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Clean Break column in Toronto Star ends a 10-year run…

Monday, March 25th, 2013

photoIt was a trip to Iceland in June 2003, just months after the birth of my first daughter, that the immense need for and potential of clean energy first landed on my radar. The Toronto Star agreed to send me there so I could write about Iceland’s efforts to transition to a hydrogen economy. I toured several of the country’s geothermal and hydroelectric facilities. I rode on hydrogen fuel cell buses. I swam in the Blue Lagoon. I spoke with some of the leading academics and engineers in the world working on the hydrogen puzzle. I came back inspired, hungry to learn more — not just about fuel cells and hydrogen, but about this whole emerging area of clean technology, or “cleantech.” It helped that Canadian fuel cell pioneers Ballard Power and Hydrogenics had already captured my interest, but once I looked beyond the “hype about hydrogen” I saw a great diversity of clean technologies at various stages of development. Further boosting my enthusiasm was Nick Parker, founder of the Cleantech Group and the man who coined the term “cleantech.” It was about that time that I first met Nick at a venture capital conference in Toronto. I had covered the technology and telecom scene for five years and was getting bored. The market had tanked. No longer was it interesting to write about faster routers and fatter broadband services. I was more drawn to the optical engineers who left telecom behind and decided to use their skills to boost the potential of solar PV technology and LEDs. Nick and the handful of companies he brought to the venture capital conference only had a small piece of the floor, but they were the most fascinating to cover. I was hooked.

Within just a couple of months after my trip to Iceland, I decided to transition my weekly high-tech column at the Toronto Star into a clean technology column. It began as a bi-weekly effort, but by the following year my transition was complete — Clean Break was a weekly column devoted to cleantech, and a first of its kind in North American for a major daily newspaper. This blog soon followed, one of the first cleantech blogs to hit the blogosphere. Parker’s Cleantech Group recognized this in 2005 by selecting me for the Cleantech Pioneer award. What Nick liked about the Clean Break column is that it was in the business section of the newspaper, which conveyed the idea that most of the technologies I was writing about weren’t destined to be money-losing propositions but were either competitive today or had the potential to be competitive; that tackling climate and other environmental issues through efficiency and using carbon-free technologies was a way to boost productivity and global competitiveness. Readers also liked the emphasis on solutions, as opposed to dwelling on environmental problems. I didn’t see myself as an environmental reporter, at least not of the traditional sort — that is, only investigating and exposing bad apples, and only telling readers how much things sucked. That was just too depressing. I liked highlighting innovation that was going to help get us out of the environmental mess we had created, and even better, help boost revenues and lower costs for companies and governments. I wanted to put less emphasis on environmental compliance (a pure cost) and more emphasis on the embrace of “clean” technologies because it was simply good for business. I thank the Toronto Star for letting me go in this direction, or at least not preventing me from doing so.

Much has changed in the 10 years that have followed. That whole hydrogen thing didn’t turn out as planned. Plug-in vehicles, hardly talked about a decade ago, have taken over and remarkably all of the top auto manufacturers now have pure electric or hybrid-electric models on the market. Sales haven’t been a strong as predicted, but the fact there are tens of thousands of plug-in vehicles on the roads and thousands of high-speed charging stations installed is a dramatic accomplishment in my view. Same goes for solar and wind technologies. Less than 600 megawatts of solar capacity were installed in 2003. That figure has surpassed 30,000 megawatts, meaning the market has grown 50-fold over the past decade, and we’ll see another 10-fold expansion by 2020. Currently there are about 96,000 megawatts of total solar capacity installed worldwide, a figure that’s expected to reach 330,000 megawatts in seven years. In other words, since starting my Clean Break column solar has gone mainstream — a combination of plunging prices and progressive government policies. The wind industry, which had an installed capacity of about 39,000 megawatts in 2003, has grown to have a total capacity that now stands at 283,000 megawatts. These are huge numbers. Last year, an astonishing $269 billion was invested in clean energy infrastructure. In 2010, investments in renewable energy exceeded investments in fossil fuelled power plants for the first time, a major global milestone. Venture capital in cleantech, depending on how you define it, jumped from about $1 billion to over $8 billion from 2005 to 2011 (it’s now around $6 billion). The market for cleantech is, generally speaking, a trillion-dollar global opportunity.

