5.4 The Governance to Make it Happen
Framing the Future: Embracing the Low-Carbon Economy
In addition to the broader essential economic conditions for low-carbon growth and specific actions required to position Canada on a low-carbon growth trajectory, strong governance is foundational to effectively advancing the low-carbon agenda. The NRT identifies fives ways in which governance will contribute to successful development and implementation of the NRT’s low-carbon growth framework: vision and commitment, coordination, private sector engagement, engagement with Canadians, and the development of a mechanism for the ongoing assessment of progress and provision of advice.
Canada’s federal and provincial governments need to articulate a clear coordinated vision and demonstrate sustained commitment to the transition to a low-carbon economy. The development of lowcarbon growth plans internationally has taken place under different contexts and with different motivating factors, depending on the state of the public discourse on climate change, the understanding of related risks and opportunities, and government priorities. For example, in the U.K., the low-carbon growth plan set in place by the government leadership was necessitated by public demand. At the time of its implementation, the agenda was broadly endorsed and doubt with respect to climate change science was not a substantive issue.125 In the case of the Republic of South Korea, the president championed the initiative announcing a “low-carbon, green growth” plan in a 2008 national address commemorating South Korea’s independence.126 No matter the impetus, successful implementation requires political commitment from all orders of government, commitment and follow-through on the part of central agencies, and in a federation such as Canada, a coordinated federal-provincial approach. The NRT has articulated an initial vision that will require further refinement based on broad consultation.
Federal and provincial governments need to increase the effectiveness of coordination within and across departments as well as between levels of government. While facilitated when leadership clearly promotes a low-carbon transition, effective coordination requires improved communication within and across relevant government departments to better align objectives and efforts and achieve results. Departmental accountability mechanisms also greatly facilitate coordination. Improved communications across governments leads to streamlined responsibilities and greater policy coherence.
Improving interdepartmental dialogue to tackle the crosscutting issue of low-carbon growth requires both organizational specialization and the adoption of a holistic approach. For example, the United Kingdom created the Department of Energy and Climate Change (DECC) in 2008 to address tensions arising from the sometimes conflicting policy mandates of climate change and energy departments and to balance environmental and economic objectives. To develop the LCGP, DECC adopted the model used for other issue areas: create a core group of 10–12 people to lead and coordinate strategy development and consult across government to gain diverse policy and technical input. This approach builds buy-in from all departments involved. In the U.K.’s case, the legally binding commitment to meet emission reduction targets across government and related carbon budgeting exercises has helped ensure policy coherence.127 British Columbia’s Climate Action Secretariat (CAS) provides an example of a successful Canadian approach. The CAS “drives change to achieve B.C.’s GHG emission reduction targets by coordinating climate action activities across government and with stakeholders”.128 While housed in the Ministry of Environment, the CAS works across the provincial government to support integration of climate change considerations into planning and operations, from both mitigation and adaptation perspectives.129 Whether by using existing mechanisms, reorganizing, and/or developing new mechanisms, integration across both federal and provincial governments will be necessary to achieve a successful low-carbon transition in Canada.
Increased inter-governmental coordination is also required to maximize low-carbon outcomes and minimize policy and program overlap. Given the diversity of interests, resources, and opportunities across Canada’s provinces, regional representation in any discussion of a national low-carbon strategy is critical. Furthermore, stimulating low-carbon growth will require action at all levels of government on a diversity of files. Minimizing jurisdictional fragmentation and increasing alignment of policies will increase efficiency and improve overall cost-effectiveness. Where expertise is more concentrated within a given level of government, greater coordination would also provide the opportunity for more effective delegation to the party best equipped to address the issue. Intragovernmental coordination is an important related issue. Climate policy, a component of low-carbon growth, has historically resided in environment departments. However, given the broad, crosscutting implications of low-carbon growth and the intersection of energy, environmental, and economic considerations, a new approach and new champions may be required.
