2050: An energy odyssey

Lawrence Solomon
National Post
May 9, 2009

Ottawa’s low-carbon energy projections leave Canada producing more energy from coal, oil sands, nuclear and forests. This is green?

Here’s a toast to the National Round Table on the Environment and the Economy for providing us with a vision of what a carbon-lite Canada looks like. A toast, too, to environmental groups like Pembina, for endorsing the Round Table’s vision and letting all Canadians in on the future that these carbonistas foresee for us.

First, they say we need coal, lots of it, and especially lots of coal mining, if we’re to reach their vision. In fact, under the Round Table’s recently released blueprint — Achieving 2050: A Carbon Pricing Policy For Canada — the coal mining sector, enhanced by carbon capture technology, is one of the economy’s big winners, attracting a growing share of investment. Thanks to these new government-subsidized carbon technologies, remote, coal-rich mountains could become worthy of plunder for the first time.

Next, they say we need lots of crude petroleum, most of which will be invested in boosting the tar sands — petroleum crude extraction is another big winner in the carbonista economy. As the Round Table enthused in a background document, Canada will be an energy superpower, a “leading provider of world energy.”

Natural gas is also a winner, completing the Round Table’s government-subsidized blessing of all forms of fossil fuel extraction. The Round Table seems troubled not at all by the inevitable scarring of the countryside that accompanies mining for coal and tar-sand bitumen, presumably because those harms will be forgiven in full with the emergence of new technologies to capture and store carbon dioxide [Carbon dioxide, a colorless, odorless, tasteless gas, until recently considered benign or beneficial. Of late, some scientists have attributed to it a large role in global warming.] Neither does the Round Table seemed bothered by the possibility that the carbon storage technologies are doomed to fail, as many predict. That may be because the Round Table has a better purpose for the carbon than storage — more energy production. By pumping the carbon dioxide underground in a process called “enhanced oil recovery,” the Round Table expects we’ll be able to extract even more fossil fuel energy.

The Round Table’s obsession with making Canada an energy superpower isn’t limited to fossil fuels. Its plan calls for the takedown of our forests — they’ll be needed to produce ethanol for cars. And for mega dams in Labrador, Quebec, Ontario and Manitoba, along with little dams everywhere. And for massive new transmission corridors to carry wind power to urban markets from remote regions and to carry power of all sorts in an east-west direction, from province to province.

But the biggest energy bonanza of all would fall to the nuclear power sector, particular in Ontario, where the Round Table projects some 24,000 megawatts of new nuclear construction. That works out to some 20 giant nuclear reactors of the kind that Atomic Energy of Canada Ltd. now touts — each one twice the size of a typical Pickering reactor. To have these built by 2050, as the Round Table recommends, the reactors would need to come on stream in rapid-fire order. After the first of them was completed a decade from now, the following 19 would pop up at the rate of one every 18 months, giving Ontario the developed world’s most ambitious nuclear program, and making Canada the developed world’s most energy-intensive economy by far.

With Canada awash in all this energy, you’d think prices might fall. Think again. Households in Alberta and Ontario face electricity rate hikes “in the order of 50% by 2050,” the Round Table tells us, while “For space heating and domestic hot water in houses, natural gas costs could increase by about 60%.” We’ll be using less of the energy ourselves, it explains, the better to increase our exports to others and maintain “Canada’s growing role as a major energy exporter.”

To them, it’s all quite idyllic. The report writers revealed life in 2050, where large scale manufacturing and industry has largely vanished, along with the car and the single family home, and Canada has become a nation of artisans, techies and service providers. “Housing densities have increased to the point where 70% of Canadians live in some form of multiple dwelling. With the majority of jobs in services and light manufacturing, these land uses are integrated into residential developments so that it has become common to live and work in the same ‘walkable’ neighbourhood or work at home for several days each week.”

The cost to the economy of this nirvana? Not much if done right. “With an efficient carbon pricing policy, the overall economy would likely be reduced in size from what it would have been by only about 1% to 3% in 2020 and 3% to 5% in 2050.” The cost to the individual? It would fall disproportionately on the poor: “For the 20% of Canadians with lowest income, a carbon price of $100 per tonne in 2020 would add approximately $1,000 a year to living costs.” The Round Table report doesn’t tell us what the costs to the poor will be by 2050, when the carbon price doubles to $200 or what our fate will be if, after we turn our economy and our society inside out, its fantastical projections don’t work out.