Media coverage of the industry — new and traditional — has also changed. In 2005 my blog was among a handful of blogs consistently covering the cleantech space, and my column was unique in North American, at least for a mainstream daily newspaper. Now, as I wrote in my book Mad Like Tesla, “I am but one small voice in a sea of dedicated news sites, columns, blogs, Facebook pages, and Twitterers all covering different angles of this clean energy revolution and advocating for a faster transition away from fossil fuels. We may complain that the transition is going too slowly — it can never move fast enough — but looking back it’s amazing we have come this far so quickly.” As coverage of the sector increased, my own writings became increasingly regional and local. Most of my Clean Break columns for the past few years have focused on my home province of Ontario or home city of Toronto. I’ve most enjoyed writing about Canadian or Ontario-based clean technology startups or innovators trying to raise the bar on efficiency and lower environmental footprints. My columns have covered LEDs, solar power, wind power, demand-response, green chemistry, smart grid innovation, water technologies, geothermal, biofuels (with a big focus on algae), electric vehicles, carbon capture and storage, nuclear, wave and tidal power, biogas, waste reduction, energy storage, advanced materials… you name it. I have learned so much, met so many wonderful and smart people, made new friends and played my own little part in helping Canadian companies get attention locally and globally. It has been tremendously satisfying.

Why am I writing all of this now? Well, because this July would have been the 10-year anniversary for my Clean Break column in the Toronto Star. Also, just before I went to Costa Rica earlier this month for vacation, I got a call telling me that my column had been cancelled. I can’t say it was entirely unexpected. When I left my full-time staff writing gig at the Star in 2010 to write Mad Like Tesla, the paper’s business editor at the time agreed on a handshake to let me keep writing the column. Three editors have come and gone from the business section since then and during each transition the axe was expected to come. It didn’t, and frankly, I’m amazed I made it this far. It’s been a great run. The fact is, the newspaper industry is going through a painful transition and there’s no indication this is temporary. In fact, the pain indicates something that may be terminal. The Star recently announced it was outsourcing its pagination and copy editing functions to save costs and that 55 jobs would be cut. Sections across the paper have been asked to slash budgets, and the axe falls easily on freelance columns. This is an unfortunate sign of the times. That my column was discontinued is also a sign of the times. Clean energy may be the future and climate change is the biggest threat to our existence, but that didn’t stop the New York Times from recently dismantling its own environmental reporting team and cancelling its popular green blog. This is both the knee-jerk reaction of an industry that’s suffering, and the reason why this industry is suffering — in my humble opinion.

To be fair to the Star, it did recently hire a global environmental reporter and global science and technology reporter. This is great news. Change is good, and people will get fresh coverage and viewpoints. Let’s hope they stay committed to these beats and give the stories that come out of them the priority and placement they deserve. Me, I’m having a blast as editor of Corporate Knights magazine, where I have been for nearly two years, and I hope to spend the next few years building this publication. We’re doing great things and insightful research — not just in cleantech, but around a number of issues where business and sustainability intersect. I encourage all my readers to sign up for Corporate Knights’ digital subscription, which you can get through iTunes by downloading our app in the App Store (We’re also available on Kindle through Amazon.com, and soon coming to the Android marketplace). Besides, I needed a break from the column and had been considering new directions for it for some time. Its Canada/Ontario/Toronto focus was appropriate for a paper like the Toronto Star, but I want to broaden the message and the audience. Over the coming months I will be looking at a national or North American media platform through which to revive the column, in partnership likely with Corporate Knights. In the meantime, I’ll continue to use this blog to highlight new technologies, emerging issues, breaking news, and whatever else tickles my fancy. The Clean Break brand is here to stay.

Finally, if you were a regular reader of my Clean Break column in the Star, thank you very much for tuning in. Many hundreds, possibly thousands, have reached out to me over the years to convey their appreciation or dislike of the column — fortunately it’s been more of the former. Sometimes people just wanted to exchange ideas. I can’t tell you how heart-warming it is to get an e-mail from a teacher who’s using my column as material for the classroom, or a call from a student who wants to interview me for a class project, or getting Tim Horton’s gift certificates in the mail from an anonymous person thanking me for doing what I’m doing, or getting a call from the founder of a startup who got venture capital funding because of an article I wrote, or having a politician tell me that my coverage of an issue had an impact on policy or legislation. Without readers — even the ones who call you an idiot, and there have been many — there’s no point in writing.

