Canadian manufacturers have been hammered by the recession, in large part because of the cutbacks in the usual capital spending projects.
Then too, consumers were clobbered by tight credit, while housing and finance slumped into the most serious declines in decades. Yet there is an alternative open to manufacturers, namely to help Canada be more energy efficient.
Gary Mason, in a recent article in The Globe and Mail, has described the remarkable reforms that Denmark has undertaken to become the most energy-efficient country in Europe.
“The Danes use about the same amount of energy as they did in 1980. But over that same period of time, the country’s economy has expanded by 70 per cent.”
It is noteworthy that from 1990 to 2007, Denmark’s economic activity grew by 45 per cent while carbon-dioxide emissions were reduced by about 13 per cent.
Mason went on to write that “wind energy accounts for 20 per cent of the power generated in the country. Now Danes are selling the technology throughout the world and getting rich doing it.
“The biggest wind-turbine manufacturer in the world, the Danish giant Vestas, can’t fill orders from China and India.” Agreements have been reached to have California adopt some of the techniques developed in Denmark. Furthermore, in about 10 years, 30 per cent of its energy supply will come from renewable sources. All household waste is incinerated to generate heat and power.
The population of Denmark is 5.5 million, compared to our 33 million. The former’s Gross Domestic Product is less than one per cent of Canada’s. Given that, it is obvious that Canada easily can copy Denmark’s strategy.
An excessive amount of Canada’s manufacturing output is destined for new homes and buildings, from bricks to bulldozers, and a lot goes into cars. With the fall in demand from those areas, gaps have opened that can be filled by emulating the Danish program to become energy self-sufficient.
Danish politicians have not been unwilling to impose taxes to discourage people from driving cars.
A litre of gas costs twice the price of Canada. About half of the cost is tax. In part, the proceeds are devoted to help fund green innovation research.
To keep manufacturing and manufacturing jobs in the country, it is essential that our political leaders and governments at every level vigorously push energy efficiency. Otherwise, manufacturers face an uncertain future.
Our economy and our foreign trade position would gain enormously if we became more energy-efficient; of course, that would be very beneficial for our environment.
We must hope that our politicians pursue this kind of program.