But the Round Table also doesn’t want us to take its computer model simulations too seriously, because it as much as admits, and repeatedly so, that its work is tantamount to navel gazing on a computer game. As it explains in describing how its proposals might affect different Canadian industries and consumers, “the NRTEE recognizes the uncertainty inherent in our analysis, and therefore the following should be viewed as directional at best.”

At best, the Round Table is pointing us in the right direction. More likely, it has it all backwards, and it is asking Canada to embark on a course of economic and environmental destruction based on predicting the future half a century out assuming the existence of technologies that may never exist to solve a global warming [Global warming is the increase in the average measured temperature of the Earth’s near-surface air and oceans in the-20th century, and its projected continuation.] problem that may never have existed.

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Obama and Raul

Lawrence Solomon
National Post
April 24, 2009

Without doubt, the half-century-old U.S. embargo on trade with Cuba failed to democratize Cuba’s regime and liberate its citizens. Also without doubt, trading with Cuba over that half century, as Canada, European nations, and more than 100 other countries have done, has likewise failed.

Cuba is a communist dictatorship. Short of revolution, it will change at the times and on the choosings of its dictators. Barack Obama’s relaxation in aid of freeing political prisoners and promoting human rights — little different from the relaxations of past U.S. administrations — will cause the Castro regime to free not a single soul.

That said, Cuba has been liberalizing. Five years ago, when I visited Havana for 10 days, the average Cuban was tightly controlled. He was not allowed contact with foreigners; he was not allowed to patronize quality restaurants or hotels; he could not purchase most of the goods and services available to the Cuban communist elite — everything from aspirin and other pharmaceuticals to foods, even Cuban coffee.

Last month, as I observed on another 10-day trip, the lot of Cubans had dramatically improved. Cubans now approach tourists without fear; they travel the country and stay in hotels; they eat in the same restaurants as the tourists and Communist officials; they shop where they please for consumer goods and services. They even have access to communication devices: Some retailers offer cell phones, others internet services.

Apart from these gains in personal liberty, brought in by Raul Castro one year ago, privatization is creeping into the agricultural sector and political power is devolving to the municipal level.

Cuba’s reforms under Raul Castro represent a startling break from the past. Obama’s reforms, in contrast, represent a continuation of the past, one that could not be less inconsequential.

First inconsequence: Obama is removing the current cap on dollars that Cuban-Americans may send to relatives in Cuba — $1200 per year, or five times the average Cuban wage of $240 per year. While some Cuban-Americans will doubtless increase their remittances, most Cuban-Americans — more than 90% — don’t reach the current cap as it is.

Second inconsequence: Obama is allowing Cuban-Americans unlimited visits to Cuba, rather than the official limit of one trip every three years. Yet unlimited travel is already the unofficial limit — over the last decade, some 200,000 Americans a year have been visiting Cuba, about half of them illegally, with the governments of both countries enabling the practice. The Castro regime took care not to stamp the passports of Americans who arrived via Canada or Mexico and the U.S. government took care to look the other way when they returned — not one American is known to have been prosecuted for violating the so-called travel ban.

Why would Obama opt for inconsequential reforms when public opinion in the U.S., including public opinion among Cuban-Americans, favoured more dramatic changes, including a lifting of the Cuban embargo?

Perhaps because Obama knows that the Cuban embargo is purely symbolic — its imposition did little to impede Cuban economic development and its removal would do little to improve the Cuban economy. The embargo’s main value to the Cuban regime is as an explanation of its own failures. Its main value to the Obama Administration would come of its cancellation as a reward to Raul, if he ever needs to wring a face-saving concession from Obama.

Cuba is, in fact, China in miniature, a country liberalizing its economy and creating a consumer-focussed middle class while tolerating no dissent that would threaten the regime. It could be no other way.