Unfortunately, the Toronto Star would not allow me to do a final farewell column to notify my readers that this is the end of the line, for now. Some of you might have noticed it was no longer being published. But most won’t notice, and I expect this will hold true for many of my colleagues still word-tapping at the Star. Columns come and go, and mine is no different. It would have been nice, however, to thank my Star readers more directly, rather than through the more limited audience that this blog attracts.

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Tags: Clean Break, Toronto Star, Tyler Hamilton
Posted in biofuels, carbon capture, cleantech, conservation, education, efficiency, electric vehicles, emissions, energy storage, Energy-From-Waste (EFW), events, financing, fuel cells, geothermal, green politics, grid, Main Page, nuclear, ontario, peak oil, solar, transportation, Uncategorized, water, wave power, wind | 15 Comments »

“Green” community bonds gather momentum in Ontario

Friday, December 14th, 2012

There is plenty of good news happening around community bonds in my home province. SolarShare, for example, announced on Dec. 6 that it had been approved by the Financial Services Commission of Ontario to sell bonds (which offer a 5 per cent annual return) beyond a cap of $1,000. It is now selling up to $25,000, and can go even higher if requests are approved on an individual basis by their board of directors. This has opened up the possibility off pursuing projects more aggressively. The co-op is now going through a process to make its bonds RRSP-eligible. “Once an independent evaluation of SolarShare mortgages that secure your bonds is complete and we have received a legal opinion based on that evaluation, a self-directed RRSP account can be opened through Concentra Credit Union via the Canadian Workers Co-op Federation (CWCF),” the co-op reported in a recent newsletter. “You are also welcome to take that legal opinion to your own wealth management representative and request an account through other channels” –  i.e. you can take it to your own bank and make a case for carrying the bonds in your existing self-directed RRSP.

These bonds are a safe investment, so if you’re tired of getting pummeled by the market and want a safe 5 per cent return, you might want to learn more at www.solarbonds.ca

SolarShare also announced this week that it has partnered with green energy retailer Bullfrog Power, which is helping to finance future co-op solar projects. As an investor, Bullfrog will also market SolarShare’s “solar bonds” to its existing network of green-minded electricity customers. It’s a great partnership.

Meanwhile, ZooShare Biogas Co-operative — of which I am on the board of directors — is making some solid progress with its plans to take animal poo from the Toronto Zoo and turn it into biogas that will be used  for electricity generation. Ontario’s feed-in-tariff (FIT) program finally opened up again just today for small FIT projects, meaning projects like the one ZooShare is pursuing can now apply for a 20-year power purchase agreement with the province. ZooShare has plenty of members now, including the  required number of Toronto property owners, so now we just apply to the FIT program and sit tight for a contract offer. As soon as that comes, it’s full steam ahead…

I’m really hyped about the ZooShare project. If we can show how it’s done, we can replicate the approach in zoos across North America. The pootential is huge, if you’ll excuse the pun. Like SolarShare, community bonds will also be offered for this project, promising a generous 7 per cent annual return based on current calculations. The fact that SolarShare has blazed the trail to get approval from the Financial Services Commission bodes well as we prepare to file our bond offer prospectus. That precedent, as well as the precedent being set for RRSP-eligibility, will also prove beneficial.

For past articles explaining the concept of community bonds and describing the  above projects, click here and here.

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Tags: community bonds, SolarShare, zoo poo, ZooShare
Posted in cleantech, education, emissions, Energy-From-Waste (EFW), financing, green politics, ontario, solar | Comments Off

Ontario municipalities now empowered to offer PAPER, PACE programs to boost energy, water conservation

Monday, November 12th, 2012

Maybe it’s just a coincidence, or maybe it’s clever politicking, but Kathleen Wynne made a smart move last month.

Two weeks before resigning her cabinet post and announcing her intentions to run for leadership of the Ontario Liberal Party, the MPP for Don Valley West signed amendments to two pieces of legislation that could potentially fill a gaping hole in the province’s troubled energy policy.

Exercising her authority as minister of municipal affairs and housing, Wynne approved changes to the Municipal Act and City of Toronto Act that empower all municipalities in Ontario to take the lead on energy and water conservation programs.

Specifically, municipalities such as Toronto can now use a financing tool called a local improvement charge (LIC) to help property owners finance changes to their homes that are aimed at reducing energy or water consumption.

