(Chart: Pembina Institute)
The Pembina Institute has released its clean energy report card, and Canada did not do well.
The report, prepared in conjunction with the Natural Resources Defense Council, points to significant shortcomings in Canada’s approach to supporting clean energy growth and a lack of clear policy framework at both the federal and provincial levels.
“Canada would be wise to invest much more effort in developing the kinds of policies that will bolster its clean tech sector,” said Penelope Comette, director for clean energy economy with the institute, noting the sector is now worth close to $1 trillion globally.
“Canada has a long history of successfully encouraging development in targeted industries, such as aerospace, nuclear, digital communications and the oil sands."
Comette continued: "Our governments need to begin to take a coordinated and comprehensive approach to building out the clean tech sector.”
The report card examined three types of policy categories: policies focused on supporting domestic deployment of clean technology, policies that encourage business growth and policies that help companies’ access export opportunities.
It found that while some provinces have more strategies and policies focused on supporting clean technology companies than others — Ontario and Quebec leading the way — Canada on the whole lacks a comprehensive policy framework to support clean energy technology in general.
Instead what exists is a patchwork of policies that mainly support research and development, but neglect commercialization and export.
According to interviews in the report with clean energy business leaders like Nexterra and the MaRs Discovery District, a national approach to carbon pricing, later stage funding, tax support, and proactive export-market assistance are all needed to continue to develop the clean technology industry.
The lack of the supports Pembina calls for are beginning to take their toll, the think-tank says.
Analytica Advisors estimates that Canada’s market share of the global clean tech sector has declined by 41% since 2005.
