Greenpeace: Harper wrong to support false energy solutions and underfund green economy (+ Obama's green plan)

Article originally published on the Greenpeace Canada website .

Toronto, Canada - Greenpeace today condemned the Harper government for giving as much as $750 million dollars to nuclear energy and carbon capture and storage instead of investing those funds in the green economy Canada needs for the future.

Undermines the green economy:

The millions that the Harper government has earmarked for dangerous nuclear energy and the pipe dream of carbon capture and storage are an environmental travesty. This is also an unnecessary burden to taxpayers. Greenpeace hoped the Harper government would reject these false solutions to our energy problems. They don't deserve subsidies, green energy does.
Green stimulus is needed for the environment and economy

Greenpeace considers the Harper government's budget a miserable failure at seizing a golden opportunity to provide long-term investment for a green 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 Harper government 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 significant green stimulus plans would have created new, long-term green jobs and helped nurture innovation and the manufacturing of green technology.
Lack of vision:

Since the budget undermines a concerted effort to develop a green economy, it creates a bleak future for our children. The green future that Canadians should have seen in the budget for their children will only 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 an economic crisis and take advantage of an opportunity to build a green economy for Canada. The Obama administration has demonstrated such leadership, 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 global warming. The Harper government has ignored Canada's target for reducing greenhouse gas emissions under the Kyoto Protocol. The target of the Harper government would reduce emissions only three per cent below 1990 levels by 2020. Greenpeace and others call for a minimum reduction of 25 per cent by 2020.
Building a Green Economy: Insights on the Miserable Failure of the Harper Budget
Summary

The Harper government has failed to provide the stimulus needed to build a green economy. The budget made only a minimal green energy commitment of about $1.2 billion over two years. The total economic stimulus package is about $33 billion over two years (deducting loans and capital spending) (Budget 2009, January 27 2009, p. 30). So the green 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 successful ecoENERGY Program for Renewable Energy. The program has provided an incentive for about 4000 megawatts of new renewable energy (mostly wind turbines) since January 2007. See background below.

The Harper budget commitment of $1.2 billion to green energy measures should 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 the major commitment to the false climate change solutions of Carbon Capture and Storage (CCS) and nuclear power. Up to $400 million has been committed for CCS (Budget 2009, January 27 2009, pp. 179 & 185), and $351 million for nuclear power through Atomic Energy of Canada Limited (AECL) (Budget 2009, January 27 2009, pp. 180). See background below.

Background: ecoENERGY Retrofit Program - do it right

The government has committed $300 million over two years to the ecoENERGY Retrofit Program (Canada's Economic Action Plan: Budget 2009, January 27 2009, pp. 131 & 136). However, the government seems prepared to shift funding to spending-based tax credits rather than basing it on energy audits. Grants are being offered for up to $5000 for a variety of measures relating to insulation or furnace upgrades.

To ensure that taxpayers' money is spent responsibly and generates results, Green Communities Canada believes that incentives should reward verified improvements in home-energy performance and not simply provide 'rebates' based on commercial sales pitches.

Energy-efficiency incentives must be tied to professional audits and advice. Otherwise we run the risk of massive waste, lost opportunities and even fraud. In other words, the scaled-up home retrofit program needs to be modeled on the existing ecoENERGY Retrofit Program, which has proven effective in targeting real efficiency gains and ensuring accountability for taxpayer funds.
Background: Green Infrastructure Fund

Although advance media reports suggested that $1 billion in funding would 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, except to refer to 'sustainable energy infrastructure, such as modern energy transmission lines...' (p. 144).
Background: Energy Efficiency Retrofits in Social Housing

The budget provides $1 billion for renovation of social housing over two years (Budget 2009, January 27 2009, pp. 133 & 136). However, we assume that only half of this amount ($500 million) will be applied for energy efficiency retrofits.

Background: ecoENERGY Program for Renewable Energy Ignored in Budget

The renewable energy industry wanted this program extended and strengthened to $2.8 billion over five years to build at least 8,000 new megawatts. This would have leveraged a $6 billion investment and created an estimated 8,000 new jobs.

ecoENERGY for Renewable Energy is a $1.48 billion Natural Resources Canada program provides an incentive of one cent per kilowatt hour for electricity production over ten years for wind, biomass, low-impact hydro, geothermal, solar, photo-voltaic and ocean energy projects.