This is important, as the McGuinty government has neglected to follow through on the conservation promises of its own Green Energy Act, despite the fact that improving energy efficiency is the lowest cost and fastest way to save energy and reduce the environmental impacts of electricity generation.

Previously, local improvement charges could only be used to finance neighbourhood infrastructure projects. If a town or city replaced a sewer pipe or repaved a road, it could spread part of the cost among those property owners that stand to benefit. This would be visible as a special charge added to property tax bills.

The amendments, first proposed back in May, now make it possible for municipalities to apply the LIC model to energy or water efficiency projects taken on by individual property owners.

So what’s the big deal? As I wrote back in June, the amendments mean that municipalities can leverage their ability to raise cheap capital through bond issues.

They can then turn around and offer low-interest financing to property owners looking to insulate their homes, add energy-efficient windows, install smart thermostats, and upgrade to high-efficiency furnaces, air conditioners and water heaters.

Property owners could then pay back the loan over 10 or more years through their property taxes, with the idea being that annual payments would be less than annual energy or water savings. Another bonus is that existing municipal billing systems can be leveraged.

There are many names for this kind of program. When focused on energy conservation, programs are often called Property Assessed Payments for Energy Retrofits, or PAPER. When designed to encourage installation of renewable energy, such as rooftop solar, it’s called Property Assessed Clean Energy, or PACE. The legislative changes in Ontario allow for both types of programs to be created.

“I would say that over 50 municipalities are so far interested in this model,” said Sonja Persram, president of Toronto-based Sustainable Alternatives Consulting Inc., who has been a major champion of the proposed legislative changes. “Of those, a fairly large number — both large and small — are keen to move forward.”

Ontario is now the third jurisdiction in Canada — behind Yukon and Nova Scotia — to embrace LICs as a method for stimulating efficiency investments by easing the upfront capital burden that often make such investments unpalatable for property owners.

Brian Kelly, manager of sustainability for the Region of Durham, said what amounts to a minor regulatory change on Wynne’s part opens the door for municipalities to stimulate major residential retrofit activity, create local jobs, and at the same time help consumers do what they need to do to lower energy and water costs.

There’s little, if any, political or financial risk to the province. But the impact is potentially huge, in terms of lowering emissions, reducing pressure on utility infrastructure, and spurring economic activity.

Toronto councillor Mike Layton, who is pushing the city to launch a pilot project as soon as possible, called the approved amendments an “exciting” development. “Staff will be bringing a pilot project in coming months and I hope we can find money to fund it,” said Layton. “It would be great if we can start getting some real pickup on this.”

The Toronto Real Estate Board, the Toronto Board of Trade, as well as several labour organizations, NGOs and business leaders, have so far backed Layton’s efforts.

As far as seeing the model expanded country-wide, Natural Resources Canada considers the approach a complement or alternative to incentive-based programs that overcomes two barriers: Upfront access to capital and a practical way to pay back loans — i.e. through municipal or local utility billing infrastructure.

“These mechanisms are key to market transformation, helping homeowners move away from reliance on government subsidies to a more market-based arrangement,” according to the ministry.

The federal EcoEnergy home retrofit program, underpinned by nearly $200 million in subsidies, only tapped into 6 per cent of Canada’s housing stock.

“This is potentially a huge spur for the Ontario economy,” said Persram, who expects to see plenty of municipal collaboration on program development. “This allows municipalities to take control of their own destiny.”

If the approach is successful, the Liberal government — perhaps one day Wynne — can take credit for the heavy lifting it has essentially offloaded.

All it took was a signature.

Tyler Hamilton, author of Mad Like Tesla, writes weekly about green energy and clean technologies.

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Tags: Kathleen Wynne, local improvement charges, ontario, PACE financing, PAPER financing
Posted in conservation, efficiency, emissions, financing, ontario, solar, water | 3 Comments »

Celebrate clean energy innovation: spread the word about Mad Like Tesla

Sunday, September 18th, 2011

It’s shameless self promotion, I know, but this is how you create awareness of books, and the point of writing Mad Like Tesla was to create awareness of the innovation going on around clean energy and the immense barriers inventors and entrepreneurs face. I also wanted to celebrate those much-needed risk takers in society, without whom we will never have the kind of breakthroughs necessary to tackle our energy demons. It’s part of the reason I write and have maintained this Clean Break blog for the past six years, without financial gain. It’s a labour of love, as time consuming as it often can be.

