Victoria – British Columbia (BC) has already begun profiting from the Province’s investment in establishing a low carbon economy, and there is a wealth of future economic opportunities for BC in global carbon markets, according to two new reports. The first report offers an economic analysis showing how BC’s investment in offsets is supporting jobs and generating revenues and the second report shows a future path forward beyond BC’s borders.
The PricewaterhouseCoopers (PwC) report “Economic Analysis of British Columbia Carbon Offset Projects” shows that 31 carbon offset projects in BC will have stimulated approximately $317 million in capital spending between 2008 and 2012.
“A cleaner environment and a strong economy can go hand-in-hand,” said Pacific Carbon Trust CEO Scott MacDonald. “For the first time in BC, we have the data that shows how investing in carbon offset projects has opened the door to significant private investment and revenue generation.”
Pacific Carbon Trust calculates that, on average, for every dollar spent by Pacific Carbon Trust to purchase offsets, another $8 is spent in the private sector.
“BC’s green economy is flourishing in large part because of the investments public and private industries are making in technology and infrastructure that reduces greenhouse gas emissions. These reports are an endorsement of our province’s carbon market and an outline of the positive impact it’s having on our economy. We are world leaders in striking a balance between protecting our environment and generating valuable jobs for BC families,” said Environment Minister Terry Lake.
“The PwC report found that these 31 carbon reduction projects contributed an estimated $243 million of GDP to the economy,” said Bruce McIntyre, partner and leader of the PwC report. “We also estimated that this activity will generate $49 million in federal, provincial and municipal tax revenues between 2008 and 2012.”
In addition to creating economic benefits, these projects are also generating emission reductions. As of June 29, 2012, the projects have generated approximately 4.7 million tonnes of reductions of which 1.5 million has been verified and sold to Pacific Carbon Trust. Pacific Carbon Trust estimates 27 million tonnes of reductions will be achieved over the projects’ lifetime.
Despite global economic uncertainty, the Deloitte report, “British Columbia: Balancing Opportunities and Risks in the Global Carbon Economy”, makes clear that significant growth and opportunity exist and that BC is uniquely positioned to capitalize on these opportunities. It notes that BC is at a very important juncture. In less than a decade, regulated carbon markets have grown to more than USD120 billion, representing more than eight billion tonnes of carbon transactions.
“With the establishment of Pacific Carbon Trust and other related green measures, British Columbia established a leadership position in North America. However, it is clear that other jurisdictions and countries are also readying themselves to participate in the emerging global carbon marketplace. We believe that British Columbia is still in a strong position to leverage its early investments as these markets begin to link up and others seek our clean tech solutions, expertise and strong environmental brand,” said Deloitte partner Shayne Gregg.
In June, the Province announced BC achieved GHG reductions of 4.4 per cent while at the same time achieving GDP and population growth above the Canadian average between 2007 and 2011.
Fast Facts
- The PricewaterhouseCoopers (PwC) report, ‘Economic Analysis of British Columbia Carbon Offset Projects’, analyzes the economic impact of 31 BC carbon offset projects from which Pacific Carbon Trust has purchased offsets, from between 2008 and 2012 undertaken by both non-profit and for- profit organizations.
- The 31 offset projects stimulated an estimated $317.3 million in private capital spending occurring over a five-year period, from 2008 to 2012.
- From 2008 to 2012, an estimated $242.6 million in Gross Domestic Product (GDP) will be generated through expenditure related to these 31 offset projects:
- Direct impact of $162.7 million (e.g., capital and operating spending such as the purchase of equipment to be installed at the project site)
- Indirect impact of $52.4 million (e.g., companies providing materials or supplies needed to manufacture equipment to be installed at the project site)
- Induced impact of $27.5 million (e.g., spending on goods and services as a result of changes to the wages and salaries of those employed in the direct and indirect industries)
