About BC's Green Economy

British Columbia has a diverse history and an economy that has been traditionally based on the province's abundant natural resources. In recent years however, global economic crises, fluctuating commodity markets, and severe climate-related events have destabilized BC's economy and have sparked a transition to a new, greener economy -- one that is being driven by clean and renewable energy technologies and more sustainable, environmentally-sensitive industry and business practices.

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Greening BC's economy involves a transition to one that is powered by green technologies and practices in every dimension of society and one that generates green jobs, creates more sustainable businesses, and stimulates low-carbon investments province-wide.

This transition is being powered by a new generation of knowledge-based workers who must be equipped with the skills and experience to develop the products and services demanded in a more carbon- and resource-constrained world. However, it is important not to consider the green economy in BC as separate from the economy as a whole, but rather as a growing trend that is apparent across all industries and all sectors.

The core green components of BC's economy can be quantified using a framework that consists of six key sectors responsible for supplying the bulk of green products and services to other areas of the economy in order to help lower greenhouse gas (GHG) emissions and to reduce human-related impacts on the environment.

These six sectors are:

1. Clean and Alternative Energy (including renewable energy, bioenergy, and fuel cells);

2. Energy Management and Efficiency (including energy storage, transmission infrastructure and smart grid, energy efficient lighting and heating, ventilating, and air conditioning (HVAC), and low-carbon and public transportation);

3. Green Building and Sustainable Design (including green construction, infrastructure development, community design, and real estate);

4. Environmental Protection and Resource Management (including elements of agriculture/aquaculture/silviculture, remediation, pollution control, water and waste management, carbon capture and storage, and environmental consulting/engineering);

5. Carbon Finance and Investment (including carbon management, carbon trading, offset markets, green lending, and venture capital); and

6. Green Knowledge and Support (including research and development (R&D), advanced education and training, law, information and communications technology (ICT), non-governmental organizations (NGOs), and the public sector).

In 2008, these sectors combined generated $18.4 billion in revenues for BC companies and contributed roughly $15.3 billion to provincial gross domestic product (GDP) -- $11.1 billion direct and $4.2 billion indirect -- which is equal to 10.2 percent of the province's total GDP for that year (see figure below).

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Source: GLOBE Foundation

Figure: Direct GDP contributions by sector to BC's green economy in 2008 ($ millions).

The greatest contribution comes from electric power generation, transmission, and distribution in the Clean and Alternative Energy sector, which can be largely attributed to the province's clean hydro-electricity system. Most of the activity in the green sectors of BC's economy is concentrated in the south-western regions of the province -- the areas with the highest populations and access to infrastructure. However, other regions throughout BC are directly responsible for the generation of a large percentage of the wealth from the exploitation of the province's natural resources, including its renewable energy capacity, abundant supplies of lower-carbon natural gas, and its green forestry-related products.

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By developing innovative practices, adopting new technologies, and consulting the services offered by firms that are part of the six key sectors, traditional primary resource-based industries -- including mining, forestry, agriculture/aquaculture, and oil and gas -- are progressively "greening" their operations across the province. The same holds true for secondary and service-based sectors, such as in the manufacturing, wholesale, retail, transportation, warehousing, tourism, hospitality, and food services industries.

It is also important to recognize that internal efforts are being made within many organizations in other areas of BC's economy that fall outside of the six key green sectors. Green teams and committees, sustainability managers, and engaged employees are working to improve environmental performance within their companies and to promote energy and resource efficiency.

Opportunities in BC's renewable energy and clean technology sectors are predicted to increase substantially. Sustainable Development Technology Canada (SDTC) projects that Canada's clean technology industries will grow at a cumulative annual growth rate (CAGR) of 117 percent from 2010 to 2012 -- driven by growth in the areas of power generation, energy efficiency, energy infrastructure, and more sustainable industrial processes. BC currently has Canada's largest clean technology cluster compared with national gross domestic product (GDP), although from a commercialization perspective, the province is relatively weak.

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Growth in BC's green economy will be driven in part by the development of major green and clean energy projects. The North Coast/Nechako and Northeast Development Regions could potentially see the largest green job creation benefits relative to the size of their current labour force, stemming from investment in these proposed major projects. In addition, BC's Innovative Clean Energy (ICE) Fund is investing $25 million annually into clean energy projects province-wide.

In terms of trade in green products, BC has historically followed a pattern of trade and commerce that trends toward the export of raw natural resource and energy commodities, and the import of manufactured technologies and products.

The province exported more than $1.3 billion in green commodities in 2009 (including $290 million in clean electricity). The province also imported nearly $2.4 billion in green equipment, machinery, and electricity -- some of which was sourced from high-carbon generating facilities. This negative trade balance for green technologies and products has been growing steadily in the province since 1999 and stood at a cumulative balance of more than $4.4 billion in 2009.

British Columbia's weakness in product exports is somewhat compensated for through its stronger export of consulting and environment-based services. Further export diversification of BC's mind and management expertise for addressing environmental issues is seen as a huge opportunity -- especially in relation to emerging nations, such as China and India, where environmental concerns are growing and the countries are actively looking to green their economies.

For more information on BC's key green sectors and specific companies active in the province's green economy, download the free reports below.

Learn more about green jobs in BC

BC Green Economy Downloads

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