greening the economy federal-municipal policy alignment
DESCRIPTION
David Thompson's Presentation at the Federation of Canadian Municipalities (FCM) Sustainable Communities Conference February 2012.TRANSCRIPT
Greening the Economy Federal-‐Municipal Policy Alignment
David Thompson Director, Sustainable Communi8es
Sustainable Prosperity www.sustainableprosperity.ca
February 8, 2012
Making markets work for the environment
Report Overview
• Green Economy • What it means • Opportuni8es
• Municipal Ac8on • GE Benefits & Advantages • Federal Policy Alignment
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Making markets work for the environment
Meaning of GE in Canada: Observed NaConal Goals
• Economic growth • Higher employment levels • Public debt reduc8on • Climate change mi8ga8on • Clean water & air • Reduced waste
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Green
Economy
Making markets work for the environment
Green Economy OpportuniCes
– Green economy is growing • Globally, green economy worth over $4 trillion
– Canadian sustainability market (green tech and services) • $2.3 billion in 2010 • $3.7 billion by 2014
– Canada significant opportunity for further growth • sustainability ranking 24th out of 25 in OECD
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Making markets work for the environment
MunicipaliCes can help achieve goals
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Federal green economy goals
Municipal ac8ons
Making markets work for the environment
Diverse, EffecCve Municipal Policy Tools
– Planning – Zoning – Development control – Establishment of protected areas – Adjus8ng property taxes, user fees & user taxes – Capital cost financing assistance – Procurement policies
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Making markets work for the environment
Key Municipal GE AcCon Areas
– Sustainable transporta8on – Efficient urban land use – Energy efficiency of buildings – Renewable energy – Water treatment and conserva8on – Solid waste management
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Making markets work for the environment
GE Benefits & Advantages
– Across many sectors of economy – Na8on-‐wide, not isolated regions – In rural areas, towns, ci8es of all sizes – Bang-‐for-‐buck
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Making markets work for the environment
GE Benefits & Advantages
Bang-‐for-‐Buck: job-‐crea8on of different investments
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Building a Green Economy for Canada: The Role of Municipalities / 27
• Indirect effects are those created in industries that supply the inputs to industry in which the investment is made.
• Induced effects are those created by spending of workers employed in the above industries.
Noteworthy is that the employment and economic benefits of a given invest-ment are spread out through the economy – across the public and private sectors, across the goods-producing and services sectors, and across regions, provinces and the national economy. Invest-ments benefit not only those who are directly employed, but many others. Indeed,
some sectors produce more jobs indirectly and through induced employment than through direct employment.
However, multipliers vary by industry: a dollar of invest-ment in one industry will yield a different employment and GDP impact than a dollar invested in another industry. This is due to a range of factors, including how labour-intensive or capital-intensive the industry is, and the degree to which it relies on imports as opposed to local production. As it turns out, green economy sectors pro-vide relatively high levels of employment and GDP impact per dollar invested.
JOBS AND PERSON- YEARS OF EMPLOYMENT
GOVERNMENTS AND BUSINESSES OFTEN DESCRIBE THE IMPACT OF THEIR INVESTMENTS AS CREATING A CERTAIN NUMBER OF “JOBS.” TYPICALLY, THEY USE THE WORD “JOBS” AS A SHORT FORM FOR THE ACTUAL OUTPUT OF MULTIPLIER TABLES AND ECONOMIC MODELS: “PERSON-YEARS OF EMPLOYMENT.” THIS REPORT FOLLOWS THAT CONVENTION.
FIGURE 6: CANADIAN EMPLOYMENT MULTIPLIERS – SELECTED SECTORS (DIRECT AND INDIRECT EMPLOYMENT)
Source: Statistics Canada, “National Input-Output Multipliers”71
CONSTRUCTION
REPAIR AND MAINTENANCE
PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES
TRANSIT AND GROUND PASSENGER TRANSPORTATION
OTHER MUNICIPAL GOVERNMENT SERVICES
OIL AND GAS EXTRACTION
SUPPORT ACTIVITIES FOR MINING, OIL & GAS EXTRACTION
PETROLEUM AND COAL PRODUCTS MANUFACTURING
0 5 10
PERSON-YEARS EMPLOYMENT PER $MILLION INVESTED
15 20 25
DIRECT
INDIRECT
Making markets work for the environment
Federal Policy Alignment
• Untapped municipal poten8al for achieving GE benefits • Municipali8es oden swimming against bigger policy 8de • Could achieve more with federal policies aligned
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Making markets work for the environment
Federal Policy Alignment Can Leverage Municipal AcCon
– Predictable long-‐term infra. funding, emphasizing: • Sustainable transporta8on • Climate change adapta8on
– Energy efficiency building retrofits – Subsidy reform – Knowledge and capacity building – Na8onal user fee policy – Harmonize carbon prices (implicit and explicit) – Extended producer responsibility framework
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Making markets work for the environment
Policy Alignment? Sprawl and Sustainable TransportaCon
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Federal GE goals: climate change mi8ga8on, cleaner air
Municipal ac8ons: Development charge & property tax adjustments
Making markets work for the environment
Policy Misalignment Sprawl and Sustainable TransportaCon
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Federal GE goals: climate change mi8ga8on, cleaner air
Municipal ac8ons: Development charge & property tax adjustments
Subsidies, Externalized costs (smog, GHGs…)
Making markets work for the environment
Policy Alignment: Sprawl and Sustainable TransportaCon
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Federal GE goals: climate change mi8ga8on, cleaner air
Municipal ac8ons: Development charge & property tax adjustments
Reformed subsidies, costs internalized
(user fees, c-‐price…)
Making markets work for the environment 15
David Thompson Director, Sustainable Communi8es Sustainable Prosperity [email protected] www.sustainableprosperity.ca