Ontario Urged to Stay with Green Energy Act

Ontario’s Green Energy Act is “good for consumers, good for business and good for workers,” says the ex-chief of staff for former president Bill Clinton. He also warned Canadians about the fear and misinformation campaigns from entrenched interests in the old energy economy.

On Tuesday June 13, John Podesta who now heads the Center for American Progress, told a Toronto audience at the MaRS centre that fossil fuels are increasingly expensive, dangerous to health and bad for the climate. Nuclear power, which supplies about half of Ontario’s electricity is “a really expensive option,” he said.


Podesta indicated that investing in energy efficiency and clean energy are the best choices. These sectors are projected to be worth $2.3 trillion world-wide by the end of this decade, he said.

Ontario’s Green Energy Act and the province’s agreement with Samsung will spur $7 billion in investment. Although China and Europe are racing to be leaders in the green economy Ontario is well positioned to take advantage of the new economy, he said.

The US, on the other hand, may not fare so well: “If we [the US] don’t develop a comprehensive policy that focuses on commercialization, production, deployment and export, we will look up in 10 years time and find ourselves not the great leader on clean energy, but the great buyer of it.”

Podesta warned Canadians about “entrenched special interests that spread misinformation and fear.” Although he pointed to green initiatives in Pennsylvania and California, major players in the old economy are vociferously trying to undermine the push towards green energy.

Those interested in making the transition to a low carbon economy have “got to be full-throated in making the case,” he said.

© 2011, Richard Matthews. All rights reserved.

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What Businesses are Doing to Combat Climate Change

Some members of the business community are already playing a leading role in the war against climate change. These companies are making better use of resources, increasing energy efficiency measures, creating more energy-efficient products, and investing in new energy technologies. Many of these businesses are implementing technologies that reduce CO2 emissions and increasing their use of renewable energy while decreasing their use of energy derived from fossil fuels.

Companies like Xerox, PUMA, HP, Walmart and even smaller companies like Zotos are successfully incorporating sustainability initiatives and reducing their environmental footprint.

Assessment and reporting is an important part of these efforts and we are seeing more and more measurement tools, best practices, benchmarks and verification.

Wal-Mart is the largest retailer in the US, it has specific environmental goals to reduce energy use in its stores and pressure its 60,000 suppliers in its worldwide supply chain to follow its lead. On energy efficiency, Wal-Mart wants to increase the fuel efficiency of its truck fleet by 25% over the next three years and double it within ten years. By 2020, it is expected to save the company $494 million a year. The company also plans to build stores that are at least 25% more energy efficient.

By addressing the environmental issues inherent in their business models, companies not only improve their practices, but also ensure the sustainability of their core business and help to make entire markets more sustainable.

For many companies, looking at more efficient energy use can pay off in the medium to long term. The problem is that shareholders are preoccupied with short term returns, and it may take many years for the costs of climate change to become apparent. However, heavily subsidized carbon-heavy fuels will not be artificially cheap forever and clean technology will be less expensive once it gains critical mass. Many businesses are looking at longer term time horizons and they increasingly understand that companies that ignore the trend will be at a competitive disadvantage.

Businesses are increasingly concerned about factoring environmental risks along-side other factors that impact a company’s performance and value. This trend will continue as carbon intensity starts to show up on balance books through organizations such as the Carbon Disclosure Project.

The involvement of the business community is crucial to global carbon reduction. Around 97 percent of the C02 emitted by western industrialized countries comes from burning coal, oil and gas for energy, much of which is used by business.

Some businesses are offsetting their carbon by paying someone else to plant trees or find other ways to reduce carbon emissions. Businesses that have purchased carbon offsets including HSBC and The Guardian newspaper.

Efficiency initiatives and renewable energy have many advantages for the environment and businesses are increasingly understanding the benefits for their bottom line.

© 2011, Richard Matthews. All rights reserved.

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Business Will Lead the War Against Climate Change

In the wake of the failure of political solutions, the business community can lead the war on climate change. There are tremendous opportunities for businesses that show leadership in emissions reductions. Business has contributed greatly to environmental degradation and now the same capitalist system that drove the industrial revolution, is beginning to play a vital role by solving the problems it created.

Businesses are taking action on climate change in ever increasing numbers for many reasons including benefits to the corporate image and alignment of the corporation with the environmental interests of owners, employees, suppliers, and customers. Sustainable initiatives can also reduce costs, increase return on investments, and reduce dependency on uncontrollable costs like fossil fuels.

There is a powerful logic driving the growth of sustainable business. Many large corporations are showing leadership with sustainability initiatives that both reduce the size of their footprints and decrease their long term costs. Overall, a cost benefit analysis reveals the merits of sustainable practices. Although it is clear that some are faring better than others, Companies like Xerox, PUMA, HP, Walmart and even smaller companies like Zotos are successfully incorporating sustainability initiatives and reducing their footprints.

Business is well suited to finding innovative approaches as it is always looking for cheaper, faster, cleaner, more efficient and more effective solutions. Business is also more likely to find these opportunities than a government planner.

The combination of high energy prices and increasing consumer pressure are coalescing to drive businesses to adopt more sustainable practices. The general public increasingly expects companies to be sustainable. Social media is making it easier to coordinate mass campaigns and social action is making it harder for companies to ignore their footprint. Positive social actions like Carrot-Mobs and the powerful incentive of consumer loyalty are driving ever increasing levels of sustainability. Private incentives like the one million dollar X-Prize award, are also driving creative sustainable innovation.

As sustainability is still very young, the emissions reductions possibilities for business are massive. The vast majority of businesses have yet to adopt sustainable practices. According to the Sustainability & Innovation Survey by MIT’s Sloan Management Review and Boston Consulting Group, 82 percent of small companies have yet to go green, and 66 percent of large companies have yet to embrace sustainability. That leaves room for major emissions reductions.

Loss of competitive positioning and public ire are two powerful disincentives that are also driving businesses to embrace sustainability. The number of sustainable businesses will continue to grow because it is an unstoppable mega-trend. To assist companies in their efforts to go green, new alliances are developing including new partnerships between corporations and environmental organizations. Although consumers are still woefully ignorant about the environment, there can be no doubt that the green consumer is on the rise. Consumers have shown a steady and growing demand for green goods and services for several years now.

Increases to employee productivity and benefits to the brand are just two reasons why businesses will keep integrating sustainable practices to serve the company's best interest. Public pressure and customer loyalty will also add to the forces pushing companies to go green.

However the single greatest motive that will drive businesses to reduce their footprints is the profit incentive. As the most powerful of all incentives, profit will continue to be attractive to decision makers.

The green market is now estimated to be worth $5.27 trillion (£3.2 trillion) worldwide and in the next couple of decades the clean energy market alone is expected to be worth more than $13 trillion. With trillions at stake and ominous disincentives, businesses cannot afford to ignore the green market.

In today's business environment, sustainable practices are becoming a strategic priority. Although some businesses will need to cajoled to look beyond the short term profit cycle, there is ample incentive to expand their time horizons for a return on their investments.

In the absence of an environmental policy framework, leadership will come from visionary businesses that see the writing on the wall.

© 2011, Richard Matthews. All rights reserved.

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