The current four-year program ends March 31, 2011, but it's expected that commitments under the program will end in 2009.

The renewable energy industry and environmental groups called for a renewal of the program in the 2009 budget.

By comparison, the American program for renewable energy, known as the Production Tax Credit (PTC), provides an incentive of 1.9 cents per kilowatt hour. President Obama has pledged to renew this for three years 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', the Harper government proposes to spend up to $400 million on so-called 'clean-energy technologies'. The only technology which is mentioned is Carbon Capture and Storage (CCS) (Budget 2009, January 27 2009, pp. 179 & 185).

CCS is a technology which has not been demonstrated commercially, and is expected to have an extremely high cost.

Greenpeace and other environmental groups have called CCS a 'pipe dream' and have opposed taxpayer subsidies.

False Climate Change Solution of Nuclear Power

The Harper government has committed a $351 million subsidy for nuclear power 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 billion in 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 ever being built.
In addition to its safety and environmental problems, nuclear power precludes investment in cheaper green energy alternatives because of its high cost.
The type of green incentive Canadian environmentalists hoped for: Obama's American Recovery and Reinvestment Bill of 2009

To match the vision and commitment of the Obama administration to green energy, the Harper government should have announced an investment of $6 billion over two years.

The Obama administration has committed $50 billion USD over 12 to 18 months to green energy through the American Recovery and Reinvestment Bill of 2009.

On a proportional basis, the Canadian government is providing roughly four 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 foreign oil tomorrow, we will make investments aimed at doubling renewable energy production and renovate public buildings to make them more energy efficient. America's energy shortcomings present a huge opportunity to put people to work in ways that will transform our economy.

Reliable, Efficient Electricity Grid:
$11 billion for research and development, pilot projects, and federal matching funds for the Smart Grid Investment Program to modernize the electricity grid making it more efficient, secure, and reliable and build new power lines to transmit clean, renewable energy from sources throughout the nation.

Renewable Energy Loan Guarantees:
$8 billion for loans for renewable energy power generation and transmission projects.

GSA Federal Buildings:
$6.7 billion for renovations and repairs to federal buildings including at least $6 billion focused on increasing energy efficiency and conservation. Projects are selected based on GSA's ready-to-go priority list.

Local Government Energy Efficiency Block Grants:
$6.9 billion to help state and local governments make investments that make them more energy efficient and reduce carbon emissions.

Energy Efficiency Housing Retrofits:
$2.5 billion for a new program to upgrade HUD sponsored low-income housing to increase energy efficiency, including new insulation, windows, and furnaces. Funds will be competitively awarded.

Energy Efficiency and Renewable Energy Research:
$2 billion for energy efficiency and renewable energy research, development, demonstration, and deployment activities to foster energy independence, reduce carbon emissions, and cut utility bills. 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 and Grants Program, to support U.S. manufacturers of advanced vehicle batteries and battery systems. America should lead the world in transforming the way automobiles are powered.

Energy Efficiency Grants and Loans for Institutions:
$1.5 billion for energy sustainability and efficiency grants and loans to help school districts, institutes of higher education, local governments, and municipal utilities implement projects that will make them more energy efficient.

Home Weatherization:
$6.2 billion to help low-income families reduce their energy costs by weatherizing their homes and make our country more energy efficient.

Smart Appliances:
$300 million to provide consumers with rebates for buying energy efficient Energy Star products to replace old appliances, which will lower energy bills.

GSA Federal Fleet:
$600 million to replace older vehicles owned by the federal government with alternative fuel automobiles that will save on fuel costs and reduce carbon emissions.

Electric Transportation:
$200 million for a new grant program to encourage electric vehicle technologies.
Department of Defense Research:
$350 million for research into using renewable energy to power weapons systems and military bases.
Alternative Buses and Trucks:
$400 million to help state and local governments purchase efficient alternative fuel vehicles to reduce fuel costs and carbon emissions.

Industrial Energy Efficiency:
$500 million for energy efficient manufacturing demonstration projects.
Diesel Emissions Reduction:
$300 million for grants and loans to state and local governments for projects that reduce diesel emissions, benefiting public health and reducing global warming.