To sum up 2012, it was the “year of hot air.”
After all, weird and whacky weather – a hotter than usual winter in Central Canada and the so-called “Super Storm Sandy” along the U.S. east coast – dominated headlines on the environmental front.
But these phenomena also demonstrated just how seriously everybody – individuals as well as corporations – must take the environment.
The hot air also came from the political front as citizens and politicians lined up across Ontario in the great battle against wind turbines. This came as the country forged ahead with its plans to reduce its greenhouse gas emissions (GHG).
In September, Canada’s Environment Minister, Peter Kent, unveiled final regulations for reducing GHG emissions from coal-fired electricity generation. The regulations apply a stringent performance standard to new electricity generation units and old units that have reached the end of their economic life. In the first 21 years, the regulations are expected to result in a cumulative reduction in GHG emissions of approximately 214 Megatonnes.
The government sees reducing emissions from coal-fired electricity, which is responsible for 11 per cent of Canada’s total GHG emissions, as an important step towards meeting Canada’s 2020 target of reducing GHG emissions.
Under the Copenhagen Accord, Canada has committed to reducing its GHG emissions by 17 per cent from 2005 levels by 2020.
The new performance standard for coal-fired electricity generating units will come into force July 1, 2015.
This came a month after the government said Canada was halfway toward meeting its 2020 GHG emission target.
Kent said Canada has contributed to the projected emission reductions by regulating GHG from the transportation and electricity sectors, and will continue to work with its partners to reduce emissions from other sectors, including oil and gas.
Meanwhile, Ontario was trying to do its part in phasing out coal-fired electricity by 2014, and increasing renewable energy like wind, solar and biomass; however, it faced resistance across the province as residents lined up to fight the wind turbines noting the health disadvantages from the structures. The resistance came despite a report a year earlier that concluded there is no direct health risk from wind turbine sound at Ontario’s regulated setback distance.
The Ontario government also found itself in some hot water after it moved ahead with plans for a natural gas plant.
In September, the Province’s Minister of Energy, Chris Bentley, announced an agreement had been reached between the Ontario Power Authority (OPA) and TransCanada Energy to relocate a proposed 900-Megawatt natural gas plant originally planned for Oakville, Ont., to lands at Ontario Power Generation’s Lennox generating station site near Bath, Ont.
“The decision not to move forward with the plant at the original Oakville site was made after hearing overwhelming concerns from local residents and local elected officials,” the minister said in a statement. “The only accurate cost to taxpayers for this relocation is $40 million.”
Pundits were quick to question that math, however, with various reports estimating the real costs to move the plant are between $200 million and $700 million.
Ontario faced another headache after a World Trade Organization preliminary report suggested Ontario’s feed-in tariff system was discriminatory against foreign suppliers of equipment for renewable energy generating facilities. Established in 2009, the feed-in tariff system requires participating electricity generators in Ontario to source up to 60 per cent of their equipment in the province if they want to be eligible for subsidies.
Despite this, a rooftop solar project at Jamieson Laboratories’ manufacturing plant in Windsor, Ont. – one of the largest rooftop solar projects to come online since Ontario’s feed-in tariff program – was introduced.
In a show of combined strength, the Canadian Construction Association (CCA) and the Canada Green Building Council (CaGBC) signed a memorandum of understanding that commits the two organizations to work closely for the promotion of green building practices throughout Canada.
“What this (memorandum of understanding) does is send a very strong, powerful signal to the construction industry that our industry has now fully entered the green era, where construction designs and practices must conform to the demands and expectations of Canadians for greater sustainability,” Brunet said in a statement.
With 2012 almost at a close, what do the prospects look like in 2013?
According to RBC economist, Robert Hogue, “Ontario’s economy was holding its own despite the weaker environment in which it operates this year. Only minor improvement (is expected) in 2013, with real GDP growing at a marginally faster rate of 2.3 per cent.”
However, Hogue suggests spending restraint in the public sector will continue to limit growth in the Ontario economy. Government spending on goods and services, and capital investment declined in 2012.
The Conference Board of Canada painted a bleak view for Canada moving into next year.
“The influence of a grim global environment, coupled with a heavy dose of fiscal restraint, will result in Canada’s economy muddling along through the rest of this year and into 2013,” said Pedro Antunes, director, national and provincial forecast with the Conference Board.
Antunes noted, “The swift post-recession rebound that occurred in 2010 and 2011, driven by a strong domestic economy, has mostly expired through the first half of this year (as problems in Europe and economic issues in the U.S.) have eroded consumer confidence and slowed business investment and job creation.”
Atunes concluded that “Canada is embarking on a period of fiscal austerity” with public sector spending, which has helped the economy over the past decade, being curtailed as federal and provincial governments try to bring deficits under control.
“The weakness in government spending is partly due to a substantial decline in public infrastructure spending. But with the end of the stimulus program, business investment is picking up the slack. Strong investment in resources has bolstered private capital investment in machinery and structures back to its pre-recession peak; going forward, growth is expected to remain strong.”
The Ontario Construction Secretariat (OCS) expects the Ontario construction industry to show growth over the next few years.
At a recent conference, the OCS’s CEO, Sean Strickland, suggested that between 2013 and 2016, the industrial and commercial construction sectors will increase by appoximately 4.6 per cent, while the institutional sector will increase by 1.3 per cent.
Scott Anderson is editor of Building Strategies & Sustainability magazine.