplyprovide 'rebates' based on commercial sales pitches.
Energy-efficiency incentives must be tied to professional audits andadvice. Otherwise we run the risk of massive waste, lost opportunitiesand even fraud. In other words, the scaled-up home retrofit programneeds to be modeled on the existing ecoENERGY Retrofit Program, whichhas proven effective in targeting real efficiency gains and ensuringaccountability for taxpayer funds.
Background: Green Infrastructure Fund
Although advance media reports suggested that $1 billion in fundingwould be provided for Green Infrastructure, the budget includes only$400 million over two years (Budget 2009, January 27 2009, pp. 144-5& 160).
Almost no detail is provided as to the nature of this funding, exceptto refer to 'sustainable energy infrastructure, such as modern energytransmission lines…' (p. 144).
Background: Energy Efficiency Retrofits in Social Housing
The budget provides $1 billion for renovation of social housing overtwo years (Budget 2009, January 27 2009, pp. 133 & 136). However, we assume that only half of this amount ($500 million) will beapplied for energy efficiency retrofits.
Background: ecoENERGY Program for Renewable Energy Ignored inBudget
The renewable energy industry wanted this program extended andstrengthened to $2.8 billion over five years to build at least 8,000new megawatts. This would have leveraged a $6 billion investment andcreated an estimated 8,000 new jobs.
ecoENERGY for Renewable Energy is a $1.48 billion Natural ResourcesCanada program provides an incentive of one cent per kilowatt hour forelectricity production over ten years for wind, biomass, low-impacthydro, geothermal, solar, photo-voltaic and ocean energy projects.
The current four-year program ends March 31, 2011, but it's expectedthat commitments under the program will end in 2009.
The renewable energy industry and environmental groups called for arenewal of the program in the 2009 budget.
By comparison, the American program for renewable energy, known as theProduction Tax Credit (PTC), provides an incentive of 1.9 cents perkilowatt hour. President Obama has pledged to renew this for threeyears at a cost of about $13 billion USD.
False Climate Change Solution of Carbon Capture and Storage(CCS)
Under the heading of 'Transformation to a Green Energy Economy', theHarper government proposes to spend up to $400 million on so-called'clean-energy technologies'. The only technology which is mentioned isCarbon Capture and Storage (CCS) (Budget 2009, January 27 2009, pp. 179& 185).
CCS is a technology which has not been demonstrated commercially, andis expected to have an extremely high cost.
Greenpeace and other environmental groups have called CCS a 'pipedream' and have opposed taxpayer subsidies.
False Climate Change Solution of Nuclear Power
The Harper government has committed a $351 million subsidy for nuclearpower through Atomic Energy of Canada Limited (AECL) (Budget 2009,January 27 2009, p. 180).
AECL is a federal crown corporation that has received over $20 billionin subsidies since 1952.
The funding is being provided for design of the Advanced CANDU Reactor(ACR) - an untested reactor design that has virtually no hope of everbeing built.
In addition to its safety and environmental problems, nuclear powerprecludes investment in cheaper green energy alternatives because ofits high cost.
The type of green incentive Canadian environmentalists hopedfor: Obama's American Recovery and Reinvestment Bill of 2009
To match the vision and commitment of the Obama administration to greenenergy, the Harper government should have announced an investment of $6billion over two years.
The Obama administration has committed $50 billion USD over 12 to 18months to green energy through the American Recovery and ReinvestmentBill of 2009.
On a proportional basis, the Canadian government is providing roughlyfour times less financial support for green energy than President Obama.
Here's a summary of the Obama green plan:
To put people back to work today and reduce our dependence on foreignoil tomorrow, we will make investments aimed at doubling renewableenergy production and renovate public buildings to make them moreenergy efficient. America's energy shortcomings present a hugeopportunity to put people to work in ways that will transform oureconomy.
- Reliable, Efficient Electricity Grid:
- $11 billion for research anddevelopment, pilot projects, and federal matching funds for the SmartGrid Investment Program to modernize the electricity grid making itmore efficient, secure, and reliable and build new power lines totransmit clean, renewable energy from sources throughout the nation.
- Renewable Energy Loan Guarantees
- $8 billion for loans for renewable energy power generationand transmission projects.
- GSA Federal Buildings:
- $6.7 billion for renovations and repairs to federalbuildings including at least $6 billion focused on increasing energyefficiency and conservation. Projects are selected based on GSA'sready-to-go priority list.
- Local Government Energy Efficiency Block Grants:
- $6.9 billion to help state and local governments makeinvestments that make them more energy efficient and reduce carbonemissions.
- Energy Efficiency Housing Retrofits:
- $2.5 billion for a new program to upgrade HUD sponsoredlow-income housing to increase energy efficiency, including newinsulation, windows, and furnaces. Funds will be competitively awarded.
- Energy Efficiency and Renewable Energy Research:
- $2 billion for energy efficiency and renewable energyresearch, development, demonstration, and deployment activities tofoster energy independence, reduce carbon emissions, and cut utilitybills. Funds are awarded on a competitive basis to universities,companies, and national laboratories.
- Advanced Battery Loans and Grants:
- $2 billion for the Advanced Battery Loan Guarantee andGrants Program, to support U.S. manufacturers of advanced vehiclebatteries and battery systems. America should lead the world intransforming the way automobiles are powered.
- Energy Efficiency Grants and Loans forInstitutions:
- $1.5 billion for energy sustainability and efficiencygrants and loans to help school districts, institutes of highereducation, local governments, and municipal utilities implementprojects that will make them more energy efficient.
- Home Weatherization:
- $6.2 billion to help low-income families reduce theirenergy costs by weatherizing their homes and make our country moreenergy efficient.
- Smart Appliances:
- $300 million to provide consumers with rebates for buyingenergy efficient Energy Star products to replace old appliances, whichwill lower energy bills.
- GSA Federal Fleet:
- $600 million to replace older vehicles owned by the federalgovernment with alternative fuel automobiles that will save on fuelcosts and reduce carbon emissions.
- Electric Transportation:
- $200 million for a new grant program to encourage electricvehicle technologies.
- Department of Defense Research:
- $350 million for research into using renewable energy topower weapons systems and military bases.
- Alternative Buses and Trucks:
- $400 million to help state and local governments purchaseefficient alternative fuel vehicles to reduce fuel costs and carbonemissions.
- Industrial Energy Efficiency:
- $500 million for energy efficient manufacturingdemonstration projects.
- Diesel Emissions Reduction:
- $300 million for grants and loans to state and localgovernments for projects that reduce diesel emissions, benefitingpublic health and reducing global warming.