Mad Like Tesla: Underdog Inventors and Their Relentless Pursuit of Clean Energy was launched this month and has been well-received. The reviews so far have been positive, and awareness of the book is slowly building. But not fast enough. I want to take this moment to ask my readers, many of whom have already purchased the book (thank you!), to help spread the word. Share this link or the Mad Like Tesla website (www.madliketesla.com) on social media sites such as Facebook and Twitter. Refer to it when commenting on the various blogs you might follow. And for my media friends out there — whether in the mainstream press or the blogosphere — please consider a review, or alternatively, I’m happy to chat about the many odd and inspiring stories in this book. Please see press release here.

Thank you all for your ongoing interest and support. BTW: Many have asked, so I’m happy to report that the e-book version of Mad Like Tesla is now available at Amazon.com.

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Tags: clean energy innovation, energy innovation, Mad Like Tesla
Posted in biofuels, carbon capture, cleantech, conservation, education, efficiency, electric vehicles, emissions, energy storage, Energy-From-Waste (EFW), events, financing, fuel cells, geothermal, green politics, grid, Main Page, nuclear, ontario, peak oil, solar, transportation, Uncategorized, water, wave power, wind | Comments Off

Tsk, tsk: Globe and Mail runs another misleading Wente column on green energy, electric vehicles

Monday, August 29th, 2011

Okay, we all know Globe and Mail columnist Margaret Wente hates green energy, electric vehicles or any non-market efforts, really, to wean ourselves from fossil fuels. We know, even though she never discloses it (but should), that she’s on the board of directors of Energy Probe, a Canadian libertarian think tank that aggressively spreads its belief that climate change is a hoax and green energy such as wind and solar is a waste of time and resources. We also know that Wente likes to be a contrarian because it pumps up her profile. So I wasn’t so shocked when I read yet another column from her bashing the McGuinty government’s green energy policies, and in doing so, cherry picking the facts (or simply spinning them) to mislead her readers. What gets me, however, is how the editors at the Globe and Mail would let it into the paper, as is, and with the headline it was given.

BTW: Here’s my response to her last major assault on green energy back in April 2010.

Here’s my response to Wente’s most recent anti-green column, starting with the Globe’s headline: “Message to McGuinty: Most green-job schemes have been miserable failures.”

I can’t believe the headline writer and overseeing editor would allow the word “most” to make it into that headline. Wente doesn’t back up the “most” claim with any statistics, let alone credible ones. And the few examples she cites are small, based on someone else’s reporting (such as one problematic report in the New York Times) and/or come without any context.

Now, here’s Wente’s opening two paragraphs:

Dalton McGuinty has hit the campaign trail, and he’s paving it green. Earlier this month he announced that Ontario will pump $80-million into building charging stations for electric cars. “They are peppy, they are quiet, and the thing that I like best as a father, and ultimately a grandfather, I would hope, is that they’re clean,” he said. By 2020, he hopes, one out of 20 cars in Ontario will be electrically powered.

Meantime, Costco, the giant retailer, has pulled the plug on its electric car-charging stations, which it had installed in its California parking lots. The reason is that nobody uses them. Even China – which promised it would leapfrog the world in electric-car development – is backing off.

First, Costco is removing chargers that were installed back when GM introduced its EV1 electric vehicle to the market in the 1990s, before the cars were crushed and shredded. Costco says the chargers aren’t used, but that’s largely because electric vehicles only began hitting the market this year and the chargers that are in place are outdated (i.e. based on old standards) or simply stopped working, as you’ll read further down in this Daily Mail story.  Second, Costco is just one company seemingly going against the grain at a time when dozens of others, including Best Buy, IKEA, Walgreens and Lowe’s, are adding them. Personally, I don’t think retail stores are ideal places for EV charging systems, but the fact that so many big brand operations are beginning to test them and deploy them is a good sign. For Wente to cite the Costco decision as proof that EV charging systems, and thus electric vehicles, are being abandoned is quite the stretch. Also completely wrong is her unsupported comment that the Chinese are “backing off.” How she came to this conclusion is beyond me, but perhaps she didn’t read China’s 12th five-year plan. By 2015 China plans to have 4,000 charging stations and growth is expected to increase rapidly from there with plans to invest nearly $5 billion in charging infrastructure by 2020, at which point the country will have at least 10,000 public state-run charging locations, not including the tens, possibly hundreds of thousands of private home and business charging stations that are expected to emerge. That doesn’t sound like backing off.