All tyrannical regimes fear the fate that could await them when they fall — they saw it with Ceausescu’s execution by firing squad in Romania in 1989 and more recently with Saddam’s hanging in 2006. The Botha regime in South Africa was spared a general bloodletting when it fell, through the guise of a Truth and Reconciliation Commission, because Nelson Mandela and the ANC knew they needed the apartheid ruling class’s expertise to avoid Zimbabwe-style economic ruin. Cubans after Castro will rely on Cuban-Americans to rebuild their economy; they won’t need a Truth and Reconciliation Commission to spare the generals now in charge. And they may remember that it was Raul Castro himself who directed the execution squads to slaughter the supporters of the overthrown Batista government.

Obama has nothing of value to offer Raul. And Raul has nothing of value he’ll prematurely part with.

Lawrence Solomon is executive director of Urban Renaissance, a division of Energy Probe Research Foundation.

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Toronto trying to force Green roofs

Stephen Boles
RedGreenandBlue.org
April 21, 2009

North of the border a controversy is starting to gain steam in the nation’s largest city, Toronto. The city has proposed a by-law that would make ‘green roofs’ mandatory in new construction of condos higher than 7 storeys and office or retail complexes greater than 54,000 square feet (about 1/4 of a Wal-Mart Supercenter). The proposed law would require 30-60% of the surface area of buildings’ roofs to be green (depending on the size of the building) and violators would be subject to fines up to $100,000.

A green roof is partially or completely covered with vegetation and soil that has been planted over a waterproof layer on top of the standard roof of a building. The benefits of these roofs are many, including reduced storm water runoff, reduced noise pollution, and increased longevity of the roof by protecting it from natural elements.

Green roofs are also getting attention in this era of greenhouse gas mitigation because of their potential to reduce energy use. The layer of soil and vegetation above the traditional roof provides an additional layer of insulation that reduces cooling in the summer and heating in the winter. Green roofs also reduce the severity of the urban heat island, which is the increase of city temperatures by several degrees over surrounding rural areas. A reduction of the heat island effect means a cooler city and less energy used for air conditioning.

So why all the fuss in Toronto? A battle is evolving between the City of Toronto and the powerful land development industry. For several years the city has been led by a pro-environment mayor who is determined to make Toronto a global centerpiece of environmental responsibility. Some representatives of the city council are so dedicated to the green roof plan that they want it broadened in scope. Deputy Mayor Joe Pantalone has asked city staff to deliver an expanded green roof by-law that would include schools, low-rise commercial buildings, and even private residences.

The developers are publicizing the additional costs involved with building a green roof, which they claim is $18-$28 per square foot over traditional roofs. They argue that this will result in more expensive housing, office space, and retail goods, costs that will be passed on to the tax-paying consumers of these products.

The city has decided to postpone a scheduled April council vote so that the issue can be discussed by the Toronto Planning and Growth Committee again on May 6.

A number of questions came to mind as I reviewed this intriguing story:

  • Instead of strong-arm regulatory tactics, wouldn’t incentives or tax breaks be a much more appealing way to encourage green roof construction? This voluntary approach has been promoted by the developers as a reasonable alternative to the proposed by-law.
  • Has the City of Toronto researched the realities and benefits of implementing and maintaining these roofs on such a large scale? Lawrence Solomon of the Financial Post raises some excellent points and encourages the city to be deliberate and proceed with caution. A pilot project and comprehensive life cycle assessment of green roofs would be logical approaches before approving a city-wide by-law.
  • Most importantly, is the city overstepping its bounds by trying to force this kind of expensive building construction? There are a myriad number of ways that the government influences the construction of buildings. Often this is in the name of public safety, such as sprinkler regulations and electrical codes. Can a by-law that has been proposed to combat climate change be considered a public safety law? Or is this an example of a city going too far by trying to regulate a component of construction that is best left to market-based approaches?If this by-law does pass, it will be interesting to see if this kind of regulated green development policy will spread to other cities in North America.Stephen Boles is co-founder of Kuzuka, a marketplace website that will bring a new level of convenience and confidence to carbon offset customers and provide consulting services to organizations that want to assess and reduce their carbon footprint.
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Danger overhead

Lawrence Solomon
National Post
April 17, 2009

To some, green roofs are wonderful. They absorb rainwater, reducing strain on sewer systems. They insulate buildings from the cold in winter and the heat in summer, and from noise all year long. They provide greenery that building occupants and building neighbours can sometimes view. Some green roofs even provide food.

To others, green roofs are terrible. They add to the capital costs of buildings. They need continual maintenance. They add to the insurance and warranty costs that building owners face. They may even harm the environment.

In the fantasy world of urban planners, green roofs that meet city cost-benefit tests always make economic sense. These tests assign dollar values to mostly intangible benefits such as improved aesthetics and a reduction in noise (at 1.3% of a building’s value for each of the four decibels of sound avoided, for example, one group of planners estimated a mammoth $100-per-square-foot benefit for New York properties).

Planners then subtract the tangible costs of green roofs, such as the extra expense of constructing what is, in effect, a very heavy second roof suspended above the real roof, and ignore the intangible environmental costs associated with this second roof: the additional noise during construction, the additional emissions associated with the extra steel and concrete required in construction. Because the mostly intangible benefits exceed the tangible costs, the planners endorse green roofs.

In the real world of property owners, green roofs suit a determined minority and – given the state of the art – repel the wary majority. Green roofs not only cost a fortune to build, they must be continually planted and weeded – not always easy or convenient given the need to bring men and material to a level above the real roof. Green roofs must be watched over vigilantly to make sure the drainage system that suspends tons of water-soaked soil inches above the real roof doesn’t threaten the occupants below. Weighed against such costs and risks, the benefits of aesthetics and better insulation are too meagre for most.

Toronto doesn’t inhabit the real world. Its lawmakers, impressed by fantasy cost-benefit calculations, are about to make mandatory the installation of green roofs in new construction of large condominium and commercial buildings. The upshot: More expensive housing and higher maintenance fees for Toronto residents, more expensive occupancy costs for businesses, more of the middle class and more businesses leaving an ever-less affordable Toronto, less tax revenue to support city services, more suburban sprawl.

One other upshot: a vulnerable building stock. Green roofs are a largely untried technology about to be introduced for the first time on a large scale in Toronto’s winter environment. If a common problem emerges in future, the city would have victimized thousands, perhaps tens of thousands, of hapless condominium owners.

This eventuality – too remote to even cross the minds of Toronto’s political establishment – is top of mind in British Columbia, which is still seared by the experience of its “Leaky Condo” scandal of the 1990s. In the booming housing market of the 1970s and 1980s, B.C. developers aggressively built California-style condo units, often relying on construction techniques suitable to California’s much dryer climate. Then the B.C. government, to promote energy conservation, required buildings to be airtight, inadvertently dooming much of the B.C. housing stock: Buildings – built in B.C.’s wet environment by developers who didn’t anticipate the new government standards – rotted en masse.

The cost of this unanticipated vulnerability in the B.C. housing stock? Between $1.5-billion and $2-billion to B.C. society, including hundreds of millions of dollars in destroyed property values for some 72,000 households. The citizenry still suffers from the anguish of seeing their homes destroyed.

Because of B.C.’s experience with this systemic failure, the province balked at the Brave New World of green roofs: Its Homeowner Protection Office stepped in to stop local municipalities that were planning to mandate green roof programs, especially after it discovered that three of the province’s four home warranty insurance providers wanted no part of the green roofs and that the fourth would only countenance green roofs “under very special circumstances – the right project, the right site, the right designer, the right installer and plenty of financial security for the insurer.”

While a Homeowner Protection Office study acknowledged that, in theory, “it is technically feasible to design, install and maintain a green roof such that it performs as well as a conventional roof or better,” it also balanced the theory with real-world practice: “The issues surrounding green roofs centre on the cost benefit of green roofs, the probability that such roofs will be designed, installed and maintained properly and the risks that may arise if they are not.”

Its bottom line: Experience in Germany and other countries shows that the learning process for green roofs can take time and that “an evolutionary approach that allows costs, benefits and risks to be assessed in each case is preferable to more directive, mandatory approaches.”

Toronto and other governments can best help their citizens, and best promote the healthy development of green roofs, by scrapping mandatory requirement for green roofs and also scrapping the many regulations that discourage green roofs, including myriad building code requirements and zoning that prevent unencumbered use of roofs for food production. Green roofs will then get built when people, not planners, judge them to be of benefit, and without systemic risk to society.

