Canada West Foundation Blog

Latest research conducted by Canada West Foundation has identified broad agreement that a well designed Canadian energy strategy would contribute to a secure and prosperous future for Canada.

Finding Common Ground: The Next Step in Developing a Canadian Energy Strategy by authors William Kimber, Vice President, Research and Dr. Roger Gibbins, President & CEO, was released today as part of the Canada West Foundation’s Powering Up Project.

Between 2009 and now, a wide range of stakeholder groups including: the energy industry, environmental organizations, leaders of Canada’s top enterprises and policy experts in academia and think tanks have released papers and statements calling for reform of Canada’s energy policy framework.

The Common Ground paper is the first to provide a synthesis of these various initiatives and points of view, and identifies eight interconnected themes from this impressive body of work. These common themes are:

• embrace Canada’s energy diversity as a strength;
• ensure robust environmental stewardship;
• set a price for carbon;
• transform the demand side of the energy system;
• strengthen Canada’s position in the world;
• promote energy security in the North American context;
• drive innovation and technological development; and
• understand that strategy is a dialogue.

“The research shows that there is much that diverse stakeholders across Canada can agree on.” Co-author Will Kimber commented. “The common view is that we need an energy strategy for Canada, and we need it now.”

While impressive progress has already been made, there is much more work to be done. The report therefore proposes three next steps to ensure that momentum for policy reform is not lost.

To download Finding Common Ground: The Next Step in Developing a Canadian Energy Strategy, click here.

By Will Kimber, Vice President Research

Governor Arnold Schwarzenegger is a global icon; a mammoth of sports, entertainment, and public life. After achieving the title of Mr. Universe at age 20, he went on to become a legend of Hollywood and then Governor of California, marrying a Kennedy in the process.

Schwarzenegger’s story is inspirational and embodies the American dream. He was an Austrian immigrant with few resources, except those that really mattered: a vision, a fire in the belly, and a huge charisma. So what did the Governator mean when he famously described California Legislators as “Girlyman?” It’s not someone who has failed at a worthwhile endeavor, but someone who has failed to try—failed to take a risk.

Schwarzenegger set out four principles that have underpinned his success: have a vision and trust it; break the rules; don’t be afraid to fail; and work hard—there are no shortcuts. Growing up in Austria, the stereotype was that Arnold was expected to marry a girl called Heidi and live a Sound of Music lifestyle in the hills. Instead, he adorned his bedroom walls with pictures of half naked, muscle bound and oiled up men and he harbored burning ambitions to take America by storm. Arnold came up against obstacles, but instead of letting them defeat him, he used them to his advantage. Casting agents first said his monstrous body and machine like accent didn’t work—they said “you can be a Nazi officer or a bouncer but not a leading man,” yet he proved them wrong.

On energy policy, Schwarzenegger was somehow less inspiring. He got most of the big rocks on energy policy reform in place. He noted the need to shift the debate on energy from a singular focus on carbon emission reduction and instead urgently develop an American energy strategy. He identified what needed to be focused on: energy supply and security; the US’s overreliance on foreign oil; the need to address pollution more generally; and the importance of green jobs and technological innovation as the primary objectives of such an energy strategy. That said, Schwarzenegger’s legacy is a California that is a world leader in renewable energy innovation, technology development and deployment—the so-called new energy economy.

However, in contrast to the rapturous applause for most other parts of his performance, the Calgary audience at his first public speaking engagement on January 25 was far more subdued in its reaction to Schwarzenegger’s comment that “we showed in California that you can create green jobs in the midst of a major economic downturn.” This likely suggests a suspicion in regards to heavy government intervention in the energy economy.

Although his term as the governor of California has come to a close, Schwarzenegger is well positioned as a leading US political leader to assist the Obama administration as an “energy Czar,” and use his political experience as a focal point for development of an American energy strategy. This could provide the political jolt needed to push forward stagnated US action on an American Energy Strategy, which is critically important for Canada-US relations, North American energy security, and the interests of western Canada in particular. For Canada, having Schwarzenegger’s muscle and charisma turned to American national policy reform on energy has to be a good thing.

by William Kimber

In the decade to come and beyond, the policy choices at the interface of energy, the environment and the economy are of critical importance to the sustainable well-being of western Canadians, and for that matter all Canadians.      
 