Indeed, research firm Pike Research projected last week that there will be 7.7 million charging stations for EVs located in homes, workplaces and public spaces worldwide by 2017, with about 1.5 million of them located in the United States. So much for backing off. I’ll admit that’s an ambitious prediction, but the trend is clear — yet Wente cites a decision by Costco to remove obsolete charging systems as proof that the market for EVs and their associated charging infrastructure is fading.

The rest of the world has begun to discover that the green dream is a mirage. Across the U.S., federal, state and city governments have poured zillions into green schemes. Most have been miserable failures.

The city of Seattle, for example, got $20-million from the U.S. Department of Energy to retrofit houses and make them more energy efficient. The money was supposed to create 2,000 jobs and retrofit at least 2,000 homes. But by this month, only three homes had been retrofitted and only 14 jobs created. Even the greens admit the program is a total flop.

There’s that “most” word again, as in “most have been miserable failures.” She’s referring both generally to green energy initiatives spearheaded by government and specifically to a small $20-million household retrofit program in Seattle that didn’t deliver promised results. Forget that maybe, just maybe this specific program was mismanaged. So what? I mean, programs — private or public — get mismanaged and don’t produce results all the time. Hey, the market even screws up, too. You know, like how mismanagement by U.S. and European banks led to a worldwide financial crisis? No mention of that, of course. Also no mention of how successful the Canadian federal government’s EcoEnergy home retrofit program was before it was cancelled in 2010. In all, Ottawa committed $750 million to a program that encouraged Canadians to spend $4 billion of their own money. In doing so, those Canadians will save an average of $340 million a year every year on their energy bills — all of it money that will be reinvested in the Canadian economy each year. Also, the $4 billion spent by homeowners generated $250 million in GST revenue for the government. All of this also created thousands of jobs, contributing even more tax revenue to Ottawa. How can that be categorized as a miserable failure? It can’t, which is why Wente didn’t mention it — it didn’t fit with her message or her goal, which is to poke holes in the McGuinty government’s green energy and electric vehicle strategy and give momentum to the opposition PC party as a provincial election approaches.

In Massachusetts, the state government poured $58-million into a company called Evergreen Solar Inc. But Evergreen couldn’t compete with cheaper solar panels made in China. In March it closed its factory and laid off 800 people, and this month it declared bankruptcy. In Salinas, Calif., a company called Green Vehicles received a couple of million dollars in government grants to develop an electric car for freeways. It too went under. The mayor says the city will think twice before investing in other startups, regardless of how many jobs they’re supposed to create.

Yes, yes, companies go bankrupt, struggle, lay off people, often because they can’t compete with China or are simply poorly run. These companies are everywhere — biotech, information technology, Internet, automotive, etc., and more so with the U.S. economy continuing to struggle. So Wente cites a company that got lots of U.S. government money but simply couldn’t hit the home run it expected. Is that our standard now? That every bit of public investment MUST result in success? If that’s the case, hell — better shut off the tap that flows to the automotive, forestry and oil and gas sectors, eh? Here’s the thing: the U.S. is actually doing okay competing against the Chinese in solar. It’s exporting more solar product than it’s importing, contrary to popular belief.

Green projects, it turns out, don’t create many jobs, and those jobs are costly. Barack Obama recently visited a plant in Michigan to tout its investment in new battery technology. The plant got grants of $300-million, and expects to create 150 new jobs. That works out to $2-million a job. Then there’s SolFocus, a company in San Jose, Calif., that produces solar panels. The mayor called it an “enormously important” development for the city’s economy,” The New York Times reported. But the company assembles its solar panels in China, and its new headquarters employs just 90 people.

During his 2008 campaign, Mr. Obama promised to create five million green jobs over the next decade. But as The New York Times reported last week, “federal and state efforts to stimulate creation of green jobs have largely failed.”

