Fostering a Regional Green Economy: Municipal Roles and Other’s

Responsibilities

Stephanie CairnsManaging Director, Sustainable Communities

Sustainable Prosperitywww.sustainableprosperity.ca

Clean Air Council Green Economy SummitToronto, October 26, 2012

Making markets work for the environment

Sustainable Prosperity

• Mission: to generate smart ideas to build a greener, more competitive Canadian economy

• National green economy think tank and policy research network based out of University of Ottawa

• Focus on market-based instruments in order to achieve both economic and environmental goals

• Four areas: Low carbon economy, sustainable communities, ecosystem service markets, and emerging issues

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Making markets work for the environment

SP’s Sustainable Communities Program

Environmental Pricing Reform (EPR): using pricing (market forces) to influence behaviour and choices in support of community goals (environmental and economic)– Reduces collective impact of development on the

environment, while– Addressing gap at local level of government

between current fiscal constraints and much needed fiscal flexibility.

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Making markets work for the environment

Sustainable Communities Program

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Making markets work for the environment

Green Economy: the numbers!

– Green economy is growing• Globally, clean technology worth $1 trillion, could be $3

trillion+ & 3rd largest global industrial sector by 2020

– Canadian green tech and services market• $2.3 billion in 2010• $3.7 billion by 2014

– Clean tech sector employs 44,400 Canadians (2010)– But 682,000 Canadian perform environmental work

50% or more of their time.

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Making markets work for the environment

What do we mean by “Green Economy”?

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Greening the

Economy

Greening the

Economy

Clean TechnologyClean Technology

Making markets work for the environment

A Green EconomyA Green Economy

What do we mean by “Green Economy”?

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Ecosystem limitsEcosystem limits

Making markets work for the environment

Alignment with prevailing goals

• Innovation• Productivity

• Economic growth• Higher employment levels• Public debt reduction

• Climate change mitigation• Clean water & air• Reduced waste

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Green EconomyGreen Economy

Making markets work for the environment

• Already drive economic growth—can do green growth!• Front line of many environmental challenges (transport,

sprawl, energy use).• Closer to public, pressure to show tangible results• Significant economic, ecological influence/control:

– $98 billion procurement– Direct and indirect control over 45% of GHG emissions

• Other advantages– Less ideological/partisan gridlock: “Get Things Done!”– Practical, on the ground implementation– Scaled right for experimentation and innovation

Municipalities: Key Players

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Making markets work for the environment

Municipal Green Economy Action Areas

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Sustainable transportationEfficient urban land useEnergy efficiency of buildingsRenewable energyWater treatment and conservationSolid waste management

Sustainable transportationEfficient urban land useEnergy efficiency of buildingsRenewable energyWater treatment and conservationSolid waste management

Making markets work for the environment

Tools

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PlanningZoningDevelopment controlEstablishment of protected areas Adjusting cost signalsCapital cost financing assistanceProcurement policies

PlanningZoningDevelopment controlEstablishment of protected areas Adjusting cost signalsCapital cost financing assistanceProcurement policies

PlanningZoningDevelopment controlEstablishment of protected areas ADJUSTING COST SIGNALSCapital cost financing assistanceProcurement policies

PlanningZoningDevelopment controlEstablishment of protected areas ADJUSTING COST SIGNALSCapital cost financing assistanceProcurement policies

Subsidy correctionsProperty tax adjustmentsDevelopment cost chargesUnit pricing of utilitiesVehicle specific chargesSpecial fees and taxes

Subsidy correctionsProperty tax adjustmentsDevelopment cost chargesUnit pricing of utilitiesVehicle specific chargesSpecial fees and taxes

Making markets work for the environment

Many benefits

Bang-for-Buck: job-creation of different investments

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Making markets work for the environment

But can’t deliver alone--Sprawl and Sustainable Transportation

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Fed/Prov GE goals: climate change mitigation, cleaner air

Fed/Prov GE goals: climate change mitigation, cleaner air

Municipal actions: Development charge & property tax adjustments

Municipal actions: Development charge & property tax adjustments

Fossil fuel subsidies, rules for

infrastructure fundsExternalized costs

(smog, GHGs…)

Fossil fuel subsidies, rules for

infrastructure fundsExternalized costs

(smog, GHGs…)

Making markets work for the environment

Policy Alignment: Sprawl and Sustainable Transportation

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Fed/Prov GE goals: climate change mitigation, cleaner air

Fed/Prov GE goals: climate change mitigation, cleaner air

Municipal actions: Development charge & property tax adjustments

Municipal actions: Development charge & property tax adjustments

Reformed subsidies, costs internalized

(user fees, c-price…)

Reformed subsidies, costs internalized

(user fees, c-price…)

Making markets work for the environment

Needs Alignment with Federal and Provincial policies

– Predictable long-term infra. funding, emphasizing:• Priority on sustainable transportation• Climate change adaptation

– Energy efficiency building retrofits (targets, funding)– Subsidy reform– Knowledge and capacity building around

sustainability – National user fee policy– Harmonize carbon prices (implicit and explicit)– Extended producer responsibility framework

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Making markets work for the environment

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Stephanie CairnsManaging Director, Sustainable CommunitiesSustainable Prosperitystephanie@wrangellia.cawww.sustainableprosperity.ca