U.S. To Outspend Canada 18-1 On Renewable Energy

Despite pledges to “match US efforts,” U.S. federal spending on renewable energy will outstrip Canada 18 – 1 per capita this year. The ratio for spending on all clean energy (incl. transit, efficiency etc.) comes in at a still whopping 8.6 – 1.

Last year Canada was being outspent 14 – 1. Update your talking points. These new figures are derived from a new analysis comparing the Canadian and U.S. federal budgets by Pembina and Environment Northeast. The report analyzes new spending commitments in 2010, not previously committed stimulus spending (which was compared here).

Tim Weis, a co-author notes that:

“While the federal government continues to talk about harmonizing with the United States, the reality is that their failure to invest significantly in sustainable energy means Canada is falling behind.”

Without any significant federal support or any certainty around emissions regulations, it will become increasingly difficult for Canada as a whole to compete for private renewable energy investment in light of the increasing attractiveness of the market in the United States.

Here are the topline findings:

Spending on renewable energy: 18-1

Spending on energy efficiency: 2-1

Spending on public transit and vehicle efficiency: 12,826,000,000 – zero [friggin' zero?!!!]

Overall, the U.S. plans to spend the equivalent of more than C$27.4 billion (US$26,692 million) on green programs including renewable energy, efficiency, technology development and public transit, compared to C$357 million in Canadian spending in 2010, for an overall ratio of 8.6:1.

A couple of highlights:

Electricity generation is one of the largest sources of emissions in Canada. While the oil sands remain the fastest growing source of emissions in Canada, for now coal powered electricity currently produces more emissions than the oil sands do. The government made an election promise to move to 90 per cent by the year 2020 — a goal which will not be achieved without a significant ramp-up of renewable power and energy efficiency. However, not only did the most recent federal budget contain virtually no significant programs to achieve this goal, it also failed to renew the one program that had supported the majority of renewable energy development to date (ecoENERGY for renewable power).

…

While they were not considered in this analysis, it is notable that President Obama’s budget request proposes to eliminate 12 fossil fuel subsides (tax breaks for oil, natural gas, and coal) worth US$ 2.7 billion in 2011, as a step towards fulfilling a G20 commitment to phase out inefficient fossil fuel subsidies. No similar initiatives were included in the Government of Canada’s 2010 budget.

All comparisons are adjusted apples to apples for the different dollars and population. Report is here