Across the four western provinces, the diversity of energy production and distribution systems, along with differing energy consumption and trade circumstances, provides a microcosm of the broader Canadian energy challenge.  British Columbia and Manitoba’s large hydro resources, Alberta’s endowment of unconventional oil, and Saskatchewan’s uranium deposits are examples of the different lenses that each provincial government needs to apply to energy, environment and economic policy.    

As commodity based, trade exposed and relatively emissions intensive economies, the four western provinces also face similar challenges.  Western Canada’s resource endowments are substantial—but the ability to bring commodities like unconventional crude and shale or tight gas to market may be increasingly constrained by environmental and social acceptance in our primary export markets in the United States.  

The challenge presented by growing populations requires a vision for western Canadian industries, cities and infrastructure that involves greater efficiency of energy use and expansion of power supply in an environmentally and socially acceptable manner.  In the second half of 2010, the Canada West Foundation is launching “Powering up for the Future” which aims to assist decision makers in government, industry and the broader community to navigate the choices we face in driving Canada’s interests forward.   

For example, what are the regional opportunities in the “new energy economy,” what are the risks with a business-as-usual approach to our current resource and energy consumption directions, and how committed is Canada to becoming a clean energy superpower?   

Keep an eye out for the following key research outputs in the coming months from the first phase of “Powering Up”:

• a strategic overview of western Canada’s energy situation and policies including production, consumption, trade, and economic drivers for the provincial economies;
• a range of opinion survey work to identify and analyze attitudes towards energy, the environment and the economy in the West and across Canada; and
• a series of “extra-ordinary conversations” with energy leaders from across the West.       

Some of the Foundations’ research highlights for the fall include:

• A study of Saskatchewan’s taxation system in partnership with the Saskatchewan Chamber of Commerce and a range of other funders (release date is October 14).
• The recent release of “Blackened Reputation”—an analysis of media coverage of Canada’s oil sands with some surprising results, which go to the nature of reputational risk in our export markets.
• October and November roundtables for the New Energy Economy project that will bring together thought leaders from industry, government and the community to discuss and quantify opportunities across each of the four western provinces.  
• The upcoming release of “State of the West 2010,” a key reference analyzing economic and social trends across the four western provinces.
• The upcoming release of a range of reports under the “Going For Gold” project (in partnership with Western Economic Diversification) including a report on western Canada’s Asia-Pacific trade, with a specific focus on India and China in the Asia-Pacific context, and a report on the green economy in western Canada.
• The book release of “Extraordinary Conversations” which summarizes the key themes from a series of interviews with 50 western Canadian thought leaders on what it will take to make western Canada a great place to live in the 21st century.
• A range of work on the key water policy issues facing Canada, including a framework for water pricing in Canada and further work with the Alberta Water Resources Institute.
• Collaborative policy work with the Calgary Chamber of Commerce on the event series, “Changing the Climate.”

With such a range and scale of research activities underway, this is a busy time! However, in addition the Foundation is also committed to our regular economic monitoring work and our engagement with the media and other stakeholders on key policy issues as they emerge.   

The Foundation’s Board is star studded and includes a range of highly accomplished leaders from industry, government and the community.  Our Executives-in-Residence—Mike Cleland, Sheila O’Brien and Barry Worbets—bring a wealth of knowledge, expertise and energy.  Our new and existing core research team members bring many decades of combined research and policy analysis experience, and our new Research Fellows and interns further round out the team.

Next year the Foundation will celebrate its 40th year anniversary as the only think tank dedicated to pan-western Canadian policy issues.  The Foundation is well positioned to build on its track-record as a leading source of strategic insight through conducting and communicating non-partisan economic and public policy research of importance to the future of the four western provinces and all Canadians.

Thank you, then, to the Foundation’s many supporters, funders and members for your continuing support in driving the Foundation’s high impact research.  As we move towards 2011 and beyond with this full and exciting research agenda, I look forward to continuing to work with all of you to drive outcomes for the benefit of Canada.