The participation of municipalities will be critical in meeting federal and provincial GHG mitigation targets, a key aspect of low-carbon growth. The Federation of Canadian Municipalities published a discussion paper in January 2012 entitled Building Canada’s Green Economy: The Municipal Role, demonstrating that municipalities are on board and acting already to implement low-carbon solutions.130 Greater collaboration with municipalities stemming from more coordinated federal-provincial action would be beneficial. The importance of aligning national policies with local and regional policies and practices such as land-use planning to ensure that climate change is fully integrated into development plans is broadly recognized.131
The private sector needs to step up and engage proactively with governments concerning its vision for the low-carbon economy and the optimal path to achieve it. The necessity of the direct involvement of the private sector in low-carbon planning was a recurring message throughout the NRT’s discussions across Canada. In our conversations, private-sector representatives broadly acknowledged that the transition to a low-carbon economy is inevitable. While concern was raised about the implications for more carbonintensive operations, there was also recognition that most issues could be addressed provided the existence of open, frank dialogue on objectives, impacts and options, and the presence of all implicated parties at the table. It is particularly important for sector leaders to be engaged in such dialogue. Within most if not all sectors, leading companies are innovating and planning for low-carbon growth. It is essential that these voices are present at the table to avoid descent to the lowest common denominator.
Governments need to more actively engage Canadians with respect to climate policy, Canada’s energy context, and low-carbon growth. Building Canada’s energy and emissions literacy will enhance individuals’ capacity to contribute to conservation efforts, and increase understanding on the part of citizens with respect to both the need for and opportunity in the low-carbon transition. Information and tools are already available to enhance energy and emissions education and awareness in the form of national programs (e.g., Canada’s Centre for Energy and SEEDS Energy Literacy Series), provincial programs (e.g., New Brunswick’s Climate Change Public Education and Outreach Hub and Climate Change Education Saskatchewan), and municipal initiatives (e.g., the City of Vancouver’s Climate Protection Program).n Enhancing Canada’s existing efforts in a broad-based manner and expanding the discussion to incorporate low-carbon growth considerations could lead to a better informed public discussion on this issue of national importance. The multi-stakeholder public interest model being pioneered through QUEST presents significant potential for advancing both knowledge and public dialogue and ultimately generating more sustainable approaches to community development (see Box 7). Public awareness and understanding of and dialogue about the opportunities as well as the trade-offs involved as the world moves to a low-carbon economy are key to long-term policy development.
Box 7
Specifically, governments need to engage in conversation with Canadians on the price of electricity. Given the substantial additional investment required in the electricity system over the next forty years both to cut emissions and for the sector to remain in compliance with regulations, a rise in electricity prices over this time frame is likely. In some cases, Canadians do not currently pay the full price of the electricity they use.133 Although social equality can be a consideration in setting energy prices (particularly where electricity meets heating needs), the broad subsidization of consumer pricing simply conveys the wrong market signals. Alternative and more directed social policy targeting affordability issues should replace current, broadbased approaches. Low-cost electricity has historically been a key economic advantage in many regions in Canada, but electricity prices paid by industry have risen in most areas in recent years,o eliminating or greatly reducing this advantage. Electricity prices continue to be a key cost consideration for many manufacturers and industry players. Policies or programs aimed at enhancing industrial or manufacturing competitiveness should consider the long-term value of full-cost pricing and where necessary, governments should identify alternatives to price subsidization to mitigate significant cost increases that compromise competitiveness.
Lastly, establishing an impartial, credible mechanism to both monitor Canada’s performance with respect to its low-carbon objectives and provide unbiased advice to governments regarding the path forward would greatly help Canada achieve low-carbon growth. An independent, non-partisan entity can bring together disparate views and shed objective light on the path forward. In contrast, entities within or close to government can suffer from partisan views lacking in perspective and departmental advice can be influenced by perceived, and often shorter-term, government priorities. International precedence for such a mechanism exists. In Germany, the German Advisory Council on the Environment and the German Advisory Council on Global Change provide independent, scientific advice to government. The U.K. Committee on Climate Change (CCC) is a permanent independent group that provides advice to the central government and the devolved administrations on progress toward a low-carbon economy and reports annually to Parliament. The CCC plays an important integration role across departments and among levels of government in the U.K.134
[n] For more sources see Climate Change Education.org 2011.
[o] The average industrial electricity price in Canada increased by 5.1% from 2010 to 2011 (Canadian Electricity Association 2012).
[125] Clark 2009
[126] Korea Economic Institute and Korea Institute for International Economic Policy 2011
[127] Murphy, Hove, and Russell 2011
[128] British Columbia Ministry of Environment ND
[129] British Columbia Ministry of Environment ND
[130] Thompson 2011
[131] ICLEI and United Nations Environment Programme 2012; OECD 2012a
[132] QUEST 2012
[133] Gibbons 2008; Pineau 2008, 2009
[134] Murphy, Hove, and Russell 2011
© 2013