At this point Wente hasn’t established that green projects don’t create jobs, but she goes ahead and makes this statement anyway, giving only a tiny snapshop of job creation by mentioning two more ventures — one an electric vehicle battery maker and the other a maker of solar panels. She talks about how one government investment in a battery maker worked out to $2-million a job, though she doesn’t talk about future job growth at that company that was seeded by this government money — she only talks about the situation as it stands today so early in the birth of this new market. And this is where Wente goes off tracks, referring to a recent New York Times report that was clearly the inspiration for her column in the first place. That is, she waited for a juicy story in a more left-leaning U.S. newspaper like the Times and used it as a way to legitimize her own biases on the green energy topic. After all, it’s juicy to quote the Times saying “federal and state efforts to stimulate creation of green jobs have largely failed.”

But the Times article was also a failure of journalism. As Joe Romm points out at Climate Progress, isn’t it kind of strange to declare a program a failure about two or three years into a 10-year mandate? As Romm writes, “Imagine if, in 1963, two years after JFK’s famous speech to Congress, the New York Times had run a story, ‘Space program fails to live up to promise.’” Let’s keep in mind as well that the space program wouldn’t have gone far either if, during that time, a U.S. Congress filled with anti-science, anti-government Tea Partiers prevented the flow of money into Kennedy’s vision. Obama’s goal is achievable but not when such programs are consistently under attack by state and federal legislators who have only one objective: to defeat and humiliate the U.S. president. This is Wente’s objective with respect to McGuinty, who is also facing resistance but has actually delivered so much more: 20,000-plus green jobs, and counting. Is that a failure? Wente mentions that job count, but she doesn’t directly call it a failure, preferring instead to breeze over results in Ontario and focus on negative outcomes in the U.S. market.

Maybe he should take a look at Spain, which also set out to become the solar-power capital of the world. Everything went fine, so long as the subsidies kept flowing. But when the world economy went south, the Spanish government couldn’t afford them any more and pulled the plug. Bye, bye solar, and bye, bye jobs. By one reckoning, Spain spent half a million euros for each green job it created.

The moral of the story is as clear as a row of giant wind turbines on the horizon. Governments that invest in risky, expensive and unproven technologies will probably lose big. The only way they are able to lure private investment is with generous subsidies and long-term contracts. And even then, the failure rate is high. Ontario has already attracted its share of “suitcase” companies that are here so long as the money flows, and not a moment longer. And when they go belly-up, guess who’s stuck with the bills?

It’s predictable that Wente again trots out the Spanish example, which she also used in her wind-bashing column a year earlier. It’s the only example she can really offer up, largely because Spain’s solar market did in fact go through troubles and it is one cautionary tale that’s worth learning from. However, Spain is not representative of the market and its health. Wente neglects to mention countries that are thriving, how quickly solar costs are falling, how worldwide investment in solar continues to grow at a healthy pace, and how Ontario solar manufacturers are saying they can deal with a 30 per cent reduction in the feed-in-tariff rate as part of a plan to eventually eliminate incentives. No question Ontario could have done a better job executing its green-energy programs, and while there may be the occasional dud along the way, what this province is doing is investing in a future that Wente apparently can’t see or appreciate, or maybe doesn’t want.

By the way, to call solar and wind and electric vehicles “unproven” technology is, well, wrong. This stuff works, and it works well. It’s no less proven than the iPhone or BlackBerry Wente carries on her hip. Is it risky? Yes, because the deck is stacked against it and folks like Wente don’t make it any easier. But risk is also a matter of perception. I mean, drilling deep in the Gulf of Mexico or North Sea is risky, and so is investing in the oil sands, and so is sending people deep underground to mine for coal.

Anyway, none of this is going to change Wente’s mind. But I do expect better journalism from her, at least on this issue. And I do expect the editors of the Globe and Mail to challenge unsubstantiated claims, even if they come from columnists.

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Tags: Dalton McGuinty, electric vehicles, green energy, Margaret Wente, Obama
Posted in electric vehicles, emissions, financing, ontario, solar, Uncategorized, wind | 17 Comments »

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  • Tyler Hamilton

    tyler Tyler Hamilton is associate publisher and editor-in-chief of Corporate Knights magazine and former business columnist for the Toronto Star. This blog is a personal project started in April 2005.


    Check out my new book Mad Like Tesla: Underdog Inventors and Their Relentless Pursuit of Clean Energy, published by ECW Press.


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    If you would like to inquire about speaking engagements, research and writing services, or general consulting services please contact Tyler at cleantechreporter(AT)gmail.com


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