Lawrence Solomon is executive director of Energy Probe and Urban Renaissance Institute, and author of The Deniers: The world-renowned scientists who stood up against global warming hysteria, political persecution, and fraud.

 

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Stimulating sprawl

Lawrence Solomon
National Post
April 4, 2009

Sprawl in Toronto just got its biggest boost in 50 years, thanks to Ontario Premier Dalton McGuinty’s decision this week to stimulate the economy through a $9-billion spending spree on transportation infrastructure. Look for Toronto to bust out all over – North, East and West – in line with the major routes he promises to fund. And look for low-density sprawl to spread to Toronto’s detriment, just as occurred with the uneconomic transportation infrastructure built in the past.

Fifty years ago, the big impetus to sprawl was the creation of Metropolitan Toronto, a melding of a viable Toronto with its struggling suburbs. Among the legacies of Metro was the financial destruction of the Toronto Transportation Commission, then the premier transit system in North America. Before Metro’s creation, all of Toronto’s public transit routes were robust and profitable. Upon Metro’s creation, the TTC’s profitable routes were bled in an attempt to provide transit service to the unprofitable low-density suburbs. Soon, virtually all of the TTC’s routes, in both city and suburb, became unprofitable, and the city, too, fell on hard times.

Metro’s ruinous expansion of transportation infrastructure included an expressway network that was abruptly halted with one major component, the Spadina Expressway, half built. Another major component in an even earlier state of construction – the Crosstown Expressway – was likewise halted (Toronto residents will recognize the only part that was built as what now appears to be a seemingly endless interchange connecting the Don Valley Parkway to Bayview Avenue and Bloor Street).

Now the Crosstown is back, a few miles north of the original Crosstown route and recast as a light-rail road, rather than as an automobile expressway. Like the original, this express route, now called the Eglinton Crosstown Rapid Transit line, is divorced from the needs of riders – the minimal traffic to be carried can justify perhaps one-tenth of its estimated $4.6-billion expense. The rest is waste.

McGuinty’s justification for the line is neither need nor profitability, but “shovel-ready projects” and “economic stimulus.” In this he is not alone: Governments throughout the continent are shovelling money as fast as they can, largely into low- or no-value infrastructure projects that have never had either the financing or the customer demand to proceed. With wasteful government spending now seen as a virtue, all restraints are off, particularly since much of the spending is also justified on environmental grounds. Along with unneeded transit and roads, we’re seeing unneeded windmills and other green power plants, and the unneeded power grids to support them.

In the government’s thinking, the immense cost of this stimulus spending, and the decades of indebtedness it brings, is justified by an immediate benefit to the economy and a long-term benefit to the environment. But the consequences to the environment are often negative, not positive, even with seemingly praiseworthy projects such as public transit.

This was the case with Metropolitan government 50 years ago, when subsidized public transit and other infrastructure fuelled the growth of the modern suburb, and this was also the case almost 100 years ago, when public transit played a dominant role in the creation of Toronto’s older suburbs.

Until the 1920s, Toronto’s suburbs were viable – small, self-supporting communities that had developed on the basis of local agriculture or some other local industry. Transit to the suburbs – at the time provided by a profit-oriented private sector – was minimal, in keeping with the minimal demand. Then Toronto’s municipal government asked the private sector to operate unprofitable routes to the suburbs and, when it refused, took over the private company and bent transit services to its will. The suburbs soon over-expanded, became financially insolvent and, when tough economic times came in the 1920s and 1930s, they became derelict and most became bankrupt, leading the province to take over their financial affairs.

Dereliction is also a consequence for Toronto of sprawling suburbs. City taxes must rise to provide services for those in the suburbs who use city roads and other city services; city taxes must then rise again as businesses and residents flee the tax burden in the city, leaving those behind with higher tax burdens. City governors, meanwhile, cut back on services to fend off a tax revolt. It is this vicious cycle that leads to the hollowing out of cities.

Preceding every hollowing out, we hear hollow words. This week, we heard Premier McGuinty announcing “the most ambitious project of its kind in Canadian history” and promising that more money would come.

Lawrence Solomon is executive director of Energy Probe and Urban Renaissance Institute, and author of Toronto Sprawls.

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