Forest’s new enemies – environmentalists

Lawrence Solomon
National Post
December 3, 2003

Four environmental groups and four resource companies yesterday endorsed the giveaway of half of Canada’s great boreal forests to industrial interests. The CEOs of the resource companies deserve credit, of sorts, for actions designed to enrich their shareholders. The CEOs of the environmental groups deserve only censure.

The four companies – tar sand company Suncor, timber company Tembec, and pulp and paper companies Domtar and Alberta-Pacific Forest Industries – all have good reason to sign on to the deal, called the Canadian Boreal Initiative. Canadian governments have been considering the proposal, and are good bets to ultimately join in. The companies, merely by putting their names to the document, are effectively creating claims to share in the plunder of some one million square miles of Crown land, all of it the property of the people of Canada. Even better, the Boreal Initiative promises them a host of subsidies needed to exploit these boreal resources, covering everything from infrastructure to research and development to labour costs to regulatory relief. Without subsidies, few, if any, of the far-flung resources in Canada’s great northern regions would have commercial value.

What did the companies give up to put themselves first in line for these one million square miles – stretching from the Atlantic to the Pacific Oceans – to which they would otherwise have no claims? They promised to forgo exploiting the other half of Canada’s boreal region – another one million square miles, to which they also have no claims. “If this works, man, oh, man, what a model it will be for the world,” enthused Bill Hunter, president and CEO of Alberta-Pacific, one of the continent’s largest pulp producers and a company whose welfare is utterly dependent on government subsidies.

Only a fool in the business of exploiting natural resources could turn down such a deal, which would bring some 10% of the world’s remaining intact forests into immediate play. And only a fool in the business of protecting natural resources could propose converting pristine lands that have no commercial value to loggers and miners into candidates ripe for ruin. Thanks to the four environmental groups – Canadian Parks and Wilderness Society, Ducks Unlimited, San Francisco-based Forest Ethics and especially Canada’s World Wildlife Fund – lands that support some of the continent’s largest populations of grizzly bears, wolves and other mammals, and that provides breeding grounds for about one-third of the continent’s land birds and waterfowl, have suddenly become prey to the profit motive.

The environmental groups fear that doing nothing could lead to a worse fate for the forests. “We’re not waiting to have our backs to the wall and have a crisis,” explained the World Wildlife Fund’s Monte Hummel, not understanding that Canada’s great boreal region has remained intact only because the private sector values its bottom line, and that the past crises almost all arose where governments were pressured into providing subsidies. To the corporate economic bottom line, environmentalists thus propose adding two others – a social and an environmental bottom line – with government picking up the resulting tab.
Monte Hummel:
friend of the forest?
Credit: Phil Carpenter
The Gazette

Under this enlightened “triple-bottom line,” remote resource exploitation becomes profitable. From the environmentalists’ point of view, they are accelerating the exploitation of some parts of the environment in order to spare other, more valuable parts. From the companies’ point of view, they are taking the bird in the hand because they know they may never get a shot at the birds in the bush. As a bonus, they can paint themselves green, and let the World Wildlife Fund silence the local grassroots environmental opposition that would otherwise rise up to counter new resource projects.

In fact, the environmentalists pushing the Boreal Initiative are not only giving up the bird in the hand, they are maximizing the chances of losing the birds in the bush. Politicians provide subsidies to resource industries for one reason above all others: to maintain jobs for remote resource towns, and thus to maintain themselves in office. Every future unsustainable resource community that will spring up as a result of the Boreal Initiative will become a powerful lobby for more and more resource extraction. Politicians will have no compunctions about tearing up the old agreement and imposing a new one.

We already have a precedent. In 1999, several environmental groups negotiated the Ontario Forest Accord, which effectively delivered most of northern Ontario’s Crown forests to mining and logging interests. Under the accord, the environmentalists promised to help sawmills and pulp and paper mills step up their logging and endorsed the taxpayer subsidies needed to maintain uneconomic resource operations. The very day the groups signed the accord with the industry and with Ontario’s Mike Harris government, the government declared that the mining industry would be free to prospect in protected areas, and then mine in protected areas should ore be found. “We were duped,” the environmentalists protested. The lead negotiator on the duped side: Monte Hummel, president of the World Wildlife Fund.

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Statistical Appendix: Key debt ratios and country classifications

The World Bank Group
Global Development Finance 2003 – Striving for Stability in Development Finance  December 1/2003
What can or should be done to promote access by developing countries to external capital? What can be done to prevent growing economies from the disruptive effects of sharp reversals in financing?
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International Migration, Remittances and Poverty in Developing Countries

Richard H. Adams, Jr., and John Page
World Bank Policy Research Working Paper 3179
December 1/2003
This paper examines the impact of international migration and remittances on poverty in a broad cross-section of developing countries. Four key findings emerge.
Posted in Immigration | Leave a comment

LEDs signal energy revolution

Lawrence Solomon
National Post
November 26, 2003

While governments have diddled for decades in the energy marketplace, subsidizing a 500-megawatt nuclear plant here, a 5,000-kilometre Arctic pipeline there, the big energy gains have come via pint-sized innovations in conservation and energy-efficiency. This decade, the biggest little gainers on the planet are LEDs, or light-emitting diodes, those gizmos that first entered the public consciousness in the 1970s through calculators and digital watches.

LEDs are fabulously efficient devices that often can save upwards of 90% of the energy required by conventional lighting methods. Their latest accomplishment: They have just about taken over the market for exit signs in commercial buildings, where they now have an 80% market share. Not impressed? The electricity savings from this one tiny segment of the North American marketplace amounted to about 7.5 terrawatt hours in 2002, and once LEDs have fully penetrated the exit sign market, the North American power grid will no longer need the output of closer to 10 terrawatt hours. That’s equivalent to the power produced by almost three Pickering-sized nuclear reactors.

LEDs will soon dominate the North American traffic light market, too, in the process eliminating about five terrawatt hours a year, or one-and-a half nuclear reactors. It has just started in on billboards and other commercial signs (another two reactors), and Christmas lights (just one-half reactor, because the holiday season is so short).

LED products like these eliminate the need for electric power plants. Other LED products reduce the need for oil wells and tar sand plants. The biggest potential here lies in lights for cars, trucks and buses, into which LEDs have just begun to make inroads. More than 1.5 billion gallons of gasoline a year, and 1.2 billion gallons of diesel fuel, would be saved once LEDs take over. That’s enough fuel to drive all the continent’s cars for four days a year, and all its buses and trucks for 12 days a year.

Large-scale energy supply projects such as nuclear plants and Arctic pipelines leave behind large footprints that create a host of problems for society: They produce pollutants that need to be managed, they consume land that needs to be expropriated, and they require subsidies that need to be raised through taxes. Efficient devices like LEDs, in contrast, tend to solve societal problems instead of creating them by contracting the footprint.

Because LEDs convert more fuel into light than heat, they save on air conditioning costs. Because they produce little heat, they require less heat shielding and cause fewer fires. Because they need less energy to do the job, they produce less pollution. Because they last 10 times longer and are far more durable, they often pay for themselves in maintenance costs alone.

In automobile taillights, for example, these and other design features produce lights that will outlive the vehicle. No replacement costs. No warnings from policemen who otherwise pull you over to tell you you’re driving with a faulty light. No traffic accidents, and liability, caused by lights that fail to function. LEDs, in fact, are safer than conventional lights that function perfectly. LED headlights direct more of their light to the road surface, where it’s needed, less into the eyes of oncoming drivers. LED brake lights take 200 milliseconds less time to turn on: For a car travelling on the highway at about 100 kilometres per hour, that comes to about six metres — more than the length of most cars. To boot, because LEDs are compact, and don’t need access panels for their replacement, they give car designers more options and drivers more trunk space.

LED technology is still in its early days. Although it is present in hundreds of different consumer markets, all involve niche applications, generally where coloured light is required. It has yet to make a breakthrough in most white-light settings, such as street and residential lighting, but those days are fast approaching.

LED’s accomplishments have come chiefly through the efforts of companies like General Electric Co., an early innovator, and without subsidy. Governments have a role to play, though, if they want to speed the pace of LED development, and that of other energy-conserving products. They can stop subsidizing the nuclear plants, Arctic pipelines and other large-footprint projects that compete with the countless little innovations that ultimately make all the difference in the world.

Lawrence Solomon is executive director of Urban Renaissance Institute and Consumer Policy Institute, divisions of Energy Probe Research Foundation. E-mail: LawrenceSolomon@nextcity.com

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No Fault vs Tort Insurance Schemes

Associated Economic Consultants Ltd.
November 24/2003
A Survey of the empirical evidence.
Posted in Automobile